Document:

exv4w3

 

Exhibit 4.3

 

USEC INC.

AND

WELLS FARGO BANK, N.A.

Trustee

 

Indenture

Dated as of                     

 

[Insert Name of Security]

 

 

 

Certain Sections of this Indenture relating to Sections 310 through 318

of the Trust Indenture Act of 1939:

	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	§ 310(a)(1)
	 	609
	(a)(2)
	 	609
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(b)
	 	608
	 
	 	610
	§ 311(a)
	 	613
	(b)
	 	613
	§ 312(a)
	 	701
	 
	 	702(a)
	(b)
	 	702(b)
	(c)
	 	702(c)
	§ 313(a)
	 	703(a)
	(a)(4)
	 	101
	 
	 	1004
	(b)
	 	703(a)
	(c)
	 	703(a)
	(d)
	 	703(a)
	§ 314(a)
	 	704
	(b)
	 	Not Applicable
	(c)(1)
	 	102
	(c)(2)
	 	102
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	102
	§ 315(a)
	 	601
	(b)
	 	602
	(c)
	 	601
	(d)
	 	601
	(e)
	 	514
	§ 316(a)
	 	101
	(a)(1)(A)
	 	502
	 
	 	512
	(a)(1)(B)
	 	513
	(a)(2)
	 	Not Applicable
	(b)
	 	508
	(c)
	 	104(c)
	§ 317(a)(1)
	 	503
	(a)(2)
	 	504
	(b)
	 	1003
	§ 318(a)
	 	107

 

     Note: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	Parties

	 	 	1	 
	 
	 	 	 	 
	recitals of the company

	 	 	1	 
	 
	 	 	 	 
	ARTICLE ONE Definitions and Other Provisions of General Application

	 	 	1	 
	 
	 	 	 	 
	SECTION 101. Definitions

	 	 	1	 
	SECTION 102. Compliance Certificates and Opinions

	 	 	6	 
	SECTION 103. Form of Documents Delivered to Trustee

	 	 	7	 
	SECTION 104. Acts of Holders; Record Dates

	 	 	8	 
	SECTION 105. Notices, Etc., to Trustee and Company

	 	 	9	 
	SECTION 106. Notice to Holders; Waiver

	 	 	9	 
	SECTION 107. Conflict with Trust Indenture Act

	 	 	10	 
	SECTION 108. Effect of Headings and Table of Contents

	 	 	10	 
	SECTION 109. Successors and Assigns

	 	 	10	 
	SECTION 110. Separability Clause

	 	 	10	 
	SECTION 111. Benefits of Indenture

	 	 	10	 
	SECTION 112. Governing Law

	 	 	10	 
	SECTION 113. Legal Holidays

	 	 	11	 
	SECTION 114. Indenture and Securities Solely Corporate Obligations

	 	 	11	 
	SECTION 115. Indenture May be Executed in Counterparts

	 	 	11	 
	SECTION 116. Acceptance of Trust

	 	 	11	 
	 
	 	 	 	 
	ARTICLE TWO Security Forms

	 	 	12	 
	 
	 	 	 	 
	SECTION 201. Forms Generally

	 	 	12	 
	SECTION 202. Form of Face of Security

	 	 	12	 
	SECTION 203. Form of Reverse of Security

	 	 	14	 
	SECTION 204. Form of Legend for Global Securities

	 	 	16	 
	SECTION 205. Form of Assignment

	 	 	16	 
	SECTION 206. Form of Trustee’s Certificate of Authentication

	 	 	17	 
	SECTION 207. Form of Conversion Notice

	 	 	17	 
	 
	 	 	 	 
	ARTICLE THREE The Securities

	 	 	18	 
	 
	 	 	 	 
	SECTION 301. Title and Terms; Principal and Interest

	 	 	18	 
	SECTION 302. Denominations

	 	 	19	 
	SECTION 303. Global Securities; Non-Global Securities; Book-entry Provisions

	 	 	19	 
	SECTION 304. Execution, Authentication, Delivery and Dating

	 	 	21	 
	SECTION 305. Temporary Securities

	 	 	22	 
	SECTION 306. Registrar, Registration of Transfer and Exchange; Paying Agent

	 	 	22	 
	SECTION 307. Mutilated, Destroyed, Lost and Stolen Securities

	 	 	24	 
	SECTION 308. Payment of Interest; Interest Rights Preserved

	 	 	25	 
	SECTION 309. Persons Deemed Owners

	 	 	27	 

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	 	 	Page
	SECTION 310. Cancellation

	 	 	27	 
	SECTION 311. CUSIP Numbers

	 	 	28	 
	SECTION 312. Computation of Interest

	 	 	28	 
	 
	 	 	 	 
	ARTICLE FOUR Satisfaction and Discharge

	 	 	29	 
	 
	 	 	 	 
	SECTION 401. Satisfaction and Discharge of Indenture

	 	 	29	 
	SECTION 402. Application of Trust Money

	 	 	30	 
	 
	 	 	 	 
	ARTICLE FIVE Remedies

	 	 	31	 
	 
	 	 	 	 
	SECTION 501. Events of Default

	 	 	31	 
	SECTION 502. Acceleration of Maturity; Rescission and Annulment

	 	 	32	 
	SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee

	 	 	34	 
	SECTION 504. Trustee May File Proofs of Claim

	 	 	35	 
	SECTION 505. Trustee May Enforce Claims Without Possession of Securities

	 	 	35	 
	SECTION 506. Application of Money Collected

	 	 	35	 
	SECTION 507. Limitation on Suits

	 	 	36	 
	SECTION 508. Unconditional Right of Holders to Receive Principal and Interest and to Convert

	 	 	36	 
	SECTION 509. Restoration of Rights and Remedies

	 	 	37	 
	SECTION 510. Rights and Remedies Cumulative

	 	 	37	 
	SECTION 511. Delay or Omission Not Waiver

	 	 	37	 
	SECTION 512. Control by Holders

	 	 	37	 
	SECTION 513. Waiver of Past Defaults

	 	 	38	 
	SECTION 514. Undertaking for Costs

	 	 	38	 
	SECTION 515. Waiver of Stay or Extension Laws

	 	 	38	 
	 
	 	 	 	 
	ARTICLE SIX The Trustee

	 	 	39	 
	 
	 	 	 	 
	SECTION 601. Certain Duties and Responsibilities

	 	 	39	 
	SECTION 602. Notice of Defaults

	 	 	39	 
	SECTION 603. Certain Rights of Trustee

	 	 	39	 
	SECTION 604. Not Responsible for Recitals or Issuance of Securities

	 	 	40	 
	SECTION 605. May Hold Securities

	 	 	40	 
	SECTION 606. Money Held in Trust

	 	 	40	 
	SECTION 607. Compensation and Reimbursement

	 	 	41	 
	SECTION 608. Disqualification; Conflicting Interests

	 	 	41	 
	SECTION 609. Corporate Trustee Required; Eligibility

	 	 	41	 
	SECTION 610. Resignation and Removal; Appointment of Successor

	 	 	42	 
	SECTION 611. Acceptance of Appointment by Successor

	 	 	43	 
	SECTION 612. Merger, Conversion, Consolidation or Succession to Business

	 	 	43	 
	SECTION 613. Preferential Collection of Claims Against Company

	 	 	44	 
	SECTION 614. Appointment of Authenticating Agent

	 	 	44	 
	 
	 	 	 	 
	ARTICLE SEVEN Holders’ Lists and Reports by Trustee and Company

	 	 	45	 

-ii-

 

	 	 	 	 	 
	 	 	Page
	SECTION 701. Company to Furnish Trustee Names and Addresses of Holders
	 	 	45	 
	SECTION 702. Preservation of Information; Communications to Holders

	 	 	46	 
	SECTION 703. Reports by Trustee

	 	 	46	 
	SECTION 704. Reports by Company

	 	 	46	 
	 
	 	 	 	 
	ARTICLE EIGHT Consolidation, Merger, Conveyance, Transfer or Lease

	 	 	47	 
	 
	 	 	 	 
	SECTION 801. Company May Consolidate, Etc., Only on Certain Terms

	 	 	47	 
	SECTION 802. Successor Substituted

	 	 	47	 
	 
	 	 	 	 
	ARTICLE NINE Modification and Amendment

	 	 	48	 
	 
	 	 	 	 
	SECTION 901. Supplemental Indentures Without Consent of Holders

	 	 	48	 
	SECTION 902. Supplemental Indentures with Consent of Holders

	 	 	49	 
	SECTION 903. Execution of Supplemental Indentures

	 	 	50	 
	SECTION 904. Effect of Supplemental Indentures

	 	 	50	 
	SECTION 905. Conformity with Trust Indenture Act

	 	 	50	 
	SECTION 906. Reference in Securities to Supplemental Indentures

	 	 	50	 
	 
	 	 	 	 
	ARTICLE TEN Covenants

	 	 	51	 
	 
	 	 	 	 
	SECTION 1001. Payment of Principal and Interest

	 	 	51	 
	SECTION 1002. Maintenance of Office or Agency

	 	 	51	 
	SECTION 1003. Money for Security Payments to Be Held in Trust

	 	 	51	 
	SECTION 1004. Statement by Officers as to Default

	 	 	52	 
	SECTION 1005. Existence

	 	 	52	 
	SECTION 1006. Payment of Taxes and Other Claims

	 	 	53	 

	SECTION 1007. Waiver of Certain Covenants

	 	 	54	 
	 
	 	 	 	 
	ARTICLE
ELEVEN Repurchase of Securities at the Option of the Holder

	 	 	54	 
	 
	 	 	 	 
	ARTICLE TWELVE Conversion of Securities

	 	 	54	 
	 
	 	 	 	 
	Signatures
	 	 	55	 

-iii-

 

          INDENTURE, dated as of                     , between USEC INC., a Delaware corporation (the
“Company”), having its principal office at 2 Democracy
Center, 6903 Rockledge Drive, Bethesda, Maryland 20817 and Wells
Fargo Bank, N.A., a national banking association, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

          The Company has duly authorized the creation of an issue of its [Insert Name of Security]
(herein called the “Securities”) of substantially the tenor and amount hereinafter set forth, and
to provide therefor the Company has duly authorized the execution and delivery of this Indenture.

          All things necessary to make the Securities, when executed by the Company and authenticated
and delivered hereunder and duly issued by the Company, the valid obligations of the Company, and
to make this Indenture a valid agreement of the Company, in accordance with their and its terms,
have been done.

          NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders of the
Securities, as follows:

ARTICLE ONE

Definitions and Other Provisions of General Application

          SECTION 101. Definitions.

          For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

     (1) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

     (2) all other terms used herein which are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;

     (3) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles, and, except as otherwise
herein expressly provided, the term “generally accepted accounting principles” in the
United States with respect to any computation required or permitted hereunder shall mean
such accounting principles as are generally accepted at the date of this Indenture; and

 

 

     (4) the words “herein”, “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision.

          “Act”, when used with respect to any Holder, has the meaning specified in Section 104.

          “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

          “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities.

          “Board of Directors” means either the board of directors of the Company or any duly authorized
committee of that board.

          “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification, and delivered to the Trustee.

          “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions in the City of New York [or the city in which the Corporate Trust
Office is located] are authorized or obligated by law or executive order to close.

          “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act, or, if at any time after the execution of this Indenture such
Commission is not existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

          “Common Stock” includes any stock of any class of the Company which has no preference in
respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding-up of the Company and which is not subject to redemption by the
Company. However, subject to the provisions hereof, shares issuable on conversion of
Securities shall include only shares of the class designated as Common Stock of the Company at the
date of this Indenture or shares of any class or classes resulting from any reclassification or
reclassifications thereof and which have no preference in respect of dividends or of amounts
payable in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the
Company and which are not subject to redemption by the Company; provided that if at any time there

- 2 -

 

shall be more than one such resulting class, the shares of each such class then so issuable
shall be substantially in the proportion which the total number of shares of such class resulting
from all such reclassifications bears to the total number of shares of all such classes resulting
from all such reclassifications.

          “Company” means the Person named as the “Company” in the first paragraph of this Indenture
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person.

          “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by (a) its Chairman of the Board, its Vice Chairman of the Board, its Chief Executive
Officer, Chief Financial Officer, President or a Vice President and (b) by its Treasurer, an Assistant Treasurer, its
Secretary or an Assistant Secretary, and delivered to the Trustee.

          “Corporate Trust Office” means the principal office of the Trustee in                      at which
at any particular time its corporate trust business shall be administered.

          “corporation” means a corporation, association, company, joint-stock company or business
trust.

          “Defaulted
Interest” has the meaning specified in Section 308.

          “DTC” means The Depository Trust Company, a New York corporation, or any successor.

          “Event of Default” has the meaning specified in Section 501.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Global Note” means a Note that is registered in the Note Register in the name of a Depositary
or a nominee thereof.

          “Holder” means a Person in whose name a Security is registered in the Security Register.

          “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively.

          “Interest Payment Date” means the Stated Maturity of an installment of interest on the
Securities.

- 3 -

 

          “Maturity”, when used with respect to any Security, means the date on which the principal of
such Security becomes due and payable as therein or herein provided, whether at the Stated Maturity
or by declaration of acceleration, required repurchase or otherwise.

          “Officer” means the Chairman of the Board, a Vice Chairman of the Board, the Chief Executive
Officer, the President, any Vice President, the Chief Financial Officer, the Treasurer, the
Secretary or any Assistant Secretary.

          “Officers’ Certificate” means a certificate signed by two Officers of the Company and
delivered to the Trustee. One of the officers signing an Officers’ Certificate given pursuant to
Section 1004 shall be the principal executive, financial or accounting officer of the Company.

          “Opinion of Counsel” means a written opinion of counsel, who may be counsel for, or an
employee of, the Company, and who shall be reasonably acceptable to the Trustee.

          “Outstanding”, when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture, except:

     (i) Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

     (ii) Securities for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the Company) in
trust or set aside and segregated in trust by the Company (if the Company shall act as its
own Paying Agent) for the Holders of such Securities; provided that, if such
Securities are to be redeemed, notice of such redemption has been duly given pursuant to
this Indenture or provision therefor satisfactory to the Trustee has been made; and

     (iii) Securities which have been paid pursuant to Section 306 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are held by a bona
fide purchaser in whose hands such Securities are valid obligations of the Company;

          provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Securities owned by the Company or any other
obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall
be protected in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which the

- 4 -

 

Trustee knows to be so owned shall be so disregarded. Securities so owned which have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction
of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee
is not the Company or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor.

          “Paying Agent” means any Person authorized by the Company to pay the principal of
or interest on any Securities on behalf of the Company, and shall initially be the
Trustee.

          “Person” means any individual, corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization or government or any agency or political subdivision
thereof.

          “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under
Section 307 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

          “Regular Record Date” for the interest payable on any Interest Payment Date means the
                     or                      (whether or not a Business Day), as the case may be, next preceding
such Interest Payment Date.

          “Responsible Officer”, when used with respect to the Trustee, means the chairman or any
vice-chairman of the board of directors, the chairman or any vice-chairman of the executive
committee of the board of directors, the chairman of the trust committee, the president, any vice
president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any trust officer or assistant trust officer, the controller or any
assistant controller or any other officer of the Trustee customarily performing functions similar
to those performed by any of the above designated officers and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.

          “Security Register” and “Security Registrar” have the respective meanings specified in Section
306.

          “Significant Subsidiaries” means United States Enrichment Corporation, NAC Holding Inc. and
NAC International Inc.

          “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 308.

- 5 -

 

          “Stated Maturity”, when used with respect to any Security or any installment of interest
thereon, means the date specified in such Security as the fixed date on which the principal of such
Security or such installment of interest is due and payable.

          “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock”
means stock which ordinarily has voting power for the election of directors, whether at all times
or only so long as no senior class of stock has such voting power by reason of any contingency.

          “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean such successor Trustee.

          “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this Indenture was executed; provided, however, that in the event the Trust
Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent
required by any such amendment, the Trust Indenture Act of 1939 as so amended.

          “Vice President”, when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president”.

This Indenture is subject to the mandatory provisions of the Trust Indenture Act, which are
incorporated by reference in and made a part of this Indenture. The following Trust Indenture Act
terms have the following meanings:

     “Indenture Securities” means the Securities.

     “Indenture Security Holder” means a Holder.

     “Indenture to be Qualified” means this Indenture.

     “Indenture Trustee” or “Institutional Trustee” means the Trustee.

          All other terms in this Indenture that are defined by the Trust Indenture Act, defined by it
by reference to another statute or defined by SEC rule have the meanings assigned to them by such
definitions. If any provision hereof limits, qualifies or conflicts with another provision hereof
which is required to be included in this Indenture by the Trust Indenture Act, such required
provision shall control.

          SECTION 102. Compliance Certificates and Opinions.

          Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the

- 6 -

 

Trustee such certificates and opinions as may be required under the Trust Indenture Act. Each
such certificate or opinion shall be given in the form of an Officers’ Certificate, if to be given
by an officer of the Company, or an Opinion of Counsel, if to be given by counsel, and shall comply
with the requirements of the Trust Indenture Act and any other requirement set forth in this
Indenture.

          Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include

     (1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (3) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion
as to whether or not such covenant or condition has been complied with; and

     (4) a statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.

          SECTION 103. Form of Documents Delivered to Trustee.

          In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

          Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or opinion of counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an officer or officers of
the Company stating that the information with respect to such factual matters is in the possession
of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that
the certificate or opinion or representations with respect to such matters are erroneous. Any such
certificate or opinion of counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of, or representations by, an accountant (who may be an employee of the
Company) or firm of accountants, unless such counsel knows, or

- 7 -

 

in the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

          Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

          SECTION 104. Acts of Holders; Record Dates.

          (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given, made or taken by Holders may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by agent duly appointed in writing; and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are delivered to the Trustee
and, where it is hereby expressly required, to the Company. The Trustee shall promptly deliver to
the Company copies of all such instruments or instruments and records delivered to the Trustee.
Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent shall be sufficient for
any purpose of this Indenture and (subject to Section 601) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

          (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.

          (c) The Company may, in the circumstances permitted by the Trust Indenture Act, fix any day as
the record date for the purpose of determining the Holders entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action, or to vote on any
action, authorized or permitted to be given or taken by Holders. If not set by the Company prior
to the first solicitation of a Holder made by any Person in respect of any such action, or, in the
case of any such vote, prior to such vote, the record date for any such action or vote shall be the
30th day (or, if later, the date of the most recent list of Holders required to be provided
pursuant to Section 701) prior to such first solicitation or vote, as the case may be. With regard
to any record date, only the Holders on such date (or their duly designated proxies) shall be
entitled to give or take, or vote on, the relevant action.

- 8 -

 

          (d) The ownership of Securities shall be proved by the Security Register.

          (e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

          SECTION 105. Notices, Etc., to Trustee and Company.

          Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,

     (1) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing (or by facsimile transmission to
(860) 704-6219), provided that oral confirmation of receipt shall have been received to or
with the Trustee at its Corporate Trust Office, or such other means reasonably acceptable
to the Trustee, or

     (2) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at the address of its principal
office specified in the first paragraph of this Indenture or at any other address
previously furnished in writing to the Trustee by the Company, Attention: Chief Financial
Officer, with a copy to the Secretary or such other means reasonably acceptable to the
Company.

          SECTION 106. Notice to Holders; Waiver.

          Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, or by such other means reasonably acceptable to the Holder, in each case not
later than the latest date (if any), and not earlier than the earliest date (if any), prescribed
for the giving of such notice. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders and any notice which is mailed
in the manner herein provided shall be conclusively presumed to have been duly given. Where this
Indenture provides for notice in any manner, such notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the

- 9 -

 

Trustee, but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

          In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

          SECTION 107. Conflict with Trust Indenture Act.

          If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act that is required under such Act to be a part of and govern this Indenture, the latter provision
shall control. If any provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act that may be so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or to be excluded, as the case may be.

          SECTION 108. Effect of Headings and Table of Contents.

          The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

          SECTION 109. Successors and Assigns.

          All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

          SECTION 110. Separability Clause.

          In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

          SECTION 111. Benefits of Indenture.

          Nothing in this Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder and the Holders of Securities, any
benefit or any legal or equitable right, remedy or claim under this Indenture.

          SECTION 112. Governing Law.

          This Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York, without regard to conflicts of law principles therof.

- 10 -

 

          SECTION 113. Legal Holidays.

