Exhibit 10.4



 EXHIBIT 10.4 
  

 TRANSFER AND SERVICING AGREEMENT 
 by and among 
 ACAS BUSINESS LOAN TRUST 2006-1, 
 as the Issuer, 
 ACAS BUSINESS
LOAN LLC, 2006-1, 
 as the Trust Depositor, 
 AMERICAN CAPITAL STRATEGIES, LTD., 
 as the Originator and as the Servicer, 

and 
 WELLS FARGO BANK, NATIONAL
ASSOCIATION, 
 as the Indenture Trustee and as the Backup Servicer 
 Dated as of July 28, 2006 
  

 ACAS Business Loan Trust Notes, Series 2006-1 
 Class A, Class B, Class C, Class D and Class E Notes 







 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I    DEFINITIONS
	  	2
	         Section 1.01
	  	Definitions	  	2
	         Section 1.02
	  	Other Terms	  	55
	         Section 1.03
	  	Computation of Time Periods	  	55
	         Section 1.04
	  	Interpretation	  	55
	         Section 1.05
	  	Section References	  	56
	         Section 1.06
	  	Calculations	  	56
		
	 ARTICLE II    ESTABLISHMENT OF ISSUER; TRANSFER OF LOAN ASSETS
	  	56
			
	         Section 2.01
	  	Creation and Funding of Issuer; Transfer of Loan Assets	  	56
	         Section 2.02
	  	Conditions to Transfer of Initial Loan Assets to Issuer	  	59
	         Section 2.03
	  	Acceptance by the Issuer	  	60
	         Section 2.04
	  	Conveyance of Substitute Loans	  	60
	         Section 2.05
	  	Conveyance of Additional Loans	  	64
	         Section 2.06
	  	Release of Released Amounts	  	66
	         Section 2.07
	  	Delivery of Loan Files	  	66
	         Section 2.08
	  	Certification by Indenture Trustee; Possession of Loan Files	  	67
	         Section 2.09
	  	Optional Repurchase by the Originator of Certain Loans; Limitations on Substitution and Repurchase	  	68
		
	 ARTICLE III    REPRESENTATIONS AND WARRANTIES
	  	69
			
	         Section 3.01
	  	Representations and Warranties Regarding the Originator	  	69
	         Section 3.02
	  	Representations and Warranties Regarding Each Loan and as to Certain Loans in the Aggregate	  	73
	         Section 3.03
	  	Representations and Warranties Regarding the Initial Loans in the Aggregate	  	74
	         Section 3.04
	  	Representations and Warranties Regarding the Loan Files	  	74
	         Section 3.05
	  	Representations and Warranties Regarding Initial Loans and Portfolio Criteria	  	74
	         Section 3.06
	  	Representations and Warranties Regarding the Trust Depositor	  	75
	         Section 3.07
	  	Representations and Warranties Regarding the Servicer	  	78
	         Section 3.08
	  	Representations and Warranties of the Backup Servicer and the Indenture Trustee	  	80
		
	 ARTICLE IV    PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS
	  	81
			
	         Section 4.01
	  	Custody of Loans	  	81
	         Section 4.02
	  	Filing	  	81
	         Section 4.03
	  	Changes in Name, Corporate Structure or Location	  	81
	         Section 4.04
	  	Chief Executive Office	  	82
	         Section 4.05
	  	Costs and Expenses	  	82
	         Section 4.06
	  	Sale Treatment	  	82
	         Section 4.07
	  	Separateness from Trust Depositor	  	82








 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 ARTICLE V    SERVICING OF LOANS
	  	82
			
	         Section 5.01
	  	Appointment and Acceptance; Responsibility for Loan Administration	  	82
	         Section 5.02
	  	General Duties	  	83
	         Section 5.03
	  	Administration	  	83
	         Section 5.04
	  	Disposition upon Termination of Loan	  	84
	         Section 5.05
	  	Subservicers	  	84
	         Section 5.06
	  	Further Assurance	  	84
	         Section 5.07
	  	Notice to Obligors	  	85
	         Section 5.08
	  	Collection Efforts; Modification of Loans; Release of Loan Files	  	85
	         Section 5.09
	  	Prepaid Loan	  	87
	         Section 5.10
	  	Acceleration	  	87
	         Section 5.11
	  	Taxes	  	88
	         Section 5.12
	  	Insurance Premiums	  	88
	         Section 5.13
	  	Remittances	  	88
	         Section 5.14
	  	Servicer Advances	  	88
	         Section 5.15
	  	Realization upon Defaulted Loan	  	88
	         Section 5.16
	  	Maintenance of Insurance Policies	  	89
	         Section 5.17
	  	Other Servicer Covenants	  	89
	         Section 5.18
	  	Servicing Compensation	  	91
	         Section 5.19
	  	Payment of Certain Expenses by Servicer	  	91
	         Section 5.20
	  	Records	  	92
	         Section 5.21
	  	Inspection	  	92
	         Section 5.22
	  	The Backup Servicer	  	92
	         Section 5.23
	  	[Reserved]	  	95
	         Section 5.24
	  	Covenants of the Backup Servicer	  	95
	         Section 5.25
	  	Appointment of Successor Backup Servicer; Successor Backup Servicer to Act	  	95
		
	 ARTICLE VI    COVENANTS OF THE TRUST DEPOSITOR
	  	96
			
	         Section 6.01
	  	Legal Existence	  	96
	         Section 6.02
	  	Loans Not to Be Evidenced by Promissory Notes	  	96
	         Section 6.03
	  	Security Interests	  	96
	         Section 6.04
	  	Delivery of Collections	  	97
	         Section 6.05
	  	Regulatory Filings	  	97
	         Section 6.06
	  	Compliance with Law	  	97
	         Section 6.07
	  	Activities; Transfers of Notes or Certificates by Trust Depositor	  	97
	         Section 6.08
	  	Indebtedness	  	98
	         Section 6.09
	  	Guarantees	  	98
	         Section 6.10
	  	Investments	  	98
	         Section 6.11
	  	Merger; Sales	  	98
	         Section 6.12
	  	Distributions	  	98
	         Section 6.13
	  	Other Agreements	  	99

  

 -ii- 








 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	         Section 6.14
	  	Separate Legal Existence	  	99
	         Section 6.15
	  	Liability of Trust Depositor and Others	  	100
	         Section 6.16
	  	Bankruptcy Limitations	  	100
	         Section 6.17
	  	Chief Executive Office	  	100
		
	 ARTICLE VII    ESTABLISHMENT OF ACCOUNTS; DISTRIBUTIONS; RESERVE FUND
	  	101
			
	         Section 7.01
	  	Trust Accounts; Collections	  	101
	         Section 7.02
	  	Reserve Fund Deposit	  	102
	         Section 7.03
	  	Trust Account Procedures	  	102
	         Section 7.04
	  	Holder Distributions	  	103
	         Section 7.05
	  	Allocations and Distributions	  	103
	         Section 7.06
	  	Determination of LIBOR	  	108
		
	 ARTICLE VIII    SERVICER DEFAULT; SERVICER TRANSFER
	  	109
			
	         Section 8.01
	  	Servicer Default	  	109
	         Section 8.02
	  	Servicer Transfer	  	110
	         Section 8.03
	  	Appointment of Successor Servicer; Reconveyance; Successor Servicer to Act	  	110
	         Section 8.04
	  	Notification to Holders and Swap Counterparties	  	112
	         Section 8.05
	  	Effect of Transfer	  	112
	         Section 8.06
	  	Database File	  	112
	         Section 8.07
	  	Successor Servicer Indemnification	  	112
	         Section 8.08
	  	Responsibilities of the Successor Servicer	  	113
	         Section 8.09
	  	Rating Agency Condition for Servicer Transfer	  	113
		
	 ARTICLE IX    REPORTS
	  	114
			
	         Section 9.01
	  	Quarterly Reports; Compliance with Portfolio Criteria	  	114
	         Section 9.02
	  	Officer’s Certificate	  	114
	         Section 9.03
	  	Other Data	  	114
	         Section 9.04
	  	Annual Report of Accountants	  	115
	         Section 9.05
	  	Annual Statement of Compliance from Servicer; Obligor Financial Statements	  	116
	         Section 9.06
	  	Annual Summary Statement	  	116
	         Section 9.07
	  	Reports of Foreclosure and Abandonment of Mortgaged Property	  	116
	         Section 9.08
	  	Notices	  	116
		
	 ARTICLE X    TERMINATION
	  	117
			
	         Section 10.01
	  	Optional Repurchase and Refinancing of Notes	  	117
	         Section 10.02
	  	Sale of Loan Assets	  	118
		
	 ARTICLE XI    REMEDIES UPON MISREPRESENTATION; REPURCHASE OPTION
	  	118
			
	         Section 11.01
	  	Repurchases of, or Substitution for, Loans for Breach of Representations and Warranties	  	118

  

 -iii- 








 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	         Section 11.02
	  	Reassignment of Repurchased or Substituted Loans	  	119
		
	 ARTICLE XII    INDEMNITIES
	  	119
			
	         Section 12.01
	  	Indemnification by Servicer	  	119
	         Section 12.02
	  	Indemnification by Trust Depositor	  	120
	         Section 12.03
	  	Liabilities to Obligors	  	121
	         Section 12.04
	  	Tax Indemnification	  	121
	         Section 12.05
	  	Adjustments	  	122
	         Section 12.06
	  	Operation of Indemnities	  	122
		
	 ARTICLE XIII    MISCELLANEOUS
	  	123
			
	         Section 13.01
	  	Amendment	  	123
	         Section 13.02
	  	Protection of Title to the Issuer	  	124
	         Section 13.03
	  	Governing Law	  	125
	         Section 13.04
	  	Notices	  	126
	         Section 13.05
	  	Severability of Provisions	  	128
	         Section 13.06
	  	Third Party Beneficiaries	  	129
	         Section 13.07
	  	Counterparts	  	129
	         Section 13.08
	  	Headings	  	129
	         Section 13.09
	  	No Bankruptcy Petition; Disclaimer	  	129
	         Section 13.10
	  	Jurisdiction	  	130
	         Section 13.11
	  	Tax Characterization	  	130
	         Section 13.12
	  	Prohibited Transactions with Respect to the Issuer	  	130
	         Section 13.13
	  	Merger or Consolidation of the Originator or the Servicer	  	131
	         Section 13.14
	  	Assignment or Delegation by the Originator	  	131
	         Section 13.15
	  	Limitation of Liability of Owner Trustee	  	131
	         Section 13.16
	  	No Partnership	  	132
	         Section 13.17
	  	Successors and Assigns	  	132
	         Section 13.18
	  	Acts of Noteholders	  	132
	         Section 13.19
	  	Duration of Agreement	  	132
	         Section 13.20
	  	Servicer Assignment and Resignation	  	132
	         Section 13.21
	  	Limited Recourse	  	133
	         Section 13.22
	  	Non-Confidentiality of Tax Treatment	  	133
	         Section 13.23
	  	Alternative Exchange Listing	  	133

  

 -iv- 








 TABLE OF CONTENTS 
  
  

					
	 	  	 	  	Page
	EXHIBITS AND SCHEDULES	  	
	 Exhibit A
	  	Form of Assignment	  	A-1
	 Exhibit B
	  	Form of Closing Certificate of Trust Depositor	  	B-1
	 Exhibit C
	  	Form of Closing Certificate of Servicer/Originator	  	C-1
	 Exhibit D-1
	  	Form of Initial Certification	  	D-1-1
	 Exhibit D-2
	  	Form of Final Certification	  	D-2-1
	 Exhibit E
	  	Form of Request for Release of Documents	  	E-1
	 Exhibit F
	  	Form of Additional Loan Information Schedule	  	F-1
	 Exhibit G
	  	List of Loans	  	G-1
	 Exhibit H
	  	Form of Quarterly Servicer Report	  	H-1
	 Exhibit I
	  	Form of Subsequent Transfer Agreement	  	I-1
	 Exhibit J
	  	Form of Subsequent Purchase Agreement	  	J-1
	 Exhibit K
	  	Credit and Collection Policy	  	K-1
	 Exhibit L
	  	List of Subordinated Loans	  	L-1








 TRANSFER AND SERVICING AGREEMENT 
 THIS TRANSFER AND SERVICING AGREEMENT, dated as of July 28, 2006, is by and among: 
  

	 	(1)	ACAS BUSINESS LOAN TRUST 2006-1, a statutory trust created and existing under the laws of the State of Delaware, as the issuer (together with its successors and assigns, in
such capacity, the “Issuer”); 

  

	 	(2)	ACAS BUSINESS LOAN LLC, 2006-1, a Delaware limited liability company, as the trust depositor (together with its successor and assigns, in such capacity, the “Trust
Depositor”); 

  

	 	(3)	AMERICAN CAPITAL STRATEGIES, LTD., a Delaware corporation (together with its successors and assigns, “ACAS”), as the servicer (together with its successors
and assigns, in such capacity, the “Servicer”), and as the originator (together with its wholly-owned subsidiaries, successors and assigns, in such capacity, the “Originator”); and 

  

	 	(4)	WELLS FARGO BANK, NATIONAL ASSOCIATION, (together with its successors and assigns, “Wells Fargo”), not in its individual capacity but as the indenture
trustee (together with its successors and assigns, in such capacity, the “Indenture Trustee”), and not in its individual capacity but as the backup servicer (together with its successors and assigns, in such capacity, the
“Backup Servicer”). 

 R E C I T A L S

 WHEREAS, in the regular course of its business, the Originator originates, purchases and/or acquires Loans (as defined herein);

 WHEREAS, the Trust Depositor purchased the Initial Loans from the Originator and may purchase from time to time thereafter certain
Additional Loans and Substitute Loans (such Initial Loans, Additional Loans and Substitute Loans, together with certain related property as more fully described herein, being the Loan Assets as defined herein); 
 WHEREAS, it was a condition to the Trust Depositor’s acquisition of the Initial Loans from the Originator that the Originator make certain
representations and warranties regarding the Loan Assets for the benefit of the Trust Depositor as well as the Issuer; 
 WHEREAS, on
the Closing Date (as defined herein) the Trust Depositor will fund the Issuer by selling, conveying and assigning all its right, title and interest in the Initial Loan Assets and certain other assets to the Issuer; 
 WHEREAS, during the Pre-Funding Period and the Replenishment Period (each as defined herein), the Issuer intends to purchase Additional Loans from
the Trust Depositor from time to time using Principal Collections with respect to the Loan Assets, and, solely during the Pre-Funding Period, using Unused Proceeds (as defined herein), and the Trust Depositor wishes to convey any such Additional
Loans to the Issuer; 







 WHEREAS, the Issuer is willing to purchase and accept assignment of the Loan Assets from the Trust
Depositor pursuant to the terms hereof; and 
 WHEREAS, the Servicer is willing to service the Loan Assets for the benefit and account
of the Issuer pursuant to the terms hereof; 
 NOW, THEREFORE, based upon the above 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: 
 ARTICLE I 
 DEFINITIONS

 Section 1.01 Definitions 
 Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings: 
 “ACAS” has the meaning given to such term in the Preamble. 
 “ACAS Transfer
Agreement” means the ACAS Transfer Agreement, dated as of the date hereof, between ACAS and the Trust Depositor, as amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to time. 
 “Addition Notice” means, with respect to any transfer of Additional Loans or Substitute Loans to the Issuer pursuant to Section 2.04,
Section 2.05 or Section 11.01, as applicable, (and the Trust Depositor’s corresponding prior purchase of such Loans from the Originator), a notice, which shall be given at least five days prior to the related Subsequent
Transfer Date, identifying the Additional Loans or Substitute Loans, as applicable, to be transferred, the Outstanding Loan Balance of such Additional Loans or Substitute Loans, as applicable, and, in the case of Substitute Loans, the related
Substitution Event (with respect to an identified Loan or Loans then in the Loan Pool) to which such Substitute Loan relates, with such notice to be signed both by the Trust Depositor and the Originator. 
 “Additional Loan” means any Eligible Loan purchased by the Issuer from the Trust Depositor for inclusion in the Loan Pool and having a Cut-Off Date
during the Pre-Funding Period or the Replenishment Period. 
 “Additional Loan Assets” means any assets purchased by the Issuer from the
Trust Depositor during the Pre-Funding Period with Principal Collections or Unused Proceeds, and, during the Replenishment Period, with Principal Collections, which assets shall include the Trust Depositor’s right, title and interest in the
following: 
  

 - 2 - 








 (a) the Additional Loans and all Collections and other monies due or to become due in payment of such
Loans on and after the related Cut-Off Date, including any Prepayment Amounts, any Prepayment Premiums, any Late Charges, any payments in respect of a casualty or early termination, any Insurance Proceeds and any Liquidation Proceeds received with
respect to the foregoing; 
 (b) the Collateral related to such Loans (to the extent the Originator, other than solely in its capacity as
collateral agent under any loan agreement with an Obligor, has been granted a Lien thereon), including the security interest of the Trust Depositor in such Collateral, all proceeds from any sale or other disposition of such Collateral and all
Insurance Policies; 
 (c) the Loan Files and all documents and records (including computer records) relating thereto; 
 (d) all guarantees, indemnities, warranties and other agreements or arrangements of whatever character from time to time supporting or securing payment of
such Loans; and 
 (e) all income, payments, products, proceeds and other benefits of any and all of the foregoing. 
 “Additional Loan Information Schedule” means the schedule attached to this Agreement as Exhibit F. 

“Additional Principal Amount” means, as of any Determination Date, with respect to any Payment Date, an amount equal to (but in no event less than
zero) the positive excess, if any, of the Aggregate Outstanding Principal Balance prior to any distribution on such day over the sum of (i) the Aggregate Outstanding Loan Balance as of the last Business Day of the related Collection
Period plus (ii) all Principal Collections on deposit in the Principal Collection Account as of the last Business Day of the related Collection Period. 
 “Additional Servicing Fee” means an amount, in addition to the Servicing Fee, necessary to induce a Successor Servicer to serve as Servicer hereunder. 
 “Administrative Expenses” means fees and expenses due or accrued with respect to any Payment Date and payable by the Issuer: 
 (i) prior to the occurrence of a Fee Event, to the Indenture Trustee, the Backup Servicer and the Owner Trustee, any amounts owed to such
parties under the Transaction Documents for fees and expenses, other than for fees, expenses and other amounts related to indemnification; provided that in no event shall the amounts payable pursuant to clause Second of
Section 7.05(a): 
 (A) to the Indenture Trustee and the Backup Servicer, in the aggregate, exceed $20,000 for
any 12 month period (excluding amounts paid as part of the Indenture Trustee Fee, the quarterly fees to be paid to the Backup Servicer and recording expenses incurred by the Indenture Trustee in recording Assignments of Mortgages after an Event of
Default or Servicer Default to the extent not paid by the Servicer); 
  

 - 3 - 








 (B) to the Owner Trustee, exceed $5,000 for any 12 month period (excluding amounts paid
as part of the Owner Trustee Fee); 
 (C) if a Successor Servicer is being appointed, to the Indenture Trustee for costs and
expenses associated with such appointment, exceed $100,000 in the aggregate for any given servicing transfer; 
 (ii)
following the occurrence of a Fee Event, to the Indenture Trustee, the Backup Servicer and the Owner Trustee, any amounts owed to such parties under the Transaction Documents for fees and expenses, other than for fees, expenses and other amounts
related to indemnification; and 
 (iii) to S&P, Moody’s and Fitch, for their respective surveillance fees.

 “Affiliate” of any specified Person means any other Person controlling or controlled by, or under common control with, such specified
Person. For the purposes of this definition, “control” (including the terms “controlling”, “controlled by” and “under common control with”), when used with respect to any specified Person means the possession,
direct or indirect, of the power to vote 5% or more of the voting securities of such Person or to direct or cause the direction of the management and policies of such Person whether through the ownership of voting securities, by contract or
otherwise. 
 “Agented Notes” means one or more promissory notes issued by an Eligible Obligor wherein (a) the Loan is originated by
the Originator in accordance with the Credit and Collection Policy as a part of a syndicated loan transaction, (b) upon an assignment of the note to the Trust Depositor under the ACAS Transfer Agreement and in turn to the Issuer under this
Agreement, the original note will be endorsed in blank, and held by the Indenture Trustee, on behalf of the Noteholders and the Swap Counterparties, or, in the case of a Noteless Loan, a copy of the related Loan Register shall have been provided to
the Indenture Trustee, as applicable, (c) the Issuer, as assignee of related indebtedness, will have all of the rights (but none of the obligations) of the Originator with respect to such indebtedness and the Collateral, including the rights,
directly or through the administrative agent, to receive and collect payments in its own name and to enforce its rights against the Obligor thereof, (d) the indebtedness in respect of such notes is secured by an undivided interest in the
Collateral which also secures and is shared by, on a pro rata basis, all other holders of such Obligor’s notes of equal priority issued under the related Designated Loan Agreement, and (e) the Originator (or American Capital Financial
Services) is the collateral agent for all loans made to such Obligor under the Designated Loan Agreement; provided that Agented Notes shall not include (1) the obligations, if any, of any agents under the Loan Documents evidencing such
Agented Notes, and (2) the interests, rights and obligations under the Loan Documents evidencing such Agented Notes that are retained by the Originator or are owned or owed by other noteholders. 
 “Aggregate Notional Amount” shall have the meaning given to such term in the Indenture. 
  

 - 4 - 








 “Aggregate Outstanding Loan Balance” means, as of any date of determination, the Loan Pool Balance
minus the sum of (i) the Outstanding Loan Balances of all Ineligible Loans then in the Loan Pool and (ii) the Outstanding Loan Balances of all Defaulted Loans then in the Loan Pool. 
 “Aggregate Outstanding Principal Balance” means, as of any date of determination, the sum of the Outstanding Principal Balances of each Class of Notes
Outstanding on such date. 
 “Agreement” means this Transfer and Servicing Agreement, as amended, modified, restated, replaced, waived,
substituted, supplemented or extended from time to time. 
 “American Capital Financial Services” means American Capital Financial Services,
Inc., a Delaware corporation and a wholly owned subsidiary of the Originator. 
 “Assignment” means each Assignment, substantially in the
form of Exhibit A, relating to an assignment, transfer and conveyance of Loans and related property by the Trust Depositor to the Issuer. 
 “Assignment Date” means each date on which the Trust Depositor transfers Loans, or portions thereof, to the Issuer, which date shall be (i) the Closing Date, in the case of the Initial Loans and (ii) the
applicable Subsequent Transfer Date, in the case of the Substitute Loans and Additional Loans. 
 “Assignment of Mortgage” means, as to each
Loan secured by an interest in real property, one or more assignments, notices of transfer or equivalent instruments, each in recordable form and sufficient under the laws of the relevant jurisdiction to reflect the transfer of an undivided interest
in the related mortgage, deed of trust, security deed or similar security instrument and all other documents related to such Loan to the Issuer as assignee of the Trust Depositor and to grant a perfected Lien thereon in favor of the Indenture
Trustee on behalf of the Noteholders and the Swap Counterparties; provided with respect to Agented Notes and all other Loans where a collateral agent has been appointed under the related Loan Documents to hold the security interest in the
collateral securing the Loan, Assignment of Mortgage shall mean such documents, including assignments, notices of transfer or equivalent instruments, each in recordable form as necessary, as are sufficient under the laws of the relevant jurisdiction
to reflect the transfer to the collateral agent for all holders of notes issued by the Obligor under the related Designated Loan Agreement that rank pari passu in terms of security interest, of the related mortgage, deed of trust, security
deed or other similar instrument securing such notes and all other documents relating to such notes and to grant a perfected Lien thereon by the Obligor in favor of the collateral agent for all such noteholders. 
 “Average Life” means, on any Measurement Date with respect to any Loan, the number obtained by dividing (a) the sum of the products of (i) the
number of years (rounded to the nearest one tenth) from such Measurement Date to the respective dates of each successive Scheduled Payment of principal of such Loan and (ii) the respective amounts of principal of such Scheduled Payments by
(b) the sum of all future Scheduled Payments of principal on such Loan. 
 “Backup Servicer” has the meaning given to such term in
the Preamble and includes any successor backup servicer hereunder. 
  

 - 5 - 








 “Backup Servicer Termination Notice” has the meaning given to such term
in Section 5.25(a). 
 “Backup Servicer Transfer” has the meaning given to such term in
Section 5.25(b). 
 “Backup Servicing Fee” has the meaning given to such term in the fee letter, dated as of the date hereof,
among the Originator, the Trust Depositor, the Issuer and the Indenture Trustee, as amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to time. 
 “Bankruptcy Code” means the United States Bankruptcy Code, Title 11 of the United States Code, as amended. 

“Broadly Syndicated Loans” means any Loan to an Obligor issued as part of a loan facility with an original loan size (including any first and second
lien loans included in the facility) greater than $250,000,000. 
 “Business Day” means any day which is neither a Saturday nor a Sunday,
nor another day on which banking institutions in the cities of New York, New York or Minneapolis, Minnesota are authorized or obligated by law, executive order, or governmental decree to be closed; provided that, if any action is required of
the Ireland Paying Agent, then, for purposes of determining when such action is required, Dublin, Ireland will be considered in determining “Business Day”. 
 “Calculation Agent” has the meaning given to such term in the Swap. 
 “Call Period” means the period beginning on the date after August 27, 2009, on which the Outstanding Principal Balance of the Offered Notes is less
than or equal to 10% of the Outstanding Principal Balance of the Offered Notes on the Closing Date. 
 “CCC Excess Amount” means, as of any
date of determination, an amount equal to 50% of the excess of (a) the sum of the Outstanding Loan Balances of all Loans included in the Loan Pool that have an S&P Rating of “CCC+” or lower over (b) the product of
(x) the Aggregate Outstanding Loan Balance times (y) 30%. 
 “CCC Excess Condition” means, as of any date of determination,
the CCC Excess Amount shall be equal to or less than 12.8% of the Aggregate Outstanding Loan Balance. 
 “Certificate” means each ACAS
Business Loan Trust 2006-1 Certificate representing a beneficial equity interest in the Issuer and issued pursuant to the Trust Agreement. 
 “Certificate Distribution Account” has the meaning given to such term in the Trust Agreement. 
 “Certificate Register” has the meaning given to such term in the Trust Agreement. 
 “Certificateholder” has the meaning given to such term in the Trust Agreement. 
 “Class” means any of the group
of Notes identified herein as, as applicable, the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes or the Class E Note. 
  

 - 6 - 








 “Class A Interest Amount” means, with respect to each Interest Accrual Period, an amount equal to the
product of (i) the Outstanding Principal Balance of the Class A Notes as of the first day of such Interest Accrual Period after giving effect to all distributions made on such day and (ii) the applicable Class A Note Interest
Rate for such Interest Accrual Period. 
 “Class A Note Interest Rate” means the annual rate of interest payable with respect to the
Class A Notes, which shall be equal to LIBOR plus 0.23% per annum (calculated on the basis of a year of 360 days and actual days elapsed in the Interest Accrual Period). 
 “Class A Noteholder” means each Person in whose name a Class A Note is registered in the Note Register.

 “Class A Notes” means the ACAS Business Loan Trust 2006-1, Class A Floating Rate Asset Backed Notes, Series 2006-1, issued pursuant
to the Indenture. 
 “Class B Accrued Payable” means, with respect to any Payment Date, the sum of, for each preceding Payment Date, the
excess, if any, of (i) the amount that would have been calculated as the Class B Interest Amount on each such preceding Payment Date if the calculation had been made using clause (ii)(a) of the definition of “Class B Interest
Amount” only and clause (ii)(b) of the definition was not used over (ii) the amount calculated as the Class B Interest Amount on each such preceding Payment Date, together with interest accrued thereon at the then applicable
Class B Note Interest Rate in effect on such preceding Payment Date. 
 “Class B Interest Amount” means, with respect to each Interest
Accrual Period, an amount equal to the product of (i) the Note Interest Rate applicable to the Class B Notes for such Interest Accrual Period and (ii) the lesser of (a) the Outstanding Principal Balance of the Class B Notes as of the
first day of such Interest Accrual Period after giving effect to all distributions on such day and (b) the excess, if any, of (x) the Aggregate Outstanding Loan Balance as of the last day of the related Collection Period over (y) the
Outstanding Principal Balance of the Class A Notes as of the first day of such Interest Accrual Period after giving effect to all distributions on such day; provided that for purposes of this definition in no event will the amount
determined pursuant to clause (b) hereof be less than zero. 
 “Class B Note Interest Rate” means the annual rate of interest payable
with respect to the Class B Notes, which shall be equal to LIBOR plus 0.36% per annum (calculated on the basis of a year of 360 days and actual days elapsed in the Interest Accrual Period). 
 “Class B Noteholder” means each Person in whose name a Class B Note is registered in the Note Register. 
 “Class B Notes” means the ACAS Business Loan Trust 2006-1, Class B Floating Rate Deferrable Asset Backed Notes, Series 2006-1, issued pursuant to the
Indenture. 
 “Class C Accrued Payable” means, with respect to any Payment Date, the sum of, for each preceding Payment Date, the excess, if
any, of (i) the amount that would have been calculated as the Class C Interest Amount on each such preceding Payment Date, if the calculation had been made using clause (ii)(a) of the definition of “Class C Interest Amount” only and
clause (ii)(b) of such definition was not used over (ii) the amount calculated as the Class C Interest Amount on each such preceding Payment Date, together with interest accrued thereon at the then applicable Class C Note Interest Rate
in effect on such preceding Payment Date. 
  

 - 7 - 








 “Class C Interest Amount” means, with respect to each Interest Accrual Period, an amount equal to the
product of (i) the Note Interest Rate applicable to the Class C Notes for such Interest Accrual Period and (ii) the lesser of (a) the Outstanding Principal Balance of the Class C Notes as of the first day of such Interest Accrual
Period after giving effect to all distributions on such day and (b) the excess, if any, of (x) the Aggregate Outstanding Loan Balance as of the last day of the related Collection Period over (y) the sum of the Outstanding
Principal Balances of the Class A Notes and Class B Notes as of the first day of such Interest Accrual Period after giving effect to all distributions on such day; provided that for purposes of this definition in no event will the amount
determined pursuant to clause (b) hereof be less than zero. 
 “Class C Note Interest Rate” means the annual rate of interest payable
with respect to the Class C Notes, which shall be equal to LIBOR plus 0.65% per annum (calculated on the basis of a year of 360 days and actual days elapsed in the Interest Accrual Period). 
 “Class C Noteholder” means each Person in whose name a Class C Note is registered in the Note Register. 
 “Class C Notes” means ACAS Business Loan Trust 2006-1, Class C Floating Rate Deferrable Asset Backed Notes, Series 2006-1, issued pursuant to the
Indenture. 
 “Class D Accrued Payable” means, with respect to any Payment Date, the sum of, for each preceding Payment Date, the excess, if
any, of (i) the amount that would have been calculated as the Class D Interest Amount on each such preceding Payment Date, if the calculation had been made using clause (ii)(a) of the definition of “Class D Interest Amount” only and
clause (ii)(b) of such definition was not used over (ii) the amount calculated as the Class D Interest Amount on each such preceding Payment Date, together with interest accrued thereon at the at the Note Interest Rate applicable to the
Class D Notes on such preceding Payment Date. 
 “Class D Interest Amount” means, with respect to each Interest Accrual Period, an amount
equal to the product of (i) the Note Interest Rate applicable to the Class D Notes for such Interest Accrual Period and (ii) the lesser of (a) the Outstanding Principal Balance of the Class D Notes as of the first day of such Interest
Accrual Period after giving effect to all distributions on such day and (b) the excess, if any, of (x) the Aggregate Outstanding Loan Balance as of the last day of the related Collection Period over (y) the sum of the
Outstanding Principal Balances of the Class A Notes, Class B Notes and Class C Notes as of the first day of such Interest Accrual Period after giving effect to all distributions on such day; provided that for purposes of this definition
in no event will the amount determined pursuant to clause (b) hereof be less than zero. 
 “Class D Note Interest Rate” means the
annual rate of interest payable with respect to the Class D Notes, which shall be equal to LIBOR plus 1.25% per annum (calculated on the basis of a year of 360 days and actual days elapsed in the Interest Accrual Period). 
 “Class D Noteholder” means each Person in whose name a Class D Note is registered in the Note Register. 
  

 - 8 - 








 “Class D Notes” means ACAS Business Loan Trust 2006-1, Class D Floating Rate Deferrable Asset Backed
Notes, Series 2006-1, issued pursuant to the Indenture. 
 “Class E Note” means ACAS Business Loan Trust 2006-1, Class E Principal Only
Asset Backed Note, Series 2006-1, issued pursuant to the Indenture. 
 “Class E Noteholder” means each
Person in whose name a Class E Note is registered in the Note Register. 
 “Class Scenario Loss Rate” means, with respect to any Class of
Offered Notes rated by S&P, at any time, an estimate of the cumulative default rate for the Current Portfolio or the Proposed Portfolio, as applicable, consistent with S&P’s rating of such Class of Offered Notes on the Closing Date,
determined by application of the S&P CDO Monitor at such time. 
 “Closing Date” means July 28,
2006. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor
legislation thereto. 
 “Collateral” means the assets of each Obligor that have been pledged as security for each Loan, including but not
limited to real and personal property, accounts receivable, inventory, equipment and intellectual property rights. 
 “Collateral Quality
Table” means table below; provided that the numbers set forth under the heading “Weighted Average Rating Factor” are subject to adjustment by the Recovery Rate Modifier, as described in the definition of Moody’s
Weighted Average Rating Factor Test: 
  

					
	 Weighted
 Average
 Coupon
	 	 Diversity
 Score
	 	 Weighted
 Average
 Rating
Factor

	 12.00%
	 	25	 	3520
	 11.75%
	 	25	 	3455
	 11.50%
	 	25	 	3395
	 11.25%
	 	25	 	3325
	 11.00%
	 	25	 	3260
	 12.00%
	 	23	 	3415
	 11.75%
	 	23	 	3370
	 11.50%
	 	23	 	3350
	 11.25%
	 	23	 	3260
	 11.00%
	 	23	 	3195
	 12.00%
	 	21	 	3275
	 11.75%
	 	21	 	3235
	 11.50%
	 	21	 	3200
	 11.25%
	 	21	 	3150
	 11.00%
	 	21	 	3100

  

 - 9 - 








 “Collection Account” means the Trust Account so designated and
established pursuant to Section 7.01. 
 “Collection Period” means (a) with respect to the first Payment Date, the period
from and including the Closing Date to but excluding the 10th day of the calendar month in which the first Payment Date occurs, and (b) with respect to any subsequent Payment Date, the period from and including the 10th day of the calendar
month in which the prior Payment Date occurred to but excluding the 10th day of the calendar month in which such Payment Date occurs. 
 “Collections” means all payments received on or after the related Cut-Off Date for a Loan on account of (i) interest on the Loans including payments of capitalized interest with respect to Deferred Interest Loans and
all Late Charges and default and waiver charges, (ii) principal on the Loans, (iii) Scheduled Payments and Prepayments, (iv) Liquidation Proceeds on Defaulted Loans, (v) Insurance Proceeds, (vi) Servicer Advances,
(vii) the purchase or repurchase of any Loan, (viii) the amount of any gains or losses incurred in connection with the investment of funds in the Trust Accounts other than the Swap Counterparty Collateral Account, (ix) Net Trust Swap
Receipts and Swap Breakage Receipts and (x) during the Pre-Funding Period and the Replenishment Period, the Required Liquidation Proceeds, all as related to amounts attributable to the Loans in the Loan Pool or the related Collateral, but
excluding any Excluded Amounts and Retained Interest. 
 “Commission” means the United States Securities and Exchange Commission or any
successor thereto. 
 “Computer Records” means the computer records generated by the Servicer or any subservicer that provide information
relating to the Loans and that were used by the Originator in selecting the Loans conveyed to the Trust Depositor pursuant to Section 2.01 (and any Substitute Loans and Additional Loans conveyed to the Trust Depositor pursuant to
Section 2.04 and Section 2.05, respectively). 
 “Contractual Obligation” means, with respect to any Person, any
provision of any securities issued by such Person or any indenture, mortgage, deed of trust, contract, undertaking, agreement, instrument or other document to which such Person is a party or by which it or any of its property is bound or is subject.

 “Corporate Trust Office” means, with respect to the Indenture Trustee or Owner Trustee, as applicable, the office of the Indenture
Trustee or Owner Trustee at which at any particular time its corporate trust business shall be principally administered, which offices at the date of the execution of this Agreement are located at the addresses set forth in
Section 13.04. 
 “Credit and Collection Policy” means those credit, collection, customer relation and service policies relating
to the Loans and related Loan Files described in Exhibit K, as the same may be amended or modified from time to time in accordance with Section 5.17(g); and, with respect to any Successor Servicer, the collection procedures and
policies of such Person at the time such Person becomes Successor Servicer. 
  

 - 10 - 








 “Current Portfolio” means the portfolio (measured by the outstanding principal balance) of (a) the
Loans, (b) Principal Collections held as cash and (c) Eligible Investments purchased with Principal Collections existing immediately prior to the applicable Measurement Date. 
 “Cut-Off Date” means either or both (as the context may require) the Closing Date and any Subsequent Cut-Off Date, as applicable to the Loan or Loans in question. For the avoidance of doubt, the
Cut-Off Date with respect to the Initial Loans shall be the Closing Date. 
 “Defaulted Loan” means a Loan in the Loan Pool with respect to
which there has occurred one or more of the following: (i) both (a) any portion of a payment of interest on or principal of such Loan is not paid when due (without giving effect to any grace period or Servicer Advance) and (b) within
120 days of when such delinquent payment was first due, all delinquencies have not been cured, (ii) an Insolvency Event with respect to the related Obligor, (iii) the related Obligor has suffered any material adverse change (as determined
in accordance with the Designated Loan Agreement), (iv) the Servicer has determined in its sole discretion, in accordance with the Credit and Collection Policy, that such Loan is not collectible, (v) on a quarterly mark-to-market the value
is written down due to such Loan being placed on “non-accrual” status or assigned a risk rating of “Grade 1”, in each case in accordance with the Credit and Collection Policy, in which case the portion of the Loan written down is
defaulted, (vi) the Obligor of the related Loan (excluding DIP Loans) is rated “D” or “SD” by S&P, or (vii) the Loan is rated “CC” or lower by Fitch. 
 “Deferred Interest Loan” means a Loan that requires the Obligor to pay only a portion of the accrued and unpaid interest on a current basis, the
remainder of which is deferred and paid later together with interest thereon as a lump sum and is treated as Interest Collections at the time it is received. 
 “Definitive Notes” shall have the meaning specified in the Indenture. 
 “Delayed Draw Term Loan” means any Loan
that is fully committed on the initial funding date of such Loan and is required to be fully funded in one or more installments on draw dates to occur within one year of the initial funding of such Loan but which, once such installments have been
made has the characteristics of a term loan; provided that any Loan as to which no further installment may be funded shall not be a Delayed Draw Term Loan. 
 “Delinquent Loan” means a Loan in the Loan Pool as to which there has occurred one or more of the following: (i) both (a) any portion of a payment of interest or principal on such Loan is not paid when due
(without giving effect to any grace period or Servicer Advance) and (b) within 60 days of when such delinquent payment was first due all delinquencies have not been cured, (ii) in the case of a Loan which is publicly rated by Moody’s
or S&P, any portion of a payment of interest on or principal of such Loan is not paid when due (after giving effect to any applicable grace period (subject in all cases to a maximum grace period of five Business Days) but without giving effect
to any Servicer Advance made in respect of such payment of interest or principal), (iii) the Loan becomes a Materially Modified Loan as a result of an Obligor’s inability to pay principal or interest, (iv) the related Obligor is not
paying any of the accrued and unpaid interest on a current basis, or (v) any portion of a payment of principal or interest on such Loan comes from the proceeds of another loan made by the Originator or its Affiliates to such Obligor.

  

 - 11 - 








 “Designated Loan Agreement” means the note purchase agreement, credit agreement or other facility under
which a Loan arises. 
 “Determination Date” means, with respect to any Payment Date, the third
(3rd) Business Day prior to such Payment Date. 
 “DIP Loan” means any Loan of an Obligor that is a
debtor-in-possession as defined under the Bankruptcy Code. 
 “Discretionary Repurchased Loan” means, subject to the restrictions set forth
in Section 2.09, any Loan that becomes subject to substitution or repurchase at the discretion of the Issuer; provided that no repurchase of a Discretionary Repurchased Loan shall be undertaken for the primary purpose of
recognizing gains or decreasing losses resulting from market value changes. 
 “Diversity Score” means the single number that indicates
collateral concentration for Loans in terms of both Obligor and industry concentration, which is calculated as described in Annex A attached hereto. 
 “Diversity Test” means a test that will be satisfied, as of any date of determination, if the Diversity Score equals or exceeds the Diversity Score set forth in the Collateral Quality Table in the appropriate column
opposite the then-current Reference Rates, in each case as of such date of determination. 
 “Downgrade Event” means the reduction or
withdrawal of the then-current rating issued by any of Moody’s, S&P or Fitch with respect to any Outstanding Class of Offered Notes. 
 “Effective Date” means the earlier of (i) the date that is 15 Business Days prior to the Payment Date occurring on November 27, 2006 and (ii) the date on which the Aggregate Outstanding Loan Balance equals
the Expected Aggregate Outstanding Loan Balance. 
 “Effective Date Ratings Confirmation” has the meaning
given to such term in Section 2.05(b). 
 “Effective Date Ratings Downgrade” has the meaning
given to such term in Section 2.05(b). 
 “Eligible Deposit Account” means either (a) a segregated account with a Qualified
Institution, or (b) a segregated trust account with the corporate trust department of a depository institution organized under the laws of the United States or any one of the states thereof, including the District of Columbia (or any domestic
branch of a foreign bank), and acting as a trustee for funds deposited in such account, so long as any of the securities of such depository institution shall have a (i) in the case of Moody’s, a short-term credit rating of at least
“P-l”, (ii) in the case of Fitch, a short-term credit rating of at least “F-l+”, and (iii) in the case of S&P, a commercial paper, short-term debt rating of “A-1+” and a long-term unsecured debt rating of
“AA-”. 
 “Eligible Investments” means, with respect to any Payment Date, negotiable instruments or securities or other
investments maturing on or before such Payment Date (a) which, except in the case of demand or time deposits, investments in money market funds and Eligible Repurchase Obligations, are represented by instruments in bearer or registered form or
ownership of which is represented by book entries by a clearing agency or by a Federal Reserve Bank in favor of 

  

 - 12 - 








 
depository institutions eligible to have an account with such Federal Reserve Bank who hold such investments on behalf of their customers, (b) that, as
of any date of determination, mature by their terms on or prior to the Payment Date immediately following such date of determination, and (c) that evidence: 
 (i) direct obligations of, and obligations fully guaranteed as to full and timely payment by, the United States (or by any agency thereof
to the extent such obligations are backed by the full faith and credit of the United States); 
 (ii) demand deposits, time
deposits or certificates of deposit of depository institutions or trust companies incorporated under the laws of the United States or any state thereof and subject to supervision and examination by federal or state banking or depository institution
authorities; provided that at the time of the Issuer’s investment or contractual commitment to invest therein, the commercial paper, if any, and short-term unsecured debt obligations (other than such obligation whose rating is based on
the credit of a Person other than such institution or trust company) of such depository institution or trust company shall have a credit rating from each Rating Agency in the Highest Required Investment Category granted by such Rating Agency, which,
in the case of Fitch, shall be “F1+”; 
 (iii) commercial paper, or other short term obligations, having, at the
time of the Issuer’s investment or contractual commitment to invest therein, a rating in the Highest Required Investment Category granted by each Rating Agency, which, in the case of Fitch, shall be “F1+”; 
 (iv) demand deposits, time deposits or certificates of deposit that are fully insured by the FDIC and either have a rating on their
certificates of deposit or short-term deposits from Moody’s and S&P of “P-1” and “A-1+”, respectively, and, if rated by Fitch, from Fitch of “F1+”; 
 (v) notes that are payable on demand or bankers’ acceptances issued by any depository institution or trust company referred to in
clause (ii) above; 
 (vi) investments in taxable money market funds or other regulated investment companies
having, at the time of the Issuer’s investment or contractual commitment to invest therein, a rating of the Highest Required Investment Category from Moody’s, S&P and Fitch (if rated by Fitch) or otherwise subject to satisfaction of
the Rating Agency Condition; provided that such investments shall have at least an “AAAm” or “AAAmg” rating from S&P; 
 (vii) time deposits (having maturities of not more than 90 days) by an entity the commercial paper of which has, at the time of the Issuer’s investment or contractual commitment to invest therein, a rating of the
Highest Required Investment Category granted by each Rating Agency; 
 (viii) Eligible Repurchase Obligations with a rating
acceptable to the Rating Agencies, which, in the case of Fitch, shall be “F1+” and in the case of S&P shall be “A-l+”; or 
 (ix) any other investments approved in writing by the Rating Agencies. 
  

 - 13 - 








 Eligible Investments shall not include any instrument, security or investment (1) that is an
interest-only security or a mortgaged-backed security, (2) that is purchased at a price (excluding accrued interest) in excess of 100% of par, (3) the S&P rating of which includes a “p”, “pi”, “q”,
“r” or “t” subscript, (4) that is subject to an “offer” to repurchase such instrument, security or investment or (5) that is subject to withholding tax if owned by the Issuer (unless the issuer thereof is
required to make “gross-up” payments to the Issuer covering the full amount of such withholding tax). The Indenture Trustee may purchase or sell to itself or an Affiliate, as principal or agent, the Eligible Investments described above.

 “Eligible Loan” means, on and as of the Closing Date in the case of the Initial Loans and as of the related Cut-Off Date in the case of
any Additional Loans or Substitute Loans, each Loan with respect to which each of the following is true; provided that any Loan which has an S&P Rating shall not include a “p”, “pi”, “q”, “r” or
“t” subscript: 
 (1) the Loan and the pledge of Collateral thereunder is valid, binding and enforceable against the
related Obligor, except the enforcement may be limited by insolvency, bankruptcy, moratorium, reorganization or other similar laws affecting enforceability of creditors’ rights and the availability of equitable remedies, and the Loan contains a
clause substantially to the effect that the related Obligor agrees to make its payments under the Loan without any deduction, offset, netting, recoupment, defenses, reservation of rights or counterclaim; 
 (2) the Loan is evidenced by an Underlying Note or, in the case of a Noteless Loan, the related Loan Register, Designated Loan Agreement
and related loan documents that have been duly authorized and that are in full force and effect and constitute the legal, valid and binding obligations of the Obligor of such Loan, except the enforcement may be limited by insolvency, bankruptcy,
moratorium, reorganization or other similar laws affecting enforceability of creditors’ rights and the availability of equitable remedies; 
 (3) the Loan was originated or purchased in accordance with the terms of the Credit and Collection Policy and arose in the ordinary course of the Originator’s business from the loaning of money to the Obligor
thereof; 
 (4) the Loan is not, and during the six months preceding the Closing Date or the related Cut-Off Date, as
applicable, has not been, a Defaulted Loan or a Loan that is Delinquent and is current with respect to all Scheduled Payments thereunder as of the Closing Date, in the case of an Initial Loan, or as of the related Cut-Off Date, in the case of an
Additional Loan or a Substitute Loan; 
 (5) the Obligor of such Loan has executed all appropriate documentation required by
the Originator; 
 (6) the Loan, together with the Loan File related thereto, is a “general intangible,” a
“payment intangible,” an “instrument,” an “account,” or “chattel paper” within the meaning of the UCC of all jurisdictions that govern the perfection of a security interest granted therein; 
  

 - 14 - 








 (7) all material consents, licenses, approvals or authorizations of, or registrations or
declarations with, any Governmental Authority required to be obtained, effected or given in connection with the making of such Loan have been duly obtained, effected or given and are in full force and effect; 
 (8) any applicable taxes in connection with the transfer of the Loan have been paid and the Obligor has been given any assurances
(including with respect to payment of transfer taxes and compliance with securities laws) required by the Designated Loan Agreement in connection with the transfer of such Loan; 
 (9) the Loan is denominated and payable only in United States dollars in the United States, does not permit the country or currency in
which such Loan is payable to be changed except in accordance with the applicable Designated Loan Agreement and all or substantially all of the assets that constitute the primary Collateral for the Loan are located in the United States, Canada, or
any Group I Country, Group II Country or Group III Country; 
 (10) all payments in respect of the Loan are required to be
made free and clear of, and without deduction or withholding for or on account of, any taxes, unless such withholding or deduction is required by Requirements of Law in which case the Obligor thereof is required to make “gross-up” payments
to ensure that the net amount actually received by the Originator thereunder will equal the full amount that the Originator would have received had no such deduction or withholding been required; 
 (11) the Loan bears some current interest; 
 (12) the Loan, together with the Loan File related thereto, does not contravene in any material respect any Requirements of Law (including, without limitation, laws, rules and regulations relating to usury, truth in
lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy) and with respect to which no party to the Loan File related thereto is in material violation of any such Requirements of Law;

 (13) the Loan is eligible to be sold, assigned or transferred to the Trust Depositor and the Issuer, respectively (giving
effect to the provisions of Sections 9­406 and 9­408 of the UCC), and neither the sale, transfer or assignment of the Loan under this Agreement to the Trust Depositor and the Issuer, respectively, nor the granting of a security interest
under the Indenture to the Indenture Trustee, violates, conflicts with or contravenes in any material respect any Requirements of Law or any contractual or other restriction, limitation or encumbrance; 
 (14) the Loan is not the subject of an offer of exchange or tender by its issuer, for cash, securities or any other type of consideration,
and has not been called for redemption or tender into any other security or property; 
  

 - 15 - 








 (15) no consent or waiver is required in connection with the transfer of the Loan or the
Loan File, or, if such consent or waiver is required, such consent or waiver has been obtained, and, if such Loan is not a loan made as part of a syndicated transaction with a collateral agent and is secured by an interest in real property, an
Assignment of Mortgage has been delivered to the Indenture Trustee; 
 (16) the Loan was documented and closed in accordance
with the Credit and Collection Policy and, other than in the case of Noteless Loans, there is only one current original Underlying Note with respect to such Loan and such Underlying Note has been delivered to the Indenture Trustee and is duly
endorsed; 
 (17) the Loan and the Originator’s, Trust Depositor’s and Issuer’s interest in all related
Collateral are free of any Liens except for Permitted Liens, and all filings and other actions required to perfect the security interest of (a) the Indenture Trustee in the Originator’s, the Trust Depositor’s and the Issuer’s
interest in the Collateral have been made or taken and (b) in the case of Agented Notes, the collateral agent, as agent for all holders of indebtedness issued by the related Obligor under the Designated Loan Agreements in the Collateral;

 (18) the Loan has a maturity no greater than 36 months prior to the Legal Final Maturity Date, and is either fully
amortizing in installments (which installments need not be in identical amounts) over such term or the principal amount thereof is due in a single installment at the end of such term; 
 (19) no right of rescission, set off, counterclaim, defense or other material dispute has been asserted with respect to such Loan;

 (20) any related Collateral with respect to such Loan is insured under an Insurance Policy in accordance with the Credit
and Collection Policy; 
 (21) the Obligor with respect to such Loan is an Eligible Obligor; 
 (22) such Loan does not represent payment obligations relating to “put” rights; 
 (23) the Loan does not by its terms permit the payment obligation of the Obligor thereunder to be converted into or exchanged for equity
capital of such Obligor; 
 (24) the Loan is not a loan or extension of credit made by the Originator or one of its
subsidiaries to an Obligor for the purpose of making any principal, interest, deferred interest or other payment on a loan to the same Obligor necessary in order to keep such loan from becoming delinquent and such Loan is not being kept current by
the Originator or one of its Affiliates making any other loans to this Obligor; 
 (25) the repayment of the Loan is not
subject to material non-credit related risk (for example, a Loan the payment of which is expressly contingent upon the nonoccurrence of a catastrophe), as reasonably determined by the Servicer in accordance with the Credit and Collection Policy;

  

 - 16 - 








 (26) no provision of the Loan has been waived, altered or modified in any way, except by
instruments or documents contained in the Loan File relating to the Loan; 
 (27) the Loan is an “eligible asset” as
defined in Rule 3a-7 of the Investment Company Act of 1940, as amended; 
 (28) the Loan has an Eligible Risk Rating;

 (29) if such Loan was originated on or after December 1, 2000, the Obligor of such Loan has waived all rights of
set-off, counterclaim, rescission and/or defense to payment against the Originator and all assignees thereof; 
 (30) with
respect to Agented Notes, the related Loan Documents (a) shall include a Designated Loan Agreement containing provisions relating to the appointment and duties of an administrative agent and a collateral agent and intercreditor and (if
applicable) subordination provisions substantially similar to the forms provided to and approved by BMO Capital Markets Corp., as the agent under the Fairway CP Transaction, or Wachovia Capital Markets, LLC, as deal agent under the VFCC CP
Transaction, as applicable, and (b) are duly authorized, fully and properly executed and are the valid, binding and unconditional payment obligation of the Obligor thereof; 
 (31) with respect to Agented Notes, the Originator (or American Capital Financial Services) has been appointed the collateral agent of the
collateral, if any, securing such Loan for all indebtedness of the Obligor under the Designated Loan Agreement prior to such Agented Note becoming a part of the Loan Pool; 
 (32) with respect to Agented Notes, if the entity serving as the collateral agent of the security for all syndicated indebtedness the
Obligor has or will change from the time of the origination of the indebtedness, all appropriate assignments of the collateral agent’s rights in and to the collateral on behalf of the holders of such indebtedness have been executed and filed or
recorded as appropriate prior to such Agented Note becoming a part of the Loan Pool; 
 (33) with respect to Agented Notes,
all required notifications, if any, have been given to the collateral agent, the administrative agent and any other parties required by the Loan Documents of, and all required consents, if any, have been obtained with respect to, the
Originator’s assignment of the Agented Notes and the Originator’s right, title and interest in the Collateral to the Issuer as assignee of the Trust Depositor and the Indenture Trustee’s security interest therein on behalf of the
Noteholders and the Swap Counterparties; 
 (34) with respect to Agented Notes, the right to control certain actions of and to
replace the collateral agent and/or the administrative agent of the Loan is by the holders of the indebtedness evidencing not less than a majority of the outstanding amount of all such indebtedness issued by the Obligor under the Designated Loan
Agreement that is ranked pari passu in terms of priority of payment and/or security interest; 
  

 - 17 - 








 (35) with respect to Agented Notes, the Loan is cross-defaulted to all other loans of the
same priority made under the Designated Loan Agreement, the collateral securing the Loan is held by the collateral agent for the benefit of all holders of such loans, and all holders of such loans (a) have an undivided interest in the
collateral securing such loans, (b) share in the proceeds of the sale or other disposition of such collateral on a pro rata basis and (c) may transfer or assign their right, title and interest in the collateral securing such loans;

 (36) all information in the List of Loans is true and correct with respect to such Loan; 
 (37) all original or certified documentation, including but not limited to the original Underlying Note (other than in the case of a
Noteless Loan), required to be delivered to the Indenture Trustee with respect to such Loan has been or will be delivered on the related Assignment Date; 
 (38) immediately prior to the transfer of the Loan, the Originator held good and indefeasible title to and was the sole owner of the Loan being transferred to the Trust Depositor and the Issuer, subject to no Liens or
rights of others except for Permitted Liens, and upon such transfer, the Issuer will hold good and indefeasible title to and be the sole owner of such Loans; 
 (39) to the actual knowledge of the Originator, the documents signed by a Responsible Officer of the Originator contained in the Loan
Files do not (taken as a whole together with the other components of the Loan File) contain any untrue statement of material fact or omit to state a material fact necessary to make the statements contained therein, in light of the circumstances
under which they were made, not misleading; 
 (40) no payment related default, breach or violation has occurred under the
Designated Loan Agreement or, as applicable, the Underlying Note, and no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a payment related default, breach or violation;

 (41) other than in the case of Noteless Loans, all parties executing the Underlying Note had a legal capacity to execute
the Underlying Note at the time it was executed; 
 (42) (a) such Loan is not a Delayed Draw Term Loan or a Loan which
provides the Obligor with a line of credit against which one or more borrowings may be made to the stated principal amount of such facility and which provides that such borrowed amount may be repaid and reborrowed from time to time, and (b) as
of its applicable Cut-Off Date, no Loan contained a provision obligating the Originator to make additional fundings with respect to the portion of the related indebtedness held by the Issuer; 
 (43) neither the Loan nor any portion of the related Collateral constitutes “margin stock” as defined under Regulation U issued
by the Board of Governors of the Federal Reserve System; 
  

 - 18 - 








 (44) the Loan is a First Lien Loan, a Qualified Second Lien Loan, a Second Lien Loan, a
Subordinated Loan or an unsecured Loan; 
 (45) the first-priority Lien related to any First Lien Loan is not contractually
subordinated to the Lien of any other loan or financing to the related Obligor; 
 (46) except with respect to Subordinated
Loans, Qualified Second Lien Loans or Second Lien Loans, the Designated Loan Agreements for multiple Loans to the same Obligor (excluding any guarantor) contain customary cross-collateralization and cross-default provisions; 
 (47) other than Subordinated Loans and unsecured Loans, the Loan is secured by a valid, perfected Lien on all assets that constitute the
Collateral for the Loan (other than assets comprising Collateral that are in addition to the primary Collateral with respect to which the Loan is principally underwritten), subject to Liens that are permitted under the related Loan Documents;

 (48) such Loan is not a DIP Loan; 
 (49) such Loan is not an interest in a Loan acquired indirectly by way of participation from an institution from which the Issuer acquires
a participation interest in a Loan; 
 (50) the fair market value of such Loan, as determined by the Servicer in accordance
with the Credit and Collection Policy, is not less than the Outstanding Loan Balance of such Loan; 
 (51) the Loan
(i) is not an equity security and (ii) does not provide for the conversion or exchange into an equity security at any time on or after the date it is included as part of the Loan Pool; and 
 (52) the Loan is not a Synthetic Obligation. 
 “Eligible Obligor” means, as of any date of determination, any Obligor that satisfies each of the following requirements at all times: 
 (1) such Obligor is not in the gaming, nuclear waste, bio-tech, oil and gas or real estate industries; 
 (2) such Obligor is not a natural Person and is a legal operating entity, duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization; 
 (3) the business being financed by such Obligor has an Operating History of at
least 60 months from the date of its organization; 
 (4) such Obligor is not the subject of any Insolvency Event; 

 

 - 19 - 








 (5) such Obligor is not an Affiliate of any other Obligor hereto (other than as a result
of being an Affiliate of the Originator); 
 (6) no other Loan of such Obligor is delinquent for more than 30 days;

 (7) such Obligor is not a Governmental Authority; 
 (8) such Obligor is in compliance with all material terms and conditions of its Loan Documents; 
 (9) other than in the case of Loans to Obligors representing not more than 10% of the Aggregate Outstanding Loan Balance, such
Obligor’s principal office and all or substantially all of the related primary Collateral are located in the United States; and 
 (10) such Obligor has an Eligible Risk Rating. 
 “Eligible Repurchase Obligations” means repurchase obligations with respect to
any security that is a direct obligation of, or fully guaranteed by, the United States or any agency or instrumentality thereof, the obligations of which are backed by the full faith and credit of the United States, in either case entered into with
a depository institution or trust company (acting as principal) described in clauses (c)(ii) and (c)(iv) of the definition of Eligible Investments. 
 “Eligible Risk Rating” means, on any date of determination, with respect to a designated Obligor, a risk rating of “Grade 3” or “Grade 4.” 
 “Enterprise Value” means, with respect to any Obligor, as of any date of determination, (a) if such Obligor has been the subject of a merger, acquisition or recapitalization transaction within
the most recent three months, the valuation of such Obligor as an entirety as determined in connection with such transaction, as such valuation may be reduced as determined by the Servicer in its reasonable discretion and in a manner consistent with
the Credit and Collection Policy, giving due consideration to transactions involving enterprises comparable to such Obligor occurring during such three-month period, and (b) in all other cases, the valuation of such Obligor as an entirety as
determined by the Servicer in its reasonable discretion and in a manner consistent with the Credit and Collection Policy, giving due consideration to transactions involving enterprises comparable to such Obligor which have been consummated within
the three months prior to such date. 
 “Event of Default” shall have the meaning specified in
Section 5.01 of the Indenture. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any
successor legislation thereto. 
 “Excluded Amounts” means any collections with respect to repurchased Loans or Loans that have been
replaced with Substitute Loans. 
 “Expected Aggregate Outstanding Loan Balance” means $500,000,000.