          In
any case where any Interest Payment Date, Fundamental Change
Repurchase Date, Stated Maturity, or the last
date on which a Holder has the right to convert his Securities, shall not be a Business Day, then
(notwithstanding any other provision of this Indenture or of the Securities) payment of interest or
principal or conversion of the Securities need not be made on such date, but
may be made on the next succeeding Business Day with the same force and effect as if made on the
Interest Payment Date, Fundamental Change Repurchase Date, the Stated Maturity, or on such last day for conversion,
provided that no interest shall accrue for the period from and after such Interest Payment
Date, Fundamental Change Repurchase Date or Stated Maturity, as the case may be.

          SECTION 114. Indenture and Securities Solely Corporate Obligations.

          None of the Company’s past, present or future directors, officers, employees or stockholders,
as such, shall have any liability for any of the Company’s obligations under this Indenture or the
Securities or for any claim based on, or in respect or by reason of, such obligations or their
creation. By accepting a Security, each Holder waives and releases all such liability. This waiver
and release is part of the consideration for the issuance of the Securities.

          SECTION 115. Indenture May be Executed in Counterparts.

          This Indenture may be executed in any number of counterparts, each of which shall be an
original, but such counterparts shall together constitute but one and the same instrument.

          
SECTION 116. Acceptance of Trust.

          Wells Fargo Bank, N.A., the Trustee named herein, hereby accepts the trusts in this Indenture
declared and provided, upon the terms and conditions set forth herein.

- 11 -

 

ARTICLE TWO

Security Forms

          SECTION 201. Forms Generally.

          The Securities and the Trustee’s certificates of authentication shall be in substantially the
forms set forth in this Article, with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon as may be required
to comply with the rules of any securities exchange or Depositary therefore or as may, consistently
herewith, be determined by the officers executing such Securities, as evidenced by their execution
of the Securities.

          
Notices of Conversion shall be in substantially the form set forth in Section 207.

          The definitive Securities shall be printed, lithographed or engraved or produced by any
combination of these methods on steel engraved borders or may be produced in any other manner
permitted by the rules of any securities exchange on which the Securities may be listed, all as
determined by the officers executing such Securities, as evidenced by their execution of such
Securities.

          SECTION 202. Form of Face of Security.

          
[Insert any legend required by the Internal Revenue Code and the regulations thereunder]

USEC Inc.

[Insert Name of Security]

			
	No.                     
	 	$                    

CUSIP No.                     

     USEC Inc., a corporation duly organized and existing under the laws of the State of Delaware
(herein called the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to                                         , or
registered assigns, the principal sum [of                                          Dollars][ [IF THIS NOTE IS A GLOBAL
NOTE, THEN INSERT — set forth on the Principal Schedule attached to this Security] on                     ,
and to pay interest thereon from                      or from the most recent Interest Payment Date to
which interest has been paid or duly provided for to, but excluding the next Interest Payment Date,
semi-annually on                      and                      in each year, commencing                     , at the rate of
          % per annum, until the principal hereof is paid or made available for payment. The interest so
payable,

- 12 -

 

and punctually paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest,
which shall be the                      or                      (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities not
less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on which the Securities
may be listed, and upon such notice as may be required by such exchange, all as more fully provided
in said Indenture. Interest on the Security shall be computed on the basis of a 360 day year of
twelve 30 day months.

     Payment of the principal of and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in                     , [which shall
initially be the [principal corporate trust] office of the Trustee,] in such coin or currency of
the United States of America as at the time of payment is legal tender for payment of public and
private debts; provided, however, that at the option of the Company payment of
interest may be made by check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

          IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed

	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	USEC Inc.
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 	 	 

- 13 -

 

          SECTION
203. Form of Reverse of Security.

          This Security is one of a duly authorized issue of Securities of the Company designated as its
[insert name of Security] (herein called the “Securities”), issued and to be issued under an Indenture, dated as of                     , 20      (herein called
the “Indenture”), between the Company and Wells Fargo Bank, N.A., as Trustee (herein called the
“Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.

          [Insert conversion terms]

          [Insert
repurchase terms]

          No sinking fund is provided for the Securities and the Securities are not subject to
redemption at the option of the Company.

          In the event of conversion of this Security in part only, a new Security or Securities for the
unconverted portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

          If an Event of Default shall occur and be continuing, the principal of all the Securities may
be declared due and payable in the manner and with the effect provided in the Indenture.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of at least a majority in aggregate principal amount of the Securities at the time
Outstanding. The Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Securities at the time Outstanding, on behalf of
the Holders of all the Securities, to waive compliance by the Company with certain provisions of
the Indenture and certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder
and upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and interest on this

- 14 -

 

Security at the times, place and rate, and in the coin or currency, herein prescribed or to
convert this Security as provided in the Indenture.

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

          The Securities are issuable only in registered form without coupons in denominations of $1,000
and any integral multiple thereof. As provided in the Indenture and subject to certain limitations
therein set forth, Securities are exchangeable for a like aggregate principal amount of Securities
of a different denomination, provided that such denomination
is a minimum of $1,000 or an integral multiple thereof, as requested by the Holder surrendering the same.

          No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

          THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.

          All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

[INCLUDE IN GLOBAL NOTES ONLY]

PRINCIPAL SCHEDULE

USEC INC.

[Insert Name of Security]

No.                     

- 15 -

 

          The initial principal amount of this Global Security is $                    . The following
decreases or increases in this Global Security have been made:

	 	 	 	 	 	 	 
	 	 	Amount of decrease	 	Amount of increase	 	Principal amount of
	 	 	in principal amount	 	in principal amount	 	this Global Security
	Date of decrease or	 	of this Global	 	of this Global	 	following such
	increase	 	Security	 	Security	 	increase or decrease
	 
	 	 	 	 	 	 

          SECTION 204. Form of Legend for Global Securities

          Unless otherwise specified as contemplated by Section 301 for the Securities evidenced
thereby, every Global Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED
IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

          SECTION 205. Form of Assignment.

ASSIGNMENT

          For value received,                      hereby sell(s), assign(s) and transfer(s) unto
                     (Please insert Social Security or other identifying number of assignee) the within
Security, and hereby irrevocably constitutes and appoints                      as attorney to
transfer the said Security on the books of the Company, with full power of substitution in the
premises.

	 	 	 	 	 	 	 
	Dated:

	 	 	 	Signature(s):	 	 
	 

	 	 
	 	 	 	 

          Signature(s) must be guaranteed by an Eligible Guarantor Institution with membership in an
approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of
1934.

- 16 -

 

                                                            

Signature Guaranteed

          SECTION 206. Form of Trustee’s Certificate of Authentication.

          The Trustee’s certificate of authentication shall be in substantially the following form:

          This is one of the Securities referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Dated:                                          	WELLS FARGO BANK, N.A.,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

          SECTION 207. Form of Conversion Notice.

     Conversion notices shall be in substantially the following form:

     To USEC Inc:

     The undersigned owner of this Security hereby irrevocably exercises the option to convert this
Security, or portion hereof (which is $1,000 or an integral multiple thereof) below designated, in
accordance with the terms of the Indenture referred to in this Security, and directs that any
shares issuable and deliverable upon the conversion, together with any check in payment for
fractional shares and any Securities representing any unconverted principal amount hereof, be
issued and delivered to the registered holder hereof unless a different name has been indicated
below. If this Notice is being delivered on a date after the close of business on a Regular Record
Date and prior to the opening of business on the related Interest Payment Date, this Notice is
accompanied by payment, in funds acceptable to the Company, of an amount equal to the interest
payable on such Interest Payment Date of the principal of this Security to be converted. If shares
are to be issued in the name of a person other than the undersigned, the undersigned will pay all
transfer taxes payable with respect hereto. Any amount required to be paid by the undersigned on
account of interest accompanies this Security.

	 	 	 
	     Principal Amount to be
Converted (in an
 integral multiple
of $1,000, if less than all)
	 	 
	U.S. $ ___
	 	 
	Dated:                     
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature(s) must
be guaranteed by an
eligible guarantor
institution (banks,
stock brokers, savings
and loan associations
and credit unions with
membership in an
approved signature
guarantee

- 17 -

 

	 	 	 
	 

	 	medallion
program) pursuant to
Securities and
Exchange Commission
Rule 17 Ad-15, if
shares of Common Stock
are to be delivered,
or Securities to be
issued, other than to
and in the name of the
registered owner.
	 
	 	 
	 

	 	 
	 

	 	Signature Guaranty

     Fill in for registration of shares of Common Stock and Security if to be issued otherwise than
to the registered Holder.

	 	 	 	 	 
	 

	 	 	 	 
	(Name)

	 	 	 	Social Security or Other Taxpayer

Identification Number
	 

(Address)

	 	 	 	 
	 
	 	 	 	 
	 

Please print Name and Address

(including zip code number)

	 	 	 	 

ARTICLE THREE

The Securities

          SECTION 301. Title and Terms; Principal and Interest.

          The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is limited to $                    , except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Securities pursuant to
Section 304, 305, 306, 906 or 1202.

          The Securities shall be known and designated as the “[Insert Name of Security]” of the
Company.

          The Securities shall mature on [Insert Maturity Date],

          The Securities shall bear interest at the rate of ___% per annum, from                      ___,
20___or from the most recent Interest Payment Date to which interest has been paid or duly provided
for, as the case may be, payable semi-annually on                      and                     , commencing                     
___, 20___, until the principal thereof is paid or made available for payment.

          The principal of and interest on the Securities shall be payable at the
office or agency of the Company in any place where the principal of

- 18 -

 

and any premium and interest on this Security are payable, maintained for such purpose or at
any other office or agency maintained by the Company for such purpose; provided,
however, that at the option of the Company payment of interest may be made by check mailed
to the address of the Person entitled thereto as such address shall appear in the Security
Register.

          If any interest payment date falls on a day that is not a Business Day, such interest payment
date shall be postponed to the next succeeding Business Day and no interest on such payment will
accrue for the period from the interest payment date to such next succeeding Business Day. If the
Stated Maturity date falls on a day that is not a Business Day, the required payment of interest,
if any, and principal (and Additional Interest, if any), shall be postponed to the next succeeding
Business Day and no interest on such payment will accrue for the period from and after the Stated
Maturity date to such next succeeding Business Day.

          Principal of and interest on, Global Securities shall be payable to DTC in immediately
available funds.

          Principal on Definitive Securities shall be payable at the office or agency of the Company
maintained for such purpose, initially the agency of the Trustee at
           . Interest on Definitive
Securities will be payable (i) to each Holder of Securities having an aggregate principal amount of
$5,000,000 or less, by check mailed to such Holder and (ii) to each Holder of Securities having an
aggregate principal amount of more than $5,000,000, either by check mailed to such Holder or, upon
application by such Holder to the Registrar not later than the relevant Regular Record Date, by
wire transfer in immediately available funds to that Holder’s account within the United States,
which application shall remain in effect until the Holder notifies, in writing, the Registrar to
the contrary.

          The Securities shall be convertible as provided in Article Twelve.

          SECTION 302. Denominations.

          The Securities shall be issuable only in registered form without coupons and only in
denominations of $1,000 and any integral multiple thereof.

          SECTION 303. Global Securities; Non-Global Securities; Book-entry
Provisions.

          The Securities may be issued in Global or Non-Global (Definitive) Form as provided in this
Indenture.

          (a) Global Securities

- 19 -

 

     (i) Each Global Security authenticated under this Indenture shall be registered in the
name of, and delivered to, Cede & Co., as nominee of DTC. Each such Global Security shall
constitute a single Security for all purposes of this Indenture.

     (ii) Except for exchanges of Global Securities for definitive, non-Global Securities
at the sole discretion of the Company, no Global Securities may be exchanged in whole or in
part for Securities registered, and no transfer of Securities in whole or in part may be
registered, in the name of any Person other than the Depositary for such Global Security or
a nominee thereof unless (A) such Depositary (i) has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or (ii) has ceased
to be a clearing agency registered as such under the Exchange Act or announces an intention
permanently to cease business or does in fact do so or (B) there shall have occurred and be
continuing an Event of Default with respect to such Global Security. In such event, if a
successor Depositary for such Global Security is not appointed by the
Company within 90 calendar days after the Company receives such notice or becomes aware of such
ineligibility, the Company shall execute, and the Trustee, upon receipt of an Officers’
Certificate directing the authentication and delivery of non-Global Securities, shall
authenticate and deliver, non-Global Securities, in any authorized denominations in an
aggregate principal amount equal to the principal amount of such Global Security in
exchange for such Global Security.

     (iii) If any Global Security is to be exchanged for other Securities or canceled in
whole, it shall be surrendered by or on behalf of the Depositary or its nominee to the
Trustee, as Registrar, for exchange or cancellation, as provided in this Article 3. If any
Global Security is to be exchanged for other Securities or canceled in part, or if another
Security is to be exchanged in whole or in part for a beneficial interest in any Global
Security, in each case, as provided in Article 2 of this Indenture, then either (A) such
Global Security shall be so surrendered for exchange or cancellation, as provided in this
Article 3, or (B) the principal amount thereof shall be reduced or increased by an amount
equal to the portion thereof to be so exchanged or canceled, or equal to the principal
amount of such other Security to be so exchanged for a beneficial interest therein, as the
case may be, by means of an appropriate adjustment made on the records of the Trustee, as
Registrar, whereupon the Trustee, in accordance with the Applicable Procedures, shall
instruct the Depositary or its authorized representative to make a corresponding adjustment
to its records. Upon any such surrender or adjustment of a Global Security, the Trustee
shall, subject to this Article 3, authenticate and deliver any Securities issuable in
exchange for such Global Security (or any portion thereof) to or upon the order of, and
registered in such names as may be directed by, the Depositary or its authorized
representative. The Trustee shall be entitled to receive from the Depositary the names,
addresses and tax identification numbers of the Persons in whose name the Securities are to
be registered prior to such authentication and delivery. Upon the request of the Trustee in
connection with the occurrence of any of the events specified in the preceding paragraph,
the

- 20 -

 

Company shall promptly make available to the Trustee a reasonable supply of Securities
that are not in the form of Global Securities. The Trustee shall be entitled to rely upon
any order, direction or request of the Depositary or its authorized representative which is
given or made pursuant to this Article 3 if such order, direction or request is given or
made in accordance with the Applicable Procedures (to the extent such procedures are
applicable to such direction or request).

     (iv) Every Security authenticated and delivered upon registration of transfer of, or
in exchange for or in lieu of, a Global Security or any portion thereof, whether pursuant
to this Article 3 or otherwise, shall be authenticated and delivered in the form of, and
shall be, a registered Global Security, unless such Security is registered in the name of a
Person other than the Depositary for such Global Security or a nominee thereof, in which
case such Security shall be authenticated and delivered in accordance with clause (b) of
this Section 303.

     (v) The Depositary or its nominee, as registered owner of a Global Security, shall be
the Holder of such Global Security for all purposes under this Indenture and the
Securities, and owners of beneficial interests in a Global Security shall hold such
interests pursuant to the Applicable Procedures. Accordingly, any such owner’s beneficial
interest in a Global Security shall be shown only on, and the transfer of such interest
shall be effected only through, records maintained by the Depositary or its nominee or its
Agent Members and such owners of beneficial interests in a Global Security shall not be
considered the owners or holders thereof.

          (b) Non-Global Securities. Securities issued upon the events described in Section 303(a)(ii)
shall be in definitive, fully registered form, without interest coupons.

          SECTION 304. Execution, Authentication, Delivery and Dating.

          The Securities shall be executed on behalf of the Company by its Chairman of the Board, Vice
Chairman of the Board, Chief Executive Officer, Chief Financial Officer, President or one of its
Vice Presidents, Treasurer or Assistant Treasurer. The signature of any of these officers on the
Securities may be manual or facsimile.

          Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

          At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication and delivery of

- 21 -

 

such Securities; and the Trustee in accordance with such Company Order shall authenticate and
deliver such Securities as in this Indenture provided and not otherwise.

          Each Security shall be dated the date of its authentication.

          No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate
upon any Security shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Security shall
have been authenticated and delivered hereunder but never issued and sold by the Company, and the
Company shall deliver such Security to the Trustee for cancellation
as provided in Section 310,
for all purposes of this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall never be entitled to the benefits of this Indenture.

          SECTION 305. Temporary Securities.

          Pending the preparation of definitive Securities, the Company may execute, and upon Company
Order the Trustee shall authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as the officers
executing such Securities may determine, as evidenced by their execution of such Securities.

          If temporary Securities are issued, the Company will cause definitive Securities to be
prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to Section 1002, without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of authorized denominations. Until so exchanged the
temporary Securities shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities.

          SECTION 306. Registrar, Registration of Transfer and Exchange; Paying
Agent.

          (a) Registrar. The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office and in any other office or agency
designated pursuant to Section 1002 being herein sometimes collectively referred to as the
“Security Register”) in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Securities and for the transfers or exchange of
Securities. The Trustee is hereby appointed

- 22 -

 

“Security Registrar” for the purpose of registering Securities and transfers and exchanges of
Securities as herein provided. The Company may change any Security Registrar without notice to any
Holder. The Company or any of its Subsidiaries may act as Security Registrar.

          Upon surrender for registration of transfer of any Security at an office or agency of the
Company designated pursuant to Section 1002 for such purpose, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Securities of any authorized denomination, provided that such denomination is a minimum of $1,000 or an integral multiple thereof, and of a like aggregate principal
amount.

          At the option of the Holder, Securities may be exchanged for other Securities of any
authorized denominations and of a like tenor and aggregate principal amount, upon surrender of the
Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the
Securities which the Holder making the exchange is entitled to receive.

          All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

          Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.

          No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 305 or 906 not involving any transfer.

          (b) Paying Agent. The Company shall maintain an office or agency where Securities may be
presented for payment (the “Paying Agent”). The Company initially appoints the Trustee as Paying
Agent for the Securities. The Company may have one or more additional paying agents and the term
“Paying Agent” shall include any such additional paying agent.

          The Company shall enter into an appropriate agency agreement with any Paying Agent not a party
to this Indenture, which shall incorporate the terms of the Trust Indenture Act, except in the case
of a Paying Agent that acts as Paying Agent solely in connection with an offer to purchase the
Securities pursuant to Article 10 of this Indenture. The agreement shall implement the provisions
of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and
address of each such

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agent. If the Company fails to maintain a Paying Agent, the Trustee shall act as such and
shall be entitled to appropriate compensation therefor pursuant to Section 607. The Company or any
Subsidiaries may act as Paying Agent.

          The Company may remove any Paying Agent upon written notice to such Paying Agent and to the
Trustee; provided, however, that no such removal shall become effective until (i)
acceptance of any appointment by a successor as evidenced by an appropriate agreement entered into
by the Company and such successor Paying Agent, as the case may be, and delivered to the Trustee or
(ii) notification to the Trustee that the Trustee or the Company shall serve as Paying Agent until
the appointment of a successor in accordance with clause (i) above. The Paying Agent may resign at
any time upon written notice to the Company and the Trustee.

          (c) Paying Agent to Hold Money in Trust. By no later than 11:00 a.m., New York City time,
on the date on which any principal of or interest and Additional Interest, if any, on any Security
is due and payable, the Company shall deposit with the Paying Agent a sum sufficient in immediately
available funds to pay such principal or interest (including any Additional Interest), when due.
The Company shall require each Paying Agent (other than the Trustee) to agree in writing that such
Paying Agent shall hold in trust for the benefit of Securityholders or the Trustee all money held
by such Paying Agent for the payment of principal of or interest (including any Additional
Interest), on the Securities and shall notify the Trustee in writing of any Default by the Company
in making any such payment. If the Company or a Subsidiary acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company
at any time may require a Paying Agent (other than the Trustee) to pay all money held by it to the
Trustee and to account for any funds disbursed by such Paying Agent. Upon complying with this
Section 306, the Paying Agent (if other than the Company or a Subsidiary) shall have no further
liability for the money delivered to the Trustee. Upon any bankruptcy, reorganization or similar
proceeding with respect to the Company, the Trustee shall serve as Paying Agent for the Securities.

          SECTION 307. Mutilated, Destroyed, Lost and Stolen Securities.

          If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

          If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security, a new Security of like tenor and principal amount and
bearing a number not contemporaneously outstanding.

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          In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.

          Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

          Every new Security issued pursuant to this Section in lieu of any destroyed, lost or stolen
Security shall constitute an original additional contractual obligation of the Company, whether or
not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with any and all other
Securities duly issued hereunder.

          The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.

          SECTION 308. Payment of Interest; Interest Rights Preserved.

          Interest on any Security which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest.