  

 - 20 - 








 “Fairway CP Transaction” means the Loan Funding and Servicing Agreement, dated as of June 30, 2004,
among ACS Funding Trust II, the Servicer, Fairway Finance Company, LLC, as the Conduit Lender, the Fairway Deal Agent, and Wells Fargo, as amended, modified, waived, supplemented or restated from time to time and all documents executed in connection
therewith and all transactions contemplated thereby. 
 “Fairway Deal Agent” means Harris Nesbitt Corp., a Delaware corporation, as the
agent under the Fairway CP Transaction. 
 “FDIC” means the Federal Deposit Insurance Corporation, or any
successor thereto. 
 “Fee Event” means an Event of Default other than the occurrence of the following: 
 (1) the Class E Note is held by more than ten (10) persons; and 
 (2) the Originator or the Servicer agrees or consents to, or otherwise permits to occur, any amendment, modification, change, supplement
or rescission of or to the Credit and Collection Policy in whole or in part that could reasonably be expected to have a material adverse effect on the Noteholders and the Swap Counterparties. 
 “First Lien Loan” means a Loan (including a portion of a Loan) which (i) is not, except as provided in the last sentence of this definition, by its
terms (and is not expressly permitted by its terms to become) subordinate in right of payment to any other obligation for borrowed money of the Obligor of such Loan, (ii) is secured by a valid first priority perfected security interest or Lien
in, to or on specified Collateral subject to Permitted Liens (whether or not the Issuer and any other lenders are also granted a security interest of a lower priority in additional Collateral), and (iii) is secured by Collateral having a value
(determined as set forth below) not less than the Outstanding Loan Balance of such Loan plus the aggregate Outstanding Loan Balance of all other loans of equal seniority secured by a first Lien or security interest in the same Collateral. The
determination as to whether condition (iii) of this definition is satisfied shall be based on the Servicer’s judgment at the time the Loan is included in the Loan Pool. The right to receive the proceeds of designated Collateral
subject to a set of contractual payment priorities affecting debt issued under or governed by the same Loan Documents will not prevent a Loan (or portion thereof) that satisfies the express requirements hereof from being a First Lien Loan.

 “Fitch” means Fitch, Inc. or any successor thereto. 
 “Fitch Rating” means, for any Loan, the rating assigned to such Loan by Fitch, as updated from time to time by Fitch.

 “Fitch Rating Condition” means, with respect to any action or series of related actions or proposed transaction or series of proposed
transactions, that Fitch shall have notified the Trust Depositor, the Owner Trustee and the Indenture Trustee in writing that such action or series of related actions or the consummation of such proposed transaction or series of related transactions
will not result in a reduction or withdrawal of the then-current rating by Fitch with respect to any Outstanding Class of Notes as a result of such action or series of related actions or the consummation of such proposed transaction or series of
related transactions. 
  

 - 21 - 








 “Fitch Rating Factor” means, for any Loan with a Fitch Rating, the percentage set forth below under the
heading “Fitch Rating Factor” across from the Fitch Rating of such Loan or, in the case of a rating assigned by Fitch at the request of the Issuer (or the Servicer on behalf of the Issuer), the Fitch Rating Factor as assigned by
Fitch. 
  

			
	 Fitch Rating of Loan
	 	 Fitch Rating Factor

	 AAA
	 	0.19%
	 AA+
	 	0.57%
	 AA
	 	0.89%
	 AA-
	 	1.15%
	 A+
	 	1.65%
	 A
	 	1.85%
	 A-
	 	2.44%
	 BBB+
	 	3.13%
	 BBB
	 	3.74%
	 BBB-
	 	7.26%
	 BB+
	 	10.18%
	 BB
	 	13.53%
	 BB-
	 	18.46%
	 B+
	 	22.84%
	 B
	 	27.67%
	 B-
	 	34.98%
	 CCC+
	 	43.36%
	 CCC
	 	48.52%
	 CC
	 	77.00%
	 C
	 	95.00%
	 DDD-D
	 	100.00%

 “Fitch Weighted Average Rating” means, as of any Measurement Date, the percentage obtained by
dividing (a) the sum of the products obtained by multiplying the Outstanding Loan Balance of each Loan (excluding any Defaulted Loans) by its Fitch Rating Factor as of such date by (b) the Loan Pool Balance (excluding any Defaulted
Loans) as of such date. 
 “Fixed Rate Excess” means, as of any Measurement Date, an amount equal to a fraction (expressed as a percentage),
the numerator of which is equal to the product of (a) the excess, if any, of the Weighted Average Coupon for such Measurement Date over the applicable Reference Rate for such Measurement Date and (b) the sum of the Outstanding Loan
Balances of all Fixed Rate Loans (excluding any Defaulted Loans and Delinquent Loans) in the Loan Pool as of such Measurement Date and the denominator of which is equal to the sum of the Outstanding Loan Balances of all Floating Rate Loans
(excluding Delinquent Loans and Defaulted Loans), solely to the extent that the Fixed Rate Excess is included in the calculation of the Weighted Average Spread in the Loan Pool as of such Measurement Date. In determining the Fixed Rate Excess on any
Measurement Date, the Weighted Average Coupon will be calculated as if the Floating Rate Excess were equal to zero, and Loans that are Defaulted Loans and Delinquent Loans will be included in the calculations described herein if, as of such
Measurement Date, such Loans are paying in full current interest pursuant to the terms of their Underlying Note or, in the case of a Noteless Loan, the Designated Loan Agreement. 
  

 - 22 - 








 “Fixed Rate Loan” means a Loan, other than a Floating Rate Loan, where the Loan Rate payable by the
Obligor thereunder is expressed as a fixed rate of interest. 
 “Fixed Rate Permitted Excess Amount” shall
have the meaning given to such term in the Indenture. 
 “Floating LIBOR Rate Loan” means, as of any date of determination, a Loan where the
Loan Rate payable by the Obligor thereof in respect of the majority of the Outstanding Loan Balance of such Loan is based on LIBOR plus some specified percentage in addition thereto, and the Loan provides that such Loan Rate will reset periodically
upon any change in the related LIBOR rate. 
 “Floating Prime Rate Loan” means, as of any date of determination, a Loan where the Loan Rate
payable by the Obligor thereof in respect of the majority of the Outstanding Loan Balance of such Loan is based on the Prime Rate plus some specified percentage in addition thereto, and the Loan provides that such Loan Rate will reset immediately
upon any change in the related Prime Rate. 
 “Floating Rate Excess” means, as of any Measurement Date, a fraction (expressed as a
percentage), the numerator of which is equal to the product of (a) the excess, if any, of the Weighted Average Spread for such Measurement Date over the Minimum Weighted Average Spread for such Measurement Date and (b) the sum of
the Outstanding Loan Balances of all Floating Rate Loans (excluding Defaulted Loans and Delinquent Loans) in the Loan Pool as of such Measurement Date, and the denominator of which is equal to the sum of the Outstanding Loan Balances of all Fixed
Rate Loans (excluding Delinquent Loans and Defaulted Loans), solely to the extent that the Floating Rate Excess is included in the calculation of the Weighted Average Coupon in the Loan Pool as of such Measurement Date. In computing the Floating
Rate Excess on any Measurement Date, the Weighted Average Spread for such Measurement Date will be computed as if the Fixed Rate Excess were equal to zero, and Loans that are Defaulted Loans and Delinquent Loans will be included in the calculations
described herein if, as of such Measurement Date, such Loans are paying in full current interest pursuant to the terms of their respective Underlying Note or, in the case of a Noteless Loan, the Designated Loan Agreement. 
 “Floating Rate Loan” means a Floating LIBOR Rate Loan or a Floating Prime Rate Loan, as applicable. 

“Governmental Authority” means, with respect to any Person, any nation or government, any state or other political subdivision thereof, any central
bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any court or arbitrator having jurisdiction over such
Person. 
 “Grade 1” means that, under the Originator’s loan grading system, which ranks loans based on its analysis of credit quality
of the underlying assets, the Obligor is performing materially below expectations, the Loan risk has increased substantially since origination, some or all of the debt covenants are out of compliance and Scheduled Payments are Delinquent.

  

 - 23 - 








 “Grade 2” means that, under the Originator’s loan grading system, which ranks loans based on its
analysis of credit quality of the underlying assets, the Obligor is performing slightly below expectations, the Loan risk has increased since origination, the Obligor may be out of compliance with debt covenants, however, Scheduled Payments are not
more than 120 days past due. 
 “Grade 3” means that, under the Originator’s loan grading system, which ranks loans based on its
analysis of credit quality of the underlying assets, the Obligor is performing as expected, the risk factors are neutral to favorable and the Loan risk is at an acceptable level that is similar to the risk at the time of origination. 
 “Grade 4” means that, under the Originator’s loan grading system, which ranks loans based on its analysis of credit quality of the underlying
assets, the Obligor is performing above expectations, the trends and risk factors are generally favorable and the Loan involves the least amount of risk in the Originator’s portfolio. 
 “Gross Interest Rate” means, with respect to any Loan, the sum of the Loan Rate with respect to such Loan plus the rate of interest, if any, that the
related Obligor may defer and pay later, together with interest thereon. 
 “Group I Country” means, for so long as the outstanding
indebtedness of such country is rated at least “AA-” by S&P, any of The Netherlands, the United Kingdom, Australia and New Zealand. 
 “Group II Country” means, for so long as the outstanding indebtedness of such country is rated at least “AA-” by S&P, any of Germany, Ireland, Sweden, and Switzerland. 
 “Group III Country” means, for so long as the outstanding indebtedness of such country is rated at least “AA-” by S&P, any of Austria,
Belgium, Denmark, Finland, France, Iceland, Liechtenstein, Luxembourg, Norway and Spain. 
 “Highest Required Investment Category” means
(i) with respect to ratings assigned by Fitch (if such investment is rated by Fitch), “F-l+” for short-term instruments and “AAA” for long-term instruments, (ii) with respect to ratings assigned by Moody’s,
“A2” and “P-1” for one month instruments, “Al” and “P-1” for three month instruments, “Aa3” and “P-1” for six month instruments and “Aaa” and “P-1” for instruments with
a term in excess of six months, and (iii) with respect to ratings assigned by S&P, “A-l+” for short-term instruments and “AAA” for long- term instruments. 
 “Holder” means a Noteholder or a Certificateholder, as applicable. 
 “Indebtedness” means,
with respect to any Person at any date, (a) all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services (other than current liabilities incurred in the ordinary course of business and payable in
accordance with customary trade practices) or which is evidenced by a note, bond, debenture or similar instrument, (b) all obligations of such Person under capital leases, (c) all obligations of such Person in respect of acceptances issued
or created for the account of such Person, and (d) all liabilities secured by any Lien on any property owned by such Person even though such Person has not assumed or otherwise become liable for the payment thereof. 
  

 - 24 - 








 “Indenture” means the Indenture, dated as of the date hereof, between the Issuer and the Indenture
Trustee, as amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to time. 
 “Indenture
Collateral” has the meaning given to such term in the “granting clause” of the Indenture. 
 “Indenture Trustee” means
the Person acting as Indenture Trustee under the Indenture, its successors in interest and any successor trustee under the Indenture. 
 “Indenture
Trustee Fee” has the meaning given to such term in the fee letter, dated as of the date hereof, among the Originator, the Trust Depositor, the Issuer and the Indenture Trustee, as amended, modified, restated, replaced, waived, substituted,
supplemented or extended from time to time. 
 “Independent” means, when used with respect to any specified Person, a Person who (i) is
in fact independent of each of the Issuer, the Trust Depositor or ACAS, (ii) is not a director, officer or employee of any Affiliate of any of the Issuer, the Trust Depositor or ACAS, (iii) is not a Person related to any officer or
director of any of the Issuer, the Trust Depositor or ACAS or any of their respective Affiliates, (iv) is not a holder (directly or indirectly) of more than 10% of any voting securities of any of the Issuer, the Trust Depositor or ACAS or any
of their respective Affiliates, and (v) is not connected with any of the Issuer, the Trust Depositor or ACAS as an officer, employee, promoter, underwriter, trustee, partner, director or Person performing similar functions; provided however
that a Person that otherwise satisfies the requirements of clauses (i) through (v), but is a director, officer or manager of a bankruptcy remote special purpose Affiliate of ACAS, will be deemed to be Independent for purposes
hereof. 
 “Independent Accountants” has the meaning given to such term in Section 9.04(a). 
 “Ineligible Loan” has the meaning given to such term in Section 11.01 and includes such Loans described in Section 12.05(b).

 “Initial Class A Principal Balance” means $291,000,000. 
 “Initial Class B Principal Balance” means $37,000,000. 
 “Initial Class C Principal
Balance” means $72,500,000. 
 “Initial Class D Principal Balance” means $35,500,000. 
 “Initial Class E Principal Balance” means $64,000,000. 
 “Initial Loan Assets” has the meaning given to such term in Section 2.01(b). 
 “Initial Loans” means
those Loans conveyed to the Issuer on the Closing Date and identified on the initial List of Loans required to be delivered pursuant to Section 2.02(iv). 
  

 - 25 - 








 “Initial Purchasers” means Wachovia Capital Markets, LLC, Citigroup Global Markets Inc., Banc of America
Securities LLC, Credit Suisse Securities (USA) LLC, Dresdner Kleinwort Wasserstein Securities LLC, BMO Capital Markets Corp. and WestLB AG, London Branch, as initial purchasers of the Offered Notes. 
 “Insolvency Event” means, with respect to a specified Person, (a) the filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of such Person or any substantial part of its property in an involuntary case under any applicable Insolvency Law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official for such Person or for any substantial part of its property, or ordering the winding-up or liquidation of such Person’s affairs, and such decree or order shall remain unstayed or undismissed and in effect for a period of 60
consecutive days; or (b) the commencement by such Person of a voluntary case under any applicable Insolvency Law now or hereafter in effect, or the consent by such Person to the entry of an order for relief in an involuntary case under such
law, taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of this property, or the making by such Person of any general assignment for the benefit of
creditors, or the failure by such Person generally to pay its debts as such debts become due, or the taking of action by such Person in furtherance of any of the foregoing. 
 “Insolvency Laws” means the Bankruptcy Code of the United States and all other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization,
suspension of payments or similar debtor relief laws from time to time in effect affecting the rights of creditors generally. 
 “Insolvency Proceeds” has the meaning given to such term in Section 10.02. 
 “Insurance Policy”
means, with respect to any Loan, an insurance policy covering physical damage to or loss of the related Collateral, and any other insurance policies relating to such Loan, including but not limited to title, property, hazard, liability, life and/or
accident insurance policies. 
 “Insurance Proceeds” means, depending on the context, any amounts payable or any payments made under any
Insurance Policy covering a Loan or the Collateral. 
 “Interest Accrual Period” means the period from and including the most recent Payment
Date to but excluding the following Payment Date; provided that, the initial Interest Accrual Period following the Closing Date shall be the period from and including the Closing Date to but excluding the first Payment Date following the
Closing Date. 
 “Interest Collection Account” means a sub-account of the Collection Account established
pursuant to Section 7.01. 
 “Interest Collections” means (A) amounts deposited into the Collection Account pursuant to
clauses (i), (v), (viii), (ix) and (x) of the definition of Collections, as well as the interest portion of any amounts received pursuant to clauses (iii), (vi) and (vii) of the definition of Collections, (B) investment
earnings on funds held in the Trust Accounts other than the Swap Counterparty Collateral Account, and (C) in the discretion of the Issuer, Liquidation Proceeds. 
  

 - 26 - 








 “Interest Distributable Amount“ means, as of any Payment Date, the amount of Interest Collections
(excluding for purposes of calculating such amount any Required Liquidation Proceeds) remaining after distribution of amounts under clauses First through Eighth of Section 7.05(a). 
 “Interest Distributable Test“ means a test satisfied on any Payment Date (a) during the Pre-Funding Period and the Replenishment Period, if the sum
of the Interest Distributable Amount plus the Required Liquidation Proceeds equals or exceeds the Required Distributable Amount and (b) after the Replenishment Period, if the Interest Distributable Amount equals or exceeds the Required
Distributable Amount. 
 “Interest Shortfall” means, with respect to the Class A Notes, the Class B Notes, the Class C Notes or the
Class D Notes, as applicable, the amount by which the interest paid to such Class on a Payment Date is less than the amount due to such Class, together with accrued interest on such amount at the then applicable Note Interest Rate for such Class.

 “Investment Earnings” means the investment earnings (net of losses and investment expenses) on amounts on deposit in the Trust Accounts
(other than any Swap Counterparty Collateral Account) to be credited to the Collection Account on the applicable Payment Date pursuant to Section 7.03. 
 “Ireland Paying Agent” means JP Morgan Bank (Ireland) PLC and includes any successor Ireland paying agent. 

“Issuer” means the trust created by the Trust Agreement and funded pursuant to this Agreement, consisting primarily of the Loan Assets. 

“Late Charges” means any late payment fees paid by Obligors in accordance with the Servicer’s Credit and Collection Policy. 
 “Legal Final Maturity Date” has the meaning given to such term in the Indenture. 
 “LIBOR” means the London interbank offered rate for Eurodollar deposits for the applicable index maturity; provided that for purposes of
calculating the Note Interest Rates with respect to the Offered Notes, LIBOR shall be as determined by the Indenture Trustee in accordance with Section 7.06. 
 “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), equity interest, participation interest, preference, priority
or other security agreement or preferential arrangement of any kind or nature whatsoever, including, without limitation, any conditional sale or other title retention agreement, and any financing lease having substantially the same economic effect
as any of the foregoing. 
 “Liquidation Expenses” means, with respect to any Loan, the aggregate amount of all out-of-pocket expenses
reasonably incurred by the Servicer (including amounts paid to any subservicer) and any reasonably allocated costs of internal counsel, in each case in accordance with the Servicer’s Credit and Collection Policy in connection with the
foreclosure and disposition of any related Collateral or the bankruptcy of an Obligor upon or after the expiration or earlier 

  

 - 27 - 








 
termination or acceleration of such Loan, and other out-of-pocket costs related to the liquidation of any such Collateral, including the attempted collection
of any amount owing pursuant to such Loan if it is a Defaulted Loan, and, if requested by the Indenture Trustee, the Servicer and the Originator must provide to the Indenture Trustee a breakdown of the Liquidation Expenses for any Loan along with
any supporting documentation therefor; provided that, to the extent any such “Liquidation Expenses” relate to any Loan with a Retained Interest, such expenses shall be allocated pro rata to such Loan based on the Outstanding Loan
Balance of such Loan included in the Loan Pool and the outstanding loan balance of the Retained Interest. 
 “Liquidation Proceeds” means,
with respect to a Defaulted Loan, proceeds from the sale of the Collateral, Insurance Proceeds and any other recoveries with respect to such Defaulted Loan and the related Collateral, net of Liquidation Expenses and amounts, if any, so received that
are required either to be refunded to the Obligor on such Loan or paid to a third party. 
 “List of Loans” means the electronic list in the
form of an Excel spreadsheet identifying each Loan constituting part of the Loan Assets, which list shall consist of the initial List of Loans reflecting the Initial Loans transferred to the Issuer on the Closing Date, together with any Subsequent
List of Loans amending the most current List of Loans reflecting the Substitute Loans or Additional Loans, as applicable, transferred to the Issuer on the related Subsequent Transfer Date (together, in the case of Substitute Loans, with a deletion
from such list of the related Loan or Loans identified on the corresponding Addition Notice with respect to which a Substitution Event has occurred), and (1) which list in each case (a) identifies by account number and Obligor name each
Loan included in the Loan Pool, and (b) sets forth as to each such Loan (i) the Outstanding Loan Balance as of the applicable Cut-Off Date, and (ii) the maturity date, and (2) which list (as in effect on the Closing Date) is
attached to this Agreement as Exhibit G. 
 “Loan” means the payment obligations of each Obligor to the Originator under first lien,
second lien or subordinated loans created under the related Loan Documents and evidenced by an Underlying Note (unless such Loan is a Noteless Loan), transferred by the Originator to the Trust Depositor and by the Trust Depositor to the Issuer, and
including Initial Loans, Additional Loans and Substitute Loans. 
 “Loan Assets” means, collectively, the Initial Loan Assets, the
Substitute Loan Assets and the Additional Loan Assets, as applicable. 
 “Loan Checklist” means the list in the form of an Excel spreadsheet
delivered electronically by the Trust Depositor to the Indenture Trustee pursuant to Section 2.07 of this Agreement that identifies the Loan Documents and other items contained in the related Loan File. 
 “Loan Documents” means, with respect to any Loan, (a) with the exception of Noteless Loans, the original, executed related Underlying Note,
(b) in the case of Noteless Loans, a copy of the Loan Register, (c) an executed copy of the Designated Loan Agreement, (d) in each case, as applicable, a copy of: any security agreement, intercreditor and/or subordination agreement,
mortgage, any assignment of such Loan, all guarantees and UCC financing statements and continuation statements (including amendments or modifications thereof) executed by the Obligor thereof or by another Person on the Obligor’s behalf in
respect of such Loan and the related Underlying Note (if any), and (e) for each Loan secured by real property and evidenced 

  

 - 28 - 








 
by a mortgage, deed of trust, security deed or similar security instrument, a copy of the executed Assignment of Mortgage, and for all Loans with an
Underlying Note, an original assignment (which may be by allonge) in blank signed by an authorized officer of the Originator. 
 “Loan File”
means, with respect to each Loan, a file labeled with the account number and Obligor name containing the Loan Documents, and such other documents, if any, that the Servicer keeps on file in accordance with its Credit and Collection Policy and all
other documents originally delivered to the Originator or held by the Servicer with respect to any Loan; provided that all documents, other than the Underlying Note, if any, along with any assignment (which may be by allonge), constituting
the Loan File may be copies of such documents. 
 “Loan Pool” means, as of any date of determination, the Initial Loans, the Additional
Loans and the Substitute Loans (if any), other than any such Loans that (i) have been reconveyed by the Issuer to the Trust Depositor, and concurrently by the Trust Depositor to the Originator, pursuant to Section 11.02 hereof, or
(ii) have been paid (or prepaid) in full. 
 “Loan Pool Balance” means, as of any date of determination, the sum of the Outstanding
Loan Balances of all Loans in the Loan Pool as of such date. 
 “Loan Rate” means, for each Loan in a Collection Period, the current cash
pay interest rate for such Loan in such period, as specified in the related Loan Documents. 
 “Loan Register” means, with respect to each
Noteless Loan, the register in which the agent or collateral agent for such Loan will record, among other things, (i) the amount of such Loan, (ii) the amount of any principal or interest due and payable or to become due and payable from
the Obligor thereunder, (iii) the amount of any sum in respect of such Loan received from the Obligor and each lender’s share thereof, (iv) the date of origination of such Loan and (v) the maturity date of such Loan. 

“Loan-to-Value” means, with respect to any Loan, as of any date of determination, the percentage equivalent of a fraction (a) the numerator of
which is equal to the sum of (i) the maximum availability (as provided in the applicable Loan Documents) of such Loan as of the date of its origination plus (ii) the maximum availability under all other indebtedness of the related
Obligor which ranks either senior to, or pari passu with, such Loan and (b) the denominator of which is equal to the Enterprise Value of the Obligor with respect to such Loan. 
 “London Banking Day” means any day on which dealings in deposits in United States dollars are transacted in the London interbank market. 
 “Materially Modified Loan” means a Loan that has been terminated, released (including pursuant to prepayment), amended, modified, waived or subject to a
similar undertaking or agreement by the Servicer which is not permitted under the standards and criteria set forth in Sections 5.08 and/or 5.09 hereof, as applicable. 
 “Maximum Weighted Average Life” means, as of the Closing Date, 7.0 years, declining by 0.25 years for each Collection Period elapsed during the Replenishment Period. 
  

 - 29 - 








 “Measurement Date” means (a) the Closing Date, (b) during the Replenishment Period, each
Cut-Off Date with respect to an Additional Loan or a Substitute Loan and each Determination Date, and (c) following the Replenishment Period, each Cut-Off Date with respect to any Substitute Loan and each Determination Date. 
 “Minimum Weighted Average Spread” means 5.25%. 
 “Moody’s” means Moody’s Investors Service, Inc. or any successor thereto. 
 “Moody’s Rating” means, with respect to any Loan, the rating assigned to such Loan by Moody’s; provided that, other than in the case of
a DIP Loan, prior to the time that such Loan has been assigned a rating by Moody’s, the Moody’s Rating shall be deemed to be, with respect to such Loan: 
 (a) The Moody’s Rating determined as follows (all references to “rating” in clauses (i)-(iii) below are to ratings by Moody’s): 
 (i) if the Obligor of such Loan has a corporate family rating from Moody’s, then the Moody’s Rating of such Loan shall be such
rating. 
 (ii) if the Obligor of such Loan has a senior unsecured obligation publicly rated by Moody’s, then the
Moody’s Rating of such Loan shall be such rating. 
 (iii) if the Obligor of such Loan does not have a senior unsecured
obligation publicly rated by Moody’s but the Loan itself is rated by Moody’s, then the Moody’s Rating of such Loan shall be the subcategory below such rating. 
 (iv) if neither such Loan nor any senior unsecured obligation of the Obligor has been publicly rated by Moody’s, but another
obligation of the Obligor has been so rated, then the Moody’s Rating shall be determined as though such Loan were a senior unsecured Loan, as follows: 
 (1) if there is a rating by Moody’s on a senior secured obligation of the Obligor, then the Moody’s Rating of such Loan shall equal such rating if such Loan is also a senior secured obligation of the
Obligor, shall be one subcategory below such rating if such Loan is a senior unsecured obligation of the Obligor, and shall be three subcategories below such rating if such rating is “Ba3” or higher or two subcategories below such rating
if such rating is “B1” or lower, in each case if such Loan is a subordinated obligation of the Obligor, 
 (2) if there is a rating
by Moody’s on a senior unsecured obligation of the Obligor, then the Moody’s Rating of such Loan shall equal such rating if such Loan is also a senior unsecured obligation of the Obligor, shall equal such rating if such rating is
“Baa3” or higher or shall equal one subcategory above such rating if such rating is “Ba1” or lower, in each case if such Loan is a senior secured obligation of the Obligor, and shall be two subcategories below such rating if such
rating is “B1” or higher or one subcategory below such rating if such rating is “B2” or lower, in each case if such Loan is a subordinated obligation of the Obligor; or 
  

 - 30 - 








 (3) if there is a rating by Moody’s on a subordinated obligation of the Obligor, then the
Moody’s Rating of such Loan 
 (A) shall equal such rating if such Loan is also a subordinated obligation of the Obligor or if such
rating is equal to “Caa1,” “Caa2,” “Caa3,” “Ca” or “C,” 
 (B) shall be one subcategory
above such rating if such rating is “Baa3” or higher and such Loan is a senior (either secured or unsecured) obligation of the Obligor, 
 (C) shall be two subcategories above such rating if such rating is below “Baa3” and such Loan is a senior secured obligation of the Obligor (except that if such rating is “B3,” the Moody’s Rating of such Loan shall
be “B2”), and 
 (D) shall be one subcategory above such rating if such rating is below “Baa3” and such Loan is a senior
unsecured obligation of the Obligor; 
 provided that if the operation of clauses (1) through (3) above shall result in two
or more inconsistent Moody’s Ratings, then the Moody’s Rating of the related Loan shall be the lowest of such Moody’s Ratings; 
 (b) If a Moody’s Rating cannot be determined pursuant to clause (a) above, then at the election of the Servicer, the Moody’s Rating of such Loan may be determined using any one of the methods provided below: 
 (i) if there are ratings on obligations of the underlying borrower by S&P, then the Moody’s Rating of such Loan will be the
rating according to clause (a) above using such S&P ratings; provided that bank loan ratings by S&P may not be used; provided further that such resulting rating will be reduced by (x) one rating subcategory if it is
“BBB-” or higher and (y) two rating subcategories if it is “BB+” or lower; provided further that no more than 10% of the Expected Aggregate Outstanding Loan Balance may be Loans given a Moody’s Rating based on a
rating given by S&P as provided in this subclause (b)(i); 
 (ii) with respect to a senior secured Loan issued by a U.S.
Obligor, if 
 (1) neither the Obligor nor any of its affiliates is subject to reorganization or bankruptcy proceedings, 
 (2) no debt securities or obligations of the Obligor are in default, 
  

 - 31 - 








 (3) neither the Obligor nor any of its affiliates has defaulted on any debt during the past two years,

 (4) the Obligor has been in existence for the past five years, 
 (5) the Obligor is current on any cumulative dividends, 
 (6) the fixed-charge ratio for the Obligor exceeds 125% for each of the past two fiscal years and for the most recent quarter, 
 (7) the Obligor had a net profit before tax in the past fiscal year and the most recent quarter; and 
 (8)
the annual financial statements of the Obligor are unqualified and certified by a firm of Independent Accountants of international reputation, and quarterly statements are unaudited but signed by a corporate officer, the Moody’s Rating of such
Loan will be “B3”; 
 (iii) with respect to a senior secured Loan issued by a U.S. Obligor, if 
 (1) neither the Obligor nor any of its affiliates is subject to reorganization or bankruptcy proceedings and 
 (2) no debt security or obligation of the Obligor has been in default during the past two years, the Moody’s Rating of such Loan will be
“Caa2”; 
 provided further that if a Moody’s Rating is obtained pursuant to this subclause (b)(iii), the Obligor must
confirm such Rating with Moody’s within 30 days pursuant to clause (c) below; and 
 (iv) if a debt security or
obligation of the Obligor has been in default during the past two years, the Moody’s Rating of such Loan will be “Ca”. 
 (c)
If such Loan is not rated by Moody’s or S&P, and no other security or obligation of the Obligor is rated by Moody’s or S&P, or if the rating of such Loan is not addressed in any of clauses (a) or (b) above, then the
Issuer or the Servicer on behalf of the Issuer, may present such Loan to Moody’s for an estimate of such Loan’s Moody’s Rating Factor, from which its corresponding Moody’s Rating shall be determined; provided that until
such Moody’s Rating has been obtained, the Moody’s Rating of such Loan shall be the rating as may be estimated in good faith by the Servicer; provided further that such estimated rating shall not be higher than “B3” for
the first 60 Business Days following the applicable Cut-Off Date and not higher than “Caa2” thereafter. 
 (d) In all cases, if a
Loan is (x) on watch for upgrade it shall be treated as upgraded by one rating subcategory or (y) on watch for downgrade it shall be treated as downgraded by one rating subcategory unless, in each case, Moody’s has advised the
Servicer in writing that such treatment is no longer required. 
  

 - 32 - 








 “Moody’s Rating Factor” means, for any Loan with a Moody’s Rating, the number set forth below
under the heading “Moody’s Rating Factor” across from the Moody’s Rating of such Loan or, in the case of a rating assigned by Moody’s at the request of the Issuer (or the Servicer on behalf of the Issuer), the Moody’s
Rating Factor as assigned by Moody’s. 
  

			
	 Moody’s Rating of Loan
	 	 Moody’s Rating Factor

	 Aaa (1)
	 	1
	 Aa1
	 	10
	 Aa2
	 	20
	 Aa3
	 	40
	 A1
	 	70
	 A2
	 	120
	 A3
	 	180
	 Baa1
	 	260
	 Baa2
	 	360
	 Baa3
	 	610
	 Ba1
	 	940
	 Ba2
	 	1,350
	 Ba3
	 	1,766
	 B1
	 	2,220
	 B2
	 	2,720
	 B3
	 	3,490
	 Caa1
	 	4,770
	 Caa2
	 	6,500
	 Caa3
	 	8,070
	 Ca
	 	10,000
	 C
	 	10,000



	(1)	Includes any security issued or guaranteed as to the payment of principal and interest by the United States government or any agency or instrumentality thereof.


 “Moody’s Recovery Rate” means, with respect to any Loan, the recovery rate specified by Moody’s for such Loan;
provided that prior to the time that such Loan has been assigned a recovery rate by Moody’s, the Moody’s Recovery Rate with respect to such loan shall be deemed to be the percentage specified in the table below: 
  

				
	 Moody’s Category
	  	Recovery Rate	 
	 Type 1: U.S. or Canadian Obligor
 senior secured Loan with first priority perfected Lien
	  	50	%
	 Type 2: U.S. or Canadian Obligor
 senior secured “second lien” or “last-out” Loan
	  	40	%
	 Type 3: U.S. or Canadian Obligor
 senior unsecured Loan
	  	30	%

  

 - 33 - 









				
	 Moody’s Category
	  	Recovery Rate	 
	 Type 4: U.S. or Canadian Obligor
 senior subordinated Loan or junior subordinated Loan
	  	15	%
	 Type 5: Non-US, Non-Canadian Obligor
 any Loan
	  	0	%

 “Moody’s Weighted Average Rating” means, as of any Measurement Date, the number obtained by
dividing (a) the sum of the products obtained by multiplying the Outstanding Loan Balance of each Loan (excluding any Defaulted Loans) by its Moody’s Rating Factor as of such date by (b) the Loan Pool Balance (excluding any
Defaulted Loans) as of such date. 
 “Moody’s Weighted Average Rating Factor Test” means a test that will be satisfied, as of any date
of determination, if the Moody’s Weighted Average Rating is less than or equal to the sum of (a) the number in the appropriate column in the Collateral Quality Table opposite the then-current applicable Reference Rate plus
(b) the Recovery Rate Modifier, in each case as of such date of determination. 
 “Moody’s Weighted Average Recovery Rate”
means, as of any Measurement Date, the percentage (rounded up to the first decimal place) obtained by dividing (a) the sum of the products obtained by multiplying the Outstanding Loan Balance of each Loan (excluding any Defaulted Loans) by its
Moody’s Recovery Rate, by (b) the Loan Pool Balance (excluding any Defaulted Loans). 
 “Net Purchased Loan Balance” means,
as of any date of determination, an amount equal to (a) the aggregate Outstanding Loan Balance of all Loans conveyed by the Originator to the Trust Depositor under the ACAS Transfer Agreement prior to such date minus (b) the
aggregate Outstanding Loan Balance of all Loans (other than Ineligible Loans) repurchased by the Originator (or the Servicer, so long as it is an Affiliate of the Originator) or substituted pursuant to this Agreement prior to such date. 

“Net Trust Swap Payments” means, with respect to each Payment Date, the excess, if any, of (i) the payments required to be made on such date by
the Issuer to the Swap Counterparties under Section 2(a) of each Swap over (ii) the payments required to be made on such date by the Swap Counterparties to the Issuer under Section 2(a) of each Swap, together with
any interest thereon. 
 “Net Trust Swap Receipts” means, with respect to each Payment Date, the excess, if any, of (i) the payments
required to be made on such date by the Swap Counterparties to the Issuer under Section 2(a) of each Swap over (ii) the payments required to be made on such date by the Issuer to the Swap Counterparties under
Section 2(a) of each Swap, together with any interest thereon. 
 “New York Business Day” means
any Business Day in New York, New York. 
 “Note” means any one of the notes of the Issuer of any Class executed and authenticated in
accordance with the Indenture. 
  

 - 34 - 








 “Note Break-Even Loss Rate” means, with respect to any Class of Offered Notes rated by S&P, at any
time, the maximum percentage of defaults (as determined by S&P through application of the S&P proprietary cash flow model) that the Current Portfolio or the Proposed Portfolio, as applicable, can sustain such that, after giving effect to
S&P assumptions on recoveries and timing and to the priority of payments with respect to the Offered Notes, will result in sufficient funds remaining for the ultimate payment of principal of and interest on such Class of Offered Notes in full by
its stated maturity date and the timely payment of interest on such Class of Offered Notes. 
 “Note Distribution Account” means the account
established and maintained as such pursuant to Section 7.01. 
 “Note Register” has the meaning
given to such term in Section 4.02 of the Indenture. 
 “Noteholder” means, with respect to a Note,
the Person in whose name such Note is registered in the Note Register. 
 “Noteless Loan” means a Loan with respect to which (i) the
related Designated Loan Agreement does not require the Obligor to execute and deliver an Underlying Note to evidence the indebtedness created under such Loan and (ii) no Underlying Notes are outstanding with respect to such Loan. 
 “Notes Loss Differential” means, with respect to any Class of Offered Notes rated by S&P, at any time, the rate calculated by subtracting the Class
Scenario Loss Rate at such time from the Note Break-Even Loss Rate for such Class of Offered Notes at such time. 
 “Notice of Substitution” has the meaning given to such term in Section 2.04(a)(ii). 
 “Obligor”
means, with respect to any Loan, the Person or Persons obligated to make payments with respect to such Loan, including any guarantor thereof. 
 “Offered Notes” means only the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes that are being offered in connection with the Purchase Agreement. 
 “Offering Memorandum” means the confidential offering memorandum, dated as of July 26, 2006 (including any exhibits, amendments or supplements
thereto) prepared by ACAS in connection with the offering and sale of the Offered Notes. 
 “Officer’s Certificate” shall mean a
certificate signed by any officer of the Trust Depositor or the Servicer and delivered to the Owner Trustee or the Indenture Trustee, as the case may be, and (in the case of Section 2.05(b)) to the Rating Agencies. 
 “Operating History” means, with respect to any specified Person, the time since the date of such Person’s incorporation or formation that it has
continuously operated its business; provided, the Operating History of any Person newly formed as a result of a merger of two or more Persons or as a result of the acquisition of one or more Persons by a newly formed Person (“Merged
Parties”) shall be based on the weighted average (by relative sales) of the Operating Histories of the Merged Parties (excluding for such purposes, entities that are created only for the purpose of 

  

 - 35 - 








 
being acquisition entities); for example, if Corporation A, with sales of $10 million, has an Operating History of 4 years, and Corporation B, with sales of
$20 million, has an Operating History of 8 years, merge to form “NEWCO”, the Operating History of NEWCO will be 6.67 years. 
 “Opinion of
Counsel” means a written opinion of counsel, who may be outside counsel, or internal counsel (except with respect to federal securities law (including the Trust Indenture Act) or tax law matters), for the Trust Depositor or the Servicer and
who shall be reasonably acceptable to the Owner Trustee or the Indenture Trustee, as the case may be. 
 “Optional
Repurchase” means a repurchase of the Notes pursuant to Section 10.02 of the Indenture. 
 “Originator” has the meaning given to such term in the Preamble. 
 “Other
Assets” has the meaning given to such term in Section 13.09(b). 
 “Outstanding” has
the meaning given to such term in the Indenture. 
 “Outstanding Loan Balance” means, as of any date of determination, the sum of the total
scheduled remaining amounts of principal payable by an Obligor under a Loan, exclusive of interest payments and capitalized interest amounts. 
 “Outstanding Principal Balance” means, as of date of determination and with respect to any Class of Notes, the original principal amount of such Class of Notes as reduced by all amounts paid by the Issuer with respect to
such principal amount up to such date. 
 “Owner Trustee” means the Person acting, not in its individual capacity, but solely as Owner
Trustee, under the Trust Agreement, its successors in interest and any successor owner trustee under the Trust Agreement. 
 “Owner Trustee
Fee” has the meaning given to such term in the fee letter, dated as of the date hereof, among the Owner Trustee, the Trust Depositor, the Originator and the Issuer, as amended, modified, restated, replaced, waived, substituted, supplemented
or extended from time to time. 
 “Paying Agent” has the meaning given to such term in the Indenture and
the Trust Agreement. 
 “Payment Date” shall mean the 27th day of each February, May, August and November, or, if such 27th day is not a Business Day, the next Business Day, with the first such Payment Date hereunder occurring on November 27, 2006. 
 “Permitted Liens” means: 
 (e) with respect to Loans in the Loan Pool: 
 (i) Liens in favor of the Trust Depositor created pursuant to the ACAS Transfer Agreement and transferred to the Issuer pursuant hereto;

  

 - 36 - 








 (ii) Liens in favor of the Issuer created pursuant to this Agreement; and 
 (iii) Liens in favor of the Indenture Trustee created pursuant to the Indenture and/or this Agreement; and 
 (f) with respect to the interest of the Originator, the Trust Depositor and the Issuer in the related Collateral: 
 (i) materialmen’s, warehousemen’s, mechanics’ and other Liens arising by operation of law in the ordinary course of
business for sums not due or sums that are being contested in good faith; 
 (ii) Liens for state, municipal and other local
taxes if such taxes shall not at the time be due and payable or if the Trust Depositor shall currently be contesting the validity thereof in good faith by appropriate proceedings; 
 (iii) Liens in favor of the Trust Depositor created, and transferred by the Trust Depositor to the Issuer, pursuant to the ACAS Transfer
Agreement and this Agreement; 
 (iv) Liens in favor of the Issuer created pursuant to this Agreement; 
 (v) Liens in favor of the Indenture Trustee created pursuant to the Indenture and/or this Agreement; 
 (vi) purchase money security interests in equipment, Liens held by senior lenders with respect to any subordinated Loans, including those
subordinated Loans listed on Exhibit L, and Liens in favor of junior lenders to the same Obligor; and 
 (vii) Liens in
favor of the collateral agent on behalf of all lenders that have made loans to the related Obligor under the Designated Loan Agreement. 
 “Person” means any individual, corporation, estate, partnership, business trust, statutory trust, limited liability company, sole proprietorship, joint venture, association, joint stock company, trust (including any
beneficiary thereof), unincorporated organization or government or any agency or political subdivision thereof, or other entity. 
 “Portfolio
Acquisition and Disposition Requirements” means, with respect to any acquisition or disposition of a Loan, each of the following conditions: (a) such Loan, if being acquired by the Issuer, is an Eligible Loan; (b) such Loan is
being acquired or disposed of in accordance with the terms and conditions set forth in this Agreement; (c) the acquisition or disposition of such Loan does not result in a reduction or withdrawal of the then-current rating issued by any Rating
Agency on any Class of Notes then Outstanding; and (d) such Loan is not being acquired or disposed of for the primary purpose of recognizing gains or decreasing losses resulting from market value changes. 
 “Portfolio Criteria” means the criteria set forth below: 
 (a) the S&P CDO Monitor Test is satisfied; 
  

 - 37 - 








 (b) the Moody’s Weighted Average Rating Factor Test is satisfied; 
 (c) the Fitch Weighted Average Rating is less than or equal to 30%; 
 (d) the Weighted Average Life Test is satisfied; 
 (e) the Weighted Average Spread is equal to or greater
than the Minimum Weighted Average Spread; 
 (f) the Weighted Average Coupon Test is satisfied; 
 (g) the Weighted Average Gross Coupon Test is satisfied; 
 (h) the Diversity Test is satisfied; 
 (i) the Moody’s Weighted Average Recovery Rate equals or exceeds
25%; 
 (j) the S&P Weighted Average Recovery Rate equals or exceeds 30%; 
 (k) not more than 70% of the Aggregate Outstanding Loan Balance may consist of Fixed Rate Loans; 
 (l) not more than 5% of the Aggregate Outstanding Loan Balance may consist of Floating Prime Rate Loans; 
 (m) not more than 70% of the Aggregate Outstanding Loan Balance may consist of Subordinated Loans; 
 (n) not more than 90% of the Aggregate Outstanding Loan Balance may consist of Second Lien Loans and Subordinated Loans; 
 (o) not more than 5% of the Aggregate Outstanding Loan Balance may consist of Loans that pay interest less frequently than quarterly but at least
annually; 
 (p) not more than 20% of the Aggregate Outstanding Loan Balance may consist of Loans (other than Defaulted Loans) with a
Moody’s Rating of “Caa1” or lower; 
 (q) not more than 30% of the Aggregate Outstanding Loan Balance may consist of Loans
(other than Defaulted Loans) with an S&P Rating of “CCC+” or lower; 
 (r) not more than 30% of the Aggregate Outstanding Loan
Balance may consist of Loans (other than Defaulted Loans) with a Fitch Rating of “CCC+” or lower; 
 (s) not more than 10% of the
Aggregate Outstanding Loan Balance may consist of Loans to primary Obligors organized under the laws of, or all or substantially all of the assets of which are located in, any country other than the United States; provided that the full
aforementioned 10% may consist of Loans to primary Obligors organized under the laws of, or all or substantially all of the assets of which are located in, Canada; 
  

 - 38 - 








 (t) not more than 5% of the Aggregate Outstanding Loan Balance may consist of Loans to primary Obligors
organized under the laws of, or all or substantially all of the assets of which are located in, Group I Countries, Group II Countries or Group III Countries; 
 (u) not more than 2.5% of the Aggregate Outstanding Loan Balance may consist of Loans to a single primary Obligor organized under the laws of, or all or substantially all of the assets of which are located in, a Group
II Country or a Group III Country; 
 (v) not more than 10% of the Aggregate Outstanding Loan Balance may consist of Broadly Syndicated
Loans; and 
 (w) not more than 5% of the Aggregate Outstanding Loan Balance may consist of Loans to a single Obligor. 
 Compliance with the above criteria will be determined, in the case of a Measurement Date relating to any Additional Loan or Substitute Loan, after giving effect to the
purchase of all Additional Loans or Substitute Loans, as applicable, on such date. 
 “Pre-Funding Period” means the period during which the
Issuer expects to obtain the remainder of the Expected Aggregate Outstanding Loan Balance, beginning on the Closing Date and ending on the Effective Date. 
 “Prepaid Loan” means any Loan that has terminated or been prepaid in full prior to its scheduled expiration date, other than a Defaulted Loan. 
 “Prepayment” means any and all (i) partial and full prepayments, including any Prepayment Premiums, on a Loan (including, with respect to any Loan and any Collection Period), (ii) any
Scheduled Payment (or portion thereof) that is due in a subsequent Collection Period that the Servicer has received (and to the extent permission therefor was necessary, expressly permitted the related Obligor to make) in advance of its scheduled
due date, (iii) during the Replenishment Period, Liquidation Proceeds and (iv) amounts received in respect of Transfer Deposit Amounts. 
 “Prepayment Amount” has the meaning given to such term in Section 5.09. 
 “Prepayment Premiums” means any prepayment premiums paid by an Obligor in connection with any Prepayment. 
 “Prime Rate” means a rate equal to “USD-PRIME-H.15” (as defined in the Annex to the 2000 ISDA Definitions (June 2000 version) as published by the International Swaps and Derivatives Association, Inc.), such rate
to change as and when such designated rate changes. 
 “Principal Collection Account” means a sub-account
of the Collection Account established pursuant to Section 7.01. 
 “Principal Collections” means amounts deposited into the
Collection Account pursuant to clause (ii) and, during the Replenishment Period, clause (iv) of the definition of Collections, as well as the principal portion of any amounts received pursuant to clauses (iii), (vi) and (vii) of
the definition of Collections, together with, on or after an Event of Default, all amounts payable pursuant to clause Ninth of Section 7.05(a). 
  