          In the case of Securities represented by a Global Security registered in the
name of or held by a Depository or its nominee, payment of principal, premium, if any, and
interest, if any, will be made to the Depository or its nominee, as the case may be, as the
registered owner or Holder of such Global Security. None of the Company, the Trustee and the Paying
Agent, any Authenticating Agent or the Security Registrar for such Securities will have any
responsibility or liability for any aspect of the records relating to or payments made on account
of a beneficial ownership interest in a Global Security or maintaining, supervising or reviewing
any records relating to such beneficial ownership interests.

          Any interest on any Security which is payable, but is not punctually paid or duly provided
for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Company, at its election in each case, as provided in
Clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective Predecessor Securities) are registered at
the close of business on a special record date for the payment of
such Defaulted Interest (a “Special Record Date”),
which shall be fixed in the

- 25 -

 

following manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security and the date of the proposed
payment, and at the same time the Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this Clause provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which
shall be not more than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Company of such Special Record
Date and, in the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder at his address as it appears in the Security
Register, not less than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities
(or their respective Predecessor Securities) are registered at the close of business on
such Special Record Date and shall no longer be payable pursuant to the following Clause
(2).

     (2) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Securities
may be listed, and upon such notice as may be required by such exchange, if, after notice
given by the Company to the Trustee of the proposed payment pursuant to this Clause, such
manner of payment shall be deemed practicable by the Trustee.

          Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

          Subject to the provisions of Article Twelve hereof, in the case of any Security which is
converted after any Regular Record Date and on or prior to the next succeeding Interest Payment
Date (other than any Security whose Maturity is prior to such Interest Payment Date), interest
whose Stated Maturity is on such Interest Payment Date shall be payable on such Interest Payment
Date notwithstanding such conversion, and such interest (whether or not punctually paid or duly
provided for) shall be paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on such Regular Record Date. Except as
otherwise expressly provided in the immediately preceding sentence or in Article Twelve hereof, in
the case of any Security (or any part thereof) which is converted, interest whose Stated

- 26 -

 

Maturity is after the date of conversion of such Security (or such part thereof) shall not be
payable.

          SECTION 309. Persons Deemed Owners.

          Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of principal of and
(subject to Section 308) interest on such Security and for all other purposes whatsoever, whether
or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company
or the Trustee shall be affected by notice to the contrary.

          In the case of a Global Security, so long as the Depository for such Global Security, or its
nominee, is the registered owner of such Global Security, such Depository or such nominee, as the
case may be, will be considered the sole owner or Holder of the Securities represented by such
Global Security for all purposes under this Indenture. Except as provided in Section 306, owners of
beneficial interests in a Global Security will not be entitled to have Securities that are
represented by such Global Security registered in their names, will not receive or be entitled to
receive physical delivery of such Securities in definitive form and will not be considered the
owners or Holders thereof under this Indenture.

          Notwithstanding the foregoing, with respect to any Global Security, nothing herein shall (a)
prevent the Company, the Trustee, or any agent of the Company or the Trustee, from giving effect to
any written certification, proxy or other authorization furnished by a Depository or (b) impair, as
between a Depository and holders of beneficial interest in any Global Security, the operation of
customary practices governing the exercise of the rights of the Depository as Holder of such Global
Security.

          SECTION 310. Cancellation.

          All Securities surrendered for payment, redemption, registration of transfer or exchange or
conversion shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder which the Company may
have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for
delivery to the trustee) for cancellation any Securities previously authenticated hereunder which
the Company has not issued and sold, and all Securities so delivered shall be promptly cancelled by
the Trustee. No Securities shall be authenticated in lieu of or in exchange

- 27 -

 

for any Securities cancelled as provided in this Section, except as expressly permitted by
this Indenture. Copies of all cancelled Securities held by the Trustee shall be
returned to the Company.

          SECTION 311. CUSIP Numbers.

          The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and,
if so, the Trustee shall use CUSIP numbers in all notices to Holders as a convenience to Holders of
the Securities; provided, that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or on such notice and that reliance
may be placed only on the other identification numbers printed on the Securities. The Company will
promptly notify the Trustee in writing of any change in the CUSIP numbers.

          SECTION 312. Computation of Interest.

          Interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day
months.

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ARTICLE FOUR

Satisfaction and Discharge

          SECTION 401. Satisfaction and Discharge of Indenture.

          This Indenture shall cease to be of further effect (except as to any surviving rights of
conversion, registration of transfer or exchange of Securities herein expressly provided for),
and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

          (1) either

     (A) all Securities theretofore authenticated and delivered (other than (i)
Securities which have been destroyed, lost or stolen and which have been replaced
or paid as provided in Section 307 and (ii) Securities for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the Company
and thereafter repaid to the Company or discharged from such trust, as provided in
Section 1003) have been delivered to the Trustee for cancellation; or

     (B) all such Securities not theretofore delivered to the Trustee for
cancellation

     (i) have become due and payable, or

     (ii) will become due and payable at their Stated Maturity within one
year.

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     (iv) and the Company, in the case of (i), (ii) or (iii) above, has
deposited or caused to be deposited with the Trustee as trust funds in
trust for the purpose, lawful money of the United States or U.S.
Government Obligations which through the payment of interest and
principal in respect thereof in accordance with their terms will provide
lawful money not later than the due dates of principal or interest, or any
combination thereof in an amount sufficient to
pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal (and
premium, if any) and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the Stated Maturity or
Fundamental Change Repurchase Date, as the case may be;

     (2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee under Section 607, the obligations of the Trustee to any Authenticating Agent under
Section 614 and, if money shall have been deposited with the Trustee pursuant to subclause (B) of
Clause (1) of this Section, the obligations of the Trustee under Section 402 and the last paragraph
of Section 1003 shall survive.

          SECTION 402. Application of Trust Money.

          Subject to the provisions of the last paragraph of Section 1003, all funds or U.S. Government
Obligations deposited with the Trustee pursuant to Section 401 shall be held in trust and applied
by it, in accordance with the provisions of the Securities and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as its own Paying Agent)
as the Trustee may determine, to the Persons entitled thereto, of the principal and interest for whose payment such funds or U.S. Government Obligations have been deposited
with the Trustee. Upon termination of the trust established pursuant to Section 401, all funds
and/or U.S. Government Obligations deposited with the Trustee pursuant to Section 401 (and held by
it or any Paying Agent) for the payment of Securities subsequently converted shall promptly be
returned to the Company.

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ARTICLE FIVE

Remedies

          SECTION 501. Events of Default.

          “Event of Default”, wherever used herein, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

     (1) default in the payment of any interest upon any Security when it becomes due and
payable, and continuance of such default for a period of 30 days; or

     (2) default in the payment of the principal of any Security
at its Maturity; or

     (3) failure to comply with the obligation to convert the notes in accordance with the
provisions of Article Twelve hereto which continues for five days; or

     (4) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture (other than a covenant or warranty a default in whose performance or
whose breach is elsewhere in this Section specifically dealt with), and continuance of such
default or breach for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the Outstanding Securities a written notice
specifying such default or breach and requiring it to be remedied and stating that such
notice is a “Notice of Default” hereunder; or

     (5) a default under any mortgage, agreement or other instrument under which there may
be outstanding or by which there may be secured or evidenced any indebtedness for money
borrowed by the Company or any majority owned subsidiary in excess of $35,000,000 in the
aggregate of the Company and/or any subsidiary of the Company, whether such indebtedness now exists or
shall hereafter be created, which default shall have resulted in (a) such indebtedness
becoming or being declared due and payable or (b) from a failure to pay the principal of
any such indebtedness when due and payable at its Maturity in any such case of (a) or (b), without such
debt having been paid or discharged within a period of 30 days after the occurrence of such
debt becoming or being declared due and payable or the failure to pay, as the case may be;
or

- 31 -

 

     (6) failure by the Company or any of its majority owned subsidiaries, within 60 days,
to pay, bond or otherwise discharge any judgments or orders for the payment of money the
total uninsured amount of which for us or any of our subsidiaries exceeds in the aggregate
$15,000,000, which are not stayed on appeal; or

     (7) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company in an involuntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or
(B) a decree or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or composition of
or in respect of the Company under any applicable Federal or State law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or of any substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order for relief or
any such other decree or order unstayed and in effect for a period of 90 consecutive
days; or

     (8) the commencement by the Company of a voluntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or
of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent
by it to the entry of a decree or order for relief in respect of the Company in an
involuntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any bankruptcy or
insolvency case or proceeding against it, or the filing by it of a petition or answer or
consent seeking reorganization or relief under any applicable Federal or State law, or the
consent by it to the filing of such petition or to the appointment of or taking possession
by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or of any substantial part of its property, or the making by it of
an assignment for the benefit of creditors, or the admission by it in writing of its
inability to pay its debts generally as they become due, or the taking of corporate action
by the Company in furtherance of any such action.

          SECTION 502. Acceleration of Maturity; Rescission and Annulment.

          If an Event of Default occurs and is continuing, then and in every such case except as
provided below, the Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities may declare the principal of all the Securities to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and
upon any such declaration such principal shall become immediately due and payable. However, upon
an Event of Default arising out of 501(7) or (8), the principal
amount and accrued and unpaid interest of all the Securities shall be due
and payable immediately without notice from the Trustee or Holders.

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          Notwithstanding the foregoing, at the election of the Company, the sole remedy for the failure
by the Company to comply with its obligations under Section 314(a)(1) of the Trust Indenture Act,
shall for the first 90 calendar days after the occurrence of such an Event of Default consist
exclusively of the right (the “Extension Right”) to receive an additional interest on the
Securities at an annual rate equal to 0.50% of the principal amount of the Securities (the “Additional
Interest”). If the Company so elects, the Additional Interest shall be payable on all Outstanding
Securities on the date on which the Event of Default relating to a failure to comply with the
requirements of Section 314(a)(1) of the Trust Indenture Act first occurs to but not including the
90th day thereafter (or such earlier date on which the Event of Default relating to the
reporting obligations shall have been cured or waived) and shall be payable on each relevant
Interest Payment Date to Holders of record on the relevant Regular Record Date immediately
preceding that Interest Payment Date. If such Event of Default has not been cured or waived prior
to such 91st calendar day, then the Trustee or the Holders of not less than 25% in principal amount
of the Outstanding Securities may declare the principal of and accrued and unpaid interest on all
such Securities to be due and payable immediately.

          If the Company elects to pay the Additional Interest as the sole remedy for the failure by the
Company to comply with the requirements of Section 314(a)(1) of the Trust Indenture Act, the
Company shall notify in writing the Holders, the Paying Agent and the Trustee of such election at
any time on or before the close of business on the first Business Day following the date on which
such Event of Default first occurs.

          If the Company fails to give timely notice or pay the Additional Interest, then the Trustee or
the Holders of not less than 25% in principal amount of the outstanding Securities may declare the
principal of and accrued and unpaid interest on all such Securities to be due and payable
immediately. If any Additional Interest is payable under this Section 502, the Company shall
deliver to the Trustee a certificate to that effect stating (i) the amount of such Additional
Interest that is payable and (ii) the date on which such Additional Interest is payable. Unless and
until a Responsible Officer of the Trustee receives at the Corporate Trust Office such a
certificate, the Trustee may assume without inquiry that the Additional Interest is not payable. If
the Additional Interest has been paid by the Company directly to the persons entitled to it, the
Company shall deliver to the Trustee a certificate setting forth the particulars of such payment.

          Notwithstanding the foregoing paragraph, if an Event of Default occurs under any series of the
Company’s debt securities (other than the Securities ) issued subsequent to the Issue Date
resulting from the Company’s failure to comply with the requirements of Section 314(a)(1) of the
Trust Indenture Act, and such Event of Default is not subject to extension on terms similar to
those set forth in the foregoing paragraph and results in the principal amount of such debt
securities becoming due and payable, then the Extension Right shall no longer apply and the
Securities shall be subject to acceleration as provided in the first paragraph of this Section 502.

          This Section 502, however, is subject to the conditions that if, at any time after the
principal of the Securities shall have been so declared due and payable, and

- 33 -

 

before any judgment or decree for the payment of the monies due shall have been obtained or
entered as hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum
sufficient to pay installments of accrued and unpaid interest upon all Securities and the
principal of any and all Securities that shall have become due otherwise than by acceleration (with
interest on overdue installments of accrued and unpaid interest (to the extent that payment of such
interest is enforceable under applicable law) and on such principal at the rate borne by the
Securities during the period of such Default), and if (1) rescission would not conflict with any
judgment or decree of a court of competent jurisdiction and (2) any and all Events of Default under
this Indenture with respect to such Securities, other than the nonpayment of principal of and
accrued and unpaid interest on such Securities that shall have become due solely by such
acceleration, shall have been cured or waived pursuant to Section
513, then and in every such case
the Holders of a majority in aggregate principal amount of the Outstanding Securities, by written
notice to the Company and to the Trustee, may waive all Defaults or Events of Default with respect
to the Securities and rescind and annul such declaration and its consequences and such Default
shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured
for every purpose of this Indenture; but no such waiver or rescission and annulment shall extend to
or shall affect any subsequent Default or Event of Default, or shall impair any right consequent
thereon.

          SECTION 503. Collection of Indebtedness and Suits for Enforcement by
Trustee.

          The Company covenants that if

     (1) default is made in the payment of any interest on any Security when such interest
becomes due and payable and such default continues for a period of 30 days, or

     (2) default is made in the payment of the principal of any
Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal
and interest, and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and on any overdue interest, at the rate
borne by the Securities, and, in addition thereto, such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

          If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy.

- 34 -

 

          SECTION 504. Trustee May File Proofs of Claim.

          In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

          No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

          SECTION 505. Trustee May Enforce Claims Without Possession of Securities.

          All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered.

          SECTION 506. Application of Money Collected.

          Subject
to Article Twelve, any money or property collected by the Trustee pursuant to this Article shall
be applied in the following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal or interest, upon
presentation of the Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 607; and

     SECOND: To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of

- 35 -

 

which or for the benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and payable on such
Securities for principal and interest, respectively.

     THIRD: The balance, if any, to the Company or an other Person or Persons entitled
thereto.

          SECTION 507. Limitation on Suits.

          No Holder of any Security shall have any right to institute any proceeding, judicial or
otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for
any other remedy hereunder, unless

     (1) such Holder has previously given written notice to the Trustee of a continuing
Event of Default;

     (2) the Holders of not less than 25% in principal amount of the Outstanding Securities
shall have made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

     (3) such Holder or Holders have offered to the Trustee reasonable indemnity against
the costs, expenses and liabilities to be incurred in compliance with such request;

     (4) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

     (5) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities;

it being understood and intended that no one or more Holders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or
prejudice the rights of any other Holders, or to obtain or to seek to obtain priority or preference
over any other Holders or to enforce any right under this Indenture, except in the manner herein
provided and for the equal and ratable benefit of all the Holders.

          SECTION
508. Unconditional Right of Holders to Receive Principal and
Interest and to Convert

          Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of
and (subject to Section 308) interest on such Security on the respective Stated
Maturities expressed in such Security and
to convert such Security in accordance with

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Article Twelve and to institute suit for the enforcement of any such payment and right to
convert, and such rights shall not be impaired without the consent of such Holder.

          SECTION 509. Restoration of Rights and Remedies.

          If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every such case, subject to
any determination in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such proceeding had been
instituted.

          SECTION 510. Rights and Remedies Cumulative.

          Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of
Section 307, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

          SECTION 511. Delay or Omission Not Waiver.

          No delay or omission of the Trustee or of any Holder of any Security to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee (subject to the limitations contained in this
Indenture) or by the Holders, as the case may be.

          SECTION 512. Control by Holders.

          The Holders of a majority in principal amount of the Outstanding Securities shall have the
right to direct the time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred on the Trustee, provided that

     (1) such direction shall not be in conflict with any rule of law or with this
Indenture, and

     (2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction or this Indenture.

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          SECTION 513. Waiver of Past Defaults.

          The Holders of not less than a majority in principal amount of the Outstanding Securities may
on behalf of the Holders of all the Securities waive any past default hereunder and its
consequences, except a default

     (1) in the payment of the principal of or interest on any
Security, or

     (2) in respect of a covenant or provision hereof which under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding Security
affected.

          Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.

          SECTION 514. Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess costs against any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided, that neither this Section nor the Trust Indenture Act shall be
deemed to authorize any court to require such an undertaking or to make such an assessment in any
suit instituted by the Company or in any suit for the enforcement of the right to convert any
Security in accordance with Article Twelve.

          SECTION 515. Waiver of Stay or Extension Laws.

          The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants
that it will not hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been
enacted.

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ARTICLE SIX

The Trustee

          SECTION 601. Certain Duties and Responsibilities.

          The duties and responsibilities of the Trustee shall be as provided by the Trust Indenture
Act. Notwithstanding the foregoing, no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it. Whether or not therein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section. No
provision of this Indenture shall be construed to relieve the Trustee from liability for its own
negligent action, its own negligent failure to act or its own willful misconduct, subject to
Section 603.

          SECTION 602. Notice of Defaults.

          If
a Default or Event of Default has occurred and the Trustee has
received notice of the Default or Event of Default in accordance with
the Indenture, the Trustee shall deliver to each Holder a notice of
the Default or Event of Default within 90 days after receipt of
the notice. 

          Except in the case of the default in the payment of
principal of or interest on any note or conversion default, the
trustee need not deliver the notice if and so long as a committee of
trust officers of the Trustee in good faith determines that
withholding the notice is in
the interests of Holders. In addition, the Trustee shall give the
Holders of Securities notice of such Default or Event of Default
actually known to it as and to the extent provided by the Trust
Indenture Act.

          SECTION 603. Certain Rights of Trustee.

          Subject to the provisions of Section 601:

          (a) the Trustee may rely and shall be protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper party or parties;

          (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution;

          (c) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officers’ Certificate;

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          (d) the Trustee may consult with counsel and the written advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

          (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in compliance with such request or
direction;

          (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; and

          (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder.

          SECTION 604. Not Responsible for Recitals or Issuance of Securities.

          The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities. The Trustee shall not be accountable for the
use or application by the Company of Securities or the proceeds thereof.

          SECTION 605. May Hold Securities.

          The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.

          SECTION 606. Money Held in Trust.

          Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability

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for interest on any money received by it hereunder except as otherwise agreed with the
Company.

          SECTION 607. Compensation and Reimbursement.

          The Company agrees

     (1) to pay to the Trustee from time to time reasonable compensation as shall be agreed
in writing between the Company and the Trustee for all services rendered by it hereunder
(which compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

     (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or bad faith; and

     (3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability
or expense incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of this trust, including the costs and
expenses of defending itself against any claim or liability in connection with the exercise
or performance of any of its powers or duties hereunder.

          SECTION 608. Disqualification; Conflicting Interests.

          If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.

          SECTION 609. Corporate Trustee Required; Eligibility.

          There shall at all times be a Trustee hereunder which shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at
least $50,000,000. If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of said supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such Person shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so published. If at any
time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter specified in this Article.

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          SECTION 610. Resignation and Removal; Appointment of Successor.

          (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee under Section 611.

          (b) The Trustee may resign at any time by giving written notice thereof to the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within
30 days after the giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor Trustee.

          (c) The Trustee may be removed at any time by Act of the Holders of a majority in principal
amount of the Outstanding Securities, delivered to the Trustee and to the Company.

          (d) If at any time:

          (1) the Trustee shall fail to comply with Section 608 after written request therefor
by the Company or by any Holder who has been a bona fide Holder of a Security for at least
six months, or

          (2) the Trustee shall cease to be eligible under Section 609 and shall fail to resign
after written request therefor by the Company or by any such Holder, or

          (3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,

then, in any such case, (i) the Company by a Board Resolution may remove the Trustee, or (ii)
subject to Section 514, any Holder who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of
the Holders of a majority in principal amount of the Outstanding Securities delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment, become the successor Trustee and supersede the successor Trustee
appointed by the Company. If no successor Trustee shall have been so appointed by the Company or
the Holders and

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accepted appointment in the manner hereinafter provided, any Holder who has been a bona fide
Holder of a Security for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the appointment of a successor Trustee.

          (f) The Company shall give notice of each resignation and each removal of the Trustee and each
appointment of a successor Trustee to all Holders in the manner provided in Section 106. Each
notice shall include the name of the successor Trustee and the address of its Corporate Trust
Office.

          SECTION 611. Acceptance of Appointment by Successor.