 - 39 - 








 “Priority of Payments” means, collectively, the payments made on each Payment Date in accordance with
Sections 7.05(a), (b) and (c). 
 “Pro Rata Payment Date” means any Payment Date
other than a Sequential Payment Date. 
 “Proposed Plan” means a plan proposed by the Servicer, on behalf of the Issuer, to the Rating
Agencies to obtain an Effective Date Ratings Confirmation, which plan may propose any action not otherwise prohibited hereunder or under the Transaction Documents. 
 “Proposed Portfolio” means the portfolio (measured by the outstanding principal balance) of (a) the Loans, (b) Principal Collections held as cash and (c) Eligible Investments purchased with Principal
Collections resulting from the repurchase, maturity or other disposition of a Loan or a proposed purchase of an Additional Loan or addition of a Substitute Loan, as the case may be. 
 “Purchase Agreement” means the Purchase Agreement, dated as of July 26, 2006, among the Initial Purchasers, the Trust Depositor, the Issuer and ACAS, as amended, modified, restated, replaced,
waived, substituted, supplemented or extended from time to time. 
 “Qualified Eligible Investments” means Eligible Investments acquired by
the Indenture Trustee in its name and in its capacity as Indenture Trustee at the written direction of the Issuer, which are held by the Indenture Trustee in the Collection Account or the Reserve Fund and with respect to which (a) the Indenture
Trustee has noted its interest therein on its books and records, (b) the Indenture Trustee has purchased such investments at the written direction of the Issuer for value without notice of any adverse claim thereto (and, if such investments are
securities or other financial assets or interests therein, within the meaning of Section 8-102 of the UCC as in effect in Minnesota, without acting in collusion with a securities intermediary in violating such securities intermediary’s
obligations to entitlement holders in such assets, under Section 8-504 of such UCC, to maintain a sufficient quantity of such assets in favor of such entitlement holders), and (c) either (i) such investments are in the possession of
the Indenture Trustee, or (ii) such investments, (A) if certificated securities and in bearer form, have been delivered to the Indenture Trustee, or in registered form, have been delivered to the Indenture Trustee and either registered by
the issuer in the name of the Indenture Trustee or endorsed by effective endorsement to the Indenture Trustee or in blank; (B) if uncertificated securities, the ownership of which has been registered to the Indenture Trustee on the books of the
issuer thereof (or another Person, other than a securities intermediary, either becomes the registered owner of the uncertified security on behalf of the Indenture Trustee or, having previously become the registered owner, acknowledges that it holds
for the Indenture Trustee); or (C) if securities entitlements (within the meaning of Section 8-102 of the UCC as in effect in Minnesota) representing interests in securities or other financial assets (or interests therein) held by a
securities intermediary (within the meaning of said Section 8-102), a securities intermediary indicates by book entry that a security or other financial asset has been credited to the Indenture Trustee’s securities account with such
securities intermediary. Any such Qualified Eligible Investment may be purchased by or through the Indenture Trustee or any of its Affiliates acting at the written direction of the Issuer. 
  

 - 40 - 








 “Qualified Institution” means (a) the corporate trust department of the Indenture Trustee, or
(b) a depository institution organized under the laws of the United States or any one of the states thereof or the District of Columbia (or any domestic branch of a foreign bank), (i) (A) that has either (1) a long-term unsecured
debt rating acceptable to the Rating Agencies, which, in the case of S&P, shall be “AA-”, in the case of Moody’s, shall be “Aa3”, and in the case of Fitch, shall be “AAA” or (2) a short-term unsecured debt
rating or certificate of deposit rating acceptable to the Rating Agencies, which, in the case of S&P, shall be “A-1+”, in the case of Moody’s, shall be “P-1”, and in the case of Fitch, shall be “F-l+”,
(B) the parent corporation, if such parent corporation guarantees the obligations of the depository institution, of which has either (1) a long-term unsecured debt rating acceptable to the Rating Agencies, which, in the case of S&P,
shall be “AA-”, in the case of Moody’s, shall be “Aa3”, and in the case of Fitch, shall be “AAA” or (2) a short-term unsecured debt rating or certificate of deposit rating acceptable to the Rating Agencies,
which, in the case of S&P, shall be “A-1+”, in the case of Moody’s, shall be “P-1”, and in the case of Fitch, shall be “F1+” or (C) otherwise satisfies the Rating Agency Condition, and (ii) whose
deposits are insured by the FDIC and satisfies the Rating Agency Condition. 
 “Qualified Second Lien Loan” means any Second Lien Loan:
(i) which has a Loan-to-Value of not greater than 70%; (ii) as to which the ratio, for the related Obligor, of (a) the sum of (1) the maximum amount to be drawn (as provided in the applicable Loan Documents) under such Loan as of
the date of its origination plus (2) the maximum amount to be drawn under all other indebtedness of the related Obligor which ranks either senior to, or pari passu with, such Loan to (b) such Obligor’s EBITDA (or similar
term as defined in the related Loan Documents) for the most recent twelve month period for which financial statements are available preceding such date shall not exceed (I) in the case of Obligors in the media and telecommunications industries,
6.5:1.0 and (II) in the case of all other Obligors, 4.5:1.0; and (iii) with respect to which the Loan Documents (a) contain a limit on the amount of total debt which may be incurred by the related Obligor, (b) preserve enforcement
rights, subject to a standstill period as permitted by clause (c) below, for the second lien lender after a default under the related Loan Documents, and (c) contain either or both (1) if there is a standstill period applicable
to the exercise of remedies by the holders of such Second Lien Loan, such standstill period shall not extend longer than 180 days following a delivery of notice of a default under the related Loan Documents to the first lien and second lien agents
(it being understood that the second lien lender or agent may also be prohibited from exercising remedies after the expiration of such standstill period if a first lien lender or agent is exercising remedies) and/or (2) provisions requiring the
consent of the holders of such Second Lien Loan to release its lien on all or substantially all of the Collateral securing such Loan unless the majority of the proceeds of the disposition of such Collateral are used to repay the indebtedness which
is senior to or pari passu with such Second Lien Loan, and to repay such Second Lien Loan. 
 “Qualified Swap
Counterparty” has the meaning given to such term in the Indenture. 
 “Quarterly Report” has the
meaning given to such term in Section 9.01. 
 “Rating Agency” means each of S&P, Moody’s and Fitch, so long as such
Persons maintain a rating on any of the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes; and if any of S&P, Moody’s or Fitch no longer maintains a rating on the Class A Notes, the Class B Notes, the Class
C Notes and the Class D Notes, such other nationally recognized statistical rating organization selected by the Trust Depositor. 
  

 - 41 - 








 “Rating Agency Condition” means, for so long as any Offered Notes are Outstanding and rated by a Rating
Agency, with respect to any action or series of related actions or proposed transaction or series of related proposed transactions, that each Rating Agency shall have notified the Trust Depositor, the Owner Trustee and the Indenture Trustee in
writing that such action or series of related actions or the consummation of such proposed transaction or series of related transactions will not result in a Ratings Effect. 
 “Ratings Confirmation Failure” means the failure of the Servicer to receive the Effective Date Ratings Confirmation in accordance with Section 2.05(b). 
 “Ratings Effect” means (for so long as any of the Offered Notes are deemed Outstanding and are rated by a Rating Agency), with respect to any action or
series of related actions or proposed transaction or series of related proposed transactions, a reduction or withdrawal of the then current rating of any Outstanding Class with respect to which a Rating Agency has issued a rating as a result of such
action or series of related actions or the consummation of such proposed transaction or series of related transactions. 
 “Record Date”
means (i) for book-entry Notes, the calendar day immediately preceding the applicable Payment Date or Refinancing Date, as applicable, and (ii) for the definitive Notes and the Class E Note, the last Business Day of the calendar month
preceding the related Payment Date or Refinancing Date, as applicable. 
 “Recovery Rate Modifier” shall be an amount equal to, as of any
date of determination, the product of (a) the excess, if any, of the Moody’s Weighted Average Recovery Rate as of such date of determination over 25% times (b) 5,000; provided that, if the Moody’s Weighted
Average Recovery Rate shall be (i) greater than or equal to 40%, then solely for the purposes of the calculation of the Recovery Rate Modifier, the Moody’s Weighted Average Recovery Rate shall be deemed to be equal to 40% (or, such other
value, with respect to which the Rating Agency Condition shall be satisfied), or (ii) less than or equal to 25%, then solely for the purposes of the calculation of the Recovery Rate Modifier, the Moody’s Weighted Average Recovery Rate
shall be deemed to be equal to 25%. 
 “Reference Banks” means leading banks selected by the Indenture Trustee and engaged in transactions
in Eurodollar deposits in the international Eurocurrency market. 
 “Reference Rate” means, initially, 11.5%, or such other percentages set
forth in the Collateral Quality Table under the heading “Weighted Average Coupon” that has been most recently specified by the Servicer in a notice to the Indenture Trustee as the level that will apply for purposes of determining
compliance with the Weighted Average Coupon Test, the Diversity Test and the Moody’s Weighted Average Rating Factor Test; provided that no such specification shall be effective unless, on the date of such notice and immediately after
giving effect to such specification, the Moody’s Weighted Average Rating of the Loans in the Loan Pool is equal to or less than, and the Diversity Score is equal to or greater than, the number specified in the applicable column in the
Collateral Quality Table opposite the specified Reference Rate. 
  

 - 42 - 








 “Refinancing” means a refinancing of the Offered Notes pursuant to the
Indenture. 
 “Refinancing Date” means the Payment Date following the end of the Replenishment Period designated as such by the Issuer in
connection with a Refinancing. 
 “Refinancing Price” means an amount equal to sum of (i) the then Outstanding Principal Balance of
each Class of Offered Notes to be refinanced plus accrued and unpaid interest thereon to but excluding the Refinancing Date and all other amounts accrued and unpaid with respect thereto, plus (ii) all administrative and other fees,
expenses, advances and other amounts then accrued and payable or reimbursable in accordance with the priority of payments (excluding any amounts payable to the Class E Noteholder). 
 “Released Amounts” means, with respect to any payment or collection received with respect to any Loan on any Business Day (whether such payment or collection is received by the Servicer, the Owner
Trustee or the Trust Depositor), an amount equal to that portion of such payment or collection constituting Excluded Amounts or Retained Interest. 
 “Replacement Notes” has the meaning set forth in Section 10.01(b). 
 “Replenishment
Period” means the period beginning on the Closing Date and terminating on the earlier to occur of (a) the Business Day preceding the Payment Date in August 2009 or (b) an Event of Default; provided that, (i) if the
Replenishment Period terminates as described in clause (a), the Replenishment Period may not be extended without the consent of the Servicer and the Required Holders and satisfaction of the Fitch Rating Condition and the S&P Rating
Condition with respect to the extension of the Replenishment Period; and (ii) if the Replenishment Period terminates as a result of the occurrence of an Event of Default, the Replenishment Period may not be extended unless (w) the event
giving rise to such termination has been cured or waived, (x) no other events that would terminate the Replenishment Period have occurred, (y) the Servicer and the Required Holders have consented to such extension and (z) the Fitch
Rating Condition and the S&P Rating Condition have been satisfied with respect to the extension of the Replenishment Period. 
 “Representative
Amount” means an amount that is representative for a single transaction in the relevant market at the relevant time. 
 “Repurchase
Date” means in the case of an Optional Repurchase, the Payment Date specified by the Issuer pursuant to Section 10.02 of the Indenture. 
 “Repurchase Price” means, in the case of an Optional Repurchase, an amount equal to the sum of (i) the then Outstanding Principal Balance of each Class of Offered Notes to be repurchased plus accrued and unpaid
interest thereon to but excluding the Repurchase Date plus (ii) all other amounts accrued and unpaid with respect to each such Class of Offered Notes, together with all amounts then owing to each Swap Counterparty, including Swap Breakage
Costs, plus (iii) without duplication, all amounts payable to each Swap Counterparty upon termination of all Swap Transactions in connection with an Optional Repurchase of the Notes, including Swap Breakage Costs, plus (iv) all
administrative and other fees, expenses, advances and other amounts accrued and payable or reimbursable in accordance with the Priority of Payments (including fees and expenses, if any, incurred by the Indenture Trustee and the Servicer in
connection with any sale of Loans in connection with a repurchase). 
  

 - 43 - 








 “Required Distributable Amount“ means, for any Payment Date, the sum of the Additional Principal Amount
for such Payment Date and the Required Reserve Amount for such Payment Date. 
 “Required Holders” means (i) prior to the payment in
full of the Offered Notes, the Holders evidencing more than 66 2/3% of the aggregate Outstanding Principal Balance of each Class of Offered Notes, with each Class voting separately and (ii) from and after the payment in full of the Offered
Notes, the Class E Noteholder evidencing more than 66 2/3% of the aggregate Outstanding Principal Balance of the Class E Note. 
 “Required
Liquidation Proceeds“ means, for any Payment Date during the Pre-Funding Period and the Replenishment Period, the lesser of (a) an amount equal to the Required Distributable Amount for such Payment Date minus the Interest Distributable
Amount for such Payment Date and (b) the amount of Liquidation Proceeds, if any, on deposit in the Principal Collection Account on the last day of the Collection Period immediately preceding such Payment Date, which Required Liquidation
Proceeds shall be deemed to constitute Interest Collections for all purposes hereunder as of the end of the Collection Period immediately preceding such Payment Date. 
 “Required Reserve Amount” means, with respect to any Payment Date, an amount equal to the sum of (i) the aggregate Outstanding Loan Balance of all Delinquent Loans and (ii) the Outstanding
Loan Balance of any Loan that the Servicer has not submitted to be rated by the Rating Agencies within 60 days of such Loan’s inclusion in the Loan Pool. 
 “Requirements of Law” for any Person or property of such Person means the certificate of incorporation or articles of association and by-laws or other organizational or governing documents of such Person, and any law,
treaty, rule, regulation, or order or determination of an arbitrator or Governmental Authority, in each case applicable to or binding upon such Person or to which such Person is subject, whether Federal, state or local (including, without
limitation, usury laws, predatory lending laws, the Federal Truth in Lending Act, the Investment Company Act of 1940, as amended, and Regulation Z and Regulation B of the Board of Governors of the Federal Reserve System). 
 “Reserve Fund” means the Reserve Fund established and maintained pursuant to Section 7.01 hereof.

 “Reserve Fund Initial Deposit” means $1,000,000. 
 “Responsible Officer” means, with respect to the Owner Trustee, any officer in its Corporate Trust Administration Department (or any similar group of a
successor Owner Trustee), and with respect to the Indenture Trustee, has the meaning given to such term in the Indenture. 
 “Retained
Interest” means, for each Loan, the following interests, rights and obligations in such Loan and under the associated Loan Documents, which are being retained by the Originator: (i) all of the obligations, if any, to provide additional
funding with respect to such Loan, (ii) all of 

  

 - 44 - 








 
the rights and obligations, if any, of the agent(s) under the documentation evidencing such Loan, (iii) the applicable portion of the interests, rights
and obligations under the documentation evidencing such Loan that relate to such portion(s) of the indebtedness that is owned by another lender or is being retained by the Originator, (iv) any unused, commitment or similar fees associated with
the additional funding obligations that are not being transferred in accordance with clause (i) of this definition, (v) any agency or similar fees associated with the rights and obligations of the agent that are not being
transferred in accordance with clause (ii) of this definition, (vi) any advisory, consulting or similar fees due from the Obligor associated with services provided by the agent that are not being transferred in accordance with
clause (ii) of this definition, and (vii) any and all warrants, options, and other equity instruments issued in the name of the Originator or its Affiliates in connection with or relating to any Loan. 
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. or any successor thereto. 
 “S&P CDO Monitor” means the dynamic, analytical computer model provided by S&P to the Servicer and the Indenture Trustee within 30 days after
the Effective Date for the purpose of estimating the default risk of Loans, as such model may be modified by S&P from time to time. 
 “S&P
CDO Monitor Test” means a test satisfied on any Measurement Date if, after giving effect to the substitution of a Substitute Loan or the purchase of an Additional Loan (or both), as the case may be, on such Measurement Date, the Notes Loss
Differential of the Proposed Portfolio is positive, or if the Notes Loss Differential of the Proposed Portfolio is negative prior to giving effect to such sale or purchase, the extent of compliance is improved after giving effect to the repurchase,
substitution or purchase of a Substitute Loan or an Additional Loan, as applicable; provided that the S&P CDO Monitor Test will be considered improved if the Notes Loss Differential of the Proposed Portfolio is greater than the
corresponding Notes Loss Differential of the Current Portfolio. In the event the S&P CDO Monitor Test, as in effect on the Effective Date, is updated or otherwise modified by S&P after the Effective Date, “S&P CDO Monitor Test”
shall be deemed to mean such test as so updated or otherwise modified. 
 “S&P Priority Category Recovery Rate” means, with respect to
any Loan, unless otherwise specified by S&P, the percentage specified in the table below: 
  

				
	 S&P Priority Category
	  	Recovery Rate	 
	 First Lien Loan
	  	55	%
	 Qualified Second Lien Loan
	  	47	%
	 Second Lien Loan (other than a Qualified Second Lien Loan), up to an aggregate of Outstanding Loan Balances of such Second Lien Loans of less
than or equal to 15% of the Aggregate Outstanding Loan Balance
	  	38	%
	 Second Lien Loans (other than a Qualified Second Lien Loan), representing the aggregate of Outstanding Loan Balances of such Second Lien Loans
in excess of 15% of the Aggregate Outstanding Loan Balance
	  	22	%
	 Subordinated Loan
	  	22	%

  

 - 45 - 








 “S&P Rating” means, with respect to any Loan, for determining the S&P Rating as of any
Measurement Date: 
 (i) if there is an issuer credit rating of the Obligor of such Loan, or the guarantor who unconditionally
and irrevocably guarantees such Loan, then the S&P Rating shall be such rating (regardless of whether there is a published rating by S&P on such Loan in the Loan Pool); provided that if such rating is a private rating, then consent
must be provided by the Obligor prior to S&P’s disclosure of such rating; 
 (ii) if there is no issuer credit rating
of the Obligor and no other security or obligation of the Obligor is rated by S&P, then the Issuer shall apply to S&P for a corporate credit estimate after the acquisition of such Loan, which shall be its S&P Rating; provided
that, pending receipt from S&P of such estimate, the S&P Rating of such Loan shall be the rating as may be estimated in good faith by the Servicer; provided further that such estimated rating shall not be higher than “B-“ for the
first 60 Business Days following the applicable Cut-Off Date and not higher than “CCC” thereafter; 
 (iii) if there
is no issuer credit rating of the Obligor and such Loan is not rated by S&P, but another security or obligation of the Obligor is rated by S&P and the Issuer does not obtain a S&P Rating for such Loan pursuant to clause (ii) above,
then the S&P Rating of such Loan shall be the issuer credit rating or shall be determined as follows: (A) if there is a rating on a senior secured obligation of the Obligor, then the S&P Rating of such Loan shall be one rating
subcategory below such rating; (B) if there is a rating on a senior unsecured obligation of the Obligor, then the S&P Rating of such Loan shall equal such rating; and (C) if there is a rating on a subordinated obligation of the
Obligor, then the S&P Rating of such Loan shall be one rating subcategory above such rating; 
 (iv) if there is no issuer
credit rating of the Obligor published by S&P and such Loan is not rated by S&P and no other security or obligation of the Obligor is rated by S&P and the Issuer does not obtain a S&P Rating for such Loan pursuant to clause
(ii) above, then the S&P Rating of such Loan shall be determined as follows: If such Loan has a public rating by Moody’s, then the S&P Rating of such Loan shall be (A) one rating subcategory below the S&P equivalent of the
rating assigned by Moody’s if such Loan is rated “Baa3” or higher by Moody’s, and (B) two rating subcategories below the S&P equivalent of the rating assigned by Moody’s if such Loan is rated. “Bal” or
lower by Moody’s; provided that not more than 10% (or such higher percentage as S&P may specify in writing to the Issuer and the Indenture Trustee from time to time) of the Loan Pool Balance may be deemed to have a S&P Rating
based on a rating assigned by Moody’s as provided in this clause; and 
  

 - 46 - 








 (v) if (A) the S&P Rating previously provided for a Loan expires 13 months after
issuance without such S&P Rating being renewed, (B) the Servicer fails to provide S&P with requested materials within 60 days after the Cut-Off Date with respect to a Loan in connection with obtaining an S&P Rating for such Loan,
(C) the Servicer fails to provide financial statements with respect to any Obligor every 13 months from the date the applicable Loan is included in the Loan Pool, until such Loan is paid in full or (D) no other rating for such Loan applies
by operation of clauses (i)-(iv) above, the applicable Loan will be deemed to have an S&P Rating of “CCC-” (unless otherwise determined by S&P in its sole discretion). 
 “S&P Rating Condition” means, with respect to any action or series of related actions or proposed transaction or series of proposed transactions,
that S&P shall have notified the Trust Depositor, the Owner Trustee and the Indenture Trustee in writing that such action or series of related actions or the consummation of such proposed transaction or series of related transactions will not
result in a reduction or withdrawal of the then current rating issued by S&P with respect to any Outstanding Class of Notes as a result of such action or series of related actions or the consummation of such proposed transaction or series of
related transactions. 
 “S&P Weighted Average Recovery Rate” means, as of any Measurement Date, the percentage (rounded up to the first
decimal place) obtained by dividing (a) the sum of the products obtained by multiplying the Outstanding Loan Balance of each Loan (excluding any Defaulted Loans) by its S&P Priority Category Recovery Rate, by (b) the Loan Pool
Balance (excluding any Defaulted Loans). 
 “Scheduled Payment” means, with respect to any Loan, the monthly, quarterly, semi-annual or
annual financing (whether interest, principal or principal and interest) payment scheduled to be made by the related Obligor under the terms of such Loan on and after the related Cut-Off Date and any such payment received after the related Cut-Off
Date, it being understood that Scheduled Payments do not include any Excluded Amounts. 
 “Second Lien Loan” means a Loan (or portion
thereof) that (i) is not (and by its terms is not permitted to become) subordinate in right of payment to any other debt for borrowed money incurred by the Obligor under the Loan, other than a First Lien Loan, (ii) is secured by a valid
and perfected security interest or lien on specified collateral securing the Obligor’s obligations under such Loan, which security interest or lien is not by its terms subordinate to the security interest or lien securing any other debt for
borrowed money other than a First Lien Loan on such specified collateral, and (iii) is secured by Loan Assets having an aggregate value (as determined as set forth below) not less than the Outstanding Loan Balance of such Loan plus the
aggregate outstanding loan balances of all other loans of equal or higher seniority secured by a first or second Lien or security interest in the same Loan Assets; provided that with respect to clauses (i), (ii) and
(iii) above, such right of payment, security interest or lien may be subordinate to customary permitted liens, such as, but not limited to, tax liens. The determination as to whether condition (iii) of this definition is satisfied
shall be based on the Originator’s judgment at the time the Loan is included in the Loan Pool. 
 “Securities” means the Notes and the
Certificate, or any of them. 
  

 - 47 - 








 “Securities Act” means the Securities Act of 1933, as amended from time to time, or any successor
legislation thereto. 
 “Sequential Payment Date” means any Payment Date (a) following the occurrence of a Servicer Default, an Event
of Default, a Downgrade Event, the existence of any Class D Accrued Payable, the Sequential Pool Condition or a Ratings Confirmation Failure, (b) on which the Interest Distributable Test is not satisfied or (c) on which the CCC Excess
Condition is not satisfied; provided that in the case of a Sequential Payment Date arising due to a Ratings Confirmation Failure, only the first Payment Date following such Ratings Confirmation Failure and each subsequent Payment Date prior to the
earlier of (i) the date on which the Effective Date Ratings Confirmation is delivered and (ii) the date on which the Outstanding Principal Balance of each Class of Offered Notes has been reduced to zero shall be a Sequential Payment Date.

 “Sequential Pool Condition” means the period following the Replenishment Period, beginning on the first Payment Date on or after the date
on which the Aggregate Outstanding Loan Balance is less than 50% of the Expected Aggregate Outstanding Loan Balance. 
 “Servicer” means
initially ACAS, or its successor; after any Servicer Transfer hereunder, means the Successor Servicer appointed pursuant to Article VIII with respect to the duties and obligations required of the Servicer under this Agreement. 
 “Servicer Advance” means, with respect to any Payment Date, the amounts, if any, deposited by the Servicer in the Collection Account for such Payment
Date in respect of Scheduled Payments pursuant to Section 5.14. 
 “Servicer Default” shall
have the meaning given to such term in Section 8.01. 
 “Servicer Transfer” has the meaning
given to such term in Section 8.02(b). 
 “Servicing Fee” has the meaning given to such term in
Section 5.18. 
 “Servicing Officer” means any officer of the Servicer involved in, or responsible for, the administration and
servicing of Loans whose name appears on a list of servicing officers appearing in an Officer’s Certificate furnished to the Indenture Trustee by the Servicer, as the same may be amended from time to time. 
 “Solvent” means, as to any Person at any time, that (a) the fair value of the property of such Person is greater than the amount of such
Person’s liabilities (including disputed, contingent and unliquidated liabilities), as such value is established and liabilities evaluated for purposes of Section 101(32) of the Bankruptcy Code; (b) such Person is able to realize upon
its property and pay its debts and other liabilities (including disputed, contingent and unliquidated liabilities) as they mature in the normal course of business; (c) such Person does not intend to, and does not believe that it will, incur
debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature; and (d) such Person is not engaged in business or a transaction, and is not about to engage in a business or a transaction, for which such
Person’s property would constitute unreasonably small capital. 
  

 - 48 - 








 “Special Redemption” means, with respect to any Payment Date during the Replenishment Period, the
payment of the Special Redemption Amount by the Issuer following written notice delivered by the Servicer to the Indenture Trustee on or before the related Determination Date that: 
 (a) any Principal Collections (other than Unused Proceeds) have remained on deposit in the Principal Collection Account for at least 90 days from the date
of their deposit to that account (or, in the case of Principal Collections (other than Unused Proceeds) received during the Pre-Funding Period, for 90 days after the Effective Date); or 
 (b) any Unused Proceeds remain on deposit in the Principal Collection Account on the Effective Date; and 
 (c) the amounts described in the preceding clause (a) equal or exceed $1,000,000 in the aggregate, or the amounts described in the preceding
clause (b) are greater than zero. 
 “Special Redemption Amounts” means those amounts, specified in clause (c) of
the definition of “Special Redemption”, to be distributed pursuant to a Special Redemption and in accordance with the priority of payments set forth in Section 7.05(b). 
 “Specified Amendment” means, with respect to any Loan, any waiver, modification, amendment or variance of any term of such Loan entered into for reasons
unrelated to the Obligor’s ability to make payments of principal or interest under such Loan, as determined in accordance with the Credit and Collection Policy, in a manner that would: 
 (a) modify the amortization schedule with respect to such Loan to reduce the dollar amount of any Scheduled Payment by more than 20%, or to postpone by
more than two payment periods or eliminate a Scheduled Payment with respect thereto; provided that any such modification, postponement or elimination shall not cause the weighted average life of the applicable Loan to increase by more than
10%; 
 (b) reduce or increase the cash interest rate payable by the Obligor thereunder by more than 100 basis points (excluding any increase
in an interest rate arising by operation of a default or penalty interest clause under a Loan); 
 (c) extend the stated maturity date of
such Loan by more than 24 months; provided that such extension shall be deemed not to have been made until the business day following the original stated maturity date of such Loan; 
 (d) release any party from its obligations under such Loan, if such release would have a material adverse effect on the Loan; or 
 (e) reduce the principal amount thereof. 
 “Statutory Trust Statute” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. § 3801 et. seq., as the same may be amended from time to time, or any successor legislation thereto. 
  

 - 49 - 








 “Subordinated Loan” means any Loan (i) other than a First Lien Loan or a Second Lien Loan
(including any Qualified Second Lien Loan) or (ii) that is subordinate pursuant to the terms of the Credit and Collection Policy. 
 “Subsequent
Cut-Off Date” means the date specified as such for Additional Loans or Substitute Loans, as applicable, in the related Subsequent Transfer Agreement. 
 “Subsequent List of Loans” means a list, in the form of the initial List of Loans delivered on the Closing Date, but listing each Additional Loan or Substitute Loan transferred to the Issuer pursuant to the related
Subsequent Transfer Agreement. 
 “Subsequent Purchase Agreement” means, with respect to any Additional Loans or Substitute Loans, as
applicable, the agreement between the Originator and the Trust Depositor pursuant to which the Originator will transfer the Substitute Loans or Additional Loans, as applicable, to the Trust Depositor, the form of which is attached to hereto as
Exhibit J. 
 “Subsequent Transfer Agreement” means the agreement described in Section 2.04 hereof, the form of which is
attached hereto as Exhibit I. 
 “Subsequent Transfer Date” means any date on which Additional Loans or Substitute Loans are
transferred to the Issuer. 
 “Substitute Loan” means a Loan that is (a) transferred to the Issuer under Section 2.04 with
respect to which a related Substitution Event has occurred with respect to a Loan or Loans then held in the Loan Pool and identified in the related Addition Notice and (b) becomes part of the Loan Pool. 
 “Substitute Loan Assets” has the meaning given to such term in Section 2.04(a). 
 “Substitute Loan Qualification Conditions” means, with respect to any Substitute Loan being transferred to the Issuer pursuant to
Section 2.04, the accuracy of each of the following statements as of the related Cut-Off Date for such Loan: 
 (a) the
Outstanding Loan Balance of such Substitute Loan is not less than that of the Loan identified on the related Addition Notice as the Loan to be reassigned by the Issuer to the Trust Depositor and reconveyed to the Originator in exchange for such
Substitute Loan; 
 (b) no selection procedures believed by the Originator or the Trust Depositor to be adverse shall have been employed in
the selection of such Loan being substituted from the Originator’s portfolio; 
 (c) all actions or additional actions (if any) necessary
to perfect the security interest and assignment of such Substitute Loan and related Collateral to the Trust Depositor, the Issuer, and the Indenture Trustee shall have been taken as of or prior to the Subsequent Transfer Date; and 
 (d) the price paid (or, in the case of a contemporaneous conveyance of a Substitute Loan pursuant to this Agreement, deemed paid) by the Issuer for any
Substitute Loan shall be an amount equal to the Outstanding Loan Balance thereof plus accrued interest thereon, if applicable. 
  

 - 50 - 








 “Substitution Event” shall have occurred if a Loan then held by the Issuer and identified in the related
Addition Notice is either (a) a Delinquent Loan, (b) a Defaulted Loan, (c) a Loan that has a covenant default, (d) a Materially Modified Loan, (e) the subject of a breach of a representation or warranty under this Agreement
or other provision, which breach or other provision, in the absence of the substitution of a Substitute Loan for such Loan pursuant to Section 2.04, would require the payment of the Transfer Deposit Amount to the Issuer in respect of
such Loan pursuant to Section 11.01, or (f) the terms of a Loan are subsequently amended in a manner not permitted by this Agreement, including a Loan that has become subject to a Specified Amendment; provided however, that
the occurrence of a Substitution Event with respect to a Loan shall be subject to the limits set forth in Section 2.09; and provided further that in the case of clause (e) above, the Trust Depositor and Originator will
be required to repurchase such Loan (or, at their option, substitute for such Loan). 
 “Substitution
Period” has the meaning given to such term in Section 2.04(a)(ii). 
 “Successor Backup
Servicer” has the meaning given to such term in Section 5.25(a). 
 “Successor
Servicer” has the meaning given to such term in Section 8.02(b). 
 “Swap” has the
meaning given to such term in the Indenture. 
 “Swap Breakage Costs” means, for any Swap Transaction, any amount (other than Net Trust Swap
Payments applicable thereto) payable by the Issuer for the early termination of that Swap Transaction or any portion thereof, in accordance with the provisions of the relevant Swap. 
 “Swap Breakage Receipts” means, for any Swap Transaction, any amount (other than Net Trust Swap Receipts applicable thereto) payable to the Issuer for the early termination of that Swap Transaction or
any portion thereof, in accordance with the provisions of the relevant Swap. 
 “Swap Counterparty” has the
meaning given to such term in the Indenture. 
 “Swap Counterparty Collateral Account” means, with respect to each Swap, the single,
segregated trust account established by the Indenture Trustee in accordance with the terms of such Swap. 
 “Swap Guaranty” means the Swap
Guaranty, dated as of July 28, 2006 between ACAS and Bank of Montreal, Toronto, as amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to time. 
 “Swap Transaction” means each interest rate swap or interest rate cap transaction between the Issuer and a Swap Counterparty that is governed by a Swap.

 “Synthetic Obligation” means any swap transaction, senior unsecured debt security, structured bond investment or other similar investment
purchased from or entered into with a synthetic security counterparty that is required to make payments thereon based on the payments made with respect to the reference obligation related to such swap transaction, senior unsecured debt security,
structured bond investment or other similar investment. 
  

 - 51 - 








 “Tape” has the meaning given to such term in
Section 5.22(b)(ii). 
 “Telerate Page 3750” means the display page currently so designated on the Moneyline Telerate Service
(or such other page as may replace that page on that service for the purpose of displaying comparable rates or prices). 
 “Three-Month Index Maturity” has the meaning given to such term in Section 7.06. 
 “Transaction
Documents” means this Agreement, the Indenture, the Trust Agreement, the ACAS Transfer Agreement, the Swap Guaranty, any Subsequent Transfer Agreement, any Subsequent Purchase Agreement, the Purchase Agreement, any Swap, and all documents
executed in connection with, or identified as “Transaction Documents” in, any of the foregoing documents, all as the same are amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to time.

 “Transfer Date” means the Business Day immediately preceding each Payment Date. 
 “Transfer Deposit Amount” means, with respect to each Ineligible Loan and any other Loan to be repurchased at a time when it is eligible to be
repurchased or replaced by a Substitute Loan on any date of determination, the sum of the Outstanding Loan Balance of such Loan, together with accrued interest thereon through such date of determination at the Loan Rate provided for thereunder, and
any outstanding Servicer Advances thereon that have not been waived by the Servicer entitled thereto. 
 “Trust Account Property” means the
Trust Accounts, all amounts and investments held from time to time in any Trust Account (whether in the form of deposit accounts, physical property, book-entry securities, uncertificated securities or otherwise), including, without limitation, the
Reserve Fund Initial Deposit, and all proceeds of the foregoing (excluding earnings on amounts held in any Swap Counterparty Collateral Account). 
 “Trust Accounts” means, collectively, the Collection Account (including the Interest Collection Account and Principal Collection Account), the Reserve Fund, the Note Distribution Account, the Certificate Distribution
Account and the Swap Counterparty Collateral Account, or any of them. 
 “Trust Agreement” means the Amended and Restated Trust Agreement,
dated as of July 28, 2006, between the Trust Depositor and the Owner Trustee, as amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to time. 
 “Trust Depositor” has the meaning given to such term in the Preamble, or any successor entity thereto.

 “Trust Estate” shall have the meaning given to such term in the Trust Agreement. 
  

 - 52 - 








 “Trustees” means the Owner Trustee and the Indenture Trustee, or any of
them individually as the context may require. 
 “UCC” means the Uniform Commercial Code, as amended from
time to time, as in effect in the applicable jurisdiction. 
 “UCC Filing Locations” means the State of
Delaware. 
 “Uncollectible Advance” means, with respect to any Determination Date and any Loan, the amount, if any, advanced by the
Servicer pursuant to Section 5.14 which the Servicer has, as of such Determination Date, determined in good faith will not be ultimately recoverable by the Servicer. 
 “Underlying Note” means the promissory note of an Obligor evidencing a Loan (excluding any Noteless Loan). 

“United States” means the United States of America. 
 “Unreimbursed Servicer Advances” means, at any time, the amount of all previous Servicer Advances (or portions thereof) as to which the Servicer has not been reimbursed as of such time pursuant to
Section 7.05 and which the Servicer has determined in its sole discretion are Uncollectible Advances, and with respect to which the Servicer has given a written certification to such effect to each Trustee. 
 “Unused Proceeds” means the proceeds of the issuance and sale of the Notes remaining after the Issuer has purchased the Initial Loans on the Closing
Date and has paid organizational expenses of the Issuer and the expenses of the issuance and offering of the Notes and thereafter minus any amount of such funds applied to purchase Additional Loans. 
 “USD-LIBOR-Reference Banks” has the meaning given to such term in Section 7.06(a). 
 “VFCC CP Transaction” means the Third Amended and Restated Loan Funding and Servicing Agreement, dated as of September 23, 2005, among ACS Funding
Trust I, the Servicer, each of the conduit lenders and institutional lenders from time to time party thereto, each of the lender agents from time to time party thereto, the VFCC Deal Agent, Wachovia Bank, National Association, as the swingline
lender, and Wells Fargo Bank, National Association, as the backup servicer and as the collateral custodian, as amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to time, and all documents executed in
connection therewith and all transactions contemplated thereby. 
 “VFCC Deal Agent” means Wachovia Capital
Markets, LLC, as deal agent under the VFCC CP Transaction. 
 “Wachovia Unsecured Transaction” means the First Amended and Restated Credit
Agreement, dated as of May 25, 2006, among the Servicer, as borrower, Wachovia Bank, National Association, as administrative agent and the lenders party thereto, as amended, waived, modified, supplemented or restated from time to time and all
documents executed in connection therewith and all transactions contemplated thereby. 
  

 - 53 - 








 “Warehouse Transactions” means the Fairway CP Transaction, the VFCC CP Transaction and the Wachovia
Unsecured Transaction. 
 “Weighted Average Coupon” means, as of any Measurement Date, a fraction (expressed as a percentage and rounded up
to the next 0.001%), (a) the numerator of which is the sum of the products determined by multiplying the Outstanding Loan Balance of each Fixed Rate Loan (excluding Defaulted Loans and Delinquent Loans) in the Loan Pool as of such Measurement
Date by the Loan Rate for such Loan, and (b) the denominator of which is the sum of the Outstanding Loan Balances of all Fixed Rate Loans (excluding Defaulted Loans and Delinquent Loans) in the Loan Pool as of such Measurement Date; provided
that if the foregoing amount is less than the Reference Rate for such Measurement Date, any Floating Rate Excess as of such Measurement Date shall be added to such amount; and provided further that, for purposes of this definition:
(1) any stated coupon shall exclude any portion of the interest that is currently being deferred in violation of the terms of the related Loan Documents; and (2) Loans that are Defaulted Loans and Delinquent Loans will be included in the
calculations described herein if, as of such Measurement Date, such Loans are paying in full current interest pursuant to the terms of their respective Underlying Note, or, in the case of a Noteless Loan, the Designated Loan Agreement. 

“Weighted Average Coupon Test” means a test that will be satisfied if the Weighted Average Coupon exceeds the Reference Rate. 
 “Weighted Average Gross Coupon” means, as of any Measurement Date, a fraction (expressed as a percentage and rounded up to the next 0.001%),
(a) the numerator of which is the sum of the products determined by multiplying the Outstanding Loan Balance of each Fixed Rate Loan (excluding Defaulted Loans and Delinquent Loans) in the Loan Pool as of such Measurement Date by the current
Gross Interest Rate on such Loan, and (b) the denominator of which is the sum of the Outstanding Loan Balances of all Fixed Rate Loans (excluding Defaulted Loans and Delinquent Loans) in the Loan Pool as of such Measurement Date; provided
that if the foregoing amount is less than the amount required to satisfy the Weighted Average Gross Coupon Test for such Measurement Date, any Floating Rate Excess as of such Measurement Date shall be added to such amount; and provided
further that, for purposes of this definition: (1) any stated coupon shall exclude any portion of the interest that is currently being deferred in violation of the terms of the related Loan Documents; and (2) Loans that are Defaulted
Loans and Delinquent Loans will be included in the calculations described herein if, as of such Measurement Date, such Loans are paying in full current interest pursuant to the terms of their respective Underlying Note, or, in the case of a Noteless
Loan, the Designated Loan Agreement. 
 “Weighted Average Gross Coupon Test” means a test that will be satisfied if the excess of
(i) the Weighted Average Gross Coupon over (ii) the Weighted Average Coupon is equal to or greater than 1.75%. 
 “Weighted Average
Life” means, as of any Measurement Date with respect to any Loan, the number obtained by dividing (a) the sum of the products obtained by multiplying (i) the Average Life at such time of each Loan (excluding Defaulted Loans)
by (ii) the Outstanding Loan Balance of such Loan by (b) the Loan Pool Balance (excluding Defaulted Loans) as of such date. 
  

 - 54 - 








 “Weighted Average Life Test” means a test that (a) will be satisfied during the Replenishment
Period, if the Weighted Average Life is less than the Maximum Weighted Average Life and (b) will be deemed to be satisfied at all times after the Replenishment Period. 
 “Weighted Average Spread” means, as of any Measurement Date, a fraction (expressed as a percentage and rounded up to the next 0.001%), (a) the numerator of which is the sum of the products
determined by multiplying the Outstanding Loan Balance of each Floating Rate Loan (excluding Defaulted Loans and Delinquent Loans) in the Loan Pool as of such Measurement Date by the stated current cash spread above or below the LIBOR rate, and
(b) the denominator of which is the sum of the Outstanding Loan Balances of all Floating Rate Loans (excluding Defaulted Loans and Delinquent Loans) in the Loan Pool as of such Measurement Date; provided that if the foregoing amount is
less than the Minimum Weighted Average Spread as of such Measurement Date, any Fixed Rate Excess as of such Measurement Date shall be added to such amount; and provided further that for purposes of this definition, (1) any Loan Rate
shall exclude any portion of the interest that is currently being deferred in violation of the terms of the related Loan Documents; (2) in the case of a Loan with a Loan Rate based on the Prime Rate, the stated spread to the LIBOR rate for such
Loan shall be calculated on any Measurement Date by the Servicer in its reasonable judgment on behalf of the Issuer by subtracting the applicable LIBOR rate from the Prime Rate and adding such amount to the spread of such Loan; and (3) Loans
that are Defaulted Loans and Delinquent Loans will be included in the calculations described herein if, as of such Measurement Date, such Loans are paying in full current interest pursuant to the terms of their respective Underlying Note or, in the
case of a Noteless Loan, the Designated Loan Agreement. 
 Section 1.02 Other Terms 
 All accounting terms used but not specifically defined herein shall be construed in accordance with generally accepted accounting principles. The symbol
“$” shall mean the lawful currency of the United States. All terms used in Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein as defined in such Article 9. 
 Section 1.03 Computation of Time Periods 
 Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including”, the words
“to” and “until” each mean “to but excluding”, and the word “within” means “from and excluding a specified date and to and including a later specified date”. 
 Section 1.04 Interpretation 
 In this Agreement, unless a contrary intention appears: 
 (i) the singular number includes the plural number and
vice versa; 
 (ii) reference to any Person includes such Person’s successors and assigns but, if applicable, only if
such successors and assigns are permitted by the Transaction Documents; 
  

 - 55 - 








 (iii) reference to any gender includes each other gender; 
 (iv) reference to day or days without further qualification means calendar days; 
 (v) unless otherwise stated, reference to any time means New York, New York time; 
 (vi) references to “writing” include printing, typing, lithography, electronic or other means of reproducing words in a visible
form; 
 (vii) reference to any agreement (including any Transaction Document), document or instrument means such agreement,
document or instrument as amended, modified, supplemented, replaced, restated, waived or extended and in effect from time to time in accordance with the terms thereof and, if applicable, the terms of the other Transaction Documents, and reference to
any promissory note includes any promissory note that is an extension or renewal thereof or a substitute or replacement therefor; 
 (viii) reference to any Requirement of Law means such Requirement of Law as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder and
reference to any Section or other provision of any Requirement of Law means that provision of such Requirement of Law from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of
such Section or other provision; and 
 (ix) references to “include” and “including” shall be deemed to
mean “include, without limitation” and “including, without limitation” respectively. 
 Section 1.05 Section
References 
 All Section references (including in the Preamble), unless otherwise indicated, shall be to Sections (and the
Preamble) in this Agreement. 
 Section 1.06 Calculations 
 Except as otherwise provided herein, all interest rate and basis point calculations hereunder will be made on the basis of a 360-day year and the actual
days elapsed in the relevant period and will be carried out to at least three decimal places. 
 ARTICLE II 
 ESTABLISHMENT OF ISSUER; TRANSFER OF LOAN ASSETS 
 Section 2.01 Creation and Funding of Issuer; Transfer of Loan Assets 
 (a) The Issuer
shall be governed pursuant to the terms and conditions of the Trust Agreement upon the execution and delivery of the Trust Agreement and created by the filing by the Owner Trustee of an appropriately completed Certificate of Trust (as defined in the
Trust 

  

 - 56 - 








 
Agreement) under the Statutory Trust Statute. The Trust Depositor, as settlor of the Issuer, shall fund and convey assets to the Issuer pursuant to the terms
and provisions hereof. The Issuer shall be administered pursuant to the provisions of this Agreement, the Administration Agreement and the Trust Agreement for the benefit of the Holders and the Swap Counterparties. The Owner Trustee is hereby
specifically recognized by the parties hereto as empowered to conduct business dealings on behalf of the Issuer in accordance with the terms hereof and of the Trust Agreement. 
 (b) Subject to and upon the terms and conditions set forth herein, the Trust Depositor hereby sells, transfers, assigns, sets over and otherwise conveys
to the Issuer, for a purchase price consisting of $436,000,000 in cash (less placement expenses and certain other expenses associated with the initial offer and sale of the Notes, the proceeds of which represent the consideration paid by the Issuer
herein), $64,000,000 of the Class E Note and the Certificate of the Issuer in the original certificate balance of $10.00, all of the right, title and interest of the Trust Depositor in and to the following (the items in (i)-(vi) below,
but in each case excluding the Retained Interest and Excluded Amounts, being collectively referred to herein as the “Initial Loan Assets”): 
 (i) the Initial Loans and all Collections and other monies due or to become due in payment of such Loans on and after the Closing Date,
including any Prepayment Amounts, any Prepayment Premiums, any Late Charges, any payments in respect of a casualty or early termination, any Insurance Proceeds and any Liquidation Proceeds received with respect to the foregoing; 
 (ii) the Collateral related to such Loans (to the extent the Originator, other than solely in its capacity as collateral agent under any
loan agreement with an Obligor, has been granted a Lien thereon), including the security interest of the Trust Depositor in such Collateral, all proceeds from any sale or other disposition of such Collateral and all Insurance Policies; 

(iii) the Loan Files and all documents and records (including computer records) relating thereto; 
 (iv) all guarantees, indemnities, warranties and other agreements or arrangements of whatever character from time to time supporting or
securing payment of such Loans; 
 (v) the Trust Accounts and all Trust Account Property (to the extent of the Trust
Depositor’s interest if any therein); and 
 (vi) all income, payments, products, proceeds and other benefits of any and
all of the foregoing. 
 (c) The Originator and the Trust Depositor acknowledge that the representations and warranties of the Originator and
Trust Depositor in Sections 3.01, 3.02, 3.03, 3.04 and 3.05 will run to and be for the benefit of the Issuer, the Trustees and the Swap Counterparties, and the Issuer and the Trustees may enforce, directly without
joinder of the Trust Depositor, the repurchase obligations of the Originator with respect to breaches of such representations and warranties as set forth herein and in Section 11.01. 
  

 - 57 - 








 (d) The sale, transfer, assignment, set-over and conveyance of the Loan Assets by the Trust Depositor to
the Issuer pursuant to this Agreement does not constitute and is not intended to result in a creation or an assumption by the Trust Depositor or the Issuer of any obligation of the Originator in connection with the Loan Assets, or any agreement or
instrument relating thereto, including, without limitation, (i) any obligation to any Obligor, if any, not financed by the Originator, (ii) any taxes, fees, or other charges imposed by any Governmental Authority and (iii) any
insurance premiums that remain owing with respect to any Loan at the time such Loan is sold hereunder. The Trust Depositor also hereby assigns to the Issuer all of the Trust Depositor’s right, title and interest (but none of its obligations)
under the ACAS Transfer Agreement, including but not limited to the Trust Depositor’s right to exercise the remedies created by the ACAS Transfer Agreement. 
 (e) The Originator, the Trust Depositor and the Issuer intend and agree that (i) the transfer of the Loan Assets to the Trust Depositor and the transfer of the Loan Assets to the Issuer are intended to be a sale,
conveyance and transfer of ownership of the Loan Assets rather than the mere granting of a security interest to secure a borrowing and (ii) such Loan Assets shall not be part of the Originator’s or the Trust Depositor’s estate in the
event of a filing of a bankruptcy petition or other action by or against such Person under any Insolvency Law. In the event, however, that notwithstanding such intent and agreement, such transfers are deemed to be a grant of a mere security interest
to secure indebtedness, the Originator shall be deemed to have granted (and hereby does grant) the Trust Depositor and the Trust Depositor shall be deemed to have granted (and hereby does grant) the Issuer, as the case may be, a perfected first
priority security interest in such Loan Assets, and this Agreement shall constitute a security agreement under Requirements of Law securing the repayment of the purchase price paid hereunder, the obligations and/or interests represented by the
Securities and the obligations of the Issuer under the Swap Transactions and the Swaps, in the order and priorities, and subject to the other terms and conditions of, this Agreement, the Indenture, the Trust Agreement and the Swaps, together with
such other obligations or interests as may arise hereunder and thereunder in favor of the parties hereto and thereto. 
 (f) If any such
transfer of the Loan Assets is deemed to be the mere granting of a security interest to secure a borrowing, the Trust Depositor may, to secure the Trust Depositor’s own borrowing under this Agreement (to the extent that the transfer of the Loan
Assets hereunder is deemed to be a mere granting of a security interest to secure a borrowing) repledge and reassign (i) all or a portion of the Loan Assets pledged to the Trust Depositor by the Originator and with respect to which the Trust
Depositor has not released its security interest at the time of such pledge and assignment, and (ii) all proceeds thereof. Such repledge and reassignment may be made by the Trust Depositor with or without a repledge and reassignment by the
Trust Depositor of its rights under any agreement with the Originator, and without further notice to or acknowledgment from the Originator. The Originator waives, to the extent permitted by Requirements of Law, all claims, causes of action and
remedies, whether legal or equitable (including any right of setoff), against the Trust Depositor or any assignee of the Trust Depositor relating to such action by the Trust Depositor in connection with the transactions contemplated by this
Agreement. 
  