          In case of the appointment hereunder of a successor trustee, such successor Trustee shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on request of
the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder. Upon the reasonable
written request of any such successor Trustee, the Company shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts.

          No successor Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article.

          SECTION 612. Merger, Conversion, Consolidation or Succession to Business.

          Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities so authenticated with the same effect as if
such successor Trustee had itself authenticated such Securities.

 - 43 - 

 

          SECTION 613. Preferential Collection of Claims Against Company.

          If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or any such other obligor).

          SECTION 614. Appointment of Authenticating Agent.

          The Trustee may appoint an Authenticating Agent or Agents which shall be authorized to act on
behalf of the Trustee to authenticate Securities issued upon original issue and upon exchange,
registration of transfer, partial conversion or pursuant to Section 306, and
Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid
and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference
is made in this Indenture to the authentication and delivery of Securities by the Trustee or the
Trustee’s certificate of authentication, such reference shall be deemed to include authentication
and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of
authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating
Agent shall be acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State thereof or the District of
Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination by Federal or State
authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of condition so published.
If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions
of this Section, such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section.

          Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all the corporate agency or corporate trust business of an Authenticating Agent,
shall continue to be an Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further act on the part of
the Trustee or the Authenticating Agent.

          An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a

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successor Authenticating Agent which shall be acceptable to the Company and shall deliver
written notice of such appointment by first-class mail, postage prepaid, to all Holders as their
names and addresses appear in the Security Register, or by such other means reasonably acceptable
to such Holders. Any successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor hereunder, with like
effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall
be appointed unless eligible under the provisions of this Section.

          The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section, and the Trustee shall be entitled to be
reimbursed for such payments, subject to the provisions of Section 607.

          If an appointment is made pursuant to this Section, the Securities may have endorsed thereon,
in addition to the Trustee’s certificate of authentication, an alternative certificate of
authentication in the following form:

          This is one of the Securities described in the within-mentioned Indenture.

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.,

as Trustee

 	 
	 	By:  	 	 
	 	 	As Authenticating Agent 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 

ARTICLE SEVEN

Holders’ Lists and Reports by Trustee and Company

          SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.

          The Company will furnish or cause to be furnished to the Trustee

          (a) semi-annually, not more than 15 days after each Regular Record Date, a list, in such form
as the Trustee may reasonably require, of the names and addresses of the Holders as of such Regular
Record Date, and

          (b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished;

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar.

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          SECTION 702. Preservation of Information; Communications to Holders.

          (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 701, if any, and the names and addresses of Holders received by the Trustee in its capacity
as Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701
upon receipt of a new list so furnished.

          (b) The rights of Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Securities, and the corresponding rights and duties of the Trustee,
shall be as provided by the Trust Indenture Act.

          (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

          SECTION 703. Reports by Trustee.

          (a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto.

          (b) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each stock exchange upon which the Securities are listed, with the Commission and
with the Company. The Company will notify the Trustee when the Securities are listed on any stock
exchange.

          SECTION 704. Reports by Company.

          The Company shall file with the Commission any information, documents or reports required to
be filed with the Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
and shall file with the Trustee within 15 days after the same is so required to be filed with the
Commission and shall otherwise comply with the requirements of Trust
Indenture Act Section 314(a); provided that any such information,
documents or reports filed with the Commission pursuant to its
Electronic Data Gathering, Analysis and Retrieval (or EDGAR) system
shall be deemed to be filed with the Trustee as of the time such
information, documents or reports are filed via EDGAR.

          If at any time the Company is not subject to Sections 13 or 15(d) of the Exchange Act, the
Company shall, so long as any of the Securities shall, at such time, constitute “Restricted
Securities” within the meaning of Rule 144(a)(3) under the Securities Act, promptly provide to the
Trustee and shall, upon written request, provide to any holder, beneficial owner or prospective
purchaser of such Securities, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act to facilitate the resale of such Securities pursuant to Rule 144A under
the Securities Act. The Company shall take such further action as any holder or beneficial owner of
such Securities may reasonably request to the extent required from time to time to enable such
holder or beneficial holder to sell such Securities in accordance with Rule 144A under the
Securities Act, as such rule may be amended from time to time.

          Delivery of such reports, information and documents to the Trustee is for informational
purposes only, and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
conclusively rely exclusively on an Officers’ Certificate).

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ARTICLE EIGHT

Consolidation, Merger, Conveyance, Transfer or Lease

          SECTION 801. Company May Consolidate, Etc., Only on Certain Terms.

          The Company shall not consolidate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person, and the Company shall
not permit any Person to consolidate with or merge into the Company or convey, transfer or lease
its properties and assets substantially as an entirety to the Company, unless:

     (1) in case the Company shall consolidate with or merge into another Person or convey,
transfer or lease its properties and assets substantially as an entirety to any Person
(whereby the Company is not the surviving Person), the Person formed by such consolidation
or into which the Company is merged or the Person which acquires by conveyance or transfer,
or which leases, the properties and assets of the Company substantially as an entirety
shall be a corporation, partnership or trust, shall be organized and validly existing under
the laws of the United States of America, any State thereof or the District of Columbia and
such Person (if not the Company) shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due
and punctual payment of the principal of and interest on all the
Securities and the performance or observance of every covenant of this Indenture on the
part of the Company to be performed or observed and shall have provided for conversion
rights in accordance with Article Twelve;

     (2) immediately after giving effect to such transaction, no Event of Default, and no
event which, after notice or lapse of time or both, would become an Event of Default, shall
have happened and be continuing; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease
and, if a supplemental indenture is required in connection with such transaction, such
supplemental indenture complies with this Article and that all conditions precedent herein
provided for relating to such transaction have been complied with.

          SECTION 802. Successor Substituted.

          Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety in accordance with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and

 - 47 - 

 

may exercise every right and power of, the Company under this Indenture with the same effect
as if such successor Person had been named as the Company herein, and thereafter, except in the
case of a lease, the predecessor Person shall be relieved of all obligations and covenants under
this Indenture and the Securities.

ARTICLE NINE

Modification and Amendment

          SECTION 901. Supplemental Indentures Without Consent of Holders.

          Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more indentures supplemental
hereto, in form satisfactory to the Trustee, for any of the following purposes:

     (1) to evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants of the Company herein and in the Securities; or

     (2) to add to the covenants of the Company for the benefit of the Holders, or to
surrender any right or power herein conferred upon the Company; or

     (3) to add guarantees with respect to the Securities; or

     (4) to secure the Securities pursuant to the requirements of Section 1003 or
otherwise; or

     (5) to make provision with respect to the conversion rights of Holders pursuant to the
requirements of Article Twelve; or

     (6) to provide for the issuance of additional Securities, to the extent that the
Company and the Trustee deem such amendment necessary or advisable in connection with such
issuance; provided however, that no such amendment or supplement may impair the rights or
interests of any holder of outstanding Securities; or

     (7) to cure any ambiguity, manifest error or defect or to correct or supplement any
provision herein which may be inconsistent with any other provision herein, or to make any
other provisions with respect to matters or questions arising under this Indenture which
shall not be inconsistent with the provisions of this Indenture, provided that such
action pursuant to this Clause 901 shall not adversely affect the interests of the Holders
in any material respect to provide for the conversion of Securities pursuant to Article
Twelve; or

 - 48 - 

 

     (8) to make any change that does not adversely affect the rights of any Holder in any
material respect; provided that any amendment to conform the terms of the Indenture or the
Securities to the description contained with the applicable prospectus shall not be deemed
to be adverse to any Holder; or

     (9) to comply with any requirement of the SEC in connection with the qualification of
the Indenture under the Trust Indenture Act [or to comply with the rules and regulations or
any securities exchange or automated quotation system on which the Securities may be listed
or traded]; or

     (10) to increase the conversion rate; or

     (11) to provide for a successor trustee in accordance with the terms of this Indenture
of to otherwise comply with any requirements of this Indenture.

          SECTION 902. Supplemental Indentures with Consent of Holders.

          With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities, by Act of said Holders delivered to the Company and the Trustee, the
Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or of modifying in any manner the
rights of the Holders under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby,

     (1) change the Stated Maturity of the principal of, or any installment of interest on,
any Security; or

     (2) reduce the principal amount or the rate of interest on any Security; or

     (3) change the place of payment where, or the coin or currency in which, any the
principal of, interest on or additional interest, in respect of any Security is payable; or

     (4) impair the right to institute suit for the enforcement of any such payment on or
after the Stated Maturity thereof ; or

     (5) adversely affect the right to convert any Security as provided in Article Twelve
(except as permitted by Section 901(4)); or

     (6) adversely affect the ranking of the Securities as senior unsecured indebtedness of
the Company; or

     (7) reduce the percentage in principal amount of the Outstanding Securities, the
consent of whose Holders is required for any such supplemental

 - 49 - 

 

indenture, or the consent of whose Holders is required for any waiver (of compliance
with certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture; or

     (8)
modify any of the provisions of this Section or Section 513,
except to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby; provided, however, that this clause shall not be
deemed to require the consent of any Holder with respect to changes in the references to
“the Trustee” and concomitant changes in this Section, or the deletion of this proviso, in
accordance with the requirements of Sections 611 and 901(8).

          It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

          SECTION 903. Execution of Supplemental Indentures.

          In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel and an Officers’ Certificate stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise.

          SECTION 904. Effect of Supplemental Indentures.

          Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

          SECTION 905. Conformity with Trust Indenture Act.

          Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act.

          SECTION 906. Reference in Securities to Supplemental Indentures.

          Securities authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a notation in form
approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee
and the Company, to any such supplemental

 - 50 - 

 

indenture may be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities.

ARTICLE TEN

Covenants

          SECTION 1001. Payment of Principal and Interest.

          The Company will duly and punctually pay the principal of and interest
on the Securities in accordance with the terms of the Securities and this Indenture.

          SECTION 1002. Maintenance of Office or Agency.

          The
Company will maintain in ___ an office or agency where Securities may be
presented or surrendered for payment, where Securities may be surrendered for registration of
transfer or exchange, where Securities may be surrendered for conversion and where notices and
demands to or upon the Company in respect of the Securities and this Indenture may be served. The
Company will give prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office
of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

          The Company may also from time to time designate one or more other offices or agencies (in or
outside ___) where the Securities may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no
such designation or rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in ___ for such purposes. The Company will give prompt written
notice to the Trustee of any such designation or rescission and of any change in the location of
any such other office or agency.