 - 58 - 








 Section 2.02 Conditions to Transfer of Initial Loan Assets to Issuer 
 On or before the Closing Date, the Originator or the Trust Depositor, as applicable, shall deliver or cause to be delivered to the Owner Trustee and the
Indenture Trustee each of the following documents, certificates and other items: 
 (i) a certificate of an officer of the
Originator substantially in the form of Exhibit C hereto; 
 (ii) copies of resolutions of the Board of Directors of
the Originator and the Servicer or the Executive Committee of the Board of Directors of the Originator and the Servicer approving the execution, delivery and performance of this Agreement and the transactions contemplated hereunder, certified in
each case by the Secretary or an Assistant Secretary of the Originator, the Servicer and the member of the Trust Depositor; 
 (iii) officially certified recent evidence of due incorporation and good standing of the Originator, the Servicer and the Trust Depositor under the laws of the State of Delaware; 
 (iv) the initial List of Loans, certified by an officer of the Trust Depositor, together with an Assignment substantially in the form of
Exhibit A (along with the delivery of any instruments and Loan Documents as required under Section 2.07 below); 
 (v) a certificate of an officer of the Trust Depositor substantially in the form of Exhibit B hereto; 
 (vi)
a letter from Ernst & Young LLP, or another nationally recognized accounting firm, addressed to the Originator and the Trust Depositor, with a copy to Moody’s, (a) stating that such firm has reviewed a sample of the Initial Loans
and performed specific procedures for such sample with respect to certain loan terms and (b) identifying those Initial Loans that do not conform to the procedures; 
 (vii) a letter from each applicable Rating Agency assigning ratings not lower than those disclosed in the Offering Memorandum to each of
the Class A Notes, the Class B Notes, the Class C Notes and, the Class D Notes; 
 (viii) copies of resolutions of the
Board of Directors of the Trust Depositor approving the execution, delivery and performance of this Agreement and the transactions contemplated hereunder, certified in each case by the Secretary or an Assistant Secretary of the Trust Depositor;

 (ix) evidence of proper filing with appropriate offices in the UCC Filing Locations of UCC financing statements executed by
the Originator, as debtor, naming the Trust Depositor as secured party (and the Issuer as assignee) and identifying the Loan Assets as collateral; and evidence of proper filing with appropriate officers in the UCC Filing Locations of UCC financing
statements delivered by the Trust Depositor, as debtor, naming the Issuer as secured party (and the Indenture Trustee as assignee) and 

  

 - 59 - 








 
identifying the Loan Assets as collateral; and evidence of proper filing with appropriate officers in the UCC Filing Locations of UCC financing statements
delivered by the Issuer and naming the Indenture Trustee as secured party and identifying the Indenture Collateral, as collateral; 
 (x) an Officer’s Certificate listing the Servicer’s Servicing Officers; 
 (xi) evidence of deposit in the
Reserve Fund of the Reserve Fund Initial Deposit by the Issuer; 
 (xii) a fully executed copy of each Transaction Document;

 (xiii) opinions of counsel for the Originator and the Trust Depositor, in form and substance satisfactory to the Initial
Purchasers (and including as an addressee thereof each Rating Agency); 
 (xiv) an opinion of Winston & Strawn LLP to
the effect that, for federal income tax purposes, the Offered Notes will be characterized as debt and the Issuer will not be characterized as an association, taxable mortgage pool, or publicly traded partnership taxable as a corporation; and

 (xv) an opinion of Winston & Strawn LLP to the effect that the Issuer will not be subject to income tax imposed by
the State of Maryland, and Holders of the Offered Notes that are not otherwise subject to State of Maryland income tax jurisdiction will not become subject to income taxation by the State of Maryland solely as a result of their ownership of the
Offered Notes. 
 Section 2.03 Acceptance by the Issuer 
 On the Closing Date, if the conditions set forth in Section 2.02 have been satisfied or waived, the Issuer shall issue to, or upon the order
of, the Trust Depositor the Certificate representing ownership of a beneficial interest in 100% of the Issuer and the Issuer shall issue, and the Indenture Trustee shall authenticate, to, or upon the order of, the Trust Depositor the Notes secured
by the Indenture Collateral. The Owner Trustee hereby acknowledges its acceptance, on behalf of the Issuer, of the Loan Assets, and declares that it shall maintain such right, title and interest in accordance with the terms of this Agreement and the
Trust Agreement upon the terms herein and therein set forth. 
 Section 2.04 Conveyance of Substitute Loans 
 (a) (i) Subject to Sections 2.01(d) and (e) above and the satisfaction of the conditions set forth in Section 2.04(c),
the Originator may at its option (but shall not be obligated to) (I) deposit to the Principal Collection Account the Transfer Deposit Amount with respect to any Loan as to which a Substitution Event has occurred and, then, prior to the expiry
of the Substitution Period convey to the Trust Depositor one or more Loans as described in the following clause (II) in exchange for the funds so deposited or a portion thereof, or (II) contemporaneously, sell, transfer, assign, set over and
otherwise convey to the Trust Depositor (by delivery of an executed Subsequent Purchase Agreement substantially in the form attached 

  

 - 60 - 








 
as Exhibit J hereto), without recourse other than as expressly provided herein and therein (and the Trust Depositor shall be required to purchase
through cash payment or by exchange of one or more related Loans released by the Issuer to the Trust Depositor on the Subsequent Transfer Date), all of the right, title and interest of the Originator in and to the following (the items in clauses
(i)-(vi) below, but in each case excluding the Retained Interest and the Excluded Amounts, upon such transfer, the “Substitute Loan Assets”): 
 (1) the Substitute Loans identified in the related Addition Notice and all Collections and other monies due or to become due in payment of
such Substitute Loans on and after the related Subsequent Cut-Off Date, including any Prepayment Amounts, any Prepayment Premiums, any Late Charges, any payments in respect of a casualty or early termination, any Insurance Proceeds and any
Liquidation Proceeds received with respect to the foregoing; 
 (2) the Collateral related to such Loans (to the extent the
Originator, other than solely in its capacity as collateral agent under any loan agreement with an Obligor, has been granted a Lien thereon), including the security interest of the Trust Depositor in such Collateral, all proceeds from any sale or
other disposition of such Collateral and all Insurance Policies; 
 (3) the Loan Files and all documents and records
(including computer records) relating thereto; 
 (4) all guarantees, indemnities, warranties and other agreements or
arrangements of whatever character from time to time supporting or securing payment of such Loans; 
 (5) the Trust Accounts
and all Trust Account Property (to the extent of the Trust Depositor’s interest if any therein); and 
 (6) all income,
payments, products, proceeds and other benefits of any and all of the foregoing. 
 (ii) Any substitution pursuant to this
Section 2.04 shall be initiated by delivery of written notice (a “Notice of Substitution”) to the Indenture Trustee from the Servicer that the Originator intends to substitute a Loan pursuant to this Section 2.04
and shall be completed prior to the earliest of: 
 (1) the expiration of (A) during the Pre-Funding Period and the
Replenishment Period, 90 days after delivery of such notice and (B) following the Replenishment Period, 180 days after delivery of such notice; 
 (2) delivery of written notice to the Indenture Trustee from the Servicer stating that it does not intend to use any remaining deposit to acquire Substitute Loans; or 
 (3) in the case of a Loan which has become subject to a material modification, the effective date set forth in such material modification
(such period described in clause (ii)(1), (2) or (3), as applicable, being the “Substitution Period”). 
  

 - 61 - 








 Each Notice of Substitution shall specify the Loan to be substituted, the reasons for such substitution
and the Transfer Deposit Amount with respect to the Loan. 
 (b) Subject to Sections 2.01(d) and (e) and the conditions set
forth in Section 2.04(c), the Trust Depositor shall sell, transfer, assign, set over and otherwise convey to the Issuer, without recourse other than as expressly provided herein and therein, (i) all the right, title and interest of
the Trust Depositor in and to the Substitute Loans purchased pursuant to Section 2.04(a), and (ii) all other rights and property interests consisting of Loan Assets related to such Substitute Loans (the property in clauses
(i)-(ii) above, upon such transfer, shall then be included in the term “Loan Assets”). 
 (c) The Originator shall
transfer to the Trust Depositor and the Trust Depositor shall transfer to the Issuer the Substitute Loans and the other property and rights related thereto described in Section 2.04(a), in the case of the Originator, or
Section 2.04(b), in the case of the Trust Depositor, only upon the satisfaction of each of the following conditions on or prior to the related Subsequent Transfer Date (and the delivery of a related Addition Notice by the Trust Depositor
shall be deemed a representation and warranty by the Trust Depositor and of the Originator that such conditions have been or will be, as of the related Subsequent Transfer Date, satisfied): 
 (i) the Trust Depositor shall have provided the Issuer and the Indenture Trustee with a timely Addition Notice complying with the
definition thereof contained herein, which notice shall be delivered no later than five days prior to the date of addition; 
 (ii) there shall have occurred, with respect to each such Substitute Loan, a corresponding Substitution Event with respect to one or more Loans then in the Loan Pool; 
 (iii) the Substitute Loan(s) being conveyed to the Issuer satisfy the Substitute Loan Qualification Conditions; 
 (iv) after giving effect to the inclusion of the applicable Substitute Loans in the Loan Pool effected after the Pre-Funding Period, the
Portfolio Criteria and the Portfolio Acquisition and Disposition Requirements are satisfied; provided that if any component of the Portfolio Criteria is not satisfied prior to giving effect to the inclusion of a Substitute Loan, the Portfolio
Criteria shall be deemed satisfied with respect to such component if the component is maintained or improved by the inclusion of such Substitute Loan. 
 (v) the Originator shall have delivered to the Trust Depositor a duly executed written Subsequent Purchase Agreement, which shall include a Subsequent List of Loans listing the Substitute Loans; 
  

 - 62 - 








 (vi) the Trust Depositor shall have delivered to the Issuer a duly executed written
Subsequent Transfer Agreement, which shall include a Subsequent List of Loans listing the Substitute Loans; 
 (vii) the Trust
Depositor shall have deposited or caused to be deposited in the Collection Account all Collections received with respect to the Substitute Loans on and after the related Subsequent Cut-Off Date; 
 (viii) as of each Subsequent Transfer Date, neither the Originator nor the Trust Depositor was insolvent nor will either of them have been
made insolvent by such transfer nor is either of them aware of any pending insolvency; 
 (ix) no selection procedures
believed by the Originator or the Trust Depositor to be adverse to the interests of the Holders or the Swap Counterparties shall have been utilized in selecting the Substitute Loans; and 
 (x) each of the representations and warranties made by the Originator and Trust Depositor pursuant to Section 3.02 (including
without limitation that such Substitute Loan is an Eligible Loan), Section 3.03(b) (except that any reference therein to an Initial Loan shall be deemed a reference to a Substitute Loan) and Section 3.04 applicable to the
Substitute Loans shall be true and correct as of the related Subsequent Transfer Date. 
 (d) The Originator shall, at its own expense, on or
prior to the Subsequent Transfer Date, indicate in its Computer Records that ownership of the Substitute Loans identified on the Subsequent List of Loans in the Subsequent Transfer Agreement has been sold to the Issuer through the Trust Depositor
pursuant to this Agreement. 
 (e) The Originator shall deliver prior written notice of any substitution of a Substitute Loan to
Moody’s. 
 (f) On (i) the last day of any Substitution Period or (ii) in the Servicer’s discretion, the first Payment
Date following the date of their deposit into the Principal Collection Account, any amounts previously deposited in accordance with the procedures for the substitution of Loans set forth in Section 2.04(a) that have not been applied to
purchase one or more Substitute Loans shall be deemed to constitute Principal Collections and shall be transferred on the next Payment Date to the Note Distribution Account and distributed in accordance with the Priority of Payments, as applicable;
provided that no such distribution shall be made during the Replenishment Period if the Special Redemption criteria are not satisfied with respect to such amount; provided further that prior to the expiration of the related
Substitution Period any such amounts shall not be deemed to be Principal Collections and shall remain in the Principal Collection Account until applied to acquire Substitute Loans or distributed in accordance with the Priority of Payments. The price
paid (or, in the case of a contemporaneous conveyance of a Substitute Loan pursuant to Section 2.04(a)(i)(II), deemed paid) by the Issuer for any Substitute Loan shall be an amount equal to (x) in the case of a Loan originated by
the Originator, the Outstanding Loan Balance thereof, and (y) in the case of a Loan acquired by the Originator from a third party, the purchase price paid for such Loan, plus, in each case, accrued interest thereon. 
  

 - 63 - 








 Section 2.05 Conveyance of Additional Loans 
 (a) The Issuer may, at any time during the Pre-Funding Period and the Replenishment Period and subject to the conditions set forth in this
Section 2.05, apply Principal Collections and (solely during the Pre-Funding Period) Unused Proceeds standing to the credit of the Principal Collections Account to purchase from the Trust Depositor (by delivery of a Subsequent Transfer
Agreement in the form of Exhibit I hereto) Additional Loan Assets. Upon the purchase of any Additional Loan Assets pursuant to and in accordance with this Section 2.05, such Additional Loan Assets shall become part of the
Indenture Collateral subject to the Lien of the Indenture. The Servicer represents and warrants in connection with the foregoing that it will not cause the Issuer to purchase any Additional Loan pursuant to this Section 2.05 for the
primary purpose of recognizing gains or decreasing losses resulting from market value changes. 
 (b) Within five Business Days after the
Effective Date, the Servicer will (i) engage Independent Accountants to determine the extent of compliance with the Portfolio Criteria of the Loans included in the Collateral as of the Effective Date, (ii) deliver to the Indenture Trustee
and the Rating Agencies an Officer’s Certificate certifying the compliance with the Portfolio Criteria of the Loans included in the Collateral as of the Effective Date and appending thereto the Quarterly Report and the Additional Loan
Information Schedule, and (iii) request that each Rating Agency confirm in writing within 60 Business Days after the initial Payment Date (or such later date as each Rating Agency may determine (in such case, the Servicer shall provide to the
Indenture Trustee and the Backup Servicer written notice of each such Rating Agency’s projected later date)) that such Rating Agency has not reduced or withdrawn any of the ratings assigned to the Offered Notes on the Closing Date (the
“Effective Date Ratings Confirmation”). Within 60 Business Days after the initial Payment Date, the Servicer will deliver to the Indenture Trustee and the Rating Agencies a report of the Independent Accountants certifying the
results of the determination made with respect to clause (ii) above. If (A) the Servicer fails to deliver the Officer’s Certificate referenced in clause (ii) above, (B) any Rating Agency notifies the Issuer or
the Servicer on the Issuer’s behalf within 60 Business Days after the initial Payment Date (or such later date as each Rating Agency may determine) that its rating on any Class of Offered Notes will be reduced or withdrawn, or fails to respond
to the request for an Effective Date Ratings Confirmation, or (C) the Servicer fails to deliver the report of the Independent Accountants referenced above (any of such events, an “Effective Date Ratings Downgrade”), the
Servicer on behalf of the Issuer shall present a Proposed Plan to the Rating Agencies to obtain an Effective Date Ratings Confirmation. If a Proposed Plan has not been presented and accepted by the Rating Agencies, resulting in an Effective Date
Ratings Confirmation on or prior to the first Payment Date following the applicable Effective Date Ratings Downgrade (a “Ratings Confirmation Failure”), such Payment Date and any succeeding Payment Date will be a Sequential Payment Date,
until such date as each such Rating Agency has delivered an Effective Date Ratings Confirmation or until the Outstanding Principal Balance of each Class of Notes is reduced to zero. 
 (c) During the Pre-Funding Period and the Replenishment Period, each Additional Loan to be purchased by the Issuer for inclusion in the Loan Pool will be
eligible for purchase by the Issuer and inclusion in the Indenture Collateral only if, after giving effect to the inclusion of the applicable Additional Loans in the Loan Pool, the Portfolio Criteria and the Portfolio Acquisition and Disposition
Requirements are satisfied; provided that if any component of the 

  

 - 64 - 








 
Portfolio Criteria is not satisfied prior to giving effect to the inclusion of such Additional Loans, the Portfolio Criteria shall be deemed satisfied with
respect to such component if the component is maintained or improved by the inclusion of such Additional Loans. 
 (d) [Reserved].

 (e) The Originator shall transfer to the Trust Depositor and the Trust Depositor shall transfer to the Issuer the Additional Loans and the
other property and rights related thereto described in Section 2.05(a) only upon the satisfaction of each of the following conditions on or prior to the related Transfer Date (and the delivery of a related Addition Notice by the Issuer
shall be deemed a representation and warranty by the Issuer, the Trust Depositor and the Originator that such conditions are satisfied as of the related Subsequent Transfer Date): 
 (i) the Trust Depositor shall have provided the Issuer and the Indenture Trustee with a timely Addition Notice complying with the
definition thereof contained herein, which Addition Notice shall be delivered no later than five days prior to the related Subsequent Transfer Date; 
 (ii) after giving effect to the inclusion of the applicable Additional Loans in the Loan Pool during the Replenishment Period, the Portfolio Criteria and the Portfolio Acquisition and Disposition Requirements are
satisfied; provided that if any component of the Portfolio Criteria is not satisfied prior to giving effect to the inclusion of such Additional Loans, the Portfolio Criteria shall be deemed satisfied with respect to such component if the
component is maintained or improved by the inclusion of such Additional Loans; 
 (iii) the Originator shall have delivered to
the Trust Depositor and Indenture Trustee a duly executed Subsequent Purchase Agreement in substantially the form of Exhibit J hereto, which shall include a Subsequent List of Loans listing the Additional Loans; 
 (iv) the Trust Depositor shall have delivered to the Issuer a duly executed Subsequent Transfer Agreement, which shall include a
Subsequent List of Loans listing the Additional Loans; 
 (v) the Trust Depositor shall have deposited or caused to be
deposited in the Collection Account all Collections received with respect to the Additional Loans on and after the related Subsequent Cut-Off Date; 
 (vi) as of each Subsequent Transfer Date, neither the Originator nor the Trust Depositor was insolvent nor will either of them have been made insolvent by such transfer nor is either of them aware of any pending
insolvency; 
 (vii) no selection procedures believed by the Originator or the Trust Depositor to be adverse to the interests
of the Holders or the Swap Counterparties shall have been utilized in selecting the Additional Loans; and 
  

 - 65 - 








 (viii) each of the representations and warranties made by the Originator and Trust
Depositor pursuant to Section 3.02 (including without limitation that such Additional Loan is an Eligible Loan), Section 3.03(b) (except that any reference therein to an Initial Loan shall be deemed a reference to an
Additional Loan) and Section 3.04 applicable to the Additional Loans shall be true and correct as of the related Subsequent Transfer Date. 
 (f) The Originator shall, at its own expense, on or prior to the Subsequent Transfer Date, indicate in its Computer Records that ownership of the Additional Loans identified on the Subsequent List of Loans in the
Subsequent Transfer Agreement has been sold to the Issuer through the Trust Depositor pursuant to this Agreement. 
 (g) The Originator shall
deliver prior written notice of the inclusion of an Additional Loan to Moody’s, S&P and Fitch. 
 Section 2.06 Release of
Released Amounts 
 (a) The Indenture Trustee hereby agrees to release to the Issuer from the Loan Assets, and the Issuer hereby
agrees to release to the Trust Depositor, an amount equal to the Released Amounts immediately upon identification thereof and upon receipt of an Officer’s Certificate of the Servicer, which release shall be automatic and shall require no
further act by the Indenture Trustee or the Issuer; provided that, the Indenture Trustee or the Issuer shall execute and deliver such instruments of release and assignment, or otherwise confirm the foregoing release, as may reasonably be
requested by the Trust Depositor in writing. Upon such release, such Released Amounts shall not constitute and shall not be included in the Loan Assets. 
 (b) Immediately upon the release to the Trust Depositor by the Indenture Trustee of the Released Amounts, the Trust Depositor hereby irrevocably agrees to release to the Originator such Released Amounts, which release
shall be automatic and shall require no further act by the Trust Depositor; provided that, the Trust Depositor shall execute and deliver such instruments of release and assignment, or otherwise confirming the foregoing release of any Released
Amounts, as may be reasonably requested by the Originator. 
 Section 2.07 Delivery of Loan Files 
 (a) The Originator and the Trust Depositor shall deliver possession of all “instruments” (within the meaning of Article 9 of the UCC) not
constituting part of “chattel paper” (within the meaning of such Article 9) that evidence any Loan, including all Underlying Notes (other than in the case of Noteless Loans), and all other portions of the Loan Files to the Indenture
Trustee on behalf of the Issuer and the Swap Counterparties five Business Days prior to the applicable Assignment Date, in each case endorsed in blank without recourse, and shall deliver a copy of the Loan Register with respect to any Noteless Loan,
together with an Officer’s Certificate of the Servicer as to the accuracy thereof, in accordance with the foregoing delivery requirements. Pursuant to Section 3.06 of the Indenture, the Issuer is required to deliver such instruments and
Loan Files to the Indenture Trustee as pledgee under the Indenture for the benefit of the Noteholders and the Swap Counterparties. Accordingly, the Issuer hereby authorizes and directs the Originator and the Trust Depositor to deliver possession of
all such 

  

 - 66 - 








 
instruments and the Loan Files, along with the related Loan Checklists and List of Loans, to the Indenture Trustee on behalf of and for the account of the
Issuer, and agrees that such delivery shall satisfy the condition set forth in the first sentence of this Section 2.07. The Originator and the Trust Depositor shall also identify on the List of Loans (including any deemed amendment
thereof associated with any Substitute Loans), whether by attached schedule or marking or other effective identifying designation, all Loans that are or are evidenced by such instruments. 
 (b) Prior to the occurrence of an Event of Default or a Servicer Default, the Indenture Trustee shall not record the Assignments of Mortgage delivered
pursuant to Section 2.07(a) and the definition of Loan Documents. Upon the occurrence of an Event of Default or a Servicer Default, the Indenture Trustee shall cause to be recorded in the appropriate offices each Assignment of Mortgage
delivered to it with respect to all Loans except those Loans covered by the proviso to the definition of Assignment of Mortgage. Each such recording shall be at the expense of the Servicer; provided to the extent the Servicer does not pay
such expense, then the Indenture Trustee shall be reimbursed pursuant to the provisions of Section 7.05. 
 Section 2.08
Certification by Indenture Trustee; Possession of Loan Files 
 (a) On or prior to the applicable Assignment Date, the Indenture
Trustee shall review the Loan Files required to be delivered pursuant to Section 2.07(a) on the applicable Assignment Date and shall deliver to the Originator, the Trust Depositor, the Swap Counterparties and the Servicer a certification
in the form attached hereto as Exhibit D-1 on or prior to such Assignment Date. Within 360 days after each Assignment Date, the Indenture Trustee shall deliver to the Originator, the Servicer, the Trust Depositor, the Swap Counterparties and
any Noteholder who requests a copy from the Indenture Trustee a final certification in the form attached hereto as Exhibit D-2 evidencing the completeness of the Loan Files with respect to the Loans being transferred on such Assignment Date.

 (b) If the Indenture Trustee, during the process of reviewing the Loan Files, finds any document constituting a part of a Loan File which
is not properly executed, has not been received, is unrelated to a Loan identified in the List of Loans, or is not listed on the Loan Checklist related to such Loan File, or does not conform in a material respect to the requirements of the
definition of Loan File, or the description thereof as set forth in the List of Loans and the related Loan Checklist, the Indenture Trustee shall promptly so notify the Originator, the Trust Depositor and the Servicer. In performing any such review,
the Indenture Trustee may conclusively rely on the Originator as to the purported genuineness of any such document and any signature thereon. It is understood that the scope of the Indenture Trustee’s review of the Loan Files is limited solely
to confirming that the documents listed on the Loan Checklists have been executed and received and relate to the Loans identified in the List of Loans; provided with respect to the UCC financing statements referenced in the definition of Loan
File, the Indenture Trustee’s sole responsibility will be to confirm that the Loan File contains UCC financing statements and not to make determinations about the materiality of such UCC financing statements. The Originator agrees to use
reasonable efforts to remedy a material defect in a document constituting part of a Loan File of which it is so notified by the Indenture Trustee. If, however, within 30 days after the Indenture Trustee’s notice to it respecting such material
defect the Originator has not remedied the defect and such defect materially and adversely affects the value of the related Loan, such Loan will be treated as an “Ineligible Loan” and the Originator 

  

 - 67 - 








 
will (i) substitute in lieu of such Loan a Substitute Loan in the manner and subject to the conditions set forth in Section 11.01 or
(ii) repurchase such Loan at a purchase price equal to the Transfer Deposit Amount, which purchase price shall be deposited in the Collection Account within such 30 day period. 
 (c) Release of Entire Loan File Upon Substitution. Subject to Section 5.08(c), upon receipt by the Indenture Trustee of a
certification of a Servicing Officer of the Servicer of such substitution or of such purchase and the deposit of the amounts described in Section 2.08(b) in the Collection Account (which certification shall be in the form of Exhibit
E hereto), the Indenture Trustee shall release to the Servicer for release to the Originator the related Loan File and the Indenture Trustee and the Issuer shall execute, without recourse, and deliver such instruments of transfer prepared by the
Servicer necessary to transfer all right, title and interest in such Loan to the Originator free and clear of any Liens created by the Transaction Documents. All costs of any such transfer shall be borne by the Servicer. 
 (d) Partial Release of Loan File and/or Collateral. Subject to Section 5.08(d), if in connection with taking any action in connection
with a Loan (including, without limitation, the amendment to documents in the Loan File and/or a revision to Collateral), the Servicer requires any item constituting part of the Loan File, or the release from the Lien of the related Loan of all or
part of any Collateral, the Servicer shall deliver to the Indenture Trustee a certificate to such effect in the form attached as Exhibit E hereto. Upon receipt of such certification, the Indenture Trustee shall deliver to the Servicer within
two Business Days of such request (if such request was received by 2:00 p.m., central time), the requested documentation, and the Indenture Trustee shall execute, without recourse, and deliver such instruments of transfer necessary to release all or
the requested part of the Collateral from the Lien of the related Loan and/or the Lien under the Transaction Documents. 
 (e) Annual
Certification. On the Payment Date in January of each year, commencing January 2007, the Indenture Trustee shall deliver to the Originator, the Trust Depositor, each Swap Counterparty and the Servicer a report detailing all transactions with
respect to the Loans for which the Indenture Trustee holds the Loan Files pursuant to this Agreement during the prior calendar year. Such report shall list all Loan Files which were released by or returned to the Indenture Trustee during the prior
calendar year, the date of such release or return and the reason for such release or return. 
 Section 2.09 Optional Repurchase
by the Originator of Certain Loans; Limitations on Substitution and Repurchase. 
 (a) Subject to the limitations set forth in
Section 2.09(c), the Originator shall have the right, but not the obligation, to repurchase any (i) Delinquent Loan, (ii) Defaulted Loan, (iii) Loan that has a covenant default, (iv) Materially Modified Loan,
(v) Loan, the terms of which are subsequently amended in a manner not permitted by this Agreement, including a Loan that has become subject to a Specified Amendment or (vi) Discretionary Repurchased Loan. In the event of such a purchase,
the Originator shall deposit in the Collection Account, on the next succeeding Determination Date, an amount equal to the Transfer Deposit Amount for such Loan (or applicable portion thereof) as of the date of such purchase. The Originator, the
Issuer and the Indenture Trustee shall execute and deliver such instruments, consents or other documents and perform all acts reasonably requested by the Servicer in order to effect the transfer and release of any of the Issuer’s interests in
the Loans that are being purchased. 
  

 - 68 - 








 (b) [Reserved.] 
 (c) The aggregate Outstanding Loan Balance of all Loans repurchased pursuant to Section 2.09(a) or substituted pursuant to Section 2.04 shall not exceed an amount equal to, as of any date of
determination, 20% of the Net Purchased Loan Balance; provided that the foregoing limitation shall not apply to Loans substituted by reason of the occurrence of a Substitution Event of the type specified in clause (e) of the
definition of such term. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 The Originator makes, and upon execution of each Subsequent Purchase
Agreement shall be deemed to make, the following representations and warranties, on which the Trust Depositor will rely in conveying the Loan Assets on the applicable Assignment Date to the Issuer, and on which the Issuer, the Holders and the Swap
Counterparties will rely. The Trust Depositor acknowledges that such representations and warranties are being made by the Originator for the benefit of the Issuer, the Holders and the Swap Counterparties. 
 Such representations and warranties speak as of the execution and delivery of this Agreement and as of the applicable Assignment Date, but shall survive
the sale, transfer and assignment of the Loan Assets to the Issuer. The repurchase obligation or substitution obligation of the Originator set forth in Section 11.01 constitutes the sole remedy available for a breach of a representation
or warranty of the Originator set forth in Sections 3.01, 3.02, 3.03, 3.04 or 3.05 of this Agreement. Notwithstanding the foregoing, the Originator shall not be deemed to be remaking any of the representations set
forth in Section 3.03 on a Subsequent Transfer Date with respect to the Substitute Loans or Additional Loans, as applicable, as such representations relate solely to the composition of the Initial Loans conveyed on the Closing Date.

 Section 3.01 Representations and Warranties Regarding the Originator 
 By its execution of this Agreement and each Subsequent Purchase Agreement, the Originator represents and warrants that: 
 (a) Organization and Good Standing. The Originator is a corporation duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and has the requisite corporate power to own or lease its assets and to transact the business in which it is currently engaged. The Originator is duly qualified to do business as a foreign corporation and is in good
standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification, except where the failure so to qualify would not reasonably be expected have a material adverse
effect on the business, properties, assets, or condition (financial or otherwise) of the Originator or Trust Depositor. The Originator is properly licensed in each jurisdiction to the extent required by the laws of such jurisdiction in order to
originate, and (if the Originator is to be the Servicer) service the Loans in accordance with the terms of this Agreement. 
  

 - 69 - 








 (b) Authorization. The Originator has the corporate power and authority to make, execute, deliver
and perform this Agreement and the other Transaction Documents to which the Originator is a party and all of the transactions contemplated under this Agreement and the other Transaction Documents to which the Originator is a party, and has taken all
necessary corporate action to authorize the execution, delivery and performance of this Agreement and the other Transaction Documents to which the Originator is a party. 
 (c) Valid Sale. This Agreement effects, and each Subsequent Purchase Agreement, if any, shall effect, a valid sale, transfer and assignment of the Loan Assets from the Originator to the Trust Depositor,
enforceable against the Originator in accordance with their terms, except as enforcement of such terms may be limited by applicable Insolvency Laws and general principles of equity, whether considered in a suit at law or in equity. 
 (d) Binding Agreements. This Agreement and the other Transaction Documents to which the Originator is a party constitute the legal, valid and
binding obligation of the Originator enforceable in accordance with their terms, except as enforcement of such terms may be limited by applicable Insolvency Laws and general principles of equity, whether considered in a suit at law or in equity.

 (e) No Consent Required. The Originator is not required to obtain the consent of any other party or any consent, license, approval
or authorization from, or registration or declaration with, any Governmental Authority in connection with the execution, delivery, performance, validity or enforceability of this Agreement and the other Transaction Documents to which the Originator
is a party except for (i) the filing of the UCC financing statements and obtaining releases from the Warehouse Transactions and (ii) such consents, licenses, approvals, authorizations, registrations and declarations which have been
obtained and are in full force and effect. 
 (f) No Violations. The Originator’s execution, delivery and performance of this
Agreement and the other Transaction Documents to which the Originator is a party will not violate any provision of any Requirements of Law or any order or decree of any court or the Certificate of Incorporation or Bylaws of the Originator, or
constitute (with or without notice or lapse of time or both) a breach of any material mortgage, indenture, contract or other agreement to which the Originator is a party or by which the Originator or any of the Originator’s properties may be
bound. 
 (g) Litigation. No litigation or administrative proceeding of or before any court, tribunal or governmental body is
currently pending, or, to the knowledge of the Originator, threatened, against the Originator or any of its respective properties or with respect to this Agreement or any other Transaction Document to which the Originator is a party that, if
adversely determined, would, in the reasonable opinion of the Originator, be expected to have a material adverse effect on the business, properties, assets or condition (financial or other) of the Originator or the transactions contemplated by this
Agreement or any other Transaction Document to which the Originator is a party. 
 (h) Name and Location; No Changes. The
Originator’s name is as set forth in Section 13.04 and its location (within the meaning of Article 9 of the UCC) is the State of 

  

 - 70 - 








 
Delaware. The Originator has not changed its name, identity, structure, existence or state of incorporation, whether by amendment of its certificate of
incorporation, by reorganization or otherwise, and has not changed its location (within the meaning of Article 9 of the UCC) within the four months preceding the Closing Date. 
 (i) No Bulk Sales. The execution, delivery and performance of this Agreement by the Originator do not require compliance with any “bulk
sales” laws by the Originator. 
 (j) Solvency. The Originator on each date of, and after giving effect to, the transfer of the
Loans and any Substitute Loans or Additional Loans, as the case may be, to the Trust Depositor pursuant to the ACAS Transfer Agreement is and will be Solvent. 
 (k) Use of Proceeds. No proceeds of the sale of any Initial Loan, Additional Loan or Substitute Loan hereunder received by the Originator will be used by the Originator to purchase or carry any “margin
stock” as such term is defined in Regulation T, U or X of the Board of Governors of the Federal Reserve System. 
 (l) An Investment
Company. The Originator is properly registered as an “investment company” within the meaning, and is, and after completion of the transactions contemplated by the Transaction Documents will be, in compliance with all requirements, of
the Investment Company Act of 1940, as amended. 
 (m) Taxes. The Originator has filed or caused to be filed all tax returns that, to
its knowledge, are required to be filed and has paid all taxes shown to be due and payable on such returns or on any assessments made against it or any of its property and all other taxes, fees or other charges imposed on it or any of its property
by any Governmental Authority (other than any amount of tax due, the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in accordance with generally accepted accounting
principles have been provided on the books of the Originator); no tax Lien has been filed and, to the Originator’s knowledge, no claim is being asserted, with respect to any such tax, fee or other charge. 
 (n) Sale Treatment. The Originator has treated the transfer of Loan Assets to the Trust Depositor for all purposes (other than for financial
accounting purposes) as a sale on all of its relevant books, records, financial statements and other applicable documents, except to the extent applicable tax laws require otherwise. 
 (o) Marking of Files. The Originator will have, at its own expense, prior to the close of business on the Closing Date, indicated in its Computer
Records that ownership of the Loans transferred by it to the Trust Depositor and identified on the List of Loans have been sold to the Trust Depositor. 
 (p) Security Interest. 
 (i) This Agreement creates a valid, continuing and
enforceable security interest (as defined in the applicable UCC) in the Loan Assets in favor of the Trust Depositor, which security interest is prior to all other Liens (except for Permitted Liens), and is enforceable as such against creditors of
and purchasers from the Originator; 
  

 - 71 - 








 (ii) such Loans, along with the related Loan Files, constitute either a “general
intangible,” a “payment intangible,” an “instrument,” an “account,” “investment property,” or “chattel paper,” within the meaning of the applicable UCC; 
 (iii) the Originator owns and has good and marketable title to such Loan Assets free and clear of any Lien, claim or encumbrance of any
Person (other than Permitted Liens); 
 (iv) the Originator has received all consents and approvals required by the terms of
the Loan Assets to the sale of the Loan Assets under the ACAS Transfer Agreement to the Trust Depositor; 
 (v) the Originator
has caused the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under Requirements of Law in order to perfect the security interest in such Loan Assets granted to the Trust Depositor under
the ACAS Transfer Agreement; 
 (vi) other than the security interest granted to the Trust Depositor pursuant to the ACAS
Transfer Agreement and this Agreement, the Originator has not pledged, assigned, sold, granted a security interest in or otherwise conveyed any of such Loan Assets except in connection with the Warehouse Transactions, which security interests will
be terminated or released on or prior to the Closing Date or Subsequent Transfer Date, as applicable. The Originator has not authorized the filing of and is not aware of any financing statements against the Originator that include a description of
collateral covering such Loan Assets other than any financing statement (1) relating to the security interest granted to the Trust Depositor under the ACAS Transfer Agreement and this Agreement or (2) that has been terminated or for which
the underlying security interest has been released. The Originator is not aware of the filing of any judgment or tax Lien filings against the Originator; 
 (vii) all original executed copies of each Underlying Note, if any, that constitute or evidence the Loan Assets have been delivered to the Indenture Trustee; 
 (viii) the Originator has received a written acknowledgment from the Indenture Trustee that the Indenture Trustee or its bailee is holding
the Underlying Notes, if any, that constitute or evidence the Loan Assets solely on behalf of and for the benefit of the Noteholders and the Swap Counterparties; and 
 (ix) none of the Underlying Notes or, in the case of Noteless Loans, the Designated Loan Agreements and Loan Registers, that constitute or
evidence the Loan Assets has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Issuer and the Indenture Trustee, as assignees of the Trust Depositor. 
 (q) Value Given. The cash payments received by the Originator in respect of the purchase price of each Loan sold under the ACAS Transfer Agreement
constitutes the face value of such Loan and reasonably equivalent value in consideration for the transfer to the Trust Depositor of such Loan under the ACAS Transfer Agreement, such transfer was not made for or on account of an antecedent debt owed
by the Originator to the Trust Depositor, and such transfer was not and is not voidable or subject to avoidance under any Insolvency Law. 
  

 - 72 - 








 (r) Mortgages. If a Loan is secured by real property and the Originator, other than solely in its
capacity as collateral agent under any Loan Document with an Obligor, is the mortgagee, the mortgage has been assigned by the Originator to the Trust Depositor and by the Trust Depositor to the Issuer and the Assignment of Mortgage has been
delivered to the Indenture Trustee. 
 (s) Selection Procedures. No selection procedures determined by the Originator to be materially
adverse to the interests of the Trust Depositor were utilized by the Originator in selecting the Loans to be sold, assigned, transferred, set-over and otherwise conveyed hereunder. 
 (t) Environmental. At the time of origination of each Loan where real property that is material to the operations of the related business serves
as Collateral for such Loan, the related mortgaged property was free of contamination from toxic substances or hazardous wastes requiring action under Requirements of Law or is subject to ongoing environmental rehabilitation approved by the
Servicer, and, as of the Closing Date, the Originator has no knowledge of any such contamination from toxic substances or hazardous waste material on any such real property unless such items are below action levels. 
 The representations and warranties set forth in Section 3.01(p) shall survive the termination of this Agreement and no breach of such
representations and warranties may be waived by any party hereto without the satisfaction of the Rating Agency Condition with respect thereto. The Trust Depositor and the Issuer shall provide S&P with prompt written notice upon obtaining
knowledge of any breach of the representations and warranties set out in Section 3.01(p). 
 Section 3.02
Representations and Warranties Regarding Each Loan and as to Certain Loans in the Aggregate 
 The Originator represents and
warrants (x) with respect to subsections (a)-(b) below, as to each Loan to be transferred on the related Assignment Date as of the applicable Cut-Off Date, and (y) with respect to subsections (c)-(d) below, as to
the Loan Pool in the aggregate as of the applicable Cut-Off Date (after giving effect to the addition of any Substitute Loans and/or Additional Loans, as applicable, to the Loan Pool), that: 
 (a) List of Loans. The information set forth in the List of Loans (as the same may be amended or deemed amended in respect of a conveyance of
Substitute Loans and/or Additional Loans, as applicable, on a Subsequent Transfer Date) is true, complete and correct as of the applicable Cut-Off Date. 
 (b) Eligible Loan. Such Loan satisfies the criteria for the definition of Eligible Loan set forth in this Agreement as of the date of its conveyance hereunder. 
 (c) No Fraud. Each Loan was originated without any fraud or material misrepresentation by the Originator or, to the best of the Originator’s
knowledge, on the part of the Obligor. 
  

 - 73 - 








 (d) Loans Secured by Real Property. Less than 40% of the Loan Pool Balance consists of Loans
principally secured by real property. For purposes of this Section 3.02(d), a Loan shall be considered “principally secured by real property” if (1) the fair market value of the interest in real property securing the Loan
(reduced by the amount of any lien on the real property interest that is senior to the Loan and by a proportionate amount of any lien that is in parity with the Loan) is at least 80% of the adjusted issue price of the Loan (i.e., in general, the
principal amount of the Loan) at the time the Loan was originated or (2) substantially all of the proceeds of the Loan were used to acquire, improve, or protect an interest in real property that, at the date the Loan was originated, was the
only security for the Loan. 
 Section 3.03 Representations and Warranties Regarding the Initial Loans in the Aggregate

 The Originator represents and warrants, as of the Cut-Off Date for the Initial Loans, that: 
 (a) Amounts. The sum of (a) the Aggregate Outstanding Loan Balance of the Initial Loans as of the Cut-Off Date and (b) the amount of any
Unused Proceeds, in each case as of such Cut-Off Date equals the aggregate principal balance of the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E Note. 
 (b) Characteristics. The Initial Loans as of the Closing Date have the following additional characteristics: (i) the final Scheduled Payment
on the Loan with the latest maturity is not later than 36 months prior to the Legal Final Maturity Date; and (ii) no Initial Loan was originated after its related Cut-Off Date. 
 Section 3.04 Representations and Warranties Regarding the Loan Files 
 The Originator represents and warrants as of the applicable Assignment Date that (a) to the extent that any Loans were pledged as collateral for any
of the Warehouse Transactions, immediately prior to such date (as applicable), a collateral custodian under the applicable Warehouse Transaction had possession of each original Underlying Note, if any, and a copy of the Loan and the related complete
Loan File, and there were no other custodial agreements relating to the same in effect except for a custodial agreement between ACAS and the applicable borrower or seller, as the case may be with respect to each Warehouse Transaction; (b) each
of such documents which is required to be signed by the Obligor has been signed by the Obligor in the appropriate spaces; (c) all blanks on any form have been properly filled in and each form has otherwise been correctly prepared; and
(d) the complete Loan File for each Loan is in the possession of the Indenture Trustee. 
 Section 3.05 Representations and
Warranties Regarding Initial Loans and Portfolio Criteria 
 The Originator represents and warrants as of the Closing Date, as to the
composition of the Initial Loans in the Loan Pool as of the Closing Date, that the Portfolio Criteria are satisfied with respect to the Initial Loans. 
  

 - 74 - 








 Section 3.06 Representations and Warranties Regarding the Trust Depositor 

By its execution of this Agreement and each Subsequent Transfer Agreement, the Trust Depositor represents and warrants to the Issuer, the Indenture
Trustee, the Holders and the Swap Counterparties that: 
 (a) Confirmation of the Originator’s Representations and Warranties. The
representations and warranties set forth in Section 3.01, Section 3.02, Section 3.03, Section 3.04 and Section 3.05 of this Agreement and in the ACAS Transfer Agreement are true and
correct. 
 (b) Organization and Good Standing. The Trust Depositor is a limited liability company duly organized, validly existing
and in good standing under the laws of Delaware and has the power to own its assets and to transact the business in which it is currently engaged. The Trust Depositor is duly qualified to do business as a foreign entity and is in good standing in
each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification, except where the failure so to qualify would not reasonably be expected have a material adverse effect on the
business, properties, assets, or condition (financial or other) of the Trust Depositor or the Issuer. 
 (c) Authorization. The Trust
Depositor has the limited liability company power and authority to make, execute, deliver and perform this Agreement and the other Transaction Documents to which it is a party and all of the transactions contemplated under this Agreement and the
other Transaction Documents to which it is a party, and to create the Issuer and cause it to make, execute, deliver and perform its obligations under this Agreement and the other Transaction Documents to which it is a party, and has taken all
necessary corporate action to authorize the execution, delivery and performance of this Agreement and the other Transaction Documents to which it is a party and to cause the Issuer to be created. 
 (d) Valid Sale. This Agreement effects, and each Subsequent Transfer Agreement, if any, shall effect, a valid sale, transfer and assignment of the
Loan Assets from the Trust Depositor to the Issuer, enforceable against the Trust Depositor and creditors of and purchasers from the Trust Depositor, except as enforcement of such terms may be limited by applicable Insolvency Laws and general
principles of equity, whether considered in a suit at law or in equity. 
 (e) Binding Agreements. This Agreement and the other
Transaction Documents to which the Trust Depositor is a party constitute the legal, valid and binding obligation of the Trust Depositor enforceable in accordance with their terms, except as enforcement of such terms may be limited by applicable
Insolvency Laws and general principles of equity, whether considered in a suit at law or in equity. 
 (f) No Consent Required. The
Trust Depositor is not required to obtain the consent of any other party or any consent, license, approval or authorization from, or registration or declaration with, any Governmental Authority in connection with the execution, delivery,
performance, validity or enforceability of this Agreement or the other Transaction Documents to which it is a party except (i) for the filing of the UCC financing statements, (ii) the release of security interests under the Warehouse
Transactions and (iii) such consents, licenses, approvals, authorizations, registrations and declarations which have been obtained and are in full force and effect. 
  

 - 75 - 








 (g) No Violations. The execution, delivery and performance of this Agreement and the other
Transaction Documents to which it is a party by the Trust Depositor, and the consummation of the transactions contemplated hereby and thereby, will not violate any Requirement of Law applicable to the Trust Depositor, or constitute a breach of any
material mortgage, indenture, contract or other agreement to which the Trust Depositor is a party or by which the Trust Depositor or any of the Trust Depositor’s properties may be bound, or result in the creation or imposition of any security
interest, Lien, charge, pledge, preference, equity or encumbrance of any kind upon any of its properties pursuant to the terms of any such mortgage, indenture, contract or other agreement, other than as contemplated by the Transaction Documents.

 (h) Litigation. No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently
pending, or to the knowledge of the Trust Depositor threatened, against the Trust Depositor or any of its properties or with respect to this Agreement, the other Transaction Documents to which it is a party or the Securities (i) that, if
adversely determined, would in the reasonable judgment of the Trust Depositor be expected to have a material adverse effect on the business, properties, assets or condition (financial or otherwise) of the Trust Depositor or the Issuer or the
transactions contemplated by this Agreement or the other Transaction Documents to which the Trust Depositor is a party or (ii) seeking to adversely affect the federal income tax or other federal, state or local tax attributes of the Certificate
or Notes. 
 (i) Bulk Sales. The execution, delivery and performance of this Agreement do not require compliance with any “bulk
sales” laws by the Trust Depositor. 
 (j) Solvency. The Trust Depositor, at the time of and after giving effect to each
conveyance of Loan Assets hereunder, is and will be Solvent. 
 (k) Taxes. The Trust Depositor has filed or caused to be filed all tax
returns that, to its knowledge, are required to be filed and has paid all taxes shown to be due and payable on such returns or on any assessments made against it or any of its property and all other taxes, fees or other charges imposed on it or any
of its property by any Governmental Authority (other than any amount of tax due, the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in accordance with generally accepted
accounting principles have been provided on the books of the Trust Depositor); no tax Lien has been filed and, to the Trust Depositor’s knowledge, no claim is being asserted, with respect to any such tax, fee or other charge. 
 (l) Name and Location; No Changes. The Trust Depositor’s name is as set forth in Section 13.04 and its location (within the
meaning of Article 9 of the UCC) is the State of Delaware. The Trust Depositor has not changed its name, identity, structure, existence or state of formation, whether by amendment of its certificate of formation, by reorganization or otherwise, and
has not changed its location (within the meaning of Article 9 of the UCC) within the four months preceding the Closing Date. 
  

 - 76 - 








 (m) Not an Investment Company. The Trust Depositor is not, and, after giving effect to the
transactions contemplated hereby and by the other Transaction Documents, will not be required to be registered as an “investment company” within the meaning of the Investment Company Act of 1940, as amended (or the Trust Depositor is
exempt from all provisions of such act). 
 (n) Sale Treatment. The Trust Depositor has treated the transfer of Loan Assets to the
Trust Depositor for all purposes (other than for financial accounting purposes) as a sale and purchase on all of its relevant books, records, financial statements and other applicable documents, except to the extent applicable tax laws require
otherwise. 
 (o) Security Interest. 
 (i) This Agreement creates a valid, continuing and enforceable security interest (as defined in the applicable UCC) in the Loan Assets in favor of the Issuer, which security interest is prior to all other Liens
(except for Permitted Liens), and is enforceable as such against creditors of and purchasers from the Trust Depositor; 
 (ii)
such Loans, along with the related Loan Files, constitute either a “general intangible,” a “payment intangible,” an “instrument,” an “account,” “investment property,” or “chattel paper,”
within the meaning of the applicable UCC; 
 (iii) the Trust Depositor owns and has good and marketable title to such Loan
Assets free and clear of any Lien, claim or encumbrance of any Person (other than Permitted Liens); 
 (iv) the Trust
Depositor has received all consents and approvals required by the terms of the Loan Assets to the sale of the Loan Assets hereunder to the Issuer; 
 (v) the Trust Depositor has caused the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under Requirements of Law in order to perfect the security interest in
such Loan Assets granted to the Issuer under this Agreement; 
 (vi) other than the security interest granted to the Issuer
pursuant to this Agreement, the Trust Depositor has not pledged, assigned, sold, granted a security interest in or otherwise conveyed any of such Loan Assets; 
 (vii) the Trust Depositor has not authorized the filing of and is not aware of any financing statements against the Trust Depositor that
include a description of collateral covering such Loan Assets other than any financing statement (1) relating to the security interest granted to the Issuer under this Agreement, or (2) that has been terminated or for which the underlying
security interest has been released; 
 (viii) the Trust Depositor is not aware of the filing of any judgment or tax Lien
filings against the Trust Depositor; 
  

 - 77 - 








 (ix) all original executed copies of each Underlying Note, if any, that constitute or
evidence the Loan Assets have been delivered to the Indenture Trustee; 
 (x) the Trust Depositor has received a written
acknowledgment from the Indenture Trustee that the Indenture Trustee or its bailee is holding the Underlying Notes, if any, that constitute or evidence the Loan Assets solely on behalf of and for the benefit of the Holders and the Swap
Counterparties; and 
 (xi) none of the Underlying Notes, or, in the case of Noteless Loans, the Designated Loan Agreements,
that constitute or evidence the Loan Assets has any marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Issuer and the Indenture Trustee. 
 (p) No Liens. The Trust Depositor owns each Loan Asset to be sold by it hereunder free and clear of any Liens except as provided herein, and upon
the sale, transfer or assignment hereunder, the Issuer shall (i) become the owner of each Loan Asset then existing or thereafter arising, free and clear of any Lien except as provided herein or (ii) acquire a first priority perfected
security interest in such Loan Asset. No effective financing statement or other instrument similar in effect covering any Loan Asset or the Collections with respect thereto shall at any time be on file in any recording office except such as may be
filed in favor of the Issuer relating to this Agreement or otherwise as provided under this Agreement. 
 (q) Value Given. The cash
payments received by the Trust Depositor in respect of the purchase price of each Loan sold hereunder or under any Subsequent Transfer Agreement constitutes the face value of such Loan and reasonably equivalent value in consideration for the
transfer to the Issuer of such Loan under this Agreement, such transfer was not made for or on account of an antecedent debt owed by the Trust Depositor to the Issuer, and such transfer was not and is not voidable or subject to avoidance under any
Insolvency Law. 
 The representations and warranties in Section 3.01(o) shall survive the termination of this Agreement and no
breach of such representations and warranties may be waived by any party hereto without the satisfaction of the Rating Agency Condition with respect thereto. The representations and warranties set forth in Section 3.01(o) shall survive
the termination of this Agreement The Trust Depositor and the Issuer shall provide S&P with prompt written notice upon obtaining knowledge of any breach of the representations and warranties set out in Section 3.01(o). 
 Section 3.07 Representations and Warranties Regarding the Servicer 
 The Servicer represents and warrants to the Owner Trustee, the Indenture Trustee, the Holders and the Swap Counterparties that: 
 (a) Organization and Good Standing. The Servicer is a corporation duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and has the corporate power to own its assets and to transact the business in which it is currently engaged. The Servicer is duly qualified to do business as a foreign corporation and is in good standing in each
jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification, except where the failure so to qualify would 

  

 - 78 - 








 
not reasonably be expected to have a material adverse effect on the business, properties, assets, or condition (financial or otherwise) of the Servicer or
the Issuer. The Servicer is properly licensed in each jurisdiction to the extent required by the laws of such jurisdiction to service the Loans in accordance with the terms hereof. 
 (b) Authorization. The Servicer has the power and authority to make, execute, deliver and perform this Agreement and the other Transaction
Documents to which the Servicer is a party and all of the transactions contemplated under this Agreement and the other Transaction Documents to which the Servicer is a party, and has taken all necessary corporate action to authorize the execution,
delivery and performance of this Agreement and the other Transaction Documents to which the Servicer is a party. 
 (c) Binding
Obligations. This Agreement and the other Transaction Documents to which the Servicer is a party constitute the legal, valid and binding obligation of the Servicer enforceable in accordance with their terms, except as enforcement of such terms
may be limited by Insolvency Laws and general principles of equity, whether considered in a suit at law or in equity. 
 (d) No Consent
Required. The Servicer is not required to obtain the consent of any other party or any consent, license, approval or authorization from, or registration or declaration with, any Governmental Authority in connection with the execution, delivery,
performance, validity or enforceability of this Agreement and the other Transaction Documents to which the Servicer is a party except (i) for the filing of the UCC financing statements and (ii) such consents, licenses, approvals,
authorizations, registrations and declarations which have been obtained and are in full force and effect. 
 (e) No Violations. The
execution, delivery and performance of this Agreement and the other Transaction Documents to which the Servicer is a party by the Servicer will not violate any Requirements of Law applicable to the Servicer, or constitute a breach of any material
mortgage, indenture, contract or other agreement to which the Servicer is a party or by which the Servicer or any of the Servicer’s properties may be bound, or result in the creation of or imposition of any security interest, Lien, pledge,
preference, equity or encumbrance of any kind upon any of its properties pursuant to the terms of any such mortgage, indenture, contract or other agreement, other than as contemplated by the Transaction Documents. 
 (f) Litigation. No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending, or to the
knowledge of the Servicer threatened, against the Servicer or any of its properties or with respect to this Agreement or any other Transaction Document to which the Servicer is a party that, if adversely determined, would, in the reasonable judgment
of the Servicer, be expected to have a material adverse effect on the business, properties, assets or condition (financial or otherwise) of the Servicer or the Issuer or the transactions contemplated by this Agreement or any other Transaction
Document to which the Servicer is a party. 
 (g) Reports. All reports, certificates and other written information furnished by the
Servicer with respect to the Loans are correct in all material respects. 
  

 - 79 - 








 Section 3.08 Representations and Warranties of the Backup Servicer and the Indenture
Trustee 
 Each of the Backup Servicer and Indenture Trustee hereby represents and warrants to the Issuer, the Originator, the
Servicer, the Trust Depositor, the Owner Trustee, the Holders and the Swap Counterparties, as follows: 
 (a) Organization. It is a
national banking association duly organized, validly existing and in good standing under the federal laws of the United States with all requisite corporate power and authority to own its properties and to conduct its business as presently conducted
and to enter into and perform its obligations pursuant to this Agreement. 
 (b) Good Standing. It is duly qualified to do business as
a national banking association and is in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of its property and the conduct of its business requires such qualification, licenses
or approvals, except where the failure to so qualify or have such licenses or approvals has not had, and would not be reasonably expected to have, a material adverse effect on the interests of the Holders or the Swap Counterparties. 
 (c) Authorization. It has the corporate power and authority to execute and deliver this Agreement and to carry out its terms, and it has duly
authorized the execution, delivery and performance of this Agreement by all requisite action. 
 (d) No Violations. The consummation
of the transactions contemplated by, and the fulfillment of the terms of, this Agreement by it will not (i) conflict with, result in any breach of any of the terms or provisions of, or constitute a default under, its articles of association,
bylaws or any Contractual Obligation by which it or any of its property is bound, (ii) result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any Contractual Obligation (other than the Agreement),
or (iii) violate any Requirements of Law. 
 (e) No Consent Required. No consent, approval, authorization, order, registration,
filing, qualification, license or permit of or with any Governmental Authority having jurisdiction over it or any of its respective properties is required to be obtained in order for it to enter into this Agreement or perform its obligations
hereunder. 
 (f) Binding Obligation. This Agreement constitutes its legal, valid and binding obligation, enforceable in accordance
with its terms, except as such enforceability may be limited by (i) applicable Insolvency Laws and (ii) general principles of equity (whether considered in a suit at law or in equity). 
 (g) Litigation. There are no proceedings or investigations pending or, to the best of its knowledge, threatened, against it before any
Governmental Authority (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that might (in its
reasonable judgment) have a material adverse effect on the interests of the Holders or the Swap Counterparties. 
  

 - 80 - 








 ARTICLE IV 
 PERFECTION OF TRANSFER AND 
 PROTECTION OF SECURITY INTERESTS 
 Section 4.01 Custody of Loans 
 The contents of each Loan File shall be held in the custody of the Indenture Trustee under the terms of this Agreement and the Indenture for the benefit of, and as agent for, the Holders and the Swap Counterparties. 
 Section 4.02 Filing 
 On
or prior to the Closing Date, the Originator, Trust Depositor and Servicer shall cause the UCC financing statement(s) referred to in Section 2.02(ix) hereof to be filed, and from time to time the Servicer shall take and cause to be taken
such actions and execute such documents as are necessary or desirable or as the Owner Trustee or Indenture Trustee (acting at the direction of the Required Holders) may reasonably request to perfect and protect the Indenture Trustee’s first
priority perfected security interest in the Loan Assets against all other Persons, including, without limitation, the filing of financing statements, amendments thereto and continuation statements, the execution of transfer instruments and the
making of notations on or taking possession of all records or documents of title. Notwithstanding the obligations of the Originator, the Trust Depositor and the Servicer set forth in the preceding sentence, the Originator, the Trust Depositor and
the Servicer hereby authorize the Owner Trustee to prepare and file, at the expense of the Servicer, UCC financing statements (including but not limited to renewal, continuation or in lieu statements) and amendments or supplements thereto or other
instruments as the Owner Trustee may from time to time deem necessary or appropriate in order to perfect and maintain the security interest granted hereunder in accordance with the UCC. 
 Section 4.03 Changes in Name, Corporate Structure or Location 
 (a) During the term of this Agreement, none of the Originator, the Trust Depositor or the Issuer shall change its name, structure, existence or location
(as defined in Article 9 of the UCC) without first giving at least 30 days’ prior written notice to the Owner Trustee, the Indenture Trustee and each Swap Counterparty. 
 (b) If any change in the Originator’s, the Trust Depositor’s or the Issuer’s name, structure, existence, location (as defined in Article 9
of the UCC) or other action would make any financing or continuation statement or notice of ownership interest or Lien relating to any Loan Asset seriously misleading within the meaning of applicable provisions of the UCC, the Servicer, no later
than five Business Days after the effective date of such change, shall file such amendments as may be required to preserve and protect the Indenture Trustee’s security interest in the Loan Assets and the proceeds thereof. Promptly after taking
any of the foregoing actions, the Servicer shall deliver to the Owner Trustee and the Indenture Trustee an Opinion of Counsel reasonably acceptable to the Owner Trustee and the Indenture Trustee stating that, in the opinion of such counsel, all
financing statements or amendments necessary to preserve and protect the Indenture Trustee’s security interest in the Loan Assets have been filed, and reciting the details of such filing. 
  

 - 81 - 








 Section 4.04 Chief Executive Office 
 During the term of this Agreement, and subject to the other terms and provisions herein relating to changes in location, the Originator will maintain its
chief executive office in one of the States of the United States. 
 Section 4.05 Costs and Expenses 
 The Servicer agrees to pay all reasonable costs and disbursements in connection with the perfection and the maintenance of perfection, as against all
third parties, of the Issuer’s and the Indenture Trustee’s right, title and interest in and to the Loan Assets (including, without limitation, the security interest in the Collateral related thereto and the security interests provided for
in the Indenture). 
 Section 4.06 Sale Treatment 
 The Trust Depositor shall treat the transfer of Loan Assets made hereunder for all purposes (other than for financial accounting purposes) as a sale and
purchase on all of its relevant books, records, financial statements and other applicable documents. Notwithstanding the preceding sentence, for federal income tax purposes, the transfer of Loan Assets by the Trust Depositor hereunder shall not be
treated as a sale and purchase for federal income tax purposes so long as (i) the Issuer is disregarded as a separate entity pursuant to Treasury Regulations Section 301.7701-3(b)(l)(ii), or (ii) the Issuer is treated as a partnership
pursuant to Treasury Regulations Section 301.7701-3(b)(l)(i). 
 Section 4.07 Separateness from Trust Depositor

 The Originator agrees to take or refrain from taking or engaging in with respect to the Trust Depositor each of the actions or
activities specified in the “substantive consolidation” opinion of Winston & Strawn LLP (including any certificates attached thereto), delivered on the Closing Date, upon which the conclusions therein are based. 
 ARTICLE V 
 SERVICING OF LOANS

 Section 5.01 Appointment and Acceptance; Responsibility for Loan Administration 
 (a) ACAS is hereby appointed as Servicer pursuant to this Agreement. ACAS accepts the appointment and agrees to act as the Servicer pursuant to this
Agreement. 
 (b) The Servicer will have the sole obligation to manage, administer, service and make collections on the Loans and perform or
cause to be performed all contractual and customary undertakings of the holder of the Loans to the Obligor. The Owner Trustee, at the 

  

 - 82 - 








 
written request of a Servicing Officer, shall furnish the Servicer with any powers of attorney or other documents necessary or appropriate in the opinion of
the Owner Trustee to enable the Servicer to carry out its servicing and administrative duties hereunder. The Servicer is hereby appointed the Servicer hereunder until such time as any Servicer Transfer may be effected under Article VIII.

 Section 5.02 General Duties 
 (a) The Servicer will service, administer and enforce the Loans in the Loan Pool on behalf of the Issuer and will have full power and authority to do any and all things in connection with such servicing and
administration which it deems necessary or desirable and as shall not contravene the provisions of this Agreement. The Servicer will manage, service, administer, and make collections on the Loans in the Loan Pool with reasonable care, using that
degree of skill and attention that the Servicer exercises with respect to all comparable loans that it services for itself or others. The Servicer’s duties will include collection and posting of all payments, responding to inquiries of Obligors
regarding the Loans in the Loan Pool, investigating delinquencies, accounting for collections, furnishing quarterly and annual statements with respect to collections and payments in accordance with Article IX hereof and with its customary
standards, policies and procedures, and using its best efforts to maintain the perfected first priority security interest of the Indenture Trustee in the Loan Assets. The Servicer will follow its customary standards, policies, and procedures and
will have full power and authority, acting alone (and consistent with its customary standards, policies and procedures, in its own name), to do any and all things in connection with such managing, servicing, administration and collection, including,
without limitation, litigation, that it deems necessary or desirable. 
 (b) If the Servicer commences a legal proceeding to enforce a
Defaulted Loan pursuant to Section 5.15 or commences or participates in a legal proceeding (including a bankruptcy proceeding) relating to or involving a Loan in the Loan Pool, the Issuer will be deemed to have automatically assigned
such Loan to the Servicer immediately prior to the commencement of any such legal proceeding, for purposes of commencing or participating in any such proceeding as a party or claimant, and the Servicer is authorized and empowered by the Issuer,
pursuant to this Section 5.02(b), to execute and deliver, on behalf of itself and the Issuer, any and all instruments of satisfaction or cancellation, or partial or full release or discharge, and all other notices, demands, claims,
complaints, responses, affidavits or other documents or instruments in connection with any such proceedings. If in any enforcement suit or legal proceeding it is held that the Servicer may not enforce a Loan on the grounds that it is not a real
party in interest or a holder entitled to enforce the Loan, then the Owner Trustee will, at the Servicer’s expense and direction, take steps on behalf of the Issuer to enforce the Loan, including bringing suit in the Issuer’s name.

 Section 5.03 Administration 
 The Servicer will act as administrator for the Issuer and the Owner Trustee under the Transaction Documents and will provide the notices and perform all other obligations required to be provided or performed by the
Issuer and/or the Owner Trustee under the Transaction Documents. The Servicer shall monitor the performance of the Issuer and the Owner Trustee and shall advise the Owner Trustee when action is necessary to comply with the Issuer’s or the


  

 - 83 - 








 
Owner Trustee’s duties under the Transaction Documents. The Servicer shall prepare for execution by the Owner Trustee or Issuer or shall cause the
preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Issuer or the Owner Trustee to prepare, file or deliver pursuant to the Transaction Documents.
The Servicer will also perform the accounting functions of the Issuer which the Owner Trustee is required to perform under the Trust Agreement, including but not limited to maintaining the books of the Issuer, filing tax returns for the Issuer and
delivering tax-related reports to Noteholders, except Forms 1099 and Schedules K-1, which shall be the responsibility of the Indenture Trustee and Owner Trustee, respectively. 
 Section 5.04 Disposition upon Termination of Loan 
 Upon the termination of a Loan included in the Loan Pool as a result of a default by the Obligor thereunder, and upon any such Loan becoming a Defaulted Loan, the Servicer will use commercially reasonable efforts to
dispose of any related Collateral for a purchase price equal to the fair market value thereof as reasonably determined by the Servicer. 
 Section 5.05 Subservicers 
 The Servicer may enter into servicing agreements with one or more subservicers
(including any Affiliate of the Servicer) to perform all or a portion of the servicing functions on behalf of the Servicer; provided that, the Servicer shall remain obligated and be liable to the Issuer for servicing and administering the
Loans in the Loan Pool in accordance with the provisions of this Agreement without diminution of such obligation and liability by virtue of the appointment of such subservicer, to the same extent and under the same terms and conditions as if the
Servicer alone were servicing and administering such Loans. The fees and expenses of the subservicer (if any) will be as agreed between the Servicer and its subservicer and neither the Owner Trustee, the Issuer, the Indenture Trustee, the Swap
Counterparties nor the Holders will have any responsibility therefor. All actions of a subservicer taken pursuant to such a subservicer agreement will be taken as an agent of the Servicer with the same force and effect as though performed by the
Servicer. 
 Section 5.06 Further Assurance 
 The Owner Trustee and the Indenture Trustee will, at the written request of the Servicer, furnish the Servicer, and the Servicer will furnish any subservicer, with any powers of attorney and other documents necessary
or appropriate to enable the Servicer or a subservicer, as applicable, to carry out its servicing and administrative duties under this Agreement, the forms of which documents shall be prepared by the Servicer and submitted for execution to the Owner
Trustee or the Indenture Trustee, as the case may be. The Servicer shall not, nor shall the Servicer permit any subservicer to, initiate any action in the Indenture Trustee’s name if such action were to require the Indenture Trustee to become
registered to do business in any state in which it was not already registered and without both obtaining the Indenture Trustee’s written consent and indicating the Servicer’s or such subservicer’s representative capacity. 

 

 - 84 - 








 Section 5.07 Notice to Obligors 
 The Servicer will not be required to notify any Obligor that such Obligor’s Loan, or any security interest in such Loan or related Collateral, has
been sold, transferred, assigned, or conveyed pursuant to this Agreement; provided that, in the event that the Servicer is replaced, then if the place for payment pursuant to any Loan is changed, the Successor Servicer must give each related
Obligor prompt written notice of the appointment of the Successor Servicer and the place to which such Obligor should make payments pursuant to each such Loan. 
 Section 5.08 Collection Efforts; Modification of Loans; Release of Loan Files 
 (a) The
Servicer will make reasonable efforts to collect all payments called for under the terms and provisions of the Loans in the Loan Pool as and when the same become due, and will follow those collection procedures which it follows with respect to all
comparable loans that it services for itself or others. 
 (b) The Servicer may, subject to Sections 5.09 and 5.10, at the
request of an Obligor and at the Servicer’s option, waive, modify or otherwise vary any provision of a Loan (including Prepayment Premiums and Late Charges) in accordance with its Credit and Collection Policy; provided that, (i) no
such waiver, modification or variance shall be used to circumvent the Required Reserve Amount, (ii) except as provided in Sections 5.09, 5.10 and 5.15, no such waiver, modification or variance shall have a material adverse
effect on the Noteholders or the Swap Counterparties, (iii) if any Loan is subject to a material modification as a result of an Obligor’s inability to pay principal or interest, then the Loan shall be treated as a Delinquent Loan as of the
payment date that would have been missed had such Loan not been so waived, modified or varied, and (iv) the Servicer may not reduce the interest rate payable by the Obligor with respect to a Loan unless (A) the Weighted Average Spread
equals or exceeds or would equal or exceed the Minimum Weighted Average Spread after giving effect to the reduction, (B) the Weighted Average Coupon Test is satisfied or would be satisfied after giving effect to the reduction or (C) the
Weighted Average Gross Coupon Test is satisfied or would be satisfied after giving effect to the reduction, it being understood that a waiver of any Late Charges is not such a reduction. 
 (c) Upon the payment in full of any Loan and the receipt by the Servicer of a notification that payment in full will be escrowed in a manner customary
for such purposes or the deposit into the Collection Account of the purchase price of any Loan purchased by the Trust Depositor, the Servicer or another Person pursuant to this Agreement, or any other Transaction Document, the Servicer will
immediately notify the Indenture Trustee by a certification in the form of Exhibit E attached hereto (which certification shall include a statement to the effect that all amounts received or to be received in connection with such payment
which are required to be deposited in the Collection Account have been or will be so deposited) of a Servicing Officer and shall request delivery to it of the Loan File. Upon receipt of such certification and request, the Indenture Trustee shall in
accordance with Section 2.08(c) release, within two Business Days (if such request was received by 2:00 p.m. central time), the related Loan File to the Servicer. Expenses incurred in connection with any instrument of satisfaction or
deed of reconveyance shall be payable by the Servicer and shall not be chargeable to the Collection Account or the Note Distribution Account. 
  

 - 85 - 








 (d) From time to time and as appropriate for the servicing or foreclosure of any Loan, the Indenture
Trustee shall, upon request of the Servicer and delivery to the Indenture Trustee of a certification in the form of Exhibit E attached hereto signed by a Servicing Officer, release the related Loan File to the Servicer within two Business
Days (if such request was received by 2:00 p.m. central time), and the Indenture Trustee shall execute such documents as shall be necessary to the prosecution of any such proceedings. The Servicer shall return the Loan File to the Indenture Trustee
when the need therefor by the Servicer no longer exists, unless the Loan has been liquidated and the Liquidation Proceeds relating to the Loan have been deposited in the Collection Account or the Loan File or such document has been delivered to an
attorney, or to a public trustee or other public official as required by the Requirements of Law, for purposes of initiating or pursuing legal action or other proceedings for the foreclosure or repossession of Collateral either judicially or
non-judicially, and the Servicer has delivered to the Indenture Trustee a certificate of a Servicing Officer certifying as to the name and address of the Person to whom such Loan File or such document was delivered and the purpose or purposes of
such delivery. Upon receipt of a certificate of a Servicing Officer stating that such Loan was liquidated, the servicing receipt relating to such Loan shall be released by the Indenture Trustee to the Servicer. 
 (e) The Indenture Trustee shall execute and deliver to the Servicer any court pleadings, requests for trustee’s sale or other documents provided to
it necessary to the foreclosure or trustee’s sale in respect of Collateral or to any legal action brought to obtain judgment against any Obligor on the Underlying Note (if any) or other agreement securing Collateral or to obtain a deficiency
judgment, or to enforce any other remedies or rights provided by the Underlying Note (if any) or other agreement securing Collateral or otherwise available at law or in equity. Together with such documents or pleadings, the Servicer shall deliver to
the Indenture Trustee a certificate of a Servicing Officer requesting that such pleadings or documents be executed by the Indenture Trustee and certifying as to the reason such documents or pleadings are required and that the execution and delivery
thereof by the Indenture Trustee will not invalidate or otherwise adversely affect the Lien of the agreement securing Collateral, except for the termination of such a Lien upon completion of the foreclosure or trustee’s sale. The Indenture
Trustee shall, upon receipt of a written request from a Servicing Officer, execute any document provided to the Indenture Trustee by the Servicer or take any other action requested in such request that is, in the opinion of the Servicer as evidenced
by such request, required or appropriate by any state or other jurisdiction to discharge the Lien securing Collateral upon the satisfaction thereof and the Indenture Trustee will sign and post, but will not guarantee receipt of, any such documents
to the Servicer, or such other party as the Servicer may direct, within five Business Days of the Indenture Trustee’s receipt of such certificate or documents. Such certificate or documents shall establish to the Indenture Trustee’s
satisfaction that the related Loan has been paid in full by or on behalf of the Obligor (or subject to a deficiency claim against such Obligor) and that such payment has been deposited in the Collection Account. 
 (f) Notwithstanding anything contained in this Section 5.08 to the contrary, in no event may the Servicer possess in excess of 15 Loan Files
(excluding Loan Files for Loans which have been paid in full or repurchased) at any given time. 
 (g) The initial Servicer shall
(i) provide each Rating Agency with a written summary of any Specified Amendment and shall provide a copy of such Specified Amendment to 

  

 - 86 - 








 
Moody’s, in each case promptly after its execution, and, (ii) promptly upon request by either of S&P or Fitch, provide a copy of any such
Specified Amendment to S&P and/or Fitch, as applicable. Such summary shall set forth a brief description of the reasons for, and the effect of, such Specified Amendment. 
 (h) With respect to each of the modifications described in clauses (a)-(d) of the definition of Specified Amendment, the initial Servicer may
elect to submit the modified Loan to S&P to be re-rated. If the initial Servicer does not elect to have such Loan re-rated by S&P, then such Loan shall be deemed to be a Delinquent Loan as of the date that is 60 days after the effective date
of the relevant Specified Amendment. Any Loan which is subject to a modification described in clause (e) of the definition of Specified Amendment will be deemed to be a Delinquent Loan upon the effectiveness of such Specified Amendment.
If the initial Servicer elects to have such Loan re-rated by S&P, then at any time during such process, including up to 90 days after initial Servicer receives the revised rating of the Loan, the initial Servicer may repurchase such Loan at a
repurchase price equal to the Transfer Deposit Amount. The provisions of this Section 5.08(h) shall not apply to modifications, amendments or variances that do not constitute Specified Amendments. 
 Section 5.09 Prepaid Loan 
 The Servicer may, at its option and in accordance with its Credit and Collection Policy, agree to permit a Loan in the Loan Pool that is not otherwise contractually prepayable by its terms to (a) prepay in part or (b) become a
Prepaid Loan; provided that, if the Originator is acting as the Servicer hereunder, the Servicer will not permit the early termination or full prepayment of such a Loan unless (i) such early termination or full prepayment would not
result in the Issuer receiving an amount (the “Prepayment Amount”) less than the sum of (A) the Outstanding Loan Balance on the date of such prepayment, plus any accrued and unpaid interest payments thereon and
(B) any Unreimbursed Servicer Advances thereon (unless effectively waived and released by the Servicer) or (ii) if such early termination or full prepayment would result in the Issuer receiving a Prepayment Amount less than the amount set
forth in clause (i), the Originator shall have agreed to pay the Issuer the difference between the Prepayment Amount actually paid and the amount set forth in clause (i) (such payment by the Originator also to be considered a
Prepayment Amount). 
 Section 5.10 Acceleration 
 The Servicer, at its option and consistent with its Credit and Collection Policy, may accelerate (or elect not to accelerate) the maturity of all or any
Scheduled Payments under any Loan in the Loan Pool under which a default under the terms thereof has occurred and is continuing (after the lapse of any applicable grace period); provided that, promptly after such Loan becomes a Defaulted
Loan, the Servicer shall either accelerate the Scheduled Payments due under the Loan or take other action in accordance with the Originator’s past practice, including foreclosing on the related Collateral, to realize upon the value of such Loan
and the related Collateral to the fullest extent permitted by the terms of such Loan. 
  

 - 87 - 








 Section 5.11 Taxes 
 To the extent provided for in any Loan in the Loan Pool, the Servicer will make reasonable efforts to collect (or cause to be collected) all payments with
respect to amounts due for taxes and assessments relating to such Loans and remit such amounts to the appropriate Governmental Authority on or prior to the date such payments are due. 
 Section 5.12 Insurance Premiums 
 To the extent provided for in any Loan in the Loan Pool, the Servicer will make reasonable efforts to collect (or cause to be collected) all payments with respect to amounts due for insurance premiums relating to such Loans or the
Collateral and remit such amounts to the appropriate insurer on or prior to the date such payments are due. 
 Section 5.13
Remittances 
 The Servicer will service all Collections in accordance with Section 7.01 hereof. 
 Section 5.14 Servicer Advances 
 For each Collection Period, if the Servicer determines that any Scheduled Payment (or portion thereof) that was due and payable pursuant to a Loan in the Loan Pool during such Collection Period was not received prior to the end of such
Collection Period, the Servicer has the right to elect, but is not obligated, to make a Servicer Advance in an amount up to the amount of such delinquent Scheduled Payment (or portion thereof) if the Servicer reasonably believes that the advance
will be reimbursed by the related Obligor. The Servicer will deposit any Servicer Advances into the Collection Account on or prior to 11:00 a.m. (New York City time) on the related Transfer Date, in immediately available funds. The Servicer will be
entitled to be reimbursed for Servicer Advances in accordance with the Priority of Payments. 
 Section 5.15 Realization upon
Defaulted Loan 
 The Servicer will use its reasonable best efforts consistent with its Credit and Collection Policy in its servicing
of Loans to repossess or otherwise comparably convert the ownership of any Collateral relating to a Defaulted Loan and will retain a sales agent to sell such Collateral consistent with its current practices. The Servicer will follow such other
practices and procedures as it deems necessary or advisable and as are customary and usual in its servicing of loans and other actions by the Servicer in order to realize upon such Collateral, which practices and procedures may include reasonable
efforts to enforce all obligations of Obligors and foreclosing upon and selling such Collateral at a public or private sale in such circumstances. Without limiting the generality of the foregoing, the Servicer may not sell any such Collateral
without first using commercially reasonable efforts to obtain bids to purchase such Collateral from at least three Persons (other than the Servicer or any of its Affiliates). The Servicer may sell the Collateral to the highest bidder (if any bids
are received) or the Servicer or an Affiliate may purchase the Collateral for a price equal to the highest bid, but in no event may the Servicer sell any Collateral for less than the then fair market value of the Collateral. If no bids are received
and the Servicer has used commercially reasonable efforts to obtain such bids, the Servicer or an Affiliate may purchase the Collateral for a price equal to the then fair market 

  

 - 88 - 








 
value of such Collateral. Any such sale of the Collateral is to be evidenced by a certificate of a Responsible Officer of the Servicer delivered to the
Indenture Trustee setting forth the Loan, the Collateral, the sale price of the Collateral and certifying that such sale price is the fair market value of such Collateral. In any case in which any such Collateral has suffered damage, the Servicer
will not expend funds in connection with any repair or toward the repossession of such Collateral unless it reasonably determines that such repair and/or repossession will increase the Liquidation Proceeds by an amount greater than the amount of
such expenses. The Servicer will remit to the Collection Account the Liquidation Proceeds received in connection with the sale or disposition of Collateral relating to a Defaulted Loan in accordance with Section 7.01. 
 Section 5.16 Maintenance of Insurance Policies 
 (a) The Servicer will use its reasonable best efforts to ensure that each Obligor maintains an Insurance Policy with respect to the related Collateral in an amount at least equal to the original Outstanding Loan
Balance of the related Loan in the Loan Pool; provided that, the Servicer, in accordance with its Credit and Collection Policy, may allow Obligors to self-insure. 
 (b) Additionally, the Servicer will require that each Obligor maintain property damage insurance during the term of each Loan in the Loan Pool in amounts and against risks customarily insured against. If an Obligor
fails to maintain property damage insurance, the Servicer may, but is under no obligation to, purchase and maintain such insurance on behalf of, and at the expense of, the Obligor in accordance with the Servicer’s Credit and Collection Policy.
In connection with its activities as Servicer of the Loans, the Servicer agrees to present, on behalf of itself, the Issuer, the Indenture Trustee, the Swap Counterparties and the Holders, claims to the insurer under each Insurance Policy, and to
settle, adjust and compromise such claims, in each case, consistent with the terms of each Loan and the Servicer’s Credit and Collection Policy. 
 Section 5.17 Other Servicer Covenants 
 The Servicer hereby covenants that: 
 (a) Loan Files. The Servicer will, at its own cost and expense, maintain copies of all Loan Files in its possession in accordance with its
customary procedures. Without limiting the generality of the preceding sentence, the Servicer will not dispose of any documents constituting the Loan Files in any manner that is inconsistent with the performance of its obligations as the Servicer
pursuant to this Agreement and will not dispose of any Loan except as contemplated by this Agreement. 
 (b) Compliance with Law. The
Servicer will comply, in all material respects, with all Requirements of Law applicable to the Servicer or the Loans in the Loan Pool; provided that, the Servicer may contest any such Requirements of Law in any reasonable manner that will not
materially and adversely affect the value of (or the rights of the Indenture Trustee, the Holders or the Swap Counterparties with respect to) the Loan Assets. 
 (c) Obligations with Respect to Loans; Modifications. The Servicer will duly fulfill and comply with, in all material respects, all obligations on the part of the Trust Depositor to be fulfilled or complied
with under or in connection with each Loan in the Loan Pool and will do 

  

 - 89 - 








 
nothing to impair the rights of the Indenture Trustee, the Holders or the Swap Counterparties in, to and under the Loan Assets. The Servicer will perform
such obligations under the Loans in the Loan Pool and will not modify, waive or vary the Loans, except as otherwise permitted hereby. The Servicer will include in the Quarterly Report a description of any modifications to any covenants with respect
to Loans in the Loan Pool. 
 (d) No Bankruptcy Petition. Prior to the date that is one year and one day (or, if longer, the
preference period then in effect plus one day) after the payment in full of all amounts owing in respect of all outstanding Securities, the Servicer will not institute against the Trust Depositor, or the Issuer, or join any other Person in
instituting against the Trust Depositor or the Issuer, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceedings under the laws of the United States or any state of the United States. This
Section 5.17(d) will survive the termination of this Agreement. 
 (e) Location of Loan Files. The Loan Files shall remain
at all times in the possession of the Indenture Trustee unless the Servicer requests that a Loan File be delivered to it in order to enforce the rights of the Issuer thereunder or for other purposes related to the servicing of the Loans, to the
extent provided in Section 5.08. 
 (f) Regulatory Filings. The Servicer, on behalf of the Trust Depositor, shall make any
filings, reports, notices, applications and registrations with, and seek any consents or authorizations from, the Commission and any state securities authority as may be necessary or that the Trust Depositor deems advisable to comply with any
federal or state securities or reporting requirements laws. 
 (g) Modification of Credit and Collection Policy. The Servicer shall
not amend or modify its Credit and Collection Policy in a manner that would have a material adverse effect on the Holders or the Swap Counterparties. 
 (h) Swap Covenants. So long as any of the Notes are Outstanding, with the exception of the initial Interest Accrual Period, the Trust shall maintain one or more Swap Transactions with a Swap Counterparty and
governed by a Swap. Such Swap Transactions (i) shall have a schedule of periodic payment periods which terminate as of February 27, 2013, (ii) on the Closing Date through the end of the Replenishment Period, have an Aggregate Notional
Amount equal to $286,000,000 (which represents the Outstanding Principal Balance of the Offered Notes as of the Closing Date minus the expected amount of Floating Rate Loans as of the Effective Date) and, after the end of the Replenishment Period,
have an Aggregate Notional Amount amortizing based on an assumed 20% constant prepayment rate per annum with respect to the Fixed Rate Loans, and (iii) be maintained so that the Aggregate Notional Amount of any Swap Transactions hedging the
Fixed Rate Loans for any current or future calculation period will not be greater than (A) during the Replenishment Period, $286,000,000 and (B) after the Replenishment Period, the aggregate Outstanding Loan Balance of the Fixed Rate Loans
for the corresponding Collection Period, by more than the Fixed Rate Permitted Excess Amount, and if the Aggregate Notional Amount of all Swap Transactions as of any Determination Date exceeds (A) during the Replenishment Period, $286,000,000
and (B) after the Replenishment Period, the aggregate Outstanding Loan Balance of the Fixed Rate Loans for the corresponding Collection Period, by more than the Fixed Rate Permitted Excess Amount, then, not later than 1:00 p.m. 

  

 - 90 - 








 
(New York City time) on the date that is the second Business Day prior to the next Payment Date, the Servicer will notify the Indenture Trustee, the Swap
Counterparties and the Rating Agencies of such event and one or more of the Swap Transactions hedging the Fixed Rate Loans will be reduced or amended in accordance with the terms of the applicable Interest Rate Swaps so that the Aggregate Notional
Amount of the Swap Transactions hedging the Fixed Rate Loans will not exceed (A) during the Replenishment Period, $286,000,000 and (B) after the Replenishment Period, the aggregate Outstanding Loan Balance of the Fixed Rate Loans for the
corresponding Collection Period, by more than the Fixed Rate Permitted Excess Amount. For the avoidance of doubt, in making the determination of any Aggregate Notional Amount as described in this Section 5.17(h) and in determining the
amount of any reduction or amendment of the Aggregate Notional Amount of the Swap Transactions required to be made under this Section 5.17(h), notional amounts of any interest rate caps purchased by the Issuer will be excluded from any
determination of the applicable Aggregate Notional Amount. 
 (i) Notice of Extension of Replenishment Period. Promptly following any
extension of the Replenishment Period, the Servicer shall give written notice thereof to the Trustees, the Trust Depositor, the Rating Agencies and each Swap Counterparty at the addresses described in Section 13.04 hereof. 
 Section 5.18 Servicing Compensation 
 As compensation for its servicing activities hereunder and reimbursement for its expenses as set forth in Section 5.19, the Servicer shall be entitled to receive a quarterly servicing fee in respect of any
Collection Period (or portion thereof) prior to the termination of the Issuer (with respect to each Collection Period, the “Servicing Fee”) equal to the product of (a) the product of (i) 1% multiplied by (ii) a
fraction, the numerator of which is the number of days in the related Collection Period and the denominator of which is 360; and (b) the Loan Pool Balance as of the beginning of the related Collection Period. The Servicing Fee is payable out of
Interest Collections and from amounts on deposit in the Reserve Fund. 
 Section 5.19 Payment of Certain Expenses by Servicer

 The Servicer will be required to pay all expenses incurred by it in connection with its activities under this Agreement, including fees
and disbursements for the Independent Accountants, the Owner Trustee (including with respect to an administrator acting on behalf of the Owner Trustee and the Issuer), the Indenture Trustee, taxes imposed on the Servicer, expenses incurred in
connection with payments and reports pursuant to this Agreement, and all other fees and expenses not expressly stated under this Agreement to be for the account of the Issuer or the Trust Depositor. The Servicer will be required to pay all
reasonable fees and expenses (including, without limitation, legal fees and expenses) owing to the Owner Trustee or the Indenture Trustee in connection with the maintenance of the Trust Accounts. The Servicer shall be required to pay such expenses
for its own account and shall not be entitled to any payment or reimbursement therefor other than (i) the Servicing Fee, and (ii) the reimbursement for Liquidation Expenses to the extent gross recoveries with respect to a Loan are
sufficient, after payment of all principal and finance charges due with respect to such Loan, to cover such expenses. 
  

 - 91 - 








 Section 5.20 Records 
 The Servicer shall, during the period it is Servicer hereunder, maintain such books of account and other records as will enable the Owner Trustee and the
Indenture Trustee to determine the status of each Loan. 
 Section 5.21 Inspection 
 (a) At all times during the term hereof, the Servicer shall afford the Owner Trustee and the Indenture Trustee and their respective authorized agents
reasonable access during normal business hours to the Servicer’s or any subservicer’s records relating to the Loans and the Servicer’s performance or observance of the terms of this Agreement. The Servicer and any subservicer will
cause its personnel to assist in any examination of such records by the Owner Trustee or the Indenture Trustee, or such authorized agents, and allow copies of the same to be made. The examination referred to in this Section 5.21(a) will
be conducted in a manner that does not unreasonably interfere with the Servicer’s or subservicer’s normal operations or customer or employee relations. Without otherwise limiting the scope of the examination, the Owner Trustee or the
Indenture Trustee may, using generally accepted audit procedures, verify the status of each Loan and review the Computer Records and other records relating thereto for conformity to Quarterly Reports prepared pursuant to Article IX and
compliance with the standards represented to exist as to each Loan in this Agreement. 
 (b) At all times during the term hereof, the
Servicer shall keep available a copy of the List of Loans at its principal executive office for inspection by Holders and Swap Counterparties. 
 (c) The Servicer shall, if given reasonable notice by the Indenture Trustee after the end of any Collection Period, provide the Indenture Trustee with a copy of the Computer Record. 
 (d) For so long as any of the Notes are Outstanding and are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities
Act, (1) the Servicer will provide or cause to be provided to any Holder of such Notes and any prospective purchaser thereof designated by such Holder, upon the request of such a Holder or prospective purchaser, the information required to be
provided to such Holder or prospective purchaser by Rule 144A(d)(4) under the Securities Act; and (2) the Servicer shall update such information from time to time in order to prevent such information from becoming false and misleading and will
take such other actions as are necessary to ensure that the safe harbor exemption from the registration requirements of the Securities Act under Rule 144A is and will be available for resales of such Notes conducted in accordance with Rule 144A.

 Section 5.22 The Backup Servicer 
 (a) The Issuer, the Indenture Trustee and the Trust Depositor hereby appoint Wells Fargo Bank, National Association to act as Backup Servicer in accordance with the terms of this Agreement. Wells Fargo Bank, National
Association hereby accepts such appointment and agrees to perform the duties and responsibilities with respect thereto set forth herein. 
 (b) The Backup Servicer shall perform the following duties and obligations: 
  

 - 92 - 








 (i) On or before the Closing Date, the Backup Servicer shall accept from the Servicer
delivery of the information required to be set forth in the Quarterly Reports in hard copy and in an agreed upon electronic format. 
 (ii) Not later than 12:00 noon New York time two Business Days prior to each Determination Date, the Servicer shall provide to the Backup Servicer and the Backup Servicer shall accept delivery of tape in an agreed upon electronic format
(the “Tape”) from the Servicer, which shall include but not be limited to the following information: (x) for each Loan, the (1) Loan number, (2) legal name of the related Obligor, (3) state or country of the
Obligor’s chief executive office, (4) SIC Code, (5) outstandings at cost, (6) type of Loan (i.e., term Loan or revolving Loan), (7) type of security interest (i.e., senior or subordinated), (8) term payment type (i.e.,
amortizing or balloon), (9) origination date, (10) maturity date, (11) benchmark for the Loan’s interest rate, (12) margin, (13) frequency of Scheduled Payments, (14) controlling interest, (15) the collection
status, (16) the Loan status, (17) the Outstanding Loan Balance and (18) the date the current S&P Rating with respect to such Loan was issued and the date the current S&P Rating with respect to such Loan expires, (y) the
Aggregate Outstanding Loan Balance, and (z) the Loan Pool Balance. 
 (iii) Prior to the related Payment Date, the Backup
Servicer shall review the Quarterly Report to ensure that it is complete on its face and that the following items in such Quarterly Report have been accurately calculated, if applicable, and reported: (A) the Aggregate Outstanding Loan Balance,
(B) the Backup Servicing Fee, (C) the Loans that are 30 or more days Delinquent (other than Defaulted Loans), (D) the Defaulted Loans, (E) the portfolio yield, (F) the principal and interest payments due to Noteholders and
(G) the Loan Pool Balance. The Backup Servicer shall notify the Indenture Trustee, the Initial Purchasers and the Servicer of any disagreements with the Quarterly Report based on such review not later than the Business Day preceding such
Payment Date. 
 (iv) If the Servicer disagrees with the report provided under Section 5.22(b)(iii) by the Backup
Servicer or if the Servicer or any subservicer has not reconciled such discrepancy, the Backup Servicer agrees to confer with the Servicer to resolve such disagreement on or prior to the next succeeding Determination Date and shall settle such
discrepancy with the Servicer, if possible, and notify the Indenture Trustee, the Swap Counterparties and the Initial Purchasers of the resolution thereof. The Servicer hereby agrees to cooperate, at its own expense, with the Backup Servicer in
reconciling any discrepancies herein. If, within 20 days after the delivery of the report provided under Section 5.22(b)(iii) by the Backup Servicer, such discrepancy is not resolved, the Backup Servicer shall promptly notify the
Servicer, the Indenture Trustee, the Swap Counterparties and the Initial Purchasers of the continued existence of such discrepancy. Following receipt of such notice by the Indenture Trustee, the Swap Counterparties and the Initial Purchasers, the
Servicer shall deliver to the Indenture Trustee, the Swap Counterparties, the Initial Purchasers, and the Backup Servicer, no later than the related Payment Date, a certificate describing the nature and amount of such discrepancies and the actions
the Servicer proposes to take with respect thereto. 
  

 - 93 - 








 (c) After the Servicer’s and Backup Servicer’s receipt of an effective notice of termination
terminating the Servicer in accordance with this Agreement, all authority, power, rights and responsibilities of the Servicer under this Agreement, whether with respect to the Loans or otherwise, shall pass to and be vested in the Backup Servicer,
and the Backup Servicer shall be deemed the successor Servicer, subject to and in accordance with the provisions of Section 8.03, as long as the Backup Servicer is not prohibited by Requirements of Law from fulfilling the same, as
evidenced by an Opinion of Counsel. 
 (d) Any Person (i) into which the Backup Servicer may be merged or consolidated, (ii) that
may result from any merger or consolidation to which the Backup Servicer shall be a party, or (iii) that may succeed to the properties and assets of the Backup Servicer substantially as a whole, which Person in any of the foregoing cases
executes an agreement of assumption to perform every obligation of the Backup Servicer hereunder, shall be the successor to the Backup Servicer under this Agreement without further act on the part of any of the parties to this Agreement. 

(e) As compensation for its backup servicing activities hereunder, the Backup Servicer shall be entitled to receive the Backup Servicing Fee from the
Servicer. The Backup Servicer’s entitlement to receive the Backup Servicing Fee (other than due and unpaid Backup Servicing Fees owed through such date) shall cease on the earliest to occur of: (i) it becoming the Successor Servicer,
(ii) its removal as Backup Servicer, or (iii) the termination of this Agreement. 
 (f) The Backup Servicer undertakes to perform
only such duties and obligations as are specifically set forth in this Agreement, it being expressly understood by all parties hereto that there are no implied duties or obligations of the Backup Servicer hereunder. Without limiting the generality
of the foregoing, the Backup Servicer, except as expressly set forth herein, shall have no obligation to supervise, verify, monitor or administer the performance of the Servicer. The Backup Servicer may act through its agents, attorneys and
custodians in performing any of its duties and obligations under this Agreement, it being understood by the parties hereto that the Backup Servicer will be responsible for any misconduct or negligence on the part of such agents, attorneys or
custodians acting on the routine and ordinary day-to-day operations for and on behalf of the Backup Servicer. Neither the Backup Servicer nor any of its officers, directors, employees or agents shall be liable, directly or indirectly, for any
damages or expenses arising out of the services performed under this Agreement, other than damages or expenses that result from the gross negligence or willful misconduct of it or them or the failure to perform materially in accordance with this
Agreement. 
 (g) The Backup Servicer shall not be liable for any obligation of the Servicer contained in this Agreement or for any errors of
the Servicer contained in any Tape, certificate or other data or document delivered to the Backup Servicer hereunder or on which the Backup Servicer must rely in order to perform its obligations hereunder, and the parties hereto each agree to look
only to the Servicer to perform such obligations. With respect to Section 5.22(b), the Backup Servicer, in the performance of its duties and obligations hereunder, is entitled to rely conclusively, and shall be fully protected in so
relying, on the contents of each Tape, including, but not limited to, the completeness and accuracy thereof, provided by the Servicer. The Backup Servicer shall have no responsibility and shall not be in default hereunder or incur any liability


  

 - 94 - 








 
for any failure, error, malfunction or any delay in carrying out any of its respective duties under this Agreement if such failure or delay results from the
Backup Servicer acting in accordance with information prepared or supplied by a Person other than the Backup Servicer or the failure of any such other Person to prepare or provide such information. The Backup Servicer shall have no responsibility,
shall not be in default and shall incur no liability for (i) any act or failure to act of any third party (other than any agent, attorney or custodian acting on behalf of such Backup Servicer), including the Servicer (ii) any inaccuracy or
omission in a notice or communication received by the Backup Servicer from any third party (other than any agent, attorney or custodian acting on behalf of such Backup Servicer), (iii) the invalidity or unenforceability of any Loan under
Requirements of Law, (iv) the breach or inaccuracy of any representation or warranty made with respect to any Loan, or (v) the acts or omissions of any successor Backup Servicer. 
 Section 5.23 [Reserved] 
 Section 5.24 Covenants of the Backup Servicer 
 The Backup Servicer hereby covenants that: 
 (a) The Backup Servicer will comply in all material respects with all Requirements of Law. 
 (b) The Backup Servicer will preserve and maintain its existence, rights, franchises and privileges as a national banking association in good standing
under the federal laws of the United States. 
 (c) The Backup Servicer shall perform in all material respects all of its obligations and
duties under this Agreement. 
 Section 5.25 Appointment of Successor Backup Servicer; Successor Backup Servicer to Act

 (a) The Backup Servicer may be removed, with or without cause, by the Required Holders or the Indenture Trustee, by notice given in
writing to the Backup Servicer (the “Backup Servicer Termination Notice”). The Backup Servicer shall continue to perform all backup servicing functions under this Agreement until the date specified in the Backup Servicer Termination
Notice or, if no such date is specified, until a date mutually agreed by the Backup Servicer and the Indenture Trustee. The Indenture Trustee shall as promptly as possible after the giving of a Backup Servicer Termination Notice appoint a Successor
Backup Servicer (the “Successor Backup Servicer”), and such Successor Backup Servicer shall accept its appointment by a written assumption in a form acceptable to the Indenture Trustee and Owner Trustee; provided that if such
Successor Backup Servicer is not an Affiliate of Wells Fargo Bank, National Association, the Indenture Trustee shall deliver prior written notice to S&P of its intention to appoint such Successor Backup Servicer. 
 (b) In the event that a Successor Backup Servicer has not been appointed and has not accepted its appointment at the time when the then Backup Servicer
has ceased to act as Backup Servicer, the Indenture Trustee shall petition a court of competent jurisdiction to appoint any 

  

 - 95 - 








 
established financial institution having a net worth of at least $200,000,000 and whose regular business includes the backup servicing of loans similar to
the Loans as the Successor Backup Servicer hereunder. The Successor Backup Servicer shall be the successor in all respects to the Backup Servicer in its capacity as Backup Servicer under this Agreement and the transactions set forth or provided for
herein, shall be subject to all the responsibilities, duties and liabilities relating thereto placed on the Backup Servicer by the terms and provisions hereof, and the terminated Backup Servicer shall be relieved of such responsibilities, duties and
liabilities arising after such backup servicer transfer (the “Backup Servicer Transfer”); provided that the Successor Backup Servicer shall not be liable for any acts or omissions of the Backup Servicer occurring prior to
such Backup Servicer Transfer or for any breach by the Backup Servicer of any of its representations and warranties contained herein or in any related document or agreement. As compensation therefor, the Successor Backup Servicer shall be entitled
to receive reasonable compensation equal to the quarterly Backup Servicing Fee from the Servicer. Notwithstanding anything else herein to the contrary, in no event shall the Issuer or the Indenture Trustee be liable for any Backup Servicing Fee or
for any differential in the amount of the backup servicing fee paid hereunder and the amount necessary to induce any Successor Backup Servicer to act as Backup Servicer under this Agreement and the transactions set forth or provided for herein. The
Issuer, the Indenture Trustee and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. 
 ARTICLE VI 
 COVENANTS OF THE TRUST DEPOSITOR 
 Section 6.01 Legal Existence 
 During the term of this Agreement, the Trust Depositor will keep in full force and effect its existence, rights and franchises as a limited liability company under the laws of the jurisdiction of its organization and will obtain and
preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement, the other Transaction Documents and each other instrument or agreement
necessary or appropriate to the proper administration of this Agreement and the transactions contemplated hereby. In addition, all transactions and dealings between the Trust Depositor and its Affiliates will be conducted on an arm’s-length
basis. 
 Section 6.02 Loans Not to Be Evidenced by Promissory Notes 
 The Trust Depositor will take no action to cause any Loan not originally evidenced by an Underlying Note to be evidenced by an instrument (as defined in
the UCC), except in connection with the enforcement or collection of such Loan. 
 Section 6.03 Security Interests

 The Trust Depositor will not sell, pledge, assign or transfer to any other Person, or grant, create, incur, assume or suffer to exist
any Lien on any Loan in the Loan Pool or related Collateral, whether now existing or hereafter transferred to the Issuer, or any interest therein, except as expressly contemplated by this Agreement. The Trust Depositor will promptly notify 

  

 - 96 - 








 
the Owner Trustee, each Swap Counterparty and the Indenture Trustee upon obtaining knowledge of the existence of any Lien on any Loan in the Loan Pool or
related Collateral, and the Trust Depositor shall defend the right, title and interest of the Issuer in, to and under the Loans in the Loan Pool and the related Collateral against all claims of third parties; provided that nothing in this
Section 6.03 shall prevent or be deemed to prohibit the Trust Depositor from suffering to exist Permitted Liens upon any of the Loans in the Loan Pool or any related Collateral. 
 Section 6.04 Delivery of Collections 
 The Trust Depositor agrees to pay to the Servicer promptly (but in no event later than two Business Days after receipt) all Collections received by the Trust Depositor in respect of the Loans, for application in
accordance with Section 7.05 hereof. 
 Section 6.05 Regulatory Filings 
 The Trust Depositor shall make any filings, reports, notices, applications and registrations with, and seek any consents or authorizations from, the
Commission and any state securities authority on behalf of the Issuer as may be necessary or that the Trust Depositor deems advisable to comply with any federal or state securities or reporting requirements laws. 
 Section 6.06 Compliance with Law 
 The Trust Depositor hereby agrees to comply in all material respects with all Requirements of Law applicable to the Trust Depositor. 
 Section 6.07 Activities; Transfers of Notes or Certificates by Trust Depositor 
 The Trust Depositor shall not
engage in any business or activity of any kind, or enter into any transaction or indenture, mortgage, instrument, agreement, contract, lease or other undertaking, which is not directly related to the transactions contemplated and authorized by this
Agreement or the other Transaction Documents; provided that the Trust Depositor may purchase and sell (or grant Liens in respect of) assets similar to the Loan Assets to other Persons in securitization or other non-recourse financing
transactions involving the Originator or any of its Affiliates on terms and conditions (with respect to liabilities and restrictions on its activities, as well as restrictions on its interactions with the Originator or its Affiliates, relevant to
the “bankruptcy remoteness” or “substantive consolidation” analysis relating to the Trust Depositor) substantially similar to the terms and conditions applicable to the Trust Depositor under the Transaction Documents, so long as
the Holders and the Swap Counterparties are not materially and adversely affected thereby and the Rating Agency Condition is satisfied. Notwithstanding anything to the contrary contained herein, the Trust Depositor may assign, transfer, convey or
finance all or any portion of any Class of Notes or Certificates owned by it provided such assignment, transfer, conveyance or financing is done in accordance with the terms of Section 4.02 of the Indenture. 
  

 - 97 - 








 Section 6.08 Indebtedness 
 The Trust Depositor shall not create, incur, assume or suffer to exist any Indebtedness or other liability whatsoever, except (i) obligations
incurred under this Agreement and the other Transaction Documents, (ii) liabilities incident to the maintenance of its corporate existence in good standing or (iii) liabilities necessarily incurred to facilitate securitizations referred to
in the proviso in Section 6.07. 
 Section 6.09 Guarantees 
 The Trust Depositor shall not become or remain liable, directly or contingently, in connection with any Indebtedness or other liability of any other
Person, whether by guarantee, endorsement (other than endorsements of negotiable instruments for deposit or collection in the ordinary course of business), agreement to purchase or repurchase, agreement to supply or advance funds, or otherwise
except in connection with the transactions described in Section 6.07. 
 Section 6.10 Investments 

The Trust Depositor shall not make or suffer to exist any loans or advances to, or extend any credit to, or make any investments (by way of transfer of
property, contributions to capital, purchase of stock or securities or evidences of indebtedness, acquisition of the business or assets, or otherwise) in, any Person except (i) for purchases of Loans from the Originator or as otherwise
contemplated by the Transaction Documents, (ii) for investments in Eligible Investments in accordance with the terms of this Agreement, (iii) as may be necessary to facilitate securitizations referred to in the proviso in
Section 6.07 or (iv) for acquisition of the Class E Note and the Certificate. Without limiting the generality of the foregoing, the Trust Depositor shall not: (i) provide credit to any Holder for the purpose of enabling such
Holder to purchase any Securities or (ii) lend any money to the Issuer. 
 Section 6.11 Merger; Sales 
 The Trust Depositor shall not enter into any transaction of merger or consolidation, liquidate or dissolve itself (or suffer any liquidation or
dissolution), acquire or be acquired by any Person, or convey, sell, lease or otherwise dispose of all or substantially all of its property or business, except as provided for in this Agreement. 
 Section 6.12 Distributions 
 The Trust Depositor shall not declare or pay, directly or indirectly, any dividend or make any other distribution (whether in cash or other property) with respect to the profits, assets or capital of the Trust Depositor or any Person’s
interest therein, or purchase, redeem or otherwise acquire for value any of its member interests now or hereafter outstanding, except that, so long as no Event of Default has occurred and is continuing, no Event of Default would occur as a result
thereof or after giving effect thereto, and the Trust Depositor would continue to be Solvent as a result thereof and after giving effect thereto, the Trust Depositor may declare and pay distributions to its members. 
  

 - 98 - 








 Section 6.13 Other Agreements 
 The Trust Depositor shall not become a party to, or permit any of its properties to be bound by, any indenture, mortgage, instrument, contract, agreement,
lease or other undertaking, except this Agreement, the other Transaction Documents to which it is a party, any agreement relating to the Trust Depositor’s disposition of any Notes or the Certificate which it holds and any agreement relating to
another securitization transaction permitted by Section 6.07; nor shall it amend or modify without the prior satisfaction of the Rating Agency Condition the provisions of its organizational documents which relate to its bankruptcy remote
nature or separateness covenants as required by the Rating Agencies or in connection with the substantive non-consolidation opinion delivered on the Closing Date, or issue any power of attorney except to the Owner Trustee, the Indenture Trustee or
the Servicer in accordance with the Transaction Documents. 
 Section 6.14 Separate Legal Existence 
 The Trust Depositor shall: 
 (i) Maintain its own deposit account or accounts, separate from those of any Affiliate, with commercial banking institutions. The funds of the Trust Depositor will not be diverted to any other Person or for other than authorized uses of the
Trust Depositor. 
 (ii) Ensure that, to the extent that it shares the same officers or other employees as any of its members
or Affiliates, the salaries of and the expenses related to providing benefits to such officers and other employees shall be fairly allocated among such entities, and each such entity shall bear its fair share of the salary and benefit costs
associated with all such common officers and employees. 
 (iii) Ensure that, to the extent that it jointly contracts with any
of its members or Affiliates to do business with vendors or service providers or to share overhead expenses, the costs incurred in so doing shall be allocated fairly among such entities, and each such entity shall bear its fair share of such costs.
To the extent that the Trust Depositor contracts or does business with vendors or service providers when the goods and services provided are partially for the benefit of any other Person, the costs incurred in so doing shall be fairly allocated to
or among such entities for whose benefit the goods and services are provided, and each such entity shall bear its fair share of such costs. All material transactions between Trust Depositor and any of its Affiliates shall be only on an
arm’s-length basis. 
 (iv) To the extent that the Trust Depositor and any of its members or Affiliates have offices in
the same location, there shall be a fair and appropriate allocation of overhead costs among them, and each such entity shall bear its fair share of such expenses. 
 (v) Conduct its affairs strictly in accordance with its Certificate of Formation and limited liability company operating agreement and
observe all necessary, appropriate and customary limited liability company formalities, including, but not limited to, 

  

 - 99 - 








 
holding all regular and special members’ and managers’ meetings appropriate to authorize all limited liability company action, keeping separate and
accurate minutes of its meetings, passing all resolutions or consents necessary to authorize actions taken or to be taken, and maintaining accurate and separate books, records and accounts, including, but not limited to, payroll and intercompany
transaction accounts. 
 (vi) Take or refrain from taking, as applicable, each of the activities specified in the
“substantive consolidation” opinion of Winston & Strawn LLP, delivered on the Closing Date, upon which the conclusions expressed therein are based. 
 Section 6.15 Liability of Trust Depositor and Others 
 The Trust Depositor shall be liable
in accordance herewith only to the extent of the obligations specifically undertaken by the Trust Depositor under this Agreement. The Trust Depositor and any director, officer, employee or agent of the Trust Depositor may rely in good faith on any
document of any kind, prima facie properly executed and submitted by any Person respecting any matters arising hereunder. The Trust Depositor and any director, officer, employee or agent of the Trust Depositor shall be reimbursed by the Indenture
Trustee for any liability or expense incurred by reason of the Indenture Trustee’s willful misfeasance, bad faith or gross negligence (except errors in judgment) in the performance of its duties hereunder, or by reason of the reckless disregard
of its obligations and duties hereunder. The Trust Depositor shall not be under any obligation to appear in, prosecute or defend any legal action that shall not be incidental to its obligations under this Agreement and that in its opinion may
involve it in any expense or liability. 
 Section 6.16 Bankruptcy Limitations 
 The Trust Depositor shall not, without the affirmative vote of a majority of the managers of the Trust Depositor (which must include the affirmative vote
of at least one duly appointed Independent manager) (a) dissolve or liquidate, in whole or in part, or institute proceedings to be adjudicated bankrupt or insolvent, (b) consent to the institution of bankruptcy or insolvency proceedings
against it, (c) file a petition seeking or consent to reorganization or relief under any applicable federal or state law relating to bankruptcy, (d) consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or
other similar official) of the limited liability company or a substantial part of its property, (e) make a general assignment for the benefit of creditors, (f) admit in writing its inability to pay its debts generally as they become due,
or (g) take any limited liability company action in furtherance of the actions set forth in clauses (a) through (f) above; provided that no manager may be required by any member of the Trust Depositor to consent
to the institution of bankruptcy or insolvency proceedings against the Trust Depositor so long as it is Solvent. 
 Section 6.17
Chief Executive Office 
 During the term of this Agreement, the Trust Depositor will maintain its chief executive office in one of
the States of the United States. 
  

 - 100 - 








 ARTICLE VII 
 ESTABLISHMENT OF ACCOUNTS; DISTRIBUTIONS; RESERVE FUND 
 Section 7.01 Trust Accounts;
Collections 
 (a) On or before the Closing Date, the Trust Depositor shall establish the Collection Account (including two
sub-accounts: the Interest Collection Account and the Principal Collection Account), the Note Distribution Account and the Reserve Fund, each with and in the name of the Indenture Trustee for the benefit of the Holders and the Swap Counterparties.
The Indenture Trustee, for the benefit of the Noteholders and the Swap Counterparties, shall establish a single, segregated trust account in accordance with the provisions of each Swap, referred to as the “Swap Counterparty Collateral
Account.” The Servicer and Indenture Trustee are hereby required to ensure that each of the Trust Accounts is established and maintained as an Eligible Deposit Account with a Qualified Institution. If any institution with which any of the
accounts established pursuant to this Section 7.01(a) are established ceases to be a Qualified Institution, the Servicer, or if the Servicer fails to do so, the Indenture Trustee (as the case may be) shall within ten Business Days
establish a replacement account at a Qualified Institution after notice of such event. The Indenture Trustee and the Servicer shall insure that each Qualified Institution maintaining an Eligible Deposit Account agrees in writing to comply with all
instructions originated by the Indenture Trustee directing disposition of the funds in such account without the further consent of the Trust Depositor or Issuer. The Trust Depositor and the Issuer agree and acknowledge that the Indenture Trustee is
to have “control” (within the meaning of the UCC) of collateral comprised of “Investment Property” (within the meaning of the UCC) for all purposes of this Agreement. For all purposes of this Agreement, the Indenture
Trustee’s “jurisdiction” in respect of matters governed by the UCC shall be the State of Minnesota. 
 (b) The Servicer shall
deposit or cause to be deposited, without deposit into any intervening account, into the Collection Account not later than two Business Days following the actual receipt of such remittance by the Servicer, all Collections on deposit with the
Servicer in the form of available funds and all Collections otherwise received by the Servicer. Collections constituting Interest Collections shall be deposited in the Interest Collection Account, and Collections constituting Principal Collections
shall be deposited in the Principal Collection Account. 
 (c) Notwithstanding Section 7.01(b), the Servicer shall deposit or
cause to be deposited, on the applicable Assignment Date, in immediately available funds into the Collection Account all Collections received after the applicable Cut-Off Date and through and including the date two days preceding the applicable
Assignment Date in respect of Loans being transferred to the Issuer on such date. Such Collections constituting Interest Collections shall be deposited in the Interest Collection Account, and those constituting Principal Collections shall be
deposited in the Principal Collection Account. 
 (d) [Reserved]. 
 (e) Notwithstanding Sections 7.01(b) and (c), if (i) the Servicer makes a deposit into the Collection Account in respect of a
Collection of a Loan in the Loan Pool and such Collection 

  

 - 101 - 








 
was received by the Servicer in the form of a check that is not honored for any reason, or (ii) the Servicer makes a mistake with respect to the amount
of any Collection and deposits an amount that is less than or more than the actual amount of such Collection, the Servicer shall appropriately adjust the amount subsequently deposited into the Collection Account to reflect such dishonored check or
mistake. Any Scheduled Payment in respect of which a dishonored check is received shall be deemed not to have been paid. 
 Section 7.02 Reserve Fund Deposit 
 On the Closing Date, the Owner Trustee, on behalf of the Issuer, shall
deposit the Reserve Fund Initial Deposit into the Reserve Fund from the net proceeds of the sale of Securities. 
 Section 7.03
Trust Account Procedures 
 (a) If the Servicer so directs in writing, the Indenture Trustee shall accept such directions as
directions of the Issuer and shall invest the amounts in the Trust Accounts in Qualified Eligible Investments of the type specified in such written direction that mature or are withdrawable not later than one Business Day prior to the next
succeeding Payment Date, except in the case of investments of Unused Proceeds, that mature not later than the date that is four months following the Closing Date. Once such funds are invested, the Indenture Trustee shall not change the investment of
such funds. Funds in the Trust Accounts not so invested must be insured to the extent permitted by law by the Bank Insurance Fund or the Savings Association Insurance Fund of the Federal Deposit Insurance Corporation. Subject to the restrictions
herein, the Indenture Trustee may purchase a Qualified Eligible Investment from itself or an Affiliate. Subject to the other provisions hereof, the Indenture Trustee shall have sole control over each such investment and the income thereon, and any
certificate or other instrument evidencing any such investment, if any, shall be delivered directly to the Indenture Trustee or its agent, together with each document of transfer, if any, necessary to transfer title to such investment to the
Indenture Trustee in a manner which complies with this Section 7.03. All Investment Earnings on investments of funds in the Trust Accounts (other than any Swap Counterparty Collateral Account) shall be deposited in the Collection Account
pursuant to Section 7.01 and distributed on the next Payment Date pursuant to Section 7.05. The Trust Depositor and the Issuer agree and acknowledge that the Indenture Trustee is to have “control” (within the
meaning of Section 9-104 of the UCC as enacted in New York) of collateral comprised of “Investment Property” (within the meaning of Section 9-102 of the UCC as enacted in New York) for all purposes of this Agreement. For all
purposes of this Agreement, the Indenture Trustee’s “jurisdiction” in respect of matters governed by the UCC shall be the State of Minnesota. In the absence of timely written direction from the Servicer, the Indenture Trustee shall
invest amounts in the Trust Accounts in Qualified Eligible Investments of the type specified in clause (vi) of the definition of Eligible Investments herein. 
 (b) [Reserved]. 
 (c) On each Determination Date, the Servicer shall instruct the Indenture Trustee to, and
on each Payment Date the Indenture Trustee shall, transfer to the Note Distribution Account, for distribution as provided in Section 7.05, all Interest Collections and Principal Collections on deposit in the Collections Account, all
funds on deposit in the Reserve Fund and all Investment Earnings from the Trust Accounts. 
  

 - 102 - 








 (d) During the Pre-Funding Period and the Replenishment Period, the Servicer may instruct the Indenture
Trustee to, and on the related Subsequent Transfer Date the Indenture Trustee shall, withdraw Principal Collections from the Principal Collection Account to be applied to the purchase of Additional Loans in accordance with, and subject to compliance
with the requirements set forth in, Section 2.05. 
 (e) Prior to the expiration of the Substitution Period, the Servicer may
instruct the Indenture Trustee to, and on the related Subsequent Transfer Date the Indenture Trustee shall, withdraw funds from the Principal Collection Account to be applied to the acquisition of one or more Substitute Loans as contemplated by
Section 2.04(a), to the extent of funds deposited by the Originator for such purpose. 
 Section 7.04 Holder
Distributions 
 (a) Each Holder as of the related Record Date shall be paid on the next succeeding Payment Date by check mailed to
such Holder at the address for such Holder appearing on the Note Register or Certificate Register, as the case may be, or by wire transfer if such Holder provides written instructions to the Indenture Trustee, or Owner Trustee, respectively, at
least ten days prior to such Payment Date. 
 (b) The Indenture Trustee shall serve as the Paying Agent hereunder and shall make the payments
to the Holders required hereunder. The Indenture Trustee hereby agrees that all amounts held by it for payment hereunder will be held in trust for the benefit of the Holders. 
 Section 7.05 Allocations and Distributions 
 (a) On each Determination Date, the Servicer shall instruct the Indenture Trustee in writing to withdraw, and on the related Payment Date the Indenture Trustee shall withdraw, from the Note Distribution Account the
sum of (i) all Interest Collections and (ii) all amounts from the Reserve Fund, to the extent there are sufficient funds, to distribute to the following parties in the following order of priority: 
 First, pro rata, based on the amounts owed to such Persons under this clause First, to the Swap Counterparties, any
Net Trust Swap Payments for the current and any prior Payment Dates owing to the Swap Counterparties under the Interest Rate Swaps (other than Swap Breakage Costs) together with interest accrued thereon; provided that following the occurrence
of an Event of Default, Swap Breakage Costs shall be payable pursuant to this clause First in an amount not to exceed $500,000 in the aggregate, together with interest accrued thereon; 
 Second, pro rata to each Person entitled to such payment, based on the amounts payable under this clause Second,
Administrative Expenses, subject to the limitations set forth in the definition thereof; 
  

 - 103 - 








 Third, to the Servicer, from Interest Collections received from the specific Loans for
which such Servicer Advances were made, reimbursement for the amount of such Servicer Advances relating to interest on such Loans; 
 Fourth, to the Servicer an amount equal to the quarterly Servicing Fee, together with any amounts in respect of the Servicing Fee that were due in respect of prior Collection Periods that remain unpaid; 
 Fifth, to the Class A Noteholders, the Class A Interest Amount for the related Interest Accrual Period and any Class A
Interest Shortfall; 
 Sixth, to the Class B Noteholders, the Class B Interest Amount for the related Interest Accrual Period
and any Class B Interest Shortfall; 
 Seventh, to the Class C Noteholders, the Class C Interest Amount for the related
Interest Accrual Period and any Class C Interest Shortfall; 
 Eighth, to the Class D Noteholders, the Class D Interest Amount
for the related Interest Accrual Period and any Class D Interest Shortfall; 
 Ninth, (i) prior to the occurrence of an
Event of Default, an amount equal to the Additional Principal Amount, to be paid as follows: 
 (1) to the Class A
Noteholders until the Outstanding Principal Balance of the Class A Notes is reduced to zero; 
 (2) to the Class B
Noteholders, the Class B Accrued Payable, if any; 
 (3) to the Class B Noteholders until the Outstanding Principal Balance of
the Class B Notes is reduced to zero; 
 (4) to the Class C Noteholders, the Class C Accrued Payable, if any; 
 (5) to the Class C Noteholders until the Outstanding Principal Balance of the Class C Notes is reduced to zero; 
 (6) to the Class D Noteholders, the Class D Accrued Payable, if any; 
 (7) to the Class D Noteholders until the Outstanding Principal Balance of the Class D Notes is reduced to zero; and 
 (ii) following the occurrence of an Event of Default, the Interest Distributable Amount will be treated as funds available for principal distributions
and will be distributed pursuant to Section 7.05(c); 
 Tenth, to the Reserve Fund an amount, if any, which, when
so deposited, causes the balance of the Reserve Fund to equal the Required Reserve Amount; 
  

 - 104 - 








 Eleventh, to the extent not paid by the Originator, any amounts due in respect of listing,
the Offered Notes on the Irish Stock Exchange; 
 Twelfth, to the Servicer, reimbursement for the amount of any Servicer
Advances relating to interest on Loans, to the extent not reimbursed pursuant to clause Third above; 
 Thirteenth, pro rata, based on the amounts owed to such Persons under this clause Thirteenth, to the Swap Counterparties, any unpaid Swap Breakage Costs together with interest accrued thereon; 

Fourteenth, pro rata, based on the amounts owed to such Persons under this clause Fourteenth, to the Indenture
Trustee, the Backup Servicer and the Owner Trustee, to the extent not paid pursuant to clause Second due to the limitations set forth therein, amounts owed to such parties for fees and expenses and other amounts, including such amounts
related to indemnification and, to a Successor Servicer, any Additional Servicing Fee; and 
 Fifteenth, to the Owner Trustee
for payment to the Certificateholder, any remaining amounts. 
 (b) On each Determination Date which is a Pro Rata Payment Date, the Servicer
shall instruct the Indenture Trustee in writing to withdraw, and on the Payment Date the Indenture Trustee shall withdraw, from the Note Distribution Account all Principal Collections and funds remaining on deposit therein, to the extent there are
sufficient funds, to distribute to the following parties in the following order of priority: 
 First, to the Servicer, from
Principal Collections received from the specific Loans for which Servicer Advances were made, reimbursement for the amount of such Servicer Advances relating to the principal on such Loans; 
 Second, during the Pre-Funding Period and the Replenishment Period, all remaining Principal Collections shall be deposited to the Principal
Collection Account to be used to purchase Additional Loans; provided that no Principal Collections constituting the Special Redemption Amount shall be deposited to the Principal Collection Account pursuant to this clause Second;

 Third, after the Replenishment Period (or in the case of the Special Redemption Amount, on any Payment Date), to the
Class A Noteholders, the Class B Noteholders, the Class C Noteholders, the Class D Noteholders and the Class E Noteholder, pro rata until the Outstanding Principal Balance of each such Class of Notes is reduced to zero; 
 Fourth, to the Servicer, reimbursement for the amount of any Servicer Advances relating to principal (and, after the occurrence of an Event
of Default, interest) on the Loans, to the extent not previously reimbursed; 
 Fifth, to the Servicer, an amount equal to its
accrued and unpaid quarterly Servicing Fee, to the extent not previously paid; 
  

 - 105 - 








 Sixth, pro rata, based on the amounts owed to such Persons under this clause
Sixth, to the Swap Counterparties, any unpaid Swap Breakage Costs together with interest accrued thereon; 
 Seventh, pro rata, based on the amounts owed to such Persons under this clause Seventh, to the Indenture Trustee, the Backup Servicer and the Owner Trustee, to the extent not previously paid, amounts owed
to such parties for fees and expenses and other amounts, including such amounts related to indemnification and, to a Successor Servicer, any Additional Servicing Fee; 
 Eighth, to the extent not paid by the Originator, any amounts due in respect of the listing of the Offered Notes on the Irish Stock Exchange; and 
 Ninth, to the Owner Trustee for payment to the Certificateholder, any remaining amounts. 
 With respect to pro rata payments of principal of the Notes as described in Section 7.05(b), payments shall be made pro rata to
the Classes of Notes then Outstanding based on the respective original Outstanding Principal Balances of such Classes of Notes with respect to which such payments are made. If on any Pro Rata Payment Date the Outstanding Principal Balance of any
Class of Notes shall be reduced to zero after application of any payments in respect of principal on such Payment Date, the amount remaining for distribution in respect of principal on such date shall be distributed pro rata to the Classes of
Notes which then have Outstanding Principal Balances based on the respective original principal amounts of such Classes of Notes. 
 (c) On
each Determination Date relating to a Sequential Payment Date, the Servicer shall instruct the Indenture Trustee in writing to withdraw, and on the Payment Date the Indenture Trustee shall withdraw, from the Note Distribution Account all Principal
Collections and funds remaining on deposit therein, to the extent there are sufficient funds, to distribute to the following parties in the following order of priority: 
 First, to the Servicer, from Principal Collections received from the specific Loans for which Servicer Advances were made, reimbursement for the amount of such Servicer Advances relating to the principal
on such Loans; 
 Second, to the Class A Noteholders, an amount equal to any unpaid Class A Interest Amount for the
related Interest Accrual Period and any unpaid Class A Interest Shortfall; 
 Third, to the Class A Noteholders,
until the Outstanding Principal Balance of the Class A Notes equals zero; 
 Fourth, to the Class B Noteholders, first, an
amount equal to any Class B Interest Amount for the related Interest Accrual Period and any unpaid Class B Interest Shortfall, and second, the Class B Accrued Payable, in each case to the extent not previously paid; 
 Fifth, to the Class B Noteholders, until the Outstanding Principal Balance of the Class B Notes equals zero; 
  

 - 106 - 








 Sixth, to the Class C Noteholders, first, an amount equal to any Class C Interest Amount
for the related Interest Accrual Period and any unpaid Class C Interest Shortfall, and second, the Class C Accrued Payable, in each case to the extent not previously paid; 
 Seventh, to the Class C Noteholders, until the Outstanding Principal Balance of the Class C Notes equals zero; 
 Eighth, to the Class D Noteholders, first, an amount equal to any Class D Interest Amount for the related Interest Accrual Period and any
unpaid Class D Interest Shortfall, and second, the Class D Accrued Payable, in each case to the extent not previously paid; 
 Ninth, to the Class D Noteholders, until the Outstanding Principal Balance of the Class D Notes equals zero; 
 Tenth, to the Servicer, reimbursement for the amount of any Servicer Advances relating to principal (and, after the occurrence of an Event of Default, interest) on the Loans, to the extent not previously reimbursed;

 Eleventh, to the Servicer, an amount equal to its accrued and unpaid quarterly Servicing Fee, to the extent not previously
paid; 
 Twelfth, pro rata, based on the amounts owed to such Persons under this clause Twelfth, to the
Swap Counterparties, any unpaid Swap Breakage Costs together with interest accrued thereon; 
 Thirteenth, pro rata,
based on the amounts owed to such Persons under this clause Thirteenth, to the Indenture Trustee, the Backup Servicer and the Owner Trustee, to the extent not previously paid, amounts owed to such parties for fees and expenses and
other amounts, including such amounts related to indemnification and, to a Successor Servicer, any Additional Servicing Fee; 
 Fourteenth, to the extent not paid by the Originator, any amounts due in respect of the listing of the Offered Notes on the Irish Stock Exchange; 
 Fifteenth, to the Holder of the Class E Note until the Outstanding Principal Balance of the Class E Note is reduced to zero; and 
 Sixteenth, to the Owner Trustee for payment to the Certificateholder, any remaining amounts. 
 (d) If on any Payment Date, the aggregate amounts on deposit in the Collection Account and the Reserve Fund are greater than or equal to the sum of
(i) the Aggregate Outstanding Principal Balance, (ii) the interest accrued thereon, (iii) any accrued and unpaid Servicing Fee, (iv) unreimbursed Servicer Advances and (v) amounts owed to the Swap Counterparties, including
Swap Breakage Costs, the Indenture Trustee, the Backup Servicer and the Owner Trustee, the amounts on deposit in the Reserve Fund will be deposited in the Collection Account and all such amounts on deposit shall be used to redeem the Notes in full.
The redemption price will be equal to the unpaid principal amount of the Notes plus accrued and 

  

 - 107 - 








 
unpaid interest through the date of redemption. It shall be a condition precedent to such redemption that all Swap Transactions then outstanding under any
Swaps then in effect shall be terminated and all amounts payable to the Swap Counterparties, including Swap Breakage Costs, upon such termination shall be paid in full. 
 Section 7.06 Determination of LIBOR 
 (a) The Indenture Trustee will determine the
interest rate for each Interest Accrual Period by determining the rate for deposits in U.S. Dollars for a period of three months (the “Three-Month Index Maturity”) which appears on Telerate Page 3750 as of 11:00 a.m., London time,
on the day that is two London Banking Days preceding (i) in the case of the first Interest Accrual Period, the Closing Date, and (ii) in the case of each subsequent Interest Period, the first day of such Interest Accrual Period
(“LIBOR”). If the Three-Month Index Maturity does not appear on Telerate Page 3750 at such time, the rate for that Interest Accrual Period will be determined as if the parties had specified “USD-LIBOR-Reference Banks” as
the applicable rate. “USD-LIBOR-Reference Banks” means that the interest rate for an Interest Accrual Period will be determined on the basis of the rates at which deposits in U.S. Dollars are offered by the Reference Banks at
approximately 11:00 a.m., London time, on the day that is two London Banking Days preceding the beginning of that Interest Accrual Period to prime banks in the London interbank market for the Three-Month Index Maturity commencing on the beginning of
that Interest Accrual Period and in a Representative Amount. The Indenture Trustee will request the principal London office of each of the Reference Banks to provide a quotation of its rate. If at least two such quotations are provided, the rate for
that Interest Accrual Period will be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that Interest Accrual Period will be the arithmetic mean of the rates quoted by major banks in New York
City, selected by the Indenture Trustee, at approximately 11:00 a.m., New York City time, on the beginning of that Interest Accrual Period for loans in U.S. Dollars to leading European banks for the Three-Month Index Maturity commencing at the
beginning of that Interest Accrual Period and in a Representative Amount. 
 (b) With respect to an Interest Accrual Period having a
designated maturity other than three months, LIBOR shall be determined through the use of a straight-line interpolation by reference to two rates calculated in accordance with Section 7.06(a), one of which shall be determined as if the
maturity of the U.S. Dollar deposits referred to therein were the period of time for which rates are available next shorter than such Interest Accrual Period, and the other of which shall be determined as if the maturity were the period of time
for which rates are available next longer than such Interest Accrual Period. 
 (c) The establishment of LIBOR by the Indenture Trustee and
the Indenture Trustee’s subsequent calculation of the rates of interest applicable to the Notes, in the absence of manifest error, will be final and binding. 
  

 - 108 - 








 ARTICLE VIII 
 SERVICER DEFAULT; SERVICER TRANSFER 
 Section 8.01 Servicer Default 
 “Servicer Default” means the occurrence of any of the following: 
 (a) any failure by the Servicer to make any payment, transfer or deposit, or to give any instructions, notice or report to the Owner Trustee or the
Indenture Trustee pursuant to this Agreement on or before the date occurring two Business Days after the date such payment, transfer or deposit, or such instruction, notice or report, is required to be made or given, as the case may be, under the
terms of this Agreement; 
 (b) any failure on the part of the Servicer duly to observe or perform any other covenants or agreements of the
Servicer set forth in this Agreement that has a material adverse effect on the Noteholders or the Swap Counterparties, which continues unremedied for a period of 30 days after the first to occur of (i) the date on which written notice of such
failure requiring the same to be remedied shall have been given to the Servicer by the Indenture Trustee, or to the Servicer and the Indenture Trustee by the Noteholders, or the Indenture Trustee on behalf of such Noteholders aggregating not less
than 25% of the Outstanding Principal Balance of any Class adversely affected thereby and (ii) the date on which the Servicer becomes aware thereof; 
 (c) any representation, warranty or certification made by the Servicer in this Agreement or in any certificate delivered pursuant to this Agreement shall prove to have been incorrect when made, which has a material
adverse effect on the Noteholders or the Swap Counterparties and which continues to be incorrect in any material respect for a period of 30 days after the first to occur of (i) the date on which written notice of such incorrectness requiring
the same to be remedied shall have been given to the Servicer and the Owner Trustee by the Indenture Trustee, or to the Servicer, the Owner Trustee and the Indenture Trustee by Noteholders, or by the Indenture Trustee on behalf of Noteholders
aggregating not less than 25% of the Outstanding Principal Balance of any Class adversely affected thereby and (ii) the date on which the Servicer becomes aware thereof; 
 (d) an Insolvency Event shall occur with respect to the Servicer; 
 (e) the Servicer shall fail in any material respect to service the Loans in accordance with the Credit and Collection Policy; or 
 (f) the Servicer alters or amends the Credit and Collection Policy in a manner that has a material adverse effect on the Noteholders or the Swap Counterparties. 
 Notwithstanding the foregoing, a delay in or failure of performance referred to under clause (a) above for a period of five Business Days or
referred to under clause (b) or (c) for a period of 60 days (in addition to any period provided in clause (a), (b) or (c)) shall not constitute a Servicer Default until the expiration of such
additional five Business Days or 60 days, respectively, if such delay or failure could not be prevented by the exercise of reasonable diligence by the Servicer and such delay or failure was caused by an act of God or other events 

  

 - 109 - 








 
beyond the Servicer’s control. Upon the occurrence of any such event, the Servicer shall not be relieved from using its best efforts to perform its
obligations in a timely manner in accordance with the terms of this Agreement and the Servicer shall provide the Owner Trustee, the Indenture Trustee, the Trust Depositor and each Swap Counterparty prompt notice of such failure or delay by it,
together with a description of its efforts to so perform its obligations. The Servicer shall immediately notify the Indenture Trustee, the Rating Agencies and each Swap Counterparty in writing of any Servicer Default. 
 Section 8.02 Servicer Transfer 
 (a) If a Servicer Default has occurred and is continuing, (x) the Required Holders, or (y) the Indenture Trustee, may, by written notice (a “Termination Notice”) delivered to the parties hereto and the Rating
Agencies, terminate all (but not less than all) of the Servicer’s management, administrative, servicing, custodial and collection functions. 
 (b) Upon delivery of the notice required by Section 8.02(a) (or, if later, on a date designated therein), and on the date that a successor Servicer shall have been appointed pursuant to Section 8.03 (such appointment
being herein called a “Servicer Transfer”), all rights, benefits, fees, indemnities, authority and power of the Servicer under this Agreement, whether with respect to the Loans, the Loan Files or otherwise, shall pass to and be
vested in such successor (the “Successor Servicer”) pursuant to and under this Section 8.02; and, without limitation, the Successor Servicer is authorized and empowered to execute and deliver on behalf of the Servicer,
as attorney-in-fact or otherwise, any and all documents and other instruments, and to do any and all acts or things necessary or appropriate to effect the purposes of such notice of termination. The Servicer agrees to cooperate with the Successor
Servicer in effecting the termination of the responsibilities and rights of the Servicer hereunder, including, without limitation, the transfer to the Successor Servicer for administration by it of all cash amounts which shall at the time be held by
the Servicer for deposit, or have been deposited by the Servicer, in the Collection Account, or for its own account in connection with its services hereafter or thereafter received with respect to the Loans. The Servicer shall transfer to the
Successor Servicer (i) all records held by the Servicer relating to the Loans in such electronic form as the Successor Servicer may reasonably request and (ii) any Loan Files in the Servicer’s possession. In addition, the Servicer
shall permit access to its premises (including all computer records and programs) to the Successor Servicer or its designee, and shall pay the reasonable transition expenses of the Successor Servicer. Upon a Servicer Transfer, the Successor Servicer
shall also be entitled to receive the Servicing Fee for performing the obligations of the Servicer. 
 Section 8.03 Appointment of
Successor Servicer; Reconveyance; Successor Servicer to Act 
 (a) Upon delivery of the notice required by Section 8.02(a)
(or, if later, on a date designated therein), the Servicer shall continue to perform all servicing functions under this Agreement until the date specified in the Termination Notice or, if no such date is specified, until a date mutually agreed by
the Servicer and the Indenture Trustee. The Indenture Trustee shall as promptly as possible after the giving of or receipt of a Termination Notice, appoint a Successor Servicer (which shall be the Backup Servicer, in accordance with
Section 5.22(c)), and such Successor Servicer shall accept its appointment by a written assumption in a form acceptable to 

  

 - 110 - 








 
the Indenture Trustee and Owner Trustee and a copy of such written assumption shall be provided promptly to Moody’s. If within 60 days of delivery of a
Termination Notice the Backup Servicer does not accept appointment as the Successor Servicer, the Indenture Trustee is unable to obtain any bids from eligible servicers and the Servicer shall have yet to cure the Servicer Default, then the Indenture
Trustee shall offer the Trust Depositor, and the Trust Depositor shall offer the Originator, the right to accept retransfer of all the Loan Assets, and such parties may accept retransfer of such Loan Assets in consideration of the Trust
Depositor’s delivery to the Collection Account on or prior to the next upcoming Payment Date of a sum equal to the Aggregate Outstanding Principal Balance of all Securities (other than the Certificate) then outstanding, together with accrued
and unpaid interest thereon through such date of deposit and all other amounts due and owing to any Person under the Transaction Documents, including amounts owing to each Swap Counterparty, including Swap Breakage Costs, it being a condition
precedent to such retransfer that all Swap Transactions then outstanding under any Swaps then in effect shall be terminated and all amounts payable to the Swap Counterparties, including Swap Breakage Costs, upon such termination shall be paid in
full; provided that, the Indenture Trustee, if so directed by the Required Holders in writing, need not accept and effect such reconveyance in the absence of evidence (which may include valuations of an investment bank or similar entity)
reasonably acceptable to such Trustee or Required Holders that such retransfer would not constitute a fraudulent conveyance of the Trust Depositor or the Originator. 
 (b) In the event that a Successor Servicer has not been appointed and has not accepted its appointment at the time when the then Servicer has ceased to act as Servicer, the Indenture Trustee, without further action,
shall automatically be appointed the Successor Servicer. Notwithstanding the foregoing, if the Indenture Trustee is legally unable or prohibited from so acting, it shall petition a court of competent jurisdiction to appoint any established financial
institution having a net worth of at least $200,000,000 and whose regular business includes the servicing of loans similar to the Loans as the Successor Servicer hereunder. On or after a Servicer Transfer, the Successor Servicer shall be the
successor in all respects to the Servicer in its capacity as servicer under this Agreement and the transactions set forth or provided for herein and shall be subject to all the responsibilities, duties and liabilities relating thereto placed on the
Servicer by the terms and provisions hereof, and the terminated Servicer shall be relieved of such responsibilities, duties and liabilities arising after such Servicer Transfer; provided that (i) the Successor Servicer will not assume
any obligations of the Servicer described in Section 8.02, (ii) the Successor Servicer shall not be liable for any acts or omissions of the Servicer occurring prior to such Servicer Transfer or for any breach by the Servicer of any
of its representations and warranties contained herein or in any related document or agreement and (iii) the terminated Servicer shall not be liable for any acts or omission of any Successor Servicer occurring on and after such Servicer
Transfer or for any breach by any Successor Servicer of any of its representations and warranties contained herein or in any related document or agreement. As compensation therefor, the Successor Servicer shall be entitled to receive reasonable
compensation equal to the quarterly Servicing Fee. Notwithstanding anything else herein to the contrary, in no event shall the Indenture Trustee or the Backup Servicer be liable for any Servicing Fee or for any differential in the amount of the
servicing fee paid hereunder and the amount necessary to induce any Successor Servicer to act as Successor Servicer under this Agreement and the transactions set forth or provided for herein. The Owner Trustee, Holders and the Indenture Trustee and
such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. To the extent the terminated 

  

 - 111 - 








 
Servicer has made Servicer Advances, it shall be entitled to reimbursement of the same notwithstanding its termination hereunder, in accordance with the
Priority of Payments, to the same extent as if it had continued to service the Loans hereunder. 
 Section 8.04 Notification to
Holders and Swap Counterparties 
 (a) Promptly following the occurrence of any Servicer Default, the Servicer shall give written
notice thereof to the Trustees, the Trust Depositor and each Rating Agency at the addresses described in Section 13.04 hereof, to each Swap Counterparty at its address as set forth in the applicable Swap, and to the Holders at their
respective addresses appearing on the Note Register and the Certificate Register, respectively. 
 (b) Within ten days following any
termination of a Servicer or appointment of a Successor Servicer pursuant to this Article VIII, the Indenture Trustee shall give written notice thereof to each Rating Agency and the Trust Depositor at the addresses described in
Section 13.04 hereof, to each Swap Counterparty at its address as set forth in the applicable Swap and to the Holders at their respective addresses appearing on the Note Register and the Certificate Register, respectively. 
 Section 8.05 Effect of Transfer 
 (a) After a Servicer Transfer, the terminated Servicer shall have no further obligations with respect to the management, administration, servicing, custody or collection of the Loans and the Successor Servicer appointed pursuant to
Section 8.03 shall have all of such obligations, except that the terminated Servicer will transmit or cause to be transmitted directly to the Successor Servicer for its own account, promptly on receipt and in the same form in which
received, any amounts (properly endorsed where required for the Successor Servicer to collect them) received as payments upon or otherwise in connection with the Loans. 
 (b) A Servicer Transfer shall not affect the rights and duties of the parties hereunder (including but not limited to the indemnities of the Servicer) other than those relating to the management, administration,
servicing, custody or collection of the Loans. 
 Section 8.06 Database File 
 Upon reasonable request by the Indenture Trustee or the Backup Servicer, the Servicer will provide the Successor Servicer with a magnetic tape containing
the database file for each Loan (a) as of the applicable Cut-Off Date, (b) thereafter, as of the last day of the preceding Collection Period and on the Determination Date prior to a Servicer Default and (c) on and as of the Business
Day before the actual commencement of servicing functions by the Successor Servicer following the occurrence of a Servicer Default. 
 Section 8.07 Successor Servicer Indemnification 
 The original Servicer shall defend, indemnify and hold the
Successor Servicer and any officers, directors, employees or agents of the Successor Servicer harmless against any and all claims, losses, penalties, fines, forfeitures, legal fees and related costs, judgments and any other costs, fees, and expenses
that the Successor Servicer may sustain in connection with the claims 

  

 - 112 - 








 
asserted at any time by third parties against the Successor Servicer which result from (i) any willful or grossly negligent act taken or omission by the
Servicer or (ii) a breach of any representations of the Servicer in Section 3.07 hereof. The indemnification provided by this Section 8.07 shall survive the termination of this Agreement and the removal or resignation of
the Successor Servicer. 
 Section 8.08 Responsibilities of the Successor Servicer 
 (a) The Successor Servicer will not be responsible for delays attributable to the Servicer’s failure to deliver information, defects in the
information supplied by the Servicer or other circumstances beyond the control of the Successor Servicer. 
 (b) The Successor Servicer will
make arrangements with the Servicer for the prompt and safe transfer of, and the Servicer shall provide to the Successor Servicer, all necessary servicing files and records, including (as deemed necessary by the Successor Servicer at such time):
(i) microfiche loan documentation, (ii) servicing system tapes, (iii) Loan payment history, (iv) collections history and (v) the trial balances, as of the close of business on the day immediately preceding conversion to the
Successor Servicer, reflecting all applicable Loan information. The current Servicer shall be obligated to pay the costs associated with the transfer of the servicing files and records to the Successor Servicer. 
 (c) The Successor Servicer shall have no responsibility and shall not be in default hereunder nor incur any liability for any failure, error, malfunction
or any delay in carrying out any of its duties under this Agreement if any such failure or delay results from the Successor Servicer acting in accordance with information prepared or supplied by a Person other than the Successor Servicer or the
failure of any such Person to prepare or provide such information. The Successor Servicer shall have no responsibility, shall not be in default and shall incur no liability (i) for any act or failure to act by any third party, including the
Servicer, the Trust Depositor or the Trustees or for any inaccuracy or omission in a notice or communication received by the Successor Servicer from any third party or (ii) which is due to or results from the invalidity, unenforceability of any
Loan under Requirements of Law or the breach or the inaccuracy of any representation or warranty made with respect to any Loan. 
 (d) If the
Indenture Trustee or any other Successor Servicer assumes the role of Successor Servicer hereunder, such Successor Servicer shall be entitled to the benefits of (and subject to the provisions of) Section 5.05 concerning delegation of
duties to subservicers. 
 Section 8.09 Rating Agency Condition for Servicer Transfer 
 Notwithstanding the foregoing provisions relating to a Servicer Transfer, no Servicer Transfer shall be effective hereunder unless prior written notice
thereof shall have been given to the Rating Agencies, and the Rating Agency Condition shall have been satisfied with respect thereto. 
  

 - 113 - 








 ARTICLE IX 
 REPORTS 
 Section 9.01 Quarterly Reports; Compliance with Portfolio Criteria

 (a) With respect to each Payment Date and the related Collection Period, the Servicer will provide to each Trustee, the Backup
Servicer, each Rating Agency and the Initial Purchasers on the related Determination Date, in hard copy and in an agreed upon electronic format, a quarterly statement (a “Quarterly Report”) substantially in the form of Exhibit
H hereto, which shall include reporting with respect to the Portfolio Criteria as applicable, as prepared by the Indenture Trustee. On each Payment Date, the Indenture Trustee will forward or make available to each Noteholder and each Swap
Counterparty a copy of the Quarterly Report. 
 (b) Following the Effective Date, the Servicer will determine and report to the Indenture
Trustee the extent of compliance of the Initial Loans with the Portfolio Criteria as of the Effective Date. 
 Section 9.02
Officer’s Certificate 
 Each Quarterly Report delivered pursuant to Section 9.01 shall be accompanied by a
certificate of a Servicing Officer certifying the accuracy of the Quarterly Report and that no Servicer Default or event that with notice or lapse of time or both would become a Servicer Default has occurred, or if such event has occurred and is
continuing, specifying the event and its status. 
 Section 9.03 Other Data 
 (a) The Servicer shall, upon the request of any Trustee, the Backup Servicer or any Rating Agency, furnish such Trustee, Rating Agency or the Backup
Servicer, as the case may be, such underlying data used to generate a Quarterly Report as may be reasonably requested. The Servicer will also forward to the Indenture Trustee, the Owner Trustee, each Swap Counterparty, each Rating Agency and the
Initial Purchasers (a) within 60 days after each calendar quarter (except the fourth calendar quarter), commencing with the quarter ending September 30, 2006, the unaudited quarterly financial statement of the Servicer and (b) within
90 days after each fiscal year of the Servicer, commencing with the fiscal year ending December 31, 2006, the audited annual financial statement of the Servicer, together with the related report of the independent accountants to the Servicer.
On the Payment Date following the receipt of each such financial statements and report, the Indenture Trustee will forward to each Noteholder of record a copy of such financial statements and report. 
 (b) The Servicer will forward to Moody’s and S&P within 30 days after receipt by the Servicer, copies of all financial statements of Obligors
then received by the Servicer with respect to the prior fiscal year of each Obligor. 
 (c) The Servicer will forward to Moody’s and
S&P promptly upon request any additional financial information in the Servicer’s possession or reasonably obtainable by the Servicer as Moody’s and S&P shall reasonably request with respect to an Obligor as to which any Scheduled
Payment is past due for at least 10 days. 
  

 - 114 - 








 (d) Upon any Loan becoming Delinquent, and without any request therefore by Moody’s and S&P, and
promptly after receipt thereof by the Servicer, the Servicer will forward to Moody’s and S&P updated financial information with respect to the related Obligor. 
 (e) The Servicer will provide to the Rating Agencies such financial information, documents and other materials in the Servicer’s possession or reasonably obtainable by the Servicer as the Rating Agencies shall
reasonably request in connection with any annual review and/or re-grading of the Loans and the related Obligors which the Rating Agencies may undertake. 
 (f) The Servicer will provide to each of (i) S&P, (ii) Moody’s and (iii) the Indenture Trustee, contemporaneously with the delivery of the Quarterly Report, an Additional Loan Information
Schedule. 
 Section 9.04 Annual Report of Accountants 
 (a) The Servicer shall cause a firm of nationally recognized independent certified public accountants (the “Independent Accountants”),
who may also render other services to the Servicer or its Affiliates (but, for the avoidance of doubt, such accountants need not provide any audit or other services to the Servicer or its Affiliates in order to qualify to provide the report
described herein), to deliver to the Indenture Trustee, the Owner Trustee, each Swap Counterparty, the Backup Servicer and each Rating Agency, on or before March 31 (90 days after the end of the Servicer’s fiscal year) of each year,
beginning on March 31, 2008, a report addressed to the Board of Directors of the Servicer, the Indenture Trustee and the Owner Trustee indicating that the Independent Accountant has performed certain procedures as agreed by the Servicer, the
Indenture Trustee (subject to the provisions of this Section 9.04(a)) and the Owner Trustee, whereby the Independent Accountant will obtain the Quarterly Report for two Collection Periods with respect to the 12 months ended the
immediately preceding December 31 and, for each Quarterly Report, the Independent Accountant will agree certain amounts in the Quarterly Report to the Servicer’s computer, accounting and other reports, which will include in such report any
amounts which were not in agreement. In the event such firm of Independent Accountants requires the Indenture Trustee to agree to the procedures performed by such firm of Independent Accountants, the Servicer shall direct the Indenture Trustee in
writing to so agree; it being understood and agreed that the Indenture Trustee will deliver such letter of agreement in conclusive reliance upon the direction of the Servicer, and the Indenture Trustee will not make any independent inquiry or
investigation as to, and shall have no obligation or liability in respect of, the sufficiency, validity or correctness of such procedures. 
 (b) The Independent Accountant’s report shall also indicate that the firm is independent of the Servicer within the meaning of the Code of Professional Ethics of the American Institute of Certified Public Accountants. 
  

 - 115 - 








 Section 9.05 Annual Statement of Compliance from Servicer; Obligor Financial Statements

 (a) The Servicer will deliver to the Trustees, each Swap Counterparty and each of the Rating Agencies, within 90 days of the end of
each fiscal year commencing with the year ending December 31, 2007, an Officer’s Certificate stating that (i) a review of the activities of the Servicer during the prior calendar year and of its performance under this Agreement was
made under the supervision of the officer signing such certificate and (ii) to such officer’s knowledge, based on such review, the Servicer has fully performed or caused to be performed in all material respects all its obligations under
this Agreement and no Servicer Default has occurred or is continuing, or, if there has been a Servicer Default, specifying each such default known to such officer and the nature and status thereof and the steps being taken or necessary to be taken
to remedy such event. Any Holder may obtain a copy of such certificate by a request in writing to the Indenture Trustee, with respect to any Noteholder, or the Owner Trustee, with respect to any Certificateholder. 
 (b) The initial Servicer shall also provide to each Rating Agency the most recently available annual financial statements for each Obligor of a Loan
included in the Loan Pool as promptly as practicable after the end of the fiscal year of such obligor, until such time as the related Loan has been paid in full or is no longer part of the Loan Pool. The Servicer shall provide to Fitch summaries of
each Additional Loan prior to its inclusion in the Loan Pool. 
 Section 9.06 Annual Summary Statement 
 Within 90 days of the end of each fiscal year, commencing December 31, 2007, the Servicer shall prepare and provide to each Trustee, each Swap
Counterparty and each Rating Agency a cumulative summary of the information required to be included in the Quarterly Reports for the Collection Periods ending during the immediately preceding calendar year. 
 Section 9.07 Reports of Foreclosure and Abandonment of Mortgaged Property 
 Each year the Servicer shall make the reports of foreclosures and abandonment of any mortgaged property included in the Collateral as and to the extent
required by § 6050J of the Code. Promptly after filing any such report with the Code, the Servicer shall provide the Indenture Trustee with an Officer’s Certificate certifying that such report has been filed. 
 Section 9.08 Notices 
 (a)
The Servicer shall furnish to the Indenture Trustee and each Swap Counterparty (i) promptly, copies of any material and adverse notices (including, without limitation, notices of defaults, breaches, potential defaults or potential breaches)
given to or received from its other lenders and (ii) immediately, notice of the occurrence of any Event of Default or Servicer Default or of any situation which the Servicer reasonably expects to develop into an Event of Default or Servicer
Default. 
 (b) The Servicer also agrees to make available on a reasonable basis to any Noteholder or Swap Counterparty a knowledgeable
financial or accounting officer for the purpose of answering reasonable questions respecting recent developments affecting the Servicer 

  

 - 116 - 








 
or the financial statements of the Servicer and to permit any Noteholder or Swap Counterparty, at such Holder’s or Swap Counterparty’s sole cost
and expense, upon reasonable advance notice and subject to reasonable confidentiality restrictions, to inspect the Servicer’s servicing facilities during normal business hours and in a manner that does not unreasonably interfere with the
Servicer’s normal operations or customer or employee relations for the purpose of satisfying such Holder or Swap Counterparty that the Servicer has the ability to service the Loans in accordance with this Agreement. 
 ARTICLE X 
 TERMINATION

 Section 10.01 Optional Repurchase and Refinancing of Notes 
 (a) Optional Repurchase. 
 (i) At any time during the Call Period, the Holder of the Class E Note shall have the option to direct the Issuer to repurchase for the Repurchase Price the Offered Notes then Outstanding, on any Payment Date after the date on which the
Holder of the Class E Note provides notice of its election to cause the repurchase of the Notes pursuant to the Indenture and the other Transaction Documents. To exercise such option, the Holder of the Class E Note shall cause the Issuer to deposit
in the Note Distribution Account, on or prior to the Payment Date upon which such Repurchase is to occur, an amount equal to the Repurchase Price, and such repurchase shall otherwise comply with the requirements of Section 10.02 of the
Indenture. 
 (ii) Notice of any repurchase pursuant to Section 10.01(a)(i) shall be given by the Holder of the
Class E Note to the Issuer, the Indenture Trustee and the Rating Agencies. 
 (iii) Following the satisfaction and discharge
of the Indenture, the payment in full of the principal of and interest on the Notes, the termination of all Swap Transactions then outstanding under all Swap Agreements then in effect and the payment in full of all amounts, including Swap Breakage
Costs, payable to such Swap Counterparties upon such terminations, the Certificateholders will succeed to the rights of the Noteholders hereunder and the Owner Trustee will succeed to the rights of the Indenture Trustee pursuant to this Agreement.

 (b) Optional Refinancing. 
 (i) On any Payment Date following the end of the Replenishment Period, the Holder of the Class E Note may cause the Issuer to effect a Refinancing of the Offered Notes. The Holder of the Class E Note may cause a
refinancing and prepayment of the Offered Notes in whole but not in part by directing the Issuer (with a copy of such direction to the Indenture Trustee and the Servicer) to issue additional notes (the “Replacement Notes”), the
proceeds of which will be used to fully prepay all Classes of Offered Notes in accordance with the terms of the Indenture. A Refinancing will be required to result in prepayment of all of the Offered Notes. 
  

 - 117 - 








 (ii) Notice of a Refinancing will be given by the Servicer or the Issuer to the Indenture
Trustee, the Owner Trustee and the Rating Agencies not less than ten Business Days prior to the proposed Refinancing Date. 
 Section 10.02 Sale of Loan Assets 
 (a) Upon any sale of the assets of the Issuer pursuant to Section 9.02
of the Trust Agreement, the Servicer shall instruct the Indenture Trustee in writing to deposit the proceeds from such sale after all payments and reserves therefrom have been made (the “Insolvency Proceeds”) in the Collection
Account. On the Payment Date on which the Insolvency Proceeds are deposited in the Collection Account (or, if such proceeds are not so deposited on a Payment Date, on the Payment Date immediately following such deposit), the Servicer shall instruct
the Indenture Trustee in writing to allocate and apply (after the application on such Payment Date of Principal Collections and Interest Collections pursuant to Section 7.05) the Insolvency Proceeds as if (and in the same order of
priority as) the Insolvency Proceeds were Principal Collections and Interest Collections being allocated and distributed on such date pursuant to Section 7.05(d). 
 (b) As described in Article IX of the Trust Agreement, notice of any termination of the Issuer shall be given by the Servicer to the Owner Trustee, the
Indenture Trustee and each Swap Counterparty as soon as practicable after the Servicer has received notice thereof. 
 (c) Following the
satisfaction and discharge of the Indenture, the payment in full of the principal of and interest on the Notes, the termination of all Swap Transactions then outstanding under all Swaps then in effect and the payment in full of all amounts,
including Swap Breakage Costs, payable to such Swap Counterparties upon such terminations, the Certificateholders will succeed to the rights of the Noteholders hereunder and the Owner Trustee will succeed to the rights of the Indenture Trustee
pursuant to this Agreement. 
 ARTICLE XI 
 REMEDIES UPON MISREPRESENTATION; REPURCHASE OPTION 
 Section 11.01 Repurchases of, or
Substitution for, Loans for Breach of Representations and Warranties 
 Upon a discovery by the Servicer, the Trust Depositor or the
Trustees of a breach of a representation or warranty of the Originator and the Trust Depositor as set forth in Section 3.01, Section 3.02, Section 3.03, Section 3.04, or Section 3.05, or as
made or deemed made in any Addition Notice or any Subsequent Purchase Agreement relating to Substitute Loans or Additional Loans, as applicable, that materially and adversely affects the interest of the Noteholders or any Swap Counterparty in a Loan
(in either case without regard to the benefits of the Reserve Fund) (an “Ineligible Loan”), the party discovering the breach shall give prompt written notice to the other parties; provided that the Trustees shall have no duty
or obligation to inquire or to investigate the breach by the Originator of any of such representations or warranties. The Trust Depositor and the Originator shall repurchase each such Ineligible Loan at a repurchase price equal to the Transfer
Deposit Amount, not later than the next succeeding Determination Date following the date the Trust Depositor or the Originator becomes aware of, 

  

 - 118 - 








 
or receives written notice from any Trustee, the Servicer or the Trust Depositor of, any such breach or inaccuracy and which breach or inaccuracy has not
otherwise been cured; provided that if the Trust Depositor and the Originator are able to effect a substitution for any such Ineligible Loan in compliance with Section 2.04, the Trust Depositor and the Originator may, in lieu of
repurchasing such Loan, effect a substitution for such affected Loan with a Substitute Loan not later than the date a repurchase of such affected Loan would be required hereunder; and provided further that, with respect to a breach of a
representation or warranty relating to the Loans in the aggregate and not to any particular Loan, the Trust Depositor and the Originator may select Loans (without adverse selection) to repurchase (or substitute for) such that, had such Loans not
been included as part of the Loan Assets (and, in the case of a substitution, had such Substitute Loan been included as part of the Loan Assets instead of the selected Loan), there would have been no breach of such representation or warranty.
Notwithstanding any other provision of this Agreement, the obligation of the Trust Depositor and the Originator described in this Section 11.01 shall not (a) terminate or be deemed released by any party hereto upon a Servicer
Transfer pursuant to Article VIII or (b) include any obligation to make payment on account of a breach of a Loan by an Obligor subsequent to the date on which such Loan was transferred to the Issuer. The repurchase obligation described
in this Section 11.01 is in no way to be satisfied with monies in the Reserve Fund. 
 Section 11.02 Reassignment of
Repurchased or Substituted Loans 
 Upon receipt by the Indenture Trustee for deposit in the Collection Account of the amounts
described in Section 2.04(a) or Section 11.01 (or upon the Subsequent Transfer Date related to a Substitute Loan described in Section 2.04(a) or Section 11.0l), and upon receipt of an Officer’s
Certificate of the Servicer in the form attached hereto as Exhibit E, the Indenture Trustee and the Issuer shall assign to the Trust Depositor, and the Trust Depositor shall assign to the Originator, all of the Issuer’s and the Indenture
Trustee’s (or Trust Depositor’s, as applicable) right, title and interest in the repurchased or substituted Loan and related Loan Assets without recourse, representation or warranty. Such reassigned Loan shall no longer thereafter be
included in any calculations of Outstanding Loan Balances required to be made hereunder or otherwise be deemed a part of the Loan Pool. 
 ARTICLE XII 
 INDEMNITIES 
 Section 12.01 Indemnification by Servicer 
 The Servicer agrees to indemnify, defend and
hold the Indenture Trustee (as such and in its individual capacity), the Owner Trustee (as such and in its individual capacity), the Backup Servicer (as such and in its individual capacity), each Swap Counterparty (as such and in its individual
capacity) and each Noteholder and the Certificateholder harmless from and against any and all claims, losses, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments, and any other reasonable costs, fees and expenses that
such Person may sustain as a result of the material failure of the Servicer to perform its duties and service the Loans in compliance with the terms of this Agreement, except to the extent arising from (a) the gross negligence, willful
misconduct or fraud by the Person claiming indemnification or (b) an 

  

 - 119 - 








 
Obligor’s financial difficulty. The Servicer shall immediately notify the Indenture Trustee and the Owner Trustee if a claim is made by any party with
respect to this Agreement, and the Servicer shall assume (with the consent of the indemnified party) the defense and any settlement of any such claim and pay all expenses in connection therewith, including reasonable counsel fees, and promptly pay,
discharge and satisfy any judgment or decree which may be entered against the indemnified party in respect of such claim. 
 Section 12.02 Indemnification by Trust Depositor 
 (a) The Trust Depositor agrees to indemnify, defend, and hold
the Indenture Trustee (as such and in its individual capacity), the Owner Trustee (as such and in its individual capacity), the Backup Servicer (as such and in its individual capacity), each Swap Counterparty (as such and in its individual capacity)
and each Noteholder and the Certificateholder harmless from and against any and all claims, losses, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments, and any other reasonable costs, fees and expenses that such Person
may sustain as a result of the material failure of the Trust Depositor to perform its duties in compliance with the terms of this Agreement and in the best interests of the Holders and the Swap Counterparties, except to the extent arising from
(i) the gross negligence, willful misconduct or fraud by the Person claiming indemnification or (ii) an Obligor’s financial difficulty. The Trust Depositor shall immediately notify the Indenture Trustee and the Owner Trustee if a
claim is made by a third party with respect to this Agreement, and the Trust Depositor shall assume (with the consent of the indemnified party) the defense and any settlement of any such claim and pay all expenses in connection therewith, including
reasonable counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may be entered against the indemnified party in respect of such claim. 
 (b) The Trust Depositor agrees to indemnify, defend and hold harmless the Issuer, the Owner Trustee (as such and in its individual capacity), the Indenture Trustee and the Servicer from and against any taxes and
penalties that may at any time be asserted against any such Person with respect to the transactions contemplated herein and in the other Transaction Documents, including any sales, gross receipts, general corporation, tangible personal property,
Maryland personal property replacement privilege or license taxes (but, in the case of the Issuer, not including any taxes asserted with respect to, and as of the date of, the sale of the Loans to the Issuer or the issuance and original sale of the
Securities, or asserted with respect to ownership of the Loans, or federal or other income taxes arising out of distributions on the Certificate or the Notes) and costs and expenses in defending against the same. 
 (c) The Trust Depositor shall indemnify, defend and hold harmless the Issuer, the Owner Trustee (as such and in its individual capacity), and the
Indenture Trustee, their officers, directors, agents and employees, from and against all costs, expenses, losses, claims, damages and liabilities arising out of or incurred in connection with the acceptance or performance of the trusts and duties
herein and, in the case of the Owner Trustee, in the Trust Agreement and, in the case of the Indenture Trustee, in the Indenture, and any other document or transaction contemplated in connection herewith or therewith, except to the extent that such
cost, expense, loss, claim, damage or liability in the case of (i) the Owner Trustee, shall be due to the willful misfeasance, bad faith or gross negligence of the Owner Trustee, or shall arise from the breach by the Owner Trustee of any of its
representations or warranties set forth in Section 7.03 of the Trust Agreement, or (ii) the Indenture Trustee, shall be due to the willful misfeasance, bad faith or negligence of the Indenture Trustee. 
  

 - 120 - 








 (d) The Trust Depositor shall be liable directly to and will indemnify any injured party or any other
creditor of the Issuer for all losses, claims, damages, liabilities and expenses of the Issuer to the extent that the Trust Depositor would be liable if the Issuer were a partnership under the Delaware Revised Uniform Limited Partnership Act in
which the Trust Depositor were a general partner; provided that the Trust Depositor shall not be liable for any losses incurred by a Certificateholder in the capacity of an investor in the Certificate or a Holder in the capacity of an
investor in the Notes. In addition, any third party creditors of the Issuer (other than in connection with the obligations described in the immediately preceding sentence for which the Trust Depositor shall not be liable) shall be deemed third party
beneficiaries of this paragraph. The Certificate described in the Trust Agreement shall evidence the obligations of the Trust Depositor under this paragraph. 
 (e) The Originator and the Trust Depositor shall indemnify, defend and hold harmless the Owner Trustee (as such and in its individual capacity) and the Indenture Trustee, their officers, directors, agents and
employees, from and against any loss, liability or expense incurred by reason of the Originator’s, the Trust Depositor’s or the Issuer’s violation of federal or state securities laws in connection with the offering and sale of the
Notes. 
 Section 12.03 Liabilities to Obligors 
 No obligation or liability to any Obligor under any of the Loans is intended to be assumed by the Trustees, the Issuer, the Holders or the Swap
Counterparties under or as a result of this Agreement and the transactions contemplated hereby. 
 Section 12.04 Tax
Indemnification 
 (a) The Originator agrees to pay, and to indemnify, defend and hold harmless the Trust Depositor, the Issuer, the
Trustees (as such and in their individual capacities), the Backup Servicer, the Holders and the Swap Counterparties from, any taxes that may at any time be asserted with respect to, and as of the date of, the transfer of the Loans to the Trust
Depositor, the transfer by the Trust Depositor of the Loans to the Issuer and the further pledge by the Issuer to the Indenture Trustee, including, without limitation, any sales, gross receipts, general corporation, personal property, privilege or
license taxes (but not including any federal, state or other taxes arising out of the creation of the Issuer and the issuance of the Notes and Certificate), and costs, expenses and reasonable counsel fees in defending against the same, whether
arising by reason of the acts to be performed by the Originator or the Servicer under this Agreement or imposed against the Issuer, the Trustees, the Backup Servicer, a Noteholder, a Certificateholder, a Swap Counterparty or otherwise.
Notwithstanding any other provision of this Agreement, the obligation of the Originator under this Section 12.04 shall not terminate upon a Servicer Transfer pursuant to Article VIII of this Agreement and shall survive any
termination of this Agreement. 
 (b) The Originator agrees to pay and to indemnify, defend and hold harmless the Issuer, the Trustees (as
such and in their individual capacities) and the Swap Counterparties, on an after-tax basis (as hereinafter defined), from any state or local personal property taxes, gross 

  

 - 121 - 








 
rent taxes, leasehold taxes or similar taxes that may at any time be asserted with respect to the ownership of the Loans (including security interests
therein) and the receipt of rentals therefrom by the Issuer, and costs, expenses and reasonable counsel fees in defending against the same, excluding, however, taxes based upon or measured by gross or net income or receipts (other than taxes imposed
specifically with respect to rentals). As used in this Section, the term “after-tax basis” shall mean, with respect to any payment to be received by an indemnified Person, that the amount to be paid by the Originator shall be equal to the
sum of (i) the amount to be received without regard to this sentence, plus (ii) any additional amount that may be required so that, after reduction by all taxes imposed under any federal, state and local law, and taking into account
any current credits or deductions arising therefrom, resulting either from the receipt of the payments described in both clauses (i) and (ii) hereof, such sum shall be equal to the amount described in clause
(i) above. 
 Section 12.05 Adjustments 
 (a) The Originator agrees that, with respect to each Loan that provides for a prepayment amount less than the amount calculated in accordance with the
definition of “Prepayment Amount”, the Originator shall indemnify the Trust Depositor or the Issuer as assignee thereof in an amount at least equal to the excess of the Prepayment Amount as calculated in accordance with the
definition thereof over the amount otherwise payable upon prepayment of such Loan. 
 (b) The Originator hereby further agrees that if any
real property collateral securing any Loan described in Section 3.02(d) hereof becomes the subject of any claims, proceedings, Liens or encumbrances with respect to any material violation or claimed material violation of any federal or
state environmental laws or regulations, such Loan shall for all purposes hereunder be, at and following the time of discovery by the Originator, the Trust Depositor, the Servicer or any Trustee (it being understood and agreed that such Trustee is
under no duty of investigation) of such fact, deemed an Ineligible Loan subject to the same remedial and recourse provisions hereunder as other Loans determined to be Ineligible Loans hereunder. 
 Section 12.06 Operation of Indemnities 
 Indemnification under this Article XII shall include, without limitation, reasonable fees and expenses of counsel and expenses of litigation. If the Servicer, Trust Depositor or Originator has made any
indemnity payments pursuant to this Article XII and the indemnified party thereafter collects any of such amounts from others, the indemnified party will repay such amounts collected to the Servicer, the Originator or the Trust Depositor, as
applicable, except that any payments received by the indemnified parties from an insurance provider as a result of the events under which the Servicer’s, the Originator’s or the Trust Depositor’s, as applicable, indemnity payments
arose shall be repaid prior to any repayment of the Servicer’s, the Originator’s or the Trust Depositor’s, as applicable, indemnity payment. 
  

 - 122 - 








 ARTICLE XIII 
 MISCELLANEOUS 
 Section 13.01 Amendment 
 (a) This Agreement may be amended by the Originator, the Trust Depositor, the Servicer, the Indenture Trustee and the Owner Trustee on behalf of the
Issuer, collectively, without the consent of any Holders, to cure any ambiguity, to correct or supplement any provisions in this Agreement that are inconsistent with the provisions herein, to add any other provisions with respect to matters or
questions arising under this Agreement that shall not be inconsistent with the provisions of this Agreement, to make such changes as shall be necessary or advisable in order for the Offered Notes to be listed on the Irish Stock Exchange or, subject
to the satisfaction of the Rating Agency Condition, to modify the Portfolio Criteria; provided (i) that the consent of the Noteholders shall be required unless the Issuer obtains an Opinion of Counsel stating that the amendment does not
adversely affect in any material respect the interests of any Holder of the Offered Notes, (ii) the consent of each Swap Counterparty shall be required for any amendments to Section 5.17(h), and (iii) for all other such
amendments, the consent of each Swap Counterparty shall be required unless the Issuer obtains an Opinion of Counsel stating that the amendment does not adversely affect in any material respect the interests of the Swap Counterparties; provided
further that notwithstanding the foregoing, any amendment to this Agreement that would have the effect of amending or modifying the Portfolio Criteria shall be subject to the following requirements and restrictions: (i) only clauses
(b) through (j) of the definition of Portfolio Criteria may be amended, (ii) such amendment shall satisfy the Rating Agency Condition, (iii) such amendment shall not, as evidenced by an officer’s certificate of the Servicer
delivered to the Indenture Trustee, materially adversely affect the interests of any Noteholder or the Certificateholder and (iv) the Issuer shall deliver (or cause the Indenture Trustee to deliver) to the Noteholders the proposed amendment and
the Required Holders shall not have objected to such amendment within ten Business Days from the receipt thereof; and provided further that any amendment that would have the effect of modifying the calculation of clauses (b) through
(j) of the definition of Portfolio Criteria in order to correspond to written changes in the guidelines, methodology or standards established by the Rating Agencies shall only be subject to satisfaction of the Rating Agency Condition.

 (b) This Agreement may also be amended from time to time by the Originator, the Trust Depositor, the Servicer, the Indenture Trustee and
the Owner Trustee on behalf of the Issuer, with the consent of the Required Holders and the Swap Counterparties, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Holders or the Swap Counterparties; provided that no such amendment shall: 
 (1) increase or reduce in any manner the amount of, or accelerate or delay the timing of, or change the method of calculating distributions which are required to be made on any Note or the Certificate, the principal amount of the Notes or
the Certificate without the consent of each Holder affected thereby; or 
  

 - 123 - 








 (2) change the manner in which the Reserve Fund is applied, without the consent of each
Noteholder affected thereby; or 
 (3) reduce the aforesaid percentage required to consent to any amendment (including through
amendment of related definitions) without the consent of each Noteholder affected thereby; or 
 (4) modify, amend or
supplement the provisions of this Agreement relating to the allocation of collections on the Loans without the consent of each Noteholder affected thereby; or 
 (5) make any security issued by the Issuer payable in money other than U.S. dollars without the consent of each Noteholder affected
thereby. 
 (c) Prior to the execution of any amendment or consent, the Indenture Trustee shall furnish written notification of the substance
of such amendment or consent, together with a copy thereof, to each Rating Agency. In addition, prior to the execution of any such amendment or consent, the Indenture Trustee shall obtain written confirmation from S&P that entry into such
amendment or consent satisfies the S&P Rating Condition. 
 (d) Promptly after the execution of any such amendment or consent, the Owner
Trustee and the Indenture Trustee, as the case may be, shall furnish written notification of the substance of such amendment or consent to each Certificateholder and Noteholder, respectively. It shall not be necessary for the consent of the Holders
or the Swap Counterparties pursuant to Section 13.01(b) to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such
consents and of evidencing the authorization by the Holders and the Swap Counterparties of the execution thereof shall be subject to such reasonable requirements as the Owner Trustee or the Indenture Trustee may prescribe. 
 (e) Prior to the execution of any amendment to this Agreement, the Owner Trustee and the Indenture Trustee shall be entitled to receive and conclusively
rely upon an Opinion of Counsel stating that the execution of such amendment is authorized and permitted by this Agreement. Such Trustee may, but shall not be obligated to, enter into any such amendment that affects such Trustee’s own rights,
duties, indemnities or immunities under this Agreement or otherwise. 
 Section 13.02 Protection of Title to the Issuer

 (a) The Servicer shall execute and file such financing statements, and cause to be executed and filed such amendments or continuation
statements, all in such manner and in such places as may be required by Requirements of Law fully to preserve, maintain and protect the interest of the Issuer, the Holders, the Swap Counterparties, the Indenture Trustee and the Owner Trustee in the
Loans and in the proceeds thereof. The Servicer shall deliver (or cause to be delivered) to the Owner Trustee and the Indenture Trustee file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as available
following such filing. 
  

 - 124 - 








 (b) The Servicer shall maintain or cause to be maintained accounts and records as to each Loan accurately
and in sufficient detail to permit (i) the reader thereof to know at any time the status of such Loan, including payments and recoveries made and payments owing (and the nature of each) and (ii) reconciliation between payments or
recoveries on (or with respect to) each Loan and the amounts from time to time deposited in or credited to the Collection Account, including identifying amounts credited to the Interest Collection Account and the Principal Collection Account in
respect of each Loan. 
 (c) The Servicer shall maintain or cause to be maintained its computer systems so that, from and after the time of
sale under this Agreement of the Loans, the Servicer’s master computer records (including any backup archives) that shall refer to a Loan indicate clearly the interest of the Issuer and the Indenture Trustee in such Loan and that such Loan is
owned by the Issuer and has been pledged to the Indenture Trustee. Indication of the Issuer’s ownership of and the Indenture Trustee’s interest in a Loan shall be deleted from or modified on the Servicer’s computer systems when, and
only when, the related Loan shall have been paid in full or repurchased or substituted for. 
 (d) The Servicer shall deliver to the Owner
Trustee, the Indenture Trustee, each Swap Counterparty and each Rating Agency promptly after the execution and delivery of this Agreement and of each amendment hereto, an Opinion of Counsel either (i) stating that, in the opinion of such
counsel, all financing statements and continuation statements have been executed and filed that are necessary fully to preserve and protect the interest of the Issuer and the Indenture Trustee and reciting the details of each filing or referring to
prior Opinions of Counsel in which such details are given, or (ii) stating that, in the opinion of such counsel, no such action shall be necessary to preserve and protect such interest. 
 Section 13.03 Governing Law 
 (a) THIS AGREEMENT, INCLUDING THE RIGHTS, DUTIES AND REMEDIES OF THE PARTIES HERETO, SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES). 
 (b) EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY REQUIREMENTS OF LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HERETO (I) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SUBSECTION 13.03(b). 
  

 - 125 - 








 (c) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE
UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH SUCH PARTY
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS
AGREEMENT OR ANY DOCUMENT RELATED HERETO. 
 Section 13.04 Notices 
 All notices, demands, certificates, requests and communications hereunder (“notices”) shall be in writing and shall be effective
(a) upon receipt when sent through the U.S. mails, registered or certified mail, return receipt requested, postage prepaid, with such receipt to be effective the date of delivery indicated on the return receipt, (b) one Business Day after
delivery to an overnight courier, (c) on the date personally delivered to an Authorized Officer of the party to which sent, (d) on the date transmitted by legible telecopier transmission with a confirmation of receipt, or (e) subject
to the last paragraph of this Section 13.04, upon receipt (with receipt of automatic electronic confirmation or written confirmation from the receiving party) when sent by email, in all cases addressed to the recipient as follows:

  

	 	(i)	If to the Servicer or the Originator: 

  

	 	    	American Capital Strategies, Ltd. 


	 	    	2 Bethesda Metro Center 


	 	    	14th Floor 


	 	    	Bethesda, Maryland 20814 


	 	    	Attention: Compliance Officer 


	 	    	Facsimile No.: (301) 654-6714 


	 	    	email: sam.flax@americancapital.com 

  

	 	(ii)	If to the Trust Depositor: 

  

	 	    	ACAS Business Loan LLC, 2006-1 


	 	    	2 Bethesda Metro Center 


	 	    	14th Floor 


	 	    	Bethesda, Maryland 20814 


	 	    	Attention: Compliance Officer 


	 	    	Facsimile No.: (301) 654-6714 

  

 - 126 - 









	 	(iii)	If to the Indenture Trustee: 

  

	 	    	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) 667-3464 

  

	 	(iv)	If to the Owner Trustee: 

  

	 	    	M&T Trust Company of Delaware 


	 	    	1220 Market Street, Suite 202 


	 	    	Wilmington, Delaware 19801 


	 	    	Attention: Robert D. Brown 


	 	    	Facsimile No.: (302) 661-2266 

  

	 	(v)	If to the Issuer: 

  

	 	    	ACAS Business Loan Trust 2006-1 


	 	    	c/o M&T Trust Company of Delaware 


	 	    	1220 Market Street, Suite 202 


	 	    	Wilmington, Delaware 19801 


	 	    	Attention: Robert D. Brown 


	 	    	Facsimile No.: (302) 661-2266 

  

	 	    	If to S&P: 

  

	 	    	Standard & Poor’s Ratings Services, 


	 	    	a division of The McGraw-Hill Companies, Inc. 


	 	    	55 Water Street 


	 	    	41st Floor 


	 	    	New York, New York 10041 


	 	    	Attention: Surveillance: CDO Surveillance 


	 	    	Facsimile No.: (212) 438-2662 


	 	    	with an electronic copy to: 

 cdo_surveillance@sandp.com (all Quarterly Reports and notices of payment defaults) 
 clo_loans@standardandpoors.com (all notices of payment defaults) 
  

	 	(vi)	If to Moody’s: 

  

	 	    	Moody’s Investors Service, Inc. 


	 	    	99 Church Street 


	 	    	New York, New York 10007 


	 	    	Attention: CDO Monitoring Department 


	 	    	Facsimile No.: (212) 553-3707 


	 	    	email: cdomonitoring@moodys.com 

  

 - 127 - 









	 	(vii)	If to Fitch: 

  

	 	    	Fitch, Inc. 


	 	    	One State Street Plaza 


	 	    	New York, New York 10004 


	 	    	Attention: CDO Surveillance 


	 	    	Facsimile No.: (212) 514-6501 


	 	    	email: cdo.surveillance@fitchratings.com 

  

	 	(viii)	If to the Initial Purchasers: 

  

	 	    	Wachovia Capital Markets, LLC 


	 	    	Citigroup Global Markets Inc. 


	 	    	Banc of America Securities LLC 


	 	    	BMO Capital Markets Corp. 


	 	    	Credit Suisse Securities (USA) LLC 


	 	    	Dresdner Kleinwort Wasserstein Securities LLC 


	 	    	WestLB AG, London Branch 


	 	    	c/o Wachovia Capital Markets, LLC 


	 	    	One Wachovia Center, Mail Code: NC0610 


	 	    	301 South College Street 


	 	    	Charlotte, North Carolina 28288-0610 


	 	    	Attention: Asset Securitization Division 


	 	    	Facsimile No.: (704) 383-4012 

  

	 	(ix)	If to a Swap Counterparty: 

  

	 	    	At the address set forth for such party in the applicable Swap. 

 Each party hereto may, by notice given in accordance herewith to each of the other parties hereto, designate any further or different address (including email address) to which subsequent notices shall be sent. Notices between Wachovia
Capital Markets, LLC and the Servicer or Originator may be delivered by email to the addresses specified above, and notices as between the Servicer or Originator and any other party may be made by email subject to the mutual agreement of such
parties. 
 Section 13.05 Severability of Provisions 
 If one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants,
agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement, the Notes,
the Certificate or the rights of the Holders thereof, and any such prohibition, invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenants, agreements, provisions or terms in any other
jurisdiction. 
  

 - 128 - 








 Section 13.06 Third Party Beneficiaries 
 Except as otherwise specifically provided herein, the parties hereto hereby manifest their intent that no third party, other than the Swap Counterparties
and the Owner Trustee (as such and in its individual capacity), shall be deemed a third party beneficiary of this Agreement, and specifically that the Obligors are not third party beneficiaries of this Agreement. 
 Section 13.07 Counterparts 
 This Agreement may be executed by facsimile signature and in several counterparts, each of which shall be an original and all of which shall together constitute but one and the same instrument. 
 Section 13.08 Headings 
 The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. 
 Section 13.09 No Bankruptcy Petition; Disclaimer 
 (a) Each of the Originator, the Indenture Trustee, the Servicer, the Issuer acting through the Owner Trustee, each Swap Counterparty (by entering into a Swap) and each Holder (by acceptance of the applicable
Securities) covenants and agrees that, prior to the date that is one year and one day (or, if longer, the preference period then in effect and one day) after the payment in full of all amounts owing in respect of all Outstanding Classes of Notes
rated by any Rating Agency, it will not institute against the Trust Depositor, or the Issuer, or join any other Person in instituting against the Trust Depositor or the Issuer, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceedings under the laws of the United States or any state of the United States; provided that nothing herein shall prohibit the Indenture Trustee from filing proofs of claim or otherwise participating in any
such proceedings instituted by any other Person. This Section 13.09 will survive the termination of this Agreement. 
 (b) The
Issuer acknowledges and agrees that the Certificate represents a beneficial interest in the Issuer and Loan Assets only and the Securities do not represent an interest in any assets (other than the Loan Assets) of the Trust Depositor (including by
virtue of any deficiency claim in respect of obligations not paid or otherwise satisfied from the Loan Assets and proceeds thereof). In furtherance of and not in derogation of the foregoing, to the extent that the Trust Depositor enters into other
securitization transactions as contemplated in Section 6.07, the Issuer acknowledges and agrees that it shall have no right, title or interest in or to any assets (or interests therein), other than the Loan Assets, conveyed or purported
to be conveyed (whether by way of a sale, capital contribution or by the granting of a Lien) by the Trust Depositor to any Person other than the Issuer (the “Other Assets”). 
 (c) To the extent that, notwithstanding the agreements contained in this Section 13.09, the Issuer, any Holder or any Swap Counterparty,
either (i) asserts an interest in or claim to, or benefit from any Other Assets, whether asserted against or through the Trust Depositor or any other Person owned by the Trust Depositor, or (ii) is deemed to have any interest, claim or


  

 - 129 - 








 
benefit in or from any Other Assets, whether by operation of law, legal process or pursuant to applicable provisions of Insolvency Laws or otherwise
(including without limitation pursuant to Section 1111(b) of the federal Bankruptcy Code, as amended), and whether deemed asserted against or through the Trust Depositor or any other Person owned by the Trust Depositor, then the Issuer, each
Holder by accepting a Note or Certificate and each Swap Counterparty further acknowledges and agrees that any such interest, claim or benefit in or from the Other Assets is and shall be expressly subordinated to the indefeasible payment in full of
all obligations and liabilities of the Trust Depositor that, under the terms of the documents relating to the securitization of the Other Assets, are entitled to be paid from, entitled to the benefits of, or otherwise secured by such Other Assets
(whether or not any such entitlement or security interest is legally perfected or otherwise entitled to a priority of distribution under Requirements of Law, including Insolvency Laws, and whether asserted against the Trust Depositor or any other
Person owned by the Trust Depositor), including, without limitation, the payment of post-petition interest on such other obligations and liabilities. This subordination agreement shall be deemed a subordination agreement within the meaning of
Section 510(a) of the Bankruptcy Code. Each of the Issuer, the Holders and the Swap Counterparties is deemed to have acknowledged and agreed that no adequate remedy at law exists for a breach of this Section 13.09 and that the terms
and provisions of this Section 13.09 may be enforced by an action for specific performance. 
 (d) The provisions of this
Section 13.09 shall be for the third party benefit of those entitled to rely thereon and shall survive the termination of this Agreement. 
 Section 13.10 Jurisdiction 
 Any legal action or proceeding with respect to this Agreement
may be brought in the courts of the United States for the Southern District of New York, and by execution and delivery of this Agreement, each party hereto consents, for itself and in respect of its property, to the non-exclusive jurisdiction of
those courts. Each such party irrevocably waives any objection, including any objection to the laying of venue or based on the grounds of forum non conveniens, which it may now or hereafter have to the bringing of any action or proceeding in such
jurisdiction in respect of this Agreement or any document related hereto. 
 Section 13.11 Tax Characterization

 Notwithstanding the provisions of Section 2.01 and Section 2.04 hereof, the Trust Depositor and Owner Trustee
agree that, for federal and State of Maryland income tax purposes and pursuant to Treasury Regulations Section 301.7701-3(b), in the event that the Certificate and the Class E Note are owned by a single Holder, the Issuer is to be disregarded
as an entity separate from such Holder, and in the event that the Certificate and Class E Note are owned by more than one Holder, the Issuer is to be treated as a partnership the partners of which are the Holders of the Certificate and Class E Note.

 Section 13.12 Prohibited Transactions with Respect to the Issuer 
 The Originator shall not: 
 (a) provide credit
to any Noteholder or Certificateholder for the purpose of enabling such Noteholder or Certificateholder to purchase Notes or any Certificate, respectively; 
  

 - 130 - 








 (b) purchase any Notes or any Certificate in an agency or trustee capacity; or 
 (c) except in its capacity as Servicer as provided in this Agreement, lend any money to the Issuer. 
 Section 13.13 Merger or Consolidation of the Originator or the Servicer 
 (a) Each of the Originator and the Servicer will keep in full force and effect its existence, rights and franchise as a Delaware corporation, and each of
the Originator and the Servicer will obtain and preserve its qualification to do business as a foreign corporation in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement
and of any of the Loans and to perform its duties under this Agreement. 
 (b) Any Person into which the Originator or the Servicer, as the
case may be, may be merged or consolidated, or any corporation resulting from such merger or consolidation to which the Originator or the Servicer, as the case may be, is a party, or any Person succeeding by acquisition or transfer to substantially
all of the assets and the business of the Originator or the Servicer, as the case may be, shall be the successor to the Originator or the Servicer, as the case may be, hereunder, without execution or filing of any paper or any further act on the
part of any of the parties hereto, notwithstanding anything herein to the contrary. 
 (c) Upon the merger or consolidation of the Originator
or the Servicer, as the case may be, as described in this Section 13.13, the Originator or the Servicer, as the case may be, shall provide the Indenture Trustee, each Swap Counterparty and the Rating Agencies notice of such merger,
consolidation or transfer of substantially all of the assets and business within five Business Days after completion of the same. 
 Section 13.14 Assignment or Delegation by the Originator 
 Except as specifically authorized hereunder, the
Originator may not convey and assign or delegate any of its rights or obligations hereunder absent the prior written consent of the Trust Depositor, the Trustees and each Swap Counterparty, and any attempt to do so without such consent shall be
void. 
 Section 13.15 Limitation of Liability of Owner Trustee 
 M&T Trust Company of Delaware acts on behalf of the Issuer solely as Owner Trustee hereunder and not in its individual capacity, and all Persons
having any claim against the Issuer by reason of the transactions contemplated by this Agreement or any other Transaction Document shall look only to the Trust Estate under the Trust Agreement for payment or satisfaction thereof. The Owner Trustee
makes no representations as to the validity or sufficiency of this Agreement, any other Transaction Document, the Notes, or of any Loan or related documents. The Owner Trustee shall at no time have any responsibility or liability for or with respect
to the legality, validity and enforceability of any Loan, the perfection and priority of any security interest created by any Loan in any Collateral, the maintenance of any such perfection and priority, or for or with respect to the sufficiency of
the Trust Estate under the Trust Agreement or its ability to generate the payments to be distributed to the Certificateholders 

  

 - 131 - 








 
under the Trust Agreement or the Noteholders under the Indenture, including, without limitation, (a) the existence, condition and ownership of any
Collateral; (b) the existence and enforceability of any insurance thereon; (c) the existence and contents of any Loan on any computer or other record thereof; (d) the validity of the assignment of any Loan to the Issuer or of any
intervening assignment; (e) the completeness of any Loan; (f) the performance or enforcement of any Loan; (g) the compliance by the Issuer, the Trust Depositor or the Servicer with any covenant, agreement or other obligation or the
accuracy of any warranty or representation made under any Transaction Document or in any related document; or (h) any action of the Indenture Trustee or the Servicer or any subservicer taken in the name of the Owner Trustee or the Issuer.

 Section 13.16 No Partnership 
 Nothing herein contained shall be deemed or construed to create a co-partnership or joint venture between the parties hereto, and the services of the Servicer shall be rendered as an independent contractor and not as
agent for the Holders. 
 Section 13.17 Successors and Assigns 
 This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. 
 Section 13.18 Acts of Noteholders 
 Except as otherwise specifically provided herein, whenever Noteholder action, consent or approval is required under this Agreement, such action, consent or approval shall be deemed to have been taken or given on behalf of, and shall be
binding upon, all Noteholders if the Required Holders agree to take such action or give such consent or approval. 
 Section 13.19
Duration of Agreement 
 This Agreement shall continue in existence and effect until terminated as herein provided. 
 Section 13.20 Servicer Assignment and Resignation 
 The Servicer shall not assign its rights and duties under this Agreement (other than in connection with a subservicing arrangement) nor resign from the obligations and duties hereby imposed on it as Servicer except
(a) by mutual consent of the Servicer, the Indenture Trustee, the Swap Counterparties and the Required Holders, (b) in connection with a merger, conversion or consolidation permitted pursuant to Section 13.13 (in which case the
Person resulting from the merger, conversion or consolidation shall be the successor of the Servicer), (c) in connection with an assignment permitted pursuant to Section 13.13 (in which case the assignee shall be the successor of
the Servicer), or (d) upon the Servicer’s determination that its duties hereunder are no longer permissible under Requirements of Law or administrative determination and such incapacity cannot be cured by the Servicer. Any such
determination permitting the resignation of the Servicer shall be evidenced by a written Opinion of Counsel to such effect delivered to the Indenture Trustee, which Opinion of Counsel shall be in form and substance reasonably acceptable to the
Indenture Trustee. No such resignation shall become effective until a successor has assumed the Servicer’s responsibilities and obligations hereunder in accordance with Section 8.03. 
  

 - 132 - 








 Section 13.21 Limited Recourse 
 The obligations of the Trust Depositor, the Originator and the Servicer under this Agreement are solely the obligations of the Trust Depositor, the
Originator and the Servicer. No recourse shall be had for the payment of any amount owing by the Trust Depositor, the Originator, and the Servicer under this Agreement or for the payment by the Trust Depositor, the Originator and the Servicer of any
fee in respect hereof or any other obligation or claim of or against the Trust Depositor, the Originator and the Servicer arising out of or based upon this Agreement, against any employee, officer, director, Affiliate, shareholder, partner or member
of the Trust Depositor, the Originator and the Servicer or against the employee, officer, director, shareholder, partner or member or any Affiliate of such Person. The provisions of this Section 13.21 shall survive termination of this
Agreement. 
 Section 13.22 Non-Confidentiality of Tax Treatment 
 All parties hereto agree that each of them and each of their employees, representatives, and other agents may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the transaction and all materials of any kind (including opinions or other tax analyses) that are provided to any of them relating to such tax treatment and tax structure. “Tax
treatment” and “tax structure” shall have the same meaning as such terms have for purposes of Treasury Regulation Section 1.6011-4. 
 Section 13.23 Alternative Exchange Listing 
 In the event that the Issuer is required to
prepare financial statements in accordance with the International Financial Reporting Standards as a condition of the continued listing of the Offered Notes on the Irish Stock Exchange, the Issuer may terminate the listing of the Offered Notes on
such exchange and, if such listing is so terminated, the Issuer shall use its best commercially reasonable efforts to obtain the listing of the Offered Notes on an exchange that is a member of the International Federation of Stock Exchanges and is
organized or incorporated in a state that is a member of the Organization for Economic Cooperation and Development; provided that the Issuer shall not be required to obtain such a replacement listing if maintaining such a listing would
require the Issuer to restate its accounts or would otherwise be unduly burdensome or costly to the Issuer. 
 [Remainder of Page
Intentionally Left Blank.] 
  

 - 133 - 








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

			
	 ACAS BUSINESS LOAN TRUST 2006-1,
 as
the Issuer

		
	By:	 	M&T TRUST COMPANY OF DELAWARE, not in its individual capacity but solely as the Owner Trustee on behalf of the Issuer
		
	By:	 	 /s/ Robert Brown

	Name:	 	Robert Brown
	Title:	 	Vice President
	
	 ACAS BUSINESS LOAN LLC, 2006-1,
 as
the Trust Depositor

		
	By:	 	 /s/ John Hooker

	Name:	 	John Hooker
	Title:	 	Vice President
	
	AMERICAN CAPITAL STRATEGIES, LTD.,
	as the Servicer and as the Originator
		
	By:	 	 /s/ John Hooker

	Name:	 	John Hooker
	Title:	 	Vice President
	
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as the Indenture Trustee and the Backup Servicer

		
	By:	 	 /s/ Benjamin J. Krueger

	Name:	 	Benjamin J. Krueger
	Title:	 	Assistant Vice President


 ACAS Business Loan Trust 2006 
 Transfer and Servicing Agreement 







 ANNEX A 
 Diversity Score Calculation 
 The Diversity Score for the Loans is calculated by summing each
of the Industry Diversity Scores, which are calculated as follows: 
  

	 	(i)	An “Obligor Par Amount” is calculated for each Obligor represented in the Loan Pool by summing the Outstanding Loan Balance of each Loan in the Loan Pool of that
Obligor or any Affiliate of that Obligor. 

  

	 	(ii)	An “Average Par Amount” is calculated by summing the Obligor Par Amounts and dividing by the number of Obligors represented. For purposes of calculating the number
of Obligors, any Obligors which are Affiliates will be considered one Obligor. 

  

	 	(iii)	An “Equivalent Unit Score” is calculated for each Obligor represented in the Loan Pool by taking the lesser of (a) one and (b) the Obligor Par Amount for
such Obligor divided by the Average Par Amount. For purposes of calculating the Equivalent Unit Score, any Obligors which are Affiliates will be considered one Obligor. 

  

	 	(iv)	An “Aggregate Industry Equivalent Unit Score” is then calculated for each of the Moody’s industrial classification groups by summing the Equivalent Unit Scores
for each Obligor in the industry. 

  

	 	(v)	An “Industry Diversity Score” is then established by reference to the Diversity Score Table shown below for the related Aggregate Industry Equivalent Unit Score. If
any Aggregate Industry Equivalent Unit Score falls between any two scores then the applicable Industry Diversity Score will be the lower of the two Industry Diversity Scores. 

  

	 	(vi)	Defaulted Loans shall be excluded from the calculation of the Diversity Score. 

  


 -i- 








 Diversity Score Table 
  

															
	Aggregate
Industry
Equivalent
Unit Score	 	Diversity
Score	 	Aggregate
Industry
Equivalent
Unit Score	 	Diversity
Score	 	Aggregate
Industry
Equivalent
Unit Score	 	Diversity
Score	 	Aggregate
Industry
Equivalent
Unit Score	 	Diversity
Score
	0.0000	 	0.0000	 	5.0500	 	2.7000	 	10.1500	 	4.0200	 	15.2500	 	4.5300
	0.0500	 	0.1000	 	5.1500	 	2.7333	 	10.2500	 	4.0300	 	15.3500	 	4.5400
	0.1500	 	0.2000	 	5.2500	 	2.7667	 	10.3500	 	4.0400	 	15.4500	 	4.5500
	0.2500	 	0.3000	 	5.3500	 	2.8000	 	10.4500	 	4.0500	 	15.5500	 	4.5600
	0.3500	 	0.4000	 	5.4500	 	2.8333	 	10.5500	 	4.0600	 	15.6500	 	4.5700
	0.4500	 	0.5000	 	5.5500	 	2.8667	 	10.6500	 	4.0700	 	15.7500	 	4.5800
	0.5500	 	0.6000	 	5.6500	 	2.9000	 	10.7500	 	4.0800	 	15.8500	 	4.5900
	0.6500	 	0.7000	 	5.7500	 	2.9333	 	10.8500	 	4.0900	 	15.9500	 	4.6000
	0.7500	 	0.8000	 	5.8500	 	2.9667	 	10.9500	 	4.1000	 	16.0500	 	4.6100
	0.8500	 	0.9000	 	5.9500	 	3.0000	 	11.0500	 	4.1100	 	16.1500	 	4.6200
	0.9500	 	1.0000	 	6.0500	 	3.0250	 	11.1500	 	4.1200	 	16.2500	 	4.6300
	1.0500	 	1.0500	 	6.1500	 	3.0500	 	11.2500	 	4.1300	 	16.3500	 	4.6400
	1.1500	 	1.1000	 	6.2500	 	3.0750	 	11.3500	 	4.1400	 	16.4500	 	4.6500
	1.2500	 	1.1500	 	6.3500	 	3.1000	 	11.4500	 	4.1500	 	16.5500	 	4.6600
	1.3500	 	1.2000	 	6.4500	 	3.1250	 	11.5500	 	4.1600	 	16.6500	 	4.6700
	1.4500	 	1.2500	 	6.5500	 	3.1500	 	11.6500	 	4.1700	 	16.7500	 	4.6800
	1.5500	 	1.3000	 	6.6500	 	3.1750	 	11.7500	 	4.1800	 	16.8500	 	4.6900
	1.6500	 	1.3500	 	6.7500	 	3.2000	 	11.8500	 	4.1900	 	16.9500	 	4.7000
	1.7500	 	1.4000	 	6.8500	 	3.2250	 	11.9500	 	4.2000	 	17.0500	 	4.7100
	1.8500	 	1.4500	 	6.9500	 	3.2500	 	12.0500	 	4.2100	 	17.1500	 	4.7200
	1.9500	 	1.5000	 	7.0500	 	3.2750	 	12.1500	 	4.2200	 	17.2500	 	4.7300
	2.0500	 	1.5500	 	7.1500	 	3.3000	 	12.2500	 	4.2300	 	17.3500	 	4.7400
	2.1500	 	1.6000	 	7.2500	 	3.3250	 	12.3500	 	4.2400	 	17.4500	 	4.7500
	2.2500	 	1.6500	 	7.3500	 	3.3500	 	12.4500	 	4.2500	 	17.5500	 	4.7600
	2.3500	 	1.7000	 	7.4500	 	3.3750	 	12.5500	 	4.2600	 	17.6500	 	4.7700
	2.4500	 	1.7500	 	7.5500	 	3.4000	 	12.6500	 	4.2700	 	17.7500	 	4.7800
	2.5500	 	1.8000	 	7.6500	 	3.4250	 	12.7500	 	4.2800	 	17.8500	 	4.7900
	2.6500	 	1.8500	 	7.7500	 	3.4500	 	12.8500	 	4.2900	 	17.9500	 	4.8000
	2.7500	 	1.9000	 	7.8500	 	3.4750	 	12.9500	 	4.3000	 	18.0500	 	4.8100
	2.8500	 	1.9500	 	7.9500	 	3.5000	 	13.0500	 	4.3100	 	18.1500	 	4.8200
	2.9500	 	2.0000	 	8.0500	 	3.5250	 	13.1500	 	4.3200	 	18.2500	 	4.8300
	3.0500	 	2.0333	 	8.1500	 	3.5500	 	13.2500	 	4.3300	 	18.3500	 	4.8400
	3.1500	 	2.0667	 	8.2500	 	3.5750	 	13.3500	 	4.3400	 	18.4500	 	4.8500
	3.2500	 	2.1000	 	8.3500	 	3.6000	 	13.4500	 	4.3500	 	18.5500	 	4.8600
	3.3500	 	2.1333	 	8.4500	 	3.6250	 	13.5500	 	4.3600	 	18.6500	 	4.8700
	3.4500	 	2.1667	 	8.5500	 	3.6500	 	13.6500	 	4.3700	 	18.7500	 	4.8800
	3.5500	 	2.2000	 	8.6500	 	3.6750	 	13.7500	 	4.3800	 	18.8500	 	4.8900
	3.6500	 	2.2333	 	8.7500	 	3.7000	 	13.8500	 	4.3900	 	18.9500	 	4.9000
	3.7500	 	2.2667	 	8.8500	 	3.7250	 	13.9500	 	4.4000	 	19.0500	 	4.9100
	3.8500	 	2.3000	 	8.9500	 	3.7500	 	14.0500	 	4.4100	 	19.1500	 	4.9200
	3.9500	 	2.3333	 	9.0500	 	3.7750	 	14.1500	 	4.4200	 	19.2500	 	4.9300
	4.0500	 	2.3667	 	9.1500	 	3.8000	 	14.2500	 	4.4300	 	19.3500	 	4.9400
	4.1500	 	2.4000	 	9.2500	 	3.8250	 	14.3500	 	4.4400	 	19.4500	 	4.9500

 Annex A 
  

 Page ii 









															
	Aggregate
Industry
Equivalent
Unit Score	 	Diversity
Score	 	Aggregate
Industry
Equivalent
Unit Score	 	Diversity
Score	 	Aggregate
Industry
Equivalent
Unit Score	 	Diversity
Score	 	Aggregate
Industry
Equivalent
Unit Score	 	Diversity
Score
	4.2500	 	2.4333	 	9.3500	 	3.8500	 	14.4500	 	4.4500	 	19.5500	 	4.9600
	4.3500	 	2.4667	 	9.4500	 	3.8750	 	14.5500	 	4.4600	 	19.6500	 	4.9700
	4.4500	 	2.5000	 	9.5500	 	3.9000	 	14.6500	 	4.4700	 	19.7500	 	4.9800
	4.5500	 	2.5333	 	9.6500	 	3.9250	 	14.7500	 	4.4800	 	19.8500	 	4.9900
	4.6500	 	2.5667	 	9.7500	 	3.9500	 	14.8500	 	4.4900	 	19.9500	 	5.0000
	4.7500	 	2.6000	 	9.8500	 	3.9750	 	14.9500	 	4.5000	 		 	
	4.8500	 	2.6333	 	9.9500	 	4.0000	 	15.0500	 	4.5100	 		 	
	4.9500	 	2.6667	 	10.0500	 	4.0100	 	15.1500	 	4.5200	 		 	

 Annex A 
  

 Page iii 








 EXHIBITS TO 
 TRANSFER AND SERVICING AGREEMENT 
  

			
	EXHIBIT A	  	Form of Assignment
		
	EXHIBIT B	  	Form of Closing Certificate of Trust Depositor
		
	EXHIBIT C	  	Form of Closing Certificate of Servicer/Originator
		
	EXHIBIT D-1	  	Form of Initial Certification
		
	EXHIBIT D-2	  	Form of Final Certification
		
	EXHIBIT E	  	Form of Request for Release of Documents
		
	EXHIBIT F	  	Form of Additional Loan Information Schedule
		
	EXHIBIT G	  	List of Loans
		
	EXHIBIT H	  	Form of Quarterly Servicer Report
		
	EXHIBIT I	  	Form of Subsequent Transfer Agreement
		
	EXHIBIT J	  	Form of Subsequent Purchase Agreement
		
	EXHIBIT K	  	Credit and Collection Policy
		
	EXHIBIT L	  	List of Subordinated Loans








 EXHIBIT A 
 to Transfer and 
 Servicing Agreement 
 FORM OF ASSIGNMENT 
 (ACAS Business Loan Trust 2006-1) 
 Pursuant to and in accordance with the Transfer and Servicing Agreement (as amended, modified, restated, replaced, waived, substituted, supplemented or
extended from time to time, the “Transfer and Servicing Agreement”), dated as of July 28, 2006, made by and among ACAS Business Loan LLC, 2006-1, as the Trust Depositor, American Capital Strategies, Ltd., as the Servicer and as
the Originator, Wells Fargo Bank, National Association, as the Indenture Trustee and the Backup Servicer, and ACAS Business Loan Trust 2006-1 (the “Issuer”), as the assignee thereunder, the undersigned does hereby sell, transfer,
convey, assign, set over and otherwise convey to the Issuer (i) the Initial Loans and all Collections and other monies due or to become due in payment of such Loans on and after the Initial Cut-Off Date, including any Prepayment Amounts, any
Prepayment Premiums, any Late Charges, any payments in respect of a casualty or early termination, any Insurance Proceeds and any Liquidation Proceeds received with respect to the foregoing, (ii) the Collateral related to such Loans (to the
extent the Originator, other than solely in its capacity as collateral agent under any loan agreement with an Obligor, has been granted a Lien thereon), including the security interest of the Trust Depositor in such Collateral, all proceeds from any
sale or other disposition of such Collateral and all Insurance Policies, (iii) the Loan Files and all documents and records (including computer records) relating thereto, (iv) all guarantees, indemnities, warranties and other agreements or
arrangements of whatever character from time to time supporting or securing payment of such Loans, (v) the Trust Accounts and all Trust Account Property (to the extent of the Trust Depositor’s interest if any therein), and (vi) all
income, payments, products, proceeds and other benefits of any and all of the foregoing. 
 Capitalized terms used but not defined herein
shall have the meanings given such terms in the Transfer and Servicing Agreement. 
 This Assignment is made pursuant to and in reliance upon
the representations and warranties on the part of the undersigned contained in Article III of the Transfer and Servicing Agreement and no others. 
 IN WITNESS WHEREOF, the undersigned has caused this Assignment to be duly executed this 28th day of July, 2006. 
  

			
	ACAS BUSINESS LOAN LLC, 2006-1
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  



  

 A-1 








 EXHIBIT B 
 to Transfer and 
 Servicing Agreement 
 FORM OF CLOSING CERTIFICATE OF TRUST DEPOSITOR 
 (ACAS Business Loan Trust 2006-1)

 The undersigned certifies that [he] is the [Vice President] of ACAS Business Loan LLC, 2006-1, a Delaware limited liability company, as
the Trust Depositor (the “Trust Depositor”), and that, in the capacity as such officer, is duly authorized to execute and deliver this certificate on behalf of the Trust Depositor in connection with the Transfer and Servicing
Agreement (such agreement as amended, modified, waived, supplemented or restated from time to time, the “Agreement”), dated as of July 28, 2006, by and among ACAS Business Loan Trust 2006-1, as the Issuer, the Trust Depositor,
as the Trust Depositor, Wells Fargo Bank, National Association, as the Indenture Trustee and as the Backup Servicer, and American Capital Strategies, Ltd., as the Originator and as the Servicer (all capitalized terms used herein without definition
have the respective meanings set forth in the Agreement), and further certifies in [his] capacity as such officer as follows (it being understood that these certifications are being relied upon by, among others, the Initial Purchasers and their
counsel in connection with the Initial Purchasers’ undertakings in connection with the subject transactions): 
 1. Attached hereto as
Annex I is a true and correct copy of the Certificate of Formation of the Trust Depositor, together with all amendments thereto as in effect on the date hereof, which documents were in full force and effect on July
[    ], 2006, and at all times subsequent thereto, and no other amendments have been authorized by the members or managers of the Trust Depositor. 
 2. Attached hereto as Annex II is a Certificate of the Secretary of State of the State of Delaware, dated July [    ],
2006, stating that the Trust Depositor is duly formed under the laws of the State of Delaware and is in good standing, and a Certificate of the State of Maryland, dated July [    ], 2006, stating that the Trust Depositor
is in good standing as a foreign limited liability company in the State of Maryland. 
 3. Attached hereto as Annex III is a true and
correct copy of the Limited Liability Company Operating Agreement of the Trust Depositor, together with all amendments thereto in effect on the date hereof, which documents were in full force and effect on July 28, 2006, and at all times
subsequent thereto. 
 4. Attached hereto as Annex IV is a true and correct copy of resolutions adopted pursuant to the unanimous
written consent of the Board of Managers of the Trust Depositor relating to the authorization, execution, delivery and performance of (among other things) the Agreement and the other Transaction Documents. Said resolutions have not been amended,
modified, annulled or revoked, and the same were in full force and effect on July 28, 2006, and at all times subsequent thereto, and said resolutions are the only resolutions relating to these matters which have been adopted by the Board of
Managers. 
  

 B-1 








 5. Each person named on Annex V attached hereto is a duly elected, qualified and incumbent officer
of the Trust Depositor and the signature set forth opposite his or her name on such Annex V is that person’s genuine signature. 
 6. No event with respect to the Trust Depositor has occurred and is continuing that would constitute an Event of Default or an event that, with notice or the passage of time or both, would become an Event of Default as defined in the
Transaction Documents. 
 7. All federal, state and local taxes of the Trust Depositor due and owing as of the date hereof have been paid or
adequate provisions for the payment thereof have been made. 
 8. All representations and warranties of the Trust Depositor contained in the
Transaction Documents or any other related documents, or in any document, certificate or financial or other statement delivered in connection therewith, are true and correct in all material respects as of the date hereof. 
 9. There is no action, investigation or proceeding pending or, to our knowledge, threatened against the Trust Depositor before any court, administrative
agency or other tribunal (a) asserting the invalidity of the Transaction Documents; (b) seeking to prevent the consummation of any of the transactions contemplated by the Transaction Documents; or (c) which is likely to materially and
adversely affect the Trust Depositor’s performance of its obligations under, or the validity or enforceability of, the Transaction Documents. 
 10. No consent, approval, authorization or order of, and no notice to or filing with, any governmental agency or body or state or federal court is required to be obtained by the Trust Depositor for the Trust Depositor’s consummation of
the transactions contemplated by the Transaction Documents, except such as have been obtained or made and such as may be required under the blue sky laws of any jurisdiction in connection with the issuance and sale of the Securities. 
 11. The Trust Depositor is not a party to any agreements or instruments evidencing or governing indebtedness for money borrowed or by which the Trust
Depositor or its property is bound (other than the Transaction Documents). 
 12. None of (a) the Originator’s transfer and
assignment of the Loan Assets to the Trust Depositor; (b) the Trust Depositor’s concurrent transfer and assignment of the Loan Assets to the Issuer; (c) the Trust Depositor’s execution and delivery of the Transaction Documents;
nor (d) the Trust Depositor’s consummation of any of the transactions contemplated by the Transaction Documents, will violate or conflict with any agreement or instrument to which the Trust Depositor is a party or by which it or its
property is otherwise bound. 
 13. In connection with the transfer of Loans and related Collateral contemplated in the Transaction
Documents, the Trust Depositor (a) is not making such transfer with the actual intent to hinder, delay or defraud any creditor of the Trust Depositor; (b) is not receiving less than a reasonably equivalent value in exchange for such
transfer; (c) is not on the date hereof insolvent (nor will it become insolvent as a result thereof); (d) is not engaged (or about to engage) in a business or transaction for which it has unreasonably small capital; and (e) does not
intend to incur or believe it will incur debts beyond its ability to pay when matured. 
  

 B-2 








 14. Each of the agreements and conditions of the Trust Depositor to be performed on or before the Closing
Date pursuant to the Transaction Documents have been performed in all material respects. 
 15. The Trust Depositor has not executed for
filing any UCC financing statements listing the Loan Assets as collateral other than financing statements (a) relating to the transactions contemplated in the Agreement or (b) filed in connection with a Warehouse Transaction, which
financing statements, with respect to the Loan Assets, shall be released on or before the Closing Date. 
 16. To the best of my knowledge
after reasonable investigation, since the respective dates as of which information is given in the Offering Memorandum, there has been no material adverse change in the condition, financial or otherwise, or in the earnings, results of operations,
business affairs or business prospects of the Trust Depositor, whether or not arising in the ordinary course of business, or in the ability of the Trust Depositor to perform its obligations under the Purchase Agreement or under the Transaction
Documents or in the characteristics of the Loans. 
 17. Nothing has come to the attention of the Trust Depositor that would lead it to
believe that the Offering Memorandum, and any amendment thereof or supplement thereto, or any Additional Offering Documents (as defined in the Purchase Agreement), as of the date of such document and as of the Closing Date, contained an untrue
statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
 * * * * 
 IN WITNESS WHEREOF, I have
affixed my signature hereto this 28th day of July, 2006. 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  



  

 B-3 








 ANNEX I 
 to Closing Certificate of 
 Trust Depositor 
 CERTIFICATE OF FORMATION 
  

 Annex I-1 








 ANNEX II 
 to Closing Certificate of 
 Trust Depositor 
 GOOD STANDING CERTIFICATES 
  

 Annex II-1 








 ANNEX III 
 to Closing Certificate of 
 Trust Depositor 
 LIMITED LIABILITY COMPANY OPERATING AGREEMENT 
  

 Annex III-1 








 ANNEX IV 
 to Closing Certificate of 
 Trust Depositor 
 RESOLUTIONS 
  

 Annex IV-1 








 ANNEX V 
 to Closing Certificate of 
 Trust Depositor 
 INCUMBENCY OF SIGNING OFFICERS 
  

					
	 Name of Officer
	  	 Title
	  	 Signature

			
	Malon Wilkus	  	President	  	  

			
	John R. Erickson	  	Vice President and Treasurer	  	  

			
	Samuel A. Flax	  	Vice President and Secretary	  	  

			
	Ira J. Wagner	  	Vice President	  	  

			
	Thomas A. McHale	  	Vice President and Assistant Secretary	  	  

			
	Richard E. Konzmann	  	Vice President and Assistant Secretary	  	  

			
	Cydonii V. Fairfax	  	Vice President and Assistant Secretary	  	  

			
	John J. Hooker	  	Vice President	  	  

			
	Michael Sarner	  	Vice President	  	  


  

 Annex V-1 








 EXHIBIT C 
 to Transfer and 
 Servicing Agreement 
 FORM OF CLOSING CERTIFICATE OF SERVICER/ORIGINATOR 
 (ACAS Business Loan Trust
2006-1) 
 The undersigned certifies that he is the Executive Vice President, General Counsel, Chief Compliance Officer and Secretary of
American Capital Strategies, Ltd. (“American Capital”), and that, in the capacity as such officer, he is duly authorized to execute and deliver this certificate on behalf of American Capital, as the Originator and as the Servicer,
in connection with the Transfer and Servicing Agreement (such agreement as amended, modified, waived, supplemented or restated from time to time, the “Agreement”), dated as of July 28, 2006, by and among American Capital, as
the Originator and as the Servicer, ACAS Business Loan LLC, 2006-1, as the Trust Depositor, Wells Fargo Bank, National Association, as the Indenture Trustee and as the Backup Servicer, and ACAS Business Loan Trust 2006-1, as the Issuer (all
capitalized terms used herein without definition having the respective meanings set forth in the Agreement) and further certifies in his capacity as such officer as follows (it being understood that these certifications are being relied upon by,
among others, the Initial Purchaser and its counsel in connection with the Initial Purchaser’s undertakings in connection with the subject transactions): 
 1. Attached hereto as Annex I is a true and correct copy of the Second Amended and Restated Certificate of Incorporation of American Capital (the “Certificate of Incorporation”), together with
all amendments thereto as in effect on the date hereof, which documents were in full force and effect on July 28, 2006, and at all times subsequent thereto, and no other amendments have been authorized by the Board of Directors or shareholders
of American Capital. 
 2. Attached hereto as Annex II is a Certificate of the Secretary of State of the State of Delaware, dated July
[    ], 2006, stating that American Capital is duly incorporated under the laws of the State of Delaware and is in good standing, and a Certificate of the State Department of Assessments and Taxation of the State of Maryland,
dated July [    ], 2006, stating that American Capital Strategies, Ltd. is in good standing as a foreign corporation in the State of Maryland. 
 3. Attached hereto as Annex III is a true and correct copy of the Second Amended and Restated Bylaws of American Capital, dated as of August 12, 1997, together with all amendments thereto, which are in
full force and effect, and have been at all times subsequent to their adoption. 
 4. Attached hereto as Annex IV is a true and
correct copy of resolutions adopted at a meeting of the Board of Directors of American Capital on July 28, 2006 relating to the authorization, execution, delivery and performance of (among other things) the Agreement and the other Transaction
Documents. Said resolutions have not been amended, modified, annulled or revoked, and the same were in full force and effect on July 28, 2006, and at all times subsequent thereto, and said resolutions are the only resolutions relating to these
matters which have been adopted by the Board of Directors. 
  

 C-1 








 5. Each person named on Annex V attached hereto is a duly elected, qualified and incumbent officer
of the American Capital and the signature set forth opposite his or her name on such Annex V is that person’s genuine signature. 
 6. In connection with the sale of the Offered Notes, American Capital has prepared a preliminary confidential offering memorandum dated July 19, 2006 (including any exhibits thereto and all information incorporated therein by
reference, the “Preliminary Memorandum”), as supplemented by a further preliminary confidential offering memorandum dated July 24, 2006 (including any exhibits thereto and all information incorporated therein by reference, the
“Preliminary Memorandum Supplement”), and a final confidential offering memorandum dated the date hereof (including any exhibits, amendments or supplements thereto and all information incorporated therein by reference, the
“Final Memorandum”, and each of the Preliminary Memorandum, the Preliminary Memorandum Supplement and the Final Memorandum, a “Memorandum”) including a description of the terms of the Offered Notes, the terms of the
offering, and a description of the Trust, and certain Additional Offering Documents (as defined herein). It is understood and agreed that the opening of business on July 26, 2006 constitutes the time of the contract of sale for each purchaser
of the Offered Notes offered to the investors for purposes of Rule 159 under the Securities Act (the “Time of Sale”) and that (i) the Preliminary Memorandum Supplement, which supplements, amends and restates the Preliminary
Memorandum, and supplements any Additional Offering Documents delivered by or on behalf of the Company to prospective purchasers of the Offered Notes, and (ii) the information set forth on Schedule I of the Purchase Agreement dated
July 26, 2006, by and among American Capital and the other parties named therein constitute the entirety of the information conveyed to investors as of the Time of Sale (the “Time of Sale Information”). 
 7. No event with respect to American Capital has occurred and is continuing that would constitute an Event of Default or Servicer Default or an event
that, with notice or the passage of time, would constitute an Event of Default or Servicer Default as defined in the Transaction Documents. 
 8. All federal, state and local taxes of American Capital due and owing as of the date hereof have been paid or adequate provisions for the payment thereof have been made. 
 9. All representations and warranties of American Capital contained in the Transaction Documents or in any document, certificate or financial or other
statement delivered in connection therewith are true and correct in all material respects as of the date hereof. 
 10. There is no action,
investigation or proceeding pending or, to my knowledge, threatened against American Capital before any court, administrative agency or other tribunal (a) asserting the invalidity of any Transaction Document to which American Capital is a
party; (b) seeking to prevent the consummation of any of the transactions contemplated by the Transaction Documents; or (c) that is likely to materially and adversely affect American Capital’s performance of its obligations under, or
the validity or enforceability of, the Transaction Documents. 
  

 C-2 








 11. No consent, approval, authorization or order of, and no notice to or filing with, any governmental
agency or body or state or federal court is required to be obtained by American Capital for its consummation of the transactions contemplated by the Transaction Documents, except such as have been obtained or made and such as may be required under
the blue sky laws of any jurisdiction in connection with the issuance and sale of the Securities. 
 12. None of (a) American
Capital’s transfer and assignment of the Loan Assets to the Trust Depositor; (b) American Capital’s entering into of the Transaction Documents; nor (c) American Capital’s consummation of any of the transactions contemplated
in the Transaction Documents, will violate or conflict with any agreement or instrument to which American Capital is a party or by which it or its property is otherwise bound. 
 13. In connection with the transfers of Loans and related Collateral contemplated in the Transaction Documents, American Capital (a) is not making
such transfer with actual intent to hinder, delay or defraud any creditor of American Capital; (b) is not receiving less than a reasonably equivalent value in exchange for such transfer; (c) is not on the date hereof insolvent (nor will
American Capital become insolvent as a result thereof); (d) is not engaged (or about to engage) in a business or transaction for which it has unreasonably small capital; and (e) does not intend to incur or believe it will incur debts
beyond its ability to pay when matured. 
 14. Each of the agreements and conditions of American Capital to be performed or satisfied on or
before the Closing Date under the Transaction Documents has been performed or satisfied in all material respects. 
 15. American Capital has
not executed for filing any UCC financing statements listing the Loan Assets as collateral other than financing statements (a) relating to the transactions contemplated in the Agreement or (b) filed in connection with a Warehouse
Transaction, which financing statements, with respect to the Loan Assets, shall be released on or before the Closing Date. 
 16. To the best
of my knowledge after reasonable investigation, since the respective dates as of which information is given in the Offering Memorandum, there has been no material adverse change in the condition, financial or otherwise, or in the earnings, results
of operations, business affairs or business prospects of American Capital, whether or not arising in the ordinary course of business, or in the ability of American Capital to perform its obligations under the Purchase Agreement or under the
Transaction Documents or in the characteristics of the Loans. 
 17. Nothing has come to the attention of American Capital that would lead it
to believe that the Offering Memorandum, and any amendment thereof or supplement thereto, or any Additional Offering Documents (as defined in the Purchase Agreement), as of the date of such document and as of the Closing Date, contained an untrue
statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
 * * * * 
 IN WITNESS WHEREOF, I have
affixed my signature hereto this 28th day of July, 2006. 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  



  

 C-3 








 ANNEX I 
 to Closing Certificate of 
 Servicer/Originator 
 CERTIFICATE OF INCORPORATION 
  

 Annex I-1 








 ANNEX II 
 to Closing Certificate of 
 Servicer/Originator 
 GOOD STANDING CERTIFICATES 
  

 Annex II-1 








 ANNEX III 
 to Closing Certificate of 
 Servicer/Originator 
 BYLAWS 
  

 Annex III-1 








 ANNEX IV 
 to Closing Certificate of 
 Servicer/Originator 
 RESOLUTIONS 
  

 Annex IV-1 








 ANNEX V 
 to Closing Certificate of 
 Servicer/Originator 
 INCUMBENCY OF SIGNING OFFICERS 
  

					
	 NAME
	  	 TITLE
	  	 SIGNATURE

			
	Malon Wilkus	  	Chairman, Chief Executive Officer and President	  	
  

			
	John R. Erickson	  	Executive Vice President and Chief Financial Officer	  	
  

			
	Samuel A. Flax	  	Executive Vice President, General Counsel, Chief Compliance Officer and Secretary	  	


  

			
	Ira J. Wagner	  	Executive Vice President and Chief Operating Officer	  	
  

			
	Thomas A. McHale	  	Senior Vice President, Finance	  	  

			
	Richard E. Konzmann	  	Senior Vice President, Accounting	  	  

			
	Cydonii V. Fairfax	  	Vice President, Associate General Counsel and Assistant Secretary	  	
  

			
	John J. Hooker	  	Vice President, Finance	  	  

			
	Michael Sarner	  	Vice President, Treasury and Analysis	  	  


  

 Annex V-1 








 EXHIBIT D-1 
 to Transfer and 
 Servicing Agreement 
 FORM OF INITIAL CERTIFICATION 
 July 28, 2006 
 ACAS Business Loan LLC, 2006-1 
 2 Bethesda Metro Center 
 14th Floor 
 Bethesda, Maryland 20814 
 Attention: Compliance Officer 
 Facsimile No.: (301) 654-6714 
 American Capital Strategies, Ltd.

 2 Bethesda Metro Center 
 14th Floor 
 Bethesda, Maryland 20814 
 Attention: Compliance Officer 
 Facsimile No.: (301) 654-6714 

Bank of Montreal 
 as Swap Counterparty 
 130 Adelaide Street West, Suite 500 
 Toronto, Ontario M5H 4E1 
 Attention: Manager, Confirmations 
  

	Re:	Transfer and Servicing Agreement - ACAS Business Loan Trust 2006-1 

 Ladies and Gentlemen: 
 In accordance with Section 2.08 of the above-captioned Transfer and Servicing Agreement (such
agreement as amended, modified, waived, supplemented or restated from time to time, the “Agreement”), the undersigned, as the Indenture Trustee, hereby certifies that, except as noted on the attachment hereto, if any (the
“Loan Exception Report”), it has received each of the documents required to be delivered to it pursuant to Section 2.07 of the Agreement with respect to each Loan listed in the List of Loans, and the documents contained
therein appear to bear original signatures, as applicable. Capitalized but undefined terms have the meanings set forth in the Agreement. 
 The Indenture Trustee has made no independent examination of any such documents beyond the review specifically required in the above-referenced Agreement. 
 The Indenture Trustee makes no representations as to: (i) the validity, legality, sufficiency, enforceability or genuineness of any such documents or any of the Loans identified on the List of Loans, or
(ii) the collectibility, insurability, effectiveness or suitability of any such Loan. 
  

 D-1-1 









			
	WELLS FARGO BANK,
	 NATIONAL ASSOCIATION,
 as the
Indenture Trustee

		
	By:	 	  

	Name:	 	  

	Title:	 	  



  

 D-1-2 








 EXHIBIT D-2 
 to Transfer and 
 Servicing Agreement 
 FORM OF FINAL CERTIFICATION 
 July 28, 2006 
 ACAS Business Loan LLC, 2006-1 
 2 Bethesda Metro Center 
 14th Floor 
 Bethesda, Maryland 20814 
 Attention: Compliance Officer 
 Facsimile No.: (301) 654-6714 
 American Capital Strategies, Ltd.

 2 Bethesda Metro Center 
 14th Floor 
 Bethesda, Maryland 20814 
 Attention: Compliance Officer 
 Facsimile No.: (301) 654-6714 

Bank of Montreal 
 as Swap Counterparty 
 130 Adelaide Street West, Suite 500 
 Toronto, Ontario M5H 4E1 
 Attention: Manager, Confirmations 
  

	Re:	Transfer and Servicing Agreement - ACAS Business Loan Trust 2006-1 

 Ladies Gentlemen: 
 In
accordance with Section 2.08 of the above-captioned Transfer and Servicing Agreement (such agreement as amended, modified, waived, supplemented or restated from time to time, the “Agreement”), the undersigned, as the
Indenture Trustee, hereby certifies that, except as noted on the attachment hereto, as to each Loan listed in the List of Loans (each as defined in the Agreement) (other than any Loan paid in full or listed on the attachment hereto) it has reviewed
the documents delivered to it pursuant to Section 2.07 of the Agreement and has determined that (i) all such documents are in its possession, (ii) such documents have been reviewed by it and have not been mutilated, damaged,
torn or otherwise physically altered and relate to such Loan and (iii) based on its examination, and only as to the foregoing documents, the information set forth in the List of Loans respecting such Loan is correct. The Indenture Trustee has
made no independent examination or inquiry of such documents beyond the review specifically required in the Agreement. 
 The Indenture
Trustee makes no representations as to: (i) the validity, legality, enforceability or genuineness of any such documents or any of the Loans identified on the List of 

  

 D-2-1 








 
Loans, (ii) the collectibility, insurability, effectiveness or suitability of any such Loan, or (iii) the compliance by such documents with
statutory or regulatory guidelines. 
  

			
	WELLS FARGO BANK,
	NATIONAL ASSOCIATION, as the Indenture Trustee
		
	By:	 	  

	Name:	 	  

	Title:	 	  



  

 D-2-2 








 EXHIBIT E 
 to Transfer and 
 Servicing Agreement 
 FORM OF REQUEST FOR RELEASE OF DOCUMENTS 
 (ACAS Business Loan Trust 2006-1) 

 

	To:	Wells Fargo Bank, National Association, as the Indenture Trustee 

  

	Re:	Transfer and Servicing Agreement (the “Transfer and Servicing Agreement”) - ACAS Business Loan Trust 2006-1 

 In connection with the administration of the pool of Loans held by you, we request the release, and acknowledge receipt, of the [Indenture Trustee’s
Document File/specify document] for the Loan described below, for the reason indicated. 
 Capitalized but undefined terms have the meanings
set forth in the Transfer and Servicing Agreement. 
 Obligor’s Name, Address & Zip Code: 

Loan Number: 
 Reason for Requesting Documents (check one): 
  

			
	             1.	  	 Loan paid in full
  
 (Servicer hereby certifies that all amounts received in connection therewith have been credited to the Collection Account.)

		
	             2.	  	 Loan liquidated
  
 (Servicer hereby certifies that all proceeds of foreclosure, insurance or other liquidation have been finally received and credited to the Collection Account.)

		
	             3.	  	Loan in foreclosure
		
	             4.	  	 Loan repurchased
  
 (Servicer hereby certifies that the repurchase price to the extent required has been credited to the Collection Account and/or remitted to the Indenture Trustee for deposit into the Note Distribution Account pursuant
to the Transfer and Servicing Agreement.)

		
	             5.	  	 Loan substituted
  
 (Servicer hereby certifies that one or more Substitute Loan(s) has been provided pursuant to the Transfer and Servicing Agreement.)

		
	             6.	  	Other

  

 E-1 








 If box 1, 2, 4 or 5 above is checked, and if all or part of the Indenture Trustee’s document file
was previously released to us, please release to us any additional documents in your possession relating to the above specified Loan. 
 If
box 3 or 6 above is checked, we agree to return all of the above documents to you when our need therefor no longer exists. 
  

			
	AMERICAN CAPITAL STRATEGIES, LTD.,
	 as the Servicer

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

		
	 Date:
	 	  



  

 E-2 








 EXHIBIT F 
 to Transfer and 
 Servicing Agreement 
 FORM OF ADDITIONAL LOAN INFORMATION SCHEDULE 
 [INTENTIONALLY OMITTED] 
  

 F-1 








 EXHIBIT G 
 to Transfer and 
 Servicing Agreement 
 LIST OF LOANS 
 [INTENTIONALLY OMITTED] 
  

 G-1 








 EXHIBIT H 
 to Transfer and 
 Servicing Agreement 
 FORM OF QUARTERLY SERVICER REPORT 
 (including Quarterly Loan Tape)* 
 AMERICAN CAPITAL STRATEGIES,
LTD. 
 SERVICER’S CERTIFICATE 
 MIDDLE
MARKET COMMERCIAL LOAN BACKED NOTES 
 SERIES 2006-1, CLASS A, CLASS B, CLASS C, CLASS D and CLASS E 
  

					
	Record Date	  		  	
			
	Determination Date	  	three business days prior to Payment Date	  	
			
	Payment Date	  		  	
			
	Days during Accrual Period	  		  	
			
	Year Basis	  	360	  	

  

									
	 AGGREGATE PRINCIPAL BALANCE OF LOANS
	  		  		  		  	
					
	 Aggregate Outstanding Loan Balance, beginning of Collection Period
	  	  
	  		  		  	
	 Less: Scheduled Principal Payments
	  	  
	  		  		  	
	 Less: Prepayments
	  	  
	  		  		  	
	 Less: Aggregate Principal Balance of Defaulted Loans that became
	  	  
	  		  		  	
	 Defaulted Loans during the current Collection Period
	  	  
	  		  		  	
	 Less: Repurchased Ineligible and Excess Loans
	  	  
	  		  		  	
	 Less: Outstanding Loan Balance(s) to be Substituted
	  	  
	  		  		  	
	 Add: Aggregate Principal Balance of Substitute Loan(s)
	  	  
	  		  		  	
	 Aggregate Outstanding Loan Balance, end of Collection Period
	  	  
	  		  		  	
					
	AGGREGATE PRINCIPAL BALANCE OF NOTES (post-distribution)	  		  		  		  	
					
	 Class A Principal Amount, end of Interest Accrual Period
	  	  
	  	 % of O/S Notes
	  	  
	  	 OC%

					
	 Class B Principal Amount, end of Interest Accrual Period
	  	  
	  		  	  
	  	
					
	 Class C Principal Amount, end of Interest Accrual Period
	  	  
	  		  	  
	  	
					
	 Class D Principal Amount, end of Interest Accrual Period
	  	  
	  		  	  
  
	  	

  


	*	ADDITIONAL PRINCIPAL AMOUNT


 The Quarterly Loan Tape includes fields for each Loan showing (i) the Outstanding Loan Balance of the Loan,
(ii) the current Risk Rating of the Loan, (iii) the original Risk Rating of the Loan, and will include an electronic Excel file containing the inputs for the Fitch CRS model (to the extent reasonably available and to be updated on a
quarterly basis) and, if the Servicer acquires the Fitch CRS Model, an electronic Excel file containing the outputs for the Fitch CRS Model. Nothing contained herein or any Transaction Document shall be construed to obligate the Servicer to acquire
the Fitch CRS Model. 
  

 H-1 









									
	 Class E Principal Amount, end of Interest Accrual Period
	  	  
	  		  	  
	  	
					
	 Aggregate Outstanding Principal Balance
	  	  
	  		  		  	
					
	DELINQUENT LOANS	  		  		  		  	
					
	 1-29 DPD
	  	  
	  		  		  	
					
	 30-59 DPD
	  	  
	  		  		  	
					
	 60-89 DPD
	  	  
	  		  		  	
					
	 90-119 DPD
	  	  
	  		  		  	
					
	 120+ DPD
	  	  
	  		  		  	
					
	DEFAULTED LOANS	  		  		  		  	
					
	 Cumulative Aggregate Principal Balance of Defaulted Contracts,beginning of Collection Period
	  	  
	  		  		  	
					
	 Aggregate Principal Balance of Defaulted Contracts that became Defaulted Contracts during the current Collection Period
	  	  
	  		  		  	
					
	 Cumulative Aggregate Principal Balance of Defaulted Contracts, end of Collection Period
	  	  
	  		  		  	
					
	 Total
	  	  
	  		  		  	
					
	RESERVE FUND	  		  		  		  	
					
	 Reserve Fund balance, beginning of Collection Period
	  	  
	  		  		  	
					
	 Required Reserve Amount
	  	  
	  		  		  	
	 Three months interest on Class A, Class B, Class C and Class D
	  	  
	  		  		  	
	 Aggregate Outstanding Loan Balance of Loans that are Delinquent
	  	  
	  		  		  	
					
	 Total
	  	  
	  		  		  	
					
	 Deposit from (release to) waterfall
	  	  
	  		  		  	
					
	 Reserve Fund Balance, end of Collection Period
	  	  
	  		  		  	
					
	 Servicing Fee
	  	  
	  		  		  	
					
	 Unpaid Servicing Fee from prior Collection Periods
	  	  
	  		  		  	
					
	 Total Servicing Fee due
	  	  
	  		  		  	
					
	 Servicer Principal Advances
	  	  
	  		  		  	
					
	 Principal Collections
	  	  
	  		  		  	
					
	 Prepayments
	  	  
	  		  		  	
					
	 Total Principal Collections/Advances
	  	  
	  		  		  	
					
	 Servicer Interest Advances
	  	  
	  		  		  	

  

 H-2 









									
	 Interest Collections
	  		  		  		  	
					
	 Prepayments
	  	  
	  		  		  	
					
	 Total Interest Collections/Advances
	  	  
	  		  		  	
					
	 Prepayments
	  	  
	  		  		  	
					
	 Class A Principal Amount, beginning of Interest Accrual Period
	  	  
	  		  		  	
					
	 Class B Principal Amount, beginning of Interest Accrual Period
	  	  
	  		  		  	
					
	 Class C Principal Amount, beginning of Interest Accrual Period
	  	  
	  		  		  	
					
	 Class D Principal Amount, beginning of Interest Accrual Period
	  	  
	  		  		  	
					
	 Class E Principal Amount, end of Interest Accrual Period
	  	  
	  		  		  	
					
	 Aggregate Outstanding Principal Balance, beginning of Interest Accrual Period
	  	  
	  		  		  	
					
	 Class A Note Interest Rate
	  	  
	  		  		  	
					
	 Class B Note Interest Rate
	  	  
	  		  		  	
					
	 Class C Note Interest Rate
	  	  
	  		  		  	
					
	 Class D Note Interest Rate
	  	  
	  		  		  	
					
	 Class A Interest Shortfall from previous Interest Accrual Period
	  	  
	  		  		  	
					
	 Class B Interest Shortfall from previous Interest Accrual Period
	  	  
	  		  		  	
					
	 Class C Interest Shortfall from previous Interest Accrual Period
	  	  
	  		  		  	
					
	 Class D Interest Shortfall from previous Interest Accrual Period
	  	  
	  		  		  	
					
	 Class A as a percent of Aggregate Outstanding Principal Balance
	  	  
	  		  		  	
					
	 Class B as a percent of Aggregate Outstanding Principal Balance
	  	  
	  		  		  	
					
	 Class C as a percent of Aggregate Outstanding Principal Balance
	  	  
	  		  		  	
					
	 Class D as a percent of Aggregate Outstanding Principal Balance
	  	  
	  		  		  	
					
	PORTFOLIO RATE/YIELD CALCULATION	  		  		  		  	
					
	 Interest Collections, balance as of the end of Collection Period
	  	  
	  		  		  	
	 (annualized)
	  	  
	  		  		  	
					
	 Aggregate Principal Amount of Class A, Class B, Class C and Class D as of last day of Collection Period
	  	  
	  		  		  	
					
	 Portfolio Rate, for Collection Period
	  	  
	  		  		  	
					
	 Weighted Average Interest Rate
	  	  
	  		  		  	
					
	 Portfolio Yield, current period
	  	  
	  		  		  	

  

 H-3 









																	
	 INTEREST ALLOCATIONS
	  	 	  	 	  	 	  	Wells
Fargo	  	American
Capital	  	Wachovia	  	Note
Holders	  	Total
	 	  	Due	  	Paid	  	Shortfall	  	 	  	 	  	 	  	 	  	 
							
	 Interest Collections Account, balance as of end of Collection Period
	  	  
	  		  		  		  		  	
							
	 Reserve Account balance
	  	  
	  		  		  		  		  	
							
	 Total available for distribution
	  	  
	  		  		  		  		  	
							
	 1       Any amounts owed to Swap Counterparties, other than swap breakage; provided that
following an Event of Default, Swap Breakage Costs shall be payable hereunder in an amount not to exceed $500,000 in the aggregate, together with interest accrued thereon
	  	  
	  		  		  		  		  	
							
	 2       Prior to a Fee Event, Administrative Expenses, subject to the limitations set forth in the
definition thereof
	  	  
	  		  		  		  		  	
							
	 3       Certain amounts to reimburse Servicer Advances relating to interest
	  	  
	  		  		  		  		  	
							
	 4       Servicing Fee
	  	  
	  		  		  		  		  	
							
	 5       Class A Interest Amount plus any Class A Interest Shortfall
	  	  
	  		  		  		  		  	
							
	 6       Class B Interest Amount plus any Class B Interest Shortfall
	  	  
	  		  		  		  		  	
							
	 7       Class C Interest Amount plus any Class C Interest Shortfall
	  	  
	  		  		  		  		  	
							
	 8       Class D Interest Amount plus any Class D Interest Shortfall
	  	  
	  		  		  		  		  	
							
	 9       Any Additional Principal Amount sequentially to the holders of the Class A Notes until
reduced to zero, the Class B Accrued Payable, the Class B Notes until reduced to zero, the Class C Accrued Payable, the Class C Notes until reduced to zero, the Class D Accrued Payable and the Class D Notes until reduced to zero
	  	  
	  		  		  		  		  	
							
	 10     Any amount to the Reserve Fund which will equal the Required Reserve Amount
	  	  
	  		  		  		  		  	
							
	 11     Amounts not paid by Originator and due in respect of Irish Stock Exchange Listing
	  	  
	  		  		  		  		  	
							
	 12     Any unpaid Servicer Advances relating to interest
	  	  
	  		  		  		  		  	

  

 H-4 









																	
	 13     Any unpaid swap breakage cost to Swap Counterparties
	  	  
	  		  		  		  		  	
							
	 14     Other amounts to the Indenture Trustee, Backup Servicer and Owner Trustee plus Additional Servicing
Fee
	  	  
	  		  		  		  		  	
							
	 15     Excess Interest Collections to the Certificateholder
	  	  
	  		  		  		  		  	
							
	PRINCIPAL ALLOCATIONS ON PRO RATA PAYMENT DATES	  	  
	  		  		  		  		  	
							
	          Excess Interest Collections after allocating payments
	  	  
	  		  		  		  		  	
							
	          Total
	  	  
	  		  		  		  		  	
							
	 1       Certain amounts to reimburse Servicer Advances relating to principal
	  	  
	  		  		  		  		  	
							
	 2       During the Pre-Funding Period and the Replenishment Period, all Principal Collections other than
Principal Collections constituting the Special Redemption Amount shall be deposited to the Principal Collection Account for reinvestment in Additional Loans
	  	  
	  		  		  		  		  	
							
	 3       After the Replenishment Period (or in the case of the Special Redemption Amount, on any Payment
Date), to the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E Note, pro rata until the Outstanding Principal Balance of each such class of Notes is reduced to zero
	  	  
	  		  		  		  		  	
							
	 4       Any unpaid Servicer Advances relating to principal
	  	  
	  		  		  		  		  	
							
	 5       Any unpaid quarterly Servicing Fee
	  	  
	  		  		  		  		  	
							
	 6       Amounts to Swap Counterparties for unpaid breakage cost
	  	  
	  		  		  		  		  	
							
	 7       Other amounts to the Indenture Trustee, Backup Servicer and Owner Trustee plus Additional
Servicing Fee to the extent not previously paid
	  	  
	  		  		  		  		  	
							
	 8       Amounts not paid by Originator and due in respect of Irish Stock Exchange
Listing
	  	  
	  		  		  		  		  	
							
	 9       All remaining amounts to the Certificateholder
	  	  
	  		  		  		  		  	
							
	PRINCIPAL ALLOCATIONS ON SEQUENTIAL PAYMENT DATES	  	  
	  		  		  		  		  	
							
	          Excess Interest Collections after allocating payments
	  	  
	  		  		  		  		  	

  

 H-5 









																	
	 Total
	  	  
	  		  		  		  		  	
							
	 1       Certain amounts to reimburse Servicer Advances relating to principal
	  	  
	  		  		  		  		  	
							
	 2       Amounts to the Class A Notes first, an amount equal to any unpaid Class A Interest
Amount for the related Interest Accrual Period and any unpaid Class A Interest Shortfall
	  	  
	  		  		  		  		  	
							
	 3       Amounts to the Class A Notes until the Outstanding Principal Balance is reduced to
zero
	  	  
	  		  		  		  		  	
							
	 4       Amounts to the Class B Notes, first, an amount equal to any unpaid Class B Interest Amount for
the related Interest Accrual Period and any unpaid Class B Interest Shortfall, second, the Class B Accrued Payable to the extent not previously paid
	  	  
	  		  		  		  		  	
							
	 5       Amounts to the Class B Notes until the Outstanding Principal Balance is reduced to
zero
	  	  
	  		  		  		  		  	
							
	 6       Amounts to the Class C Notes, first, an amount equal to any unpaid Class C Interest Amount for
the related Interest Accrual Period and any unpaid Class C Interest Shortfall, second, the Class C Accrued Payable to the extent not previously paid
	  	  
	  		  		  		  		  	
							
	 7       Amounts to the Class C Notes until the Outstanding Principal Balance is reduced to
zero
	  	  
	  		  		  		  		  	
							
	 8       Amounts to the Class D Notes, first, an amount equal to any unpaid Class D Interest Amount for
the related Interest Accrual Period and any unpaid Class D Interest Shortfall, second, the Class D Accrued Payable to the extent not previously paid
	  	  
	  		  		  		  		  	
							
	 9       Amounts to the Class D Notes until the Outstanding Principal Balance is reduced to
zero
	  	  
	  		  		  		  		  	
							
	 10     Any unpaid Servicer Advances relating to principal, to the extent not previously paid
	  	  
	  		  		  		  		  	
							
	 11     Amounts to the Servicer for accrued and unpaid quarterly Servicing Fee, to the extent not previously
paid
	  	  
	  		  		  		  		  	
							
	 12     Amounts to Swap Counterparties for unpaid swap breakage costs, together with interest accrued
thereon
	  	  
	  		  		  		  		  	
							
	 13     Other amounts to the Indenture Trustee, Backup Servicer and Owner Trustee plus Additional Servicing Fee to
the extent not previously paid
	  	  
	  		  		  		  		  	

  

 H-6 









																	
	 14     Amounts not paid by Originator and due in respect of Irish Stock Exchange Listing
	 	  
	 		 		 		 		 	
	 15     Amounts to the Class E until the Outstanding Principal Balance is reduced to zero
	 	  
	 		 		 		 		 	
	 16     All remaining amounts to the Certificateholder
	 	  
	 		 		 		 		 	

  

	
	Signature
                                        
            
	Title
                                        
                    

  

 H-7 








 DELINQUENT LOANS 
  

													
	 Name
	  	Close
Date	  	Maturity
Date	  	2006-1
Original
Amount	  	2006-1
Current
Amount	  	Period of
Delinquency	  	Comments
	 1
	  		  		  		  		  		  	
	 2
	  		  		  		  		  		  	

 DEFAULTED LOANS 
  

													
	 Name
	  	Close
Date	  	Maturity
Date	  	2006-1
Original
Amount	  	2006-1
Current
Amount	  	Period
of
Default	  	Comments
	 1
	  		  		  		  		  		  	
	 2
	  		  		  		  		  		  	
	 3
	  		  		  		  		  		  	

 SUBSTITUTED LOANS 
  

													
	 Name
	  	Close
Date	  	Maturity
Date	  	2006-1
Original
Amount	  	2006-1
Current
Amount	  	Period of
Substitution	  	Comments
	 1
	  		  		  		  		  		  	
	 2
	  		  		  		  		  		  	
	 3
	  		  		  		  		  		  	

 PREPAID LOANS 
  

													
	 Name
	  	Close
Date	  	Maturity
Date	  	2006-1
Original
Amount	  	2006-1
Current
Amount	  	Period of
Prepayment	  	Comments
	 1
	  		  		  		  		  		  	
	 2
	  		  		  		  		  		  	
	 3
	  		  		  		  		  		  	

 LOANS WITH 
 CHANGES TO 
 COVENANTS* 
  

													
	 Name
	  	Close
Date	  	Maturity
Date	  	2006-1
Original
Amount	  	2006-1
Current
Amount	  	Covenant
Changed
(Include
Section
Reference)	  	Description
of Change
	 1
	  		  		  		  		  		  	
	 2
	  		  		  		  		  		  	
	 3
	  		  		  		  		  		  	



	*	Note that information as to Loans with changes to covenants should be provided on a cumulative basis for all Loans with changes to covenants from the Initial Cut-Off Date to the
date of this Quarterly Report. 

 MATERIALLY 
 MODIFIED LOANS** 
  

													
	 Name
	  	Close
Date	  	Maturity
Date	  	2006-1
Original
Amount	  	2006-1
Current
Amount	  	Material
Modification
(Include
Reference to
portion of
Section 5.08
or 5.09
Breached)	  	Description
of Change
	 1
	  		  		  		  		  		  	
	 2
	  		  		  		  		  		  	
	 3
	  		  		  		  		  		  	



	**	Note that information as to Materially Modified Loans should be provided on a cumulative basis for all Loans so modified from the Initial Cut-Off Date to the date of this Quarterly
Report. 

 LIQUIDATION 
 EXPENSES

  

											
	 Obligor Name
	  	Close
Date	  	Maturity
Date	  	2006-1
Original
Amount	  	2006-1
Current
Amount	  	Description
of
Liquidation
Expenses
(Itemize
and Provide
Breakdown)
	 1
	  		  		  		  		  	
	 2
	  		  		  		  		  	
	 3
	  		  		  		  		  	

  

 H-8 








 LOANS EXPECTED TO BE PAID IN FULL IN NEXT COLLECTION PERIOD 
  

													
	 Name
	  	Close
Date	  	Maturity
Date	  	2006-1
Original
Amount	  	2006-1
Current
Amount	  	Expected
Date of
Payment
in Full	  	Comments
	 1
	  		  		  		  		  		  	
	 2
	  		  		  		  		  		  	
	 3
	  		  		  		  		  		  	

 Portfolio Criteria 
 The undersigned, a Responsible Officer of the Servicer hereby certifies that the Portfolio Criteria are satisfied as of the Determination Date to which
this Quarterly Report relates, except as described below: 
  

	 	(a)	the S&P CDO Monitor Test is satisfied. 

  

	 	    	[Reported Notes Loss Differential]:              

  

	 	(b)	the Moody’s Weighted Average Rating Factor Test is satisfied; 

  

	 	    	[Actual Weighted Average Rating Factor]:              

  

	 	(c)	the Fitch Weighted Average Rating is less than or equal to 30%; 

  

	 	    	[Actual Fitch Weighted Average Rating]:              

  

	 	(d)	the Weighted Average Life is satisfied; 

  

	 	    	[Actual Weighted Average Life]:              

  

	 	(e)	the Weighted Average Spread is equal to or greater than the Minimum Weighted Average Spread; 

  

	 	    	[Actual Weighted Average Spread]:              

  

	 	(f)	the Weighted Average Coupon Test is satisfied; 

  

	 	    	[Actual Weighted Average Coupon]:              

  

	 	(g)	the Weighted Average Gross Coupon Test is satisfied; 

  

	 	    	[Actual Weighted Average Gross Coupon]:              

  

	 	(h)	the Diversity Test is satisfied; 

  

	 	    	[Actual Diversity Score]:              

  

	 	(i)	the Moody’s Weighted Average Recovery Rate equals or exceeds 25%; 

  

	 	    	[Actual Moody’s Weighted Average Recovery Rate]:              

  

 H-9 








 (j) the S&P Weighted Average Recovery Rate equals or exceeds 30%; 
 [Actual S&P Weighted Average Recovery Rate ]:              
 (k) Not more than 70% of the Aggregate Outstanding Loan Balance may consist of Fixed Rate Loans; 
 [Actual Fixed Rate Loan %]:         % 
 (l) Not more than 5% of the Aggregate Outstanding Loan Balance may consist of Floating Prime Rate Loans; 
 [Actual Floating Prime Rate Loan %]:         % 
 (m) Not more than 70% of the Aggregate Outstanding Loan Balance may consist of Subordinated Loans; 
 [Actual Subordinated Loan %]:         % 
 (n) Not more than 90% of the Aggregate Outstanding Loan Balance may consist of Second Lien Loans and Subordinated Loans; 
 [Actual Second Lien Loan and Subordinated Loan %]:         % 
 (o) Not more than 5% of the Aggregate Outstanding Loan Balance may consist of Loans that pay interest less frequently than quarterly but at least
annually; 
 [Actual less frequent than quarterly pay %]:         % 
 (p) Not more than 20% of the Aggregate Outstanding Loan Balance may consist of Loans (other than Defaulted Loans) with a Moody’s Rating of
“Caa1” or lower; 
 [Actual Moody’s Rating below Caa1 %]:         % 

(q) Not more than 30% of the Aggregate Outstanding Loan Balance may consist of Loans (other than Defaulted Loans) with an S&P Rating of
“CCC+” or lower; 
 [Actual S&P Rating below CCC+ %]:         % 
 (r) Not more than 30% of the Aggregate Outstanding Loan Balance may consist of Loans (other than Defaulted Loans) with a Fitch Rating of “CCC+”
or lower; 
 [Actual Fitch Rating below CCC+ %]:         % 
 (s) Not more than 10% of the Aggregate Outstanding Loan Balance may consist of Loans to primary Obligors organized under the laws of, or all or
substantially all of the assets of which are located in, any country other than the United States; provided that the full 10% may consist of Loans to primary Obligors organized under the laws of, or all or substantially all of the assets are located
in, Canada; 
 [Actual Loan % to Obligors organized/assets located in country outside of U.S.]:
        % 
 (t) Not more than 5% of the Aggregate Outstanding Loan Balance may consist of
Loans to primary Obligors organized under the laws of, or all or substantially all of the assets of which are located in, Group I Countries, Group II Countries or Group III Countries; 
 [Actual Loan % to Obligors organized/assets located in Group I, Group II or Group III Countries]:         %

  

 H-10 








 (u) Not more than 2.5% of the Aggregate Outstanding Loan Balance may consist of Loans to a single primary
Obligor organized under the laws of, or all or substantially all of the assets of which are located in, a Group II Country or a Group III Country; 
 [Largest Obligor organized/assets located in Group II Countries]:         % 
 [Largest Obligor organized/assets located in Group III Countries]:         % 
 (v) not more than 10% of the Aggregate Outstanding Loan Balance may consist of Broadly Syndicated Loans; and 
 [Actual Broadly Syndicated Loans %]:         % 
 (w) not more than 5% of the Aggregate Outstanding Loan Balance may consist of Loans to a single Obligor. 
 [Actual
Loans to a single Obligor %]:         % 
 The undersigned, a Responsible Officer of the
Servicer hereby certifies that the Portfolio Acquisition and Disposition Requirements are satisfied as of the Determination Date to which this Quarterly Report relates, except as described below: 

			
	  
	  	 
	  
	  	
	  
	  	
	  
	  	

  

			
	AMERICAN CAPITAL STRATEGIES, LTD.,
	 as Servicer

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 H-11 








 EXHIBIT I 
 to Transfer and 
 Servicing Agreement 
 FORM OF SUBSEQUENT TRANSFER AGREEMENT 
 (ACAS Business Loan Trust 2006-1) 
 SUBSEQUENT TRANSFER AGREEMENT (the “Agreement”), dated as of
[                    ] [    ], [        ] by and among ACAS Business
Loan Trust 2006-1, as the Issuer (the “Issuer”), ACAS Business Loan LLC, 2006-1, as the Trust Depositor (the “Trust Depositor”), Wells Fargo Bank, National Association, as the Indenture Trustee (the
“Indenture Trustee”) and as the Backup Servicer (the “Backup Servicer”), and American Capital Strategies, Ltd., as the Servicer (the “Servicer”) and as the Originator (the
“Originator”), entered into pursuant to the Transfer and Servicing Agreement referred to below. 
 WITNESSETH:

 WHEREAS, the Issuer, the Trust Depositor, the Servicer, the Originator, the Indenture Trustee and the Backup Servicer are
parties to the Transfer and Servicing Agreement, dated as July 28, 2006 (as amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to time, the “Transfer and Servicing Agreement”);

 WHEREAS, pursuant to the Transfer and Servicing Agreement, the Trust Depositor wishes to sell the [Substitute] [Additional] Loans
to the Issuer, and the Issuer wishes to purchase the same, for the consideration described in the Transfer and Servicing Agreement; and 
 WHEREAS, the Servicer has timely delivered an Addition Notice related to such conveyance as required in by the Transfer and Servicing Agreement; 
 NOW, THEREFORE, the parties hereto agree as follows: 
 Section 1. Defined Terms.

 Capitalized terms used herein shall have the meanings ascribed to them in the Transfer and Servicing Agreement unless otherwise defined
herein. 
 [“Additional Loans” shall mean, for purposes of this Agreement, the Additional Loans listed in the
Subsequent List of Loans attached hereto as Exhibit A.] 
 “Subsequent Cutoff Date” shall mean, with respect
to the [Substitute] [Additional] Loans transferred hereby, [                    ] [    ],
[        ]. 
 [“Substitute Loans” shall mean, for purposes of this
Agreement, the Substitute Loans listed in the Subsequent List of Loans attached hereto as Exhibit A.] 
  

 I-1 








 “Subsequent Transfer Date” shall mean, with respect to the [Substitute]
[Additional] Loans transferred hereby, [            ] [    ], [            ].

 Section 2. Subsequent List of Loans. 
 The Subsequent List of Loans attached hereto as Exhibit A is an amendment to the initial List of Loans attached as Exhibit G to the Transfer and Servicing Agreement, as contemplated in the definition of List of
Loans set forth therein. The Subsequent List of Loans separately identifies the [Substitute] [Additional] Loans to be transferred pursuant to this Agreement on the Subsequent Transfer Date[.] [, and also further separately identifies the related
Loan or Loans with respect to which a Substitution Event has occurred and which Loans are being deleted from the List of Loans by virtue of the delivery of the Subsequent List of Loans.] 
 Section 3. Transfer of Substitute Loans. 
 Subject to and upon the terms and conditions set forth in [Section 2.04] [Section 2.05] of the Transfer and Servicing Agreement and this Agreement, the Trust Depositor hereby sells, transfers, assigns,
sets over and otherwise conveys to the Issuer all of the Trust Depositor’s rights, title and interest in: 
 (i) the
[Substitute] [Additional] Loans identified in the related Addition Notice and all Collections and other monies received in payment of such [Substitute] [Additional] Loans on and after the related Subsequent Cut-Off Date, including any Prepayment
amounts, any Prepayment Premiums, any Late Charges, any payments in respect of a casualty or early termination, any Insurance Proceeds and any Liquidation Proceeds received with respect to the foregoing; 
 (ii) the Collateral related to such Loans (to the extent the Originator, other than solely in its capacity as collateral agent under any
loan agreement with an Obligor, has been granted a Lien thereon), including the security interest of the Trust Depositor in such Collateral, all proceeds from any sale or other disposition of such Collateral and all Insurance Policies; 

(iii) the Loan Files and all documents and records (including computer records) relating thereto; 
 (iv) all guarantees, indemnities, warranties and other agreements or arrangements of whatever character from time to time supporting or
securing payment of such Loans; 
 (v) the Trust Accounts and all Trust Account Property (to the extent of the Trust
Depositor’s interest if any therein); and 
 (vi) all income, payments, products, proceeds and other benefits of any and
all of the foregoing. 
 It is the intention of the Trust Depositor and the Owner Trustee that the transfer contemplated by this Agreement
shall constitute an absolute assignment and sale of the [Substitute] [Additional] Loans from the Trust Depositor to the Issuer, conveying good title thereto free and clear of any Liens (other than Permitted Liens). 
  

 I-2 








 Section 4. Representations and Warranties of the Trust Depositor. 
 (a) The Trust Depositor hereby represents and warrants to the Issuer that the representations and warranties of the Trust Depositor required by
[Section 2.04] [Section 2.05] of the Transfer and Servicing Agreement are true and correct as of the date such representations and warranties are required to be made as of the Subsequent Transfer Date. 
 (b) The Trust Depositor hereby represents and warrants that (i) the Outstanding Loan Balance of the [Substitute] [Additional] Loans listed on the
Subsequent List of Loans and conveyed to the Trust Depositor pursuant to the ACAS Transfer Agreement and by the Trust Depositor to the Issuer pursuant to this Agreement and the Transfer and Servicing Agreement is
$[            ] as of the Subsequent Cutoff Date, and (ii) the conditions set forth in [Section 2.04] [Section 2.05] of the ACAS Transfer Agreement and the
Transfer and Servicing Agreement have been satisfied as of the Subsequent Transfer Date. 
 Section 5. Ratification of
Agreement. 
 As supplemented by this Agreement, the Transfer and Servicing Agreement is in all respects ratified and confirmed and,
as so supplemented by this Agreement, shall be read, taken and construed as one and the same instrument. 
 Section 6.
Counterparts. 
 This Agreement may be executed by facsimile signatures and in two or more counterparts (and by different parties
in separate counterparts), each of which shall be an original but all of which together shall constitute one and the same instrument. 
 Section 7. Governing Law. 
 This Agreement shall be governed by and construed in accordance with the laws of the
State of New York (including Section 5-1401 of the General Obligations Law of the State of New York, but otherwise without regard to the conflicts of law principles thereof), and the obligations, rights and remedies of the parties hereunder
shall be determined in accordance with such laws. 
 Section 8. Authorization of Owner Trustee. 
 By its execution hereof, the Trust Depositor hereby authorizes and directs the Owner Trustee to execute and deliver this Agreement on behalf of the
Issuer. 
 Section 9. Limitation of Liability of Owner Trustee. 
 M&T Trust Company of Delaware acts on behalf of the Issuer solely as Owner Trustee hereunder and not in its individual capacity, and all Persons
having any claim against the Issuer by reason of the transactions contemplated by this Agreement shall look only to the Trust Estate 

  

 I-3 








 
under the Trust Agreement for payment or satisfaction thereof. The Owner Trustee makes no representations as to the validity or sufficiency of this Agreement
or of any Loan or related documents. The Owner Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity and enforceability of any Loan, the perfection and priority of any security interest created
by any Loan in any Collateral, or the maintenance of any such perfection and priority, including, without limitation, (a) the existence, condition and ownership of any Collateral; (b) the existence and enforceability of any insurance
thereon; (c) the existence and contents of any Loan on any computer or other record thereof; (d) the validity of the assignment of any Loan to the Issuer or of any intervening assignment; (e) the completeness of any Loan; (f) the
performance or enforcement of any Loan; or (g) any action of the Indenture Trustee or the Servicer or any subservicer taken in the name of the Owner Trustee or the Issuer. 
 [REMAINDER OF PAGE INTENTIONALLY BLANK] 
  

 I-4 








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

			
	ACAS BUSINESS LOAN LLC, 2006-1,
	as the Trust Depositor
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	AMERICAN CAPITAL STRATEGIES, LTD.,
	as the Servicer and as the Originator
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ACAS BUSINESS LOAN TRUST 2006-1,
	as the Issuer
		
	By:	 	M&T TRUST COMPANY OF DELAWARE, not in its individual capacity but solely as Owner Trustee on behalf of the Issuer
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity but solely as Indenture Trustee and as Backup Servicer
		
	By:	 	  

	Name:	 	  

	Title:	 	  



  

 I-5 








 EXHIBIT J 
 to Transfer and 
 Servicing Agreement 
 FORM OF SUBSEQUENT PURCHASE AGREEMENT 
 (ACAS Business Loan Trust 2006-1) 
 SUBSEQUENT PURCHASE AGREEMENT (the “Agreement”), dated as of
[                    ] [    ], [        ], by and among ACAS
Business Loan LLC, 2006-1, a Delaware limited liability company (the “Trust Depositor”), and American Capital Strategies, Ltd., a Delaware corporation (“American Capital” or the “Originator”),
entered into pursuant to the ACAS Transfer Agreement referred to below. 
 WITNESSETH: 
 WHEREAS, the Trust Depositor and the Originator are parties to the ACAS Transfer Agreement, dated as of July 28, 2006 (as amended, modified,
restated, replaced, waived, substituted, supplemented or extended from time to time, the “ACAS Transfer Agreement”); 
 WHEREAS, pursuant to the ACAS Transfer Agreement, the Originator wishes to sell the [Substitute] [Additional] Loans to the Trust Depositor, and the Trust Depositor wishes to purchase the same, for the purchase price set forth in
Section 3 below; and 
 WHEREAS, the Originator has timely delivered an Addition Notice related to such conveyance as
required in the ACAS Transfer Agreement. 
 NOW, THEREFORE, the Originator and the Trust Depositor hereby agree as follows:

 Section 1. Defined Terms. 
 Capitalized terms used herein shall have the meanings ascribed to them in the Transfer and Servicing Agreement, dated as of July 28, 2006, by and among American Capital, the Trust Depositor, ACAS Business Loan Trust 2006-1 and Wells
Fargo Bank, National Association (such agreement as amended, modified, waived, supplemented or restated from time to time, the “Transfer and Servicing Agreement”), unless otherwise defined herein. 
 [“Additional Loans” shall mean, for purposes of this Agreement, the Substitute Loans listed in the Subsequent List of Loans
attached hereto as Exhibit A.] 
 “Subsequent Cutoff Date” shall mean, with respect to the [Substitute]
[Additional] Loans transferred hereby, [                    ] [    ],
[        ]. 
 [“Substitute Loans” shall mean, for purposes of this
Agreement, the Substitute Loans listed in the Subsequent List of Loans attached hereto as Exhibit A.] 
  

 J-1 








 “Subsequent Transfer Date” shall mean, with respect to the [Substitute]
[Additional] Loans transferred hereby, [                    ] [    ],
[        ]. 
 Section 2. Subsequent List of Loans. 
 The Subsequent List of Loans attached hereto as Exhibit A is an amendment to the initial List of Loans attached as Exhibit G to the Transfer and
Servicing Agreement, as contemplated in the definition of List of Loans set forth therein. The Subsequent List of Loans separately identifies (by attached schedule, or marking or other effective identifying designation) the [Substitute] [Additional]
Loans to be transferred pursuant to this Agreement on the Subsequent Transfer Date[.][, and also further separately identifies (by attached schedule, or marking or other effective identifying designation) the related Loan or Loans with respect to
which a Substitution Event has occurred and which Loans are being deleted from the List of Loans by virtue of the delivery of the Subsequent List of Loans.] 
 Section 3. Transfer of Substitute Loans. 
 Subject to and upon the terms and conditions
set forth in Section 2.04 of the ACAS Transfer Agreement and this Agreement, the Originator hereby sells, transfers, assigns, sets over and otherwise conveys to the Trust Depositor, in consideration of the Trust Depositor’s [(x)]
payment of $[            ] as the purchase price therefor, [representing the prepayment proceeds received with respect to the related Substitution Event (if applicable) or
(y) release and redelivery to the Originator of the related Loan Assets with respect to which a Substitution Event has occurred (if applicable),] all of the Originator’s rights, title and interests in: 
 (i) the [Substitute] [Additional] Loans identified in the related Addition Notice and all Collections and other monies received in payment
of such [Substitute] [Additional] Loans on and after the related Subsequent Cut-Off Date, including any Prepayment amounts, any Prepayment Premiums, any Late Charges, any payments in respect of a casualty or early termination, any Insurance Proceeds
and any Liquidation Proceeds received with respect to the foregoing; 
 (ii) the Collateral related to such Loans (to the
extent the Originator, other than solely in its capacity as collateral agent under any loan agreement with an Obligor, has been granted a Lien thereon), including the related security interest granted by the Obligor under such Loans, all proceeds
from any sale or other disposition of such Collateral and all Insurance Policies; 
 (iii) the Loan Files and all documents
and records (including computer records) relating thereto; 
 (iv) all guarantees, indemnities, warranties and other
agreements or arrangements of whatever character from time to time supporting or securing payment of such Loans; 
 (v) the
Trust Accounts and all Trust Account Property (to the extent of the Originator’s interest if any therein); and 
  

 J-2 








 (vi) all income, payments, products, proceeds and other benefits of any and all of the
foregoing. 
 It is the intention of the Originator and the Trust Depositor that the transfer contemplated by this Agreement shall constitute
a sale of the [Substitute] [Additional] Loans from the Originator to the Trust Depositor, conveying good title thereto free and clear of any Liens (other than Permitted Liens), and that the [Substitute] [Additional] Loans shall not be part of the
Originator’s estate in the event of the filing of a bankruptcy petition by or against the Originator under any bankruptcy or similar law. 
 Section 4. Representations and Warranties of the Originator. 
 (a) The Originator hereby represents and warrants
to the Trust Depositor that the representations and warranties of the Originator required by [Section 2.04] [Section 2.05] of the ACAS Transfer Agreement are true and correct as of the date such representations and warranties are
required to be made as of the Subsequent Transfer Date. 
 (b) The Originator hereby represents and warrants that (i) the Outstanding
Loan Balance of the [Substitute] [Additional] Loans listed on the Subsequent List of Loans and conveyed to the Trust Depositor pursuant to this Agreement and the ACAS Transfer Agreement is
$[            ] as of the Subsequent Cutoff Date, and (ii) the conditions set forth in [Section 2.04] [Section 2.05] of the ACAS Transfer Agreement have been
satisfied as of the Subsequent Transfer Date. 
 Section 5. Ratification of Agreement. 
 As supplemented by this Agreement, the ACAS Transfer Agreement is in all respects ratified and confirmed and, as so supplemented by this Agreement, shall
be read, taken and construed as one and the same instrument. 
 Section 6. Counterparts. 
 This Agreement may be executed by facsimile signatures and in two or more counterparts (and by different parties in separate counterparts), each of which
shall be an original but all of which together shall constitute one and the same instrument. 
 Section 7. Governing Law.

 This Agreement shall be governed by and construed in accordance with the laws of the State of New York (including Section 5-1401
of the General Obligations Law of the State of New York, but otherwise without regard to the conflicts of law principles thereof), and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws.

 [REMAINDER OF PAGE INTENTIONALLY BLANK] 
  

 J-3 








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

			
	ACAS BUSINESS LOAN LLC, 2006-1
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	AMERICAN CAPITAL STRATEGIES, LTD.
		
	By:	 	  

	Name:	 	  

	Title:	 	  



  

 J-5 








 EXHIBIT K 
 to Transfer and 
 Servicing Agreement 
 CREDIT AND COLLECTION POLICY 
 [INTENTIONALLY OMITTED] 
  

 K-1 








 EXHIBIT L 
 to Transfer and 
 Servicing Agreement 
 LIST OF SUBORDINATED LOANS 
 [INTENTIONALLY OMITTED] 
  

 L-1