          SECTION 1003. Money for Security Payments to Be Held in Trust.

          If the Company shall at any time act as its own Paying Agent, it will, on or before each due
date of the principal of or interest on any of the Securities, segregate and
hold in trust for the benefit of the Persons entitled thereto a sum sufficient to
pay the principal or interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and will promptly notify the Trustee of its action or
failure so to act.

          Whenever the Company shall have one or more Paying Agents, it will, prior to each due date of
the principal of or interest on any

 - 51 - 

 

Securities, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be
held as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the
Company will promptly notify the Trustee of its action or failure so to act.

          The Company will cause each Paying Agent other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section, that such Paying Agent will (i) comply with the provisions of the Trust
Indenture Act applicable to it as a Paying Agent and (ii) during the continuance of any default by
the Company (or any other obligor upon the Securities) in the making of any payment in respect of
the Securities, upon the written request of the Trustee, forthwith pay to the Trustee all sums held
in trust by such Paying Agent as such.

          The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

          Subject
to any applicable abandoned property law, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or interest on any Security and
remaining unclaimed for two years after such principal or interest has become
due and payable shall be paid to the Company on Company Request, or (if then held by the Company)
shall be discharged from such trust; and the Holder of such Security shall thereafter, as an
unsecured general creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease.

          SECTION 1004. Statement by Officers as to Default.

          The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company ending after the date hereof, an Officers’ Certificate, stating whether or not to the
best knowledge of the signers thereof the Company is in default in the performance and observance
of any of the terms, provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may have knowledge.

          SECTION 1005. Existence.

          Subject to Article Eight, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence.

 - 52 - 

 

          SECTION 1006. Payment of Taxes and Other Claims.

          The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon the
Company or any Subsidiary or upon the income, profits or property of the Company or any Subsidiary,
and (2) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a
lien upon the property of the Company or any Subsidiary; provided, however, that
the Company shall not be required to pay or discharge or cause to be paid or discharged any such
tax, assessment, charge or claim whose amount, applicability or validity is being contested in
good faith by appropriate proceedings.

 - 53 - 

 

          SECTION
1007. Waiver of Certain Covenants.

          The Company may omit in any particular instance to comply with any covenant or condition set
forth in Sections
[          ], if before the time for such compliance the Holders of at least [          ]% in
principal amount of the Outstanding Securities shall, by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such covenant or condition, but no
such waiver shall extend to or affect such covenant or condition except to the extent so expressly
waived, and, until such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such covenant or condition shall remain in full force and
effect.

ARTICLE ELEVEN

Repurchase
at the Option of the Holder

[RESERVED]

ARTICLE TWELVE

Conversion of Securities

[RESERVED]

 - 54 - 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, as of
the day and year first above written.

	 	 	 	 	 
	 	 	USEC INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.,
	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 - 55 -exv10w82

 

Exhibit 10.82

 

SALE AND SERVICING AGREEMENT

by and among

CAPITALSOURCE REAL ESTATE LOAN LLC, 2007-A,

as the Seller

CSE MORTGAGE LLC,

as the Originator and as the Servicer

EACH OF THE ISSUERS

FROM TIME TO TIME PARTY HERETO,

EACH OF THE LIQUIDITY BANKS

FROM TIME TO TIME PARTY HERETO

CITICORP NORTH AMERICA, INC.,

as the Administrative Agent

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as the Backup Servicer and as the Collateral Custodian

Dated as of September 10, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITION
	 	 	2	 
	 
	 	 	 	 
	Section 1.1 Certain Defined Terms
	 	 	2	 
	Section 1.2 Other Terms
	 	 	50	 
	Section 1.3 Computation of Time Periods
	 	 	50	 
	Section 1.4 Interpretation
	 	 	51	 
	Section 1.5 Special Provisions Relating to Alternative Currency Loans
	 	 	51	 
	 
	 	 	 	 
	ARTICLE II PURCHASE OF THE VARIABLE FUNDING CERTIFICATES
	 	 	52	 
	 
	 	 	 	 
	Section 2.1 The Variable Funding Certificates
	 	 	52	 
	Section 2.2 [Intentionally Omitted]
	 	 	53	 
	Section 2.3 Procedures for Advances
	 	 	53	 
	Section 2.4 Reduction of the Facility Amount; Mandatory and Optional Repayments; Increase of Commitment
	 	 	54	 
	Section 2.5 Determination of Interest
	 	 	55	 
	Section 2.6 Percentage Evidenced by each Variable Funding Certificate
	 	 	56	 
	Section 2.7 [Reserved]
	 	 	56	 
	Section 2.8 Notations on Variable Funding Certificates
	 	 	56	 
	Section 2.9 Settlement Procedures During the Revolving Period and the Amortization Period
	 	 	56	 
	Section 2.10 Settlement Procedures During the Turbo Period
	 	 	57	 
	Section 2.11 Collections and Allocations
	 	 	58	 
	Section 2.12 Payments, Computations, Etc.
	 	 	59	 
	Section 2.13 Optional and Mandatory Repurchase
	 	 	60	 
	Section 2.14 Fees
	 	 	60	 
	Section 2.15 Increased Costs; Capital Adequacy; Illegality
	 	 	61	 
	Section 2.16 Taxes
	 	 	62	 
	Section 2.17 Assignment of the Sale Agreement
	 	 	63	 
	Section 2.18 Substitution of Assets
	 	 	64	 
	Section 2.19 Optional Sales
	 	 	65	 
	Section 2.20 Discretionary Sales
	 	 	67	 
	 
	 	 	 	 
	ARTICLE III CONDITIONS TO ADVANCES
	 	 	68	 
	 
	 	 	 	 
	Section 3.1 Conditions to Closing and Initial Advance
	 	 	68	 
	Section 3.2 Conditions Precedent to All Advances
	 	 	69	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	71	 
	 
	 	 	 	 
	Section 4.1 Representations and Warranties of the Seller
	 	 	71	 
	Section 4.2 Representations and Warranties of the Seller Relating to the Agreement and the Collateral
	 	 	81	 
	Section 4.3 Representations and Warranties of the Servicer
	 	 	82	 
	Section 4.4 Representations and Warranties of the Backup Servicer
	 	 	85	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	Section 4.5 Representations and Warranties of the Collateral Custodian
	 	 	86	 
	Section 4.6 Breach of Certain Representations and Warranties
	 	 	86	 
	 
	 	 	 	 
	ARTICLE V GENERAL COVENANTS
	 	 	87	 
	 
	 	 	 	 
	Section 5.1 Affirmative Covenants of the Seller
	 	 	87	 
	Section 5.2 Negative Covenants of the Seller
	 	 	91	 
	Section 5.3 Covenants of the Seller Relating to the Hedging of Assets
	 	 	93	 
	Section 5.4 Affirmative Covenants of the Servicer
	 	 	94	 
	Section 5.5 Negative Covenants of the Servicer
	 	 	97	 
	Section 5.6 Affirmative Covenants of the Backup Servicer
	 	 	98	 
	Section 5.7 Negative Covenants of the Backup Servicer
	 	 	98	 
	Section 5.8 Affirmative Covenants of the Collateral Custodian
	 	 	98	 
	Section 5.9 Negative Covenants of the Collateral Custodian
	 	 	99	 
	Section 5.10 Covenant of the Seller, the Servicer and the Originator
	 	 	99	 
	 
	 	 	 	 
	ARTICLE VI ADMINISTRATION AND SERVICING OF ASSETS
	 	 	100	 
	 
	 	 	 	 
	Section 6.1 Designation of the Servicer
	 	 	100	 
	Section 6.2 Duties of the Servicer
	 	 	100	 
	Section 6.3 Authorization of the Servicer
	 	 	103	 
	Section 6.4 Collection of Payments
	 	 	104	 
	Section 6.5 Servicer Advances
	 	 	105	 
	Section 6.6 Realization Upon Charged-Off Assets
	 	 	106	 
	Section 6.7 Maintenance of Insurance Policies
	 	 	106	 
	Section 6.8 Servicing Compensation
	 	 	107	 
	Section 6.9 Payment of Certain Expenses by Servicer
	 	 	107	 
	Section 6.10 Reports
	 	 	107	 
	Section 6.11 Annual Statement as to Compliance
	 	 	108	 
	Section 6.12 Annual Independent Public Accountant’s Servicing Reports

	 	 	108	 
	Section 6.13 Limitation on Liability of the Servicer and Others
	 	 	109	 
	Section 6.14 The Servicer Not to Resign
	 	 	109	 
	Section 6.15 Servicer Defaults
	 	 	109	 
	Section 6.16 Appointment of Successor Servicer
	 	 	110	 
	 
	 	 	 	 
	ARTICLE VII THE BACKUP SERVICER
	 	 	113	 
	 
	 	 	 	 
	Section 7.1 Designation of the Backup Servicer
	 	 	113	 
	Section 7.2 Duties of the Backup Servicer
	 	 	113	 
	Section 7.3 Merger or Consolidation
	 	 	114	 
	Section 7.4 Backup Servicing Compensation
	 	 	115	 
	Section 7.5 Backup Servicer Removal
	 	 	115	 
	Section 7.6 Limitation on Liability
	 	 	115	 
	Section 7.7 The Backup Servicer Not to Resign
	 	 	116	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	ARTICLE VIII THE COLLATERAL CUSTODIAN
	 	 	116	 
	 
	 	 	 	 
	Section 8.1 Designation of Collateral Custodian
	 	 	116	 
	Section 8.2 Duties of Collateral Custodian
	 	 	116	 
	Section 8.3 Merger or Consolidation
	 	 	118	 
	Section 8.4 Collateral Custodian Compensation
	 	 	118	 
	Section 8.5 Collateral Custodian Removal
	 	 	118	 
	Section 8.6 Limitation on Liability
	 	 	119	 
	Section 8.7 The Collateral Custodian Not to Resign
	 	 	120	 
	Section 8.8 Release of Documents
	 	 	120	 
	Section 8.9 Return of Required Asset Documents
	 	 	121	 
	Section 8.10 Access to Certain Documentation and Information Regarding the Collateral; Audits
	 	 	121	 
	Section 8.11 Intentionally Omitted
	 	 	121	 
	 
	 	 	 	 
	ARTICLE IX SECURITY INTEREST
	 	 	122	 
	 
	 	 	 	 
	Section 9.1 Grant of Security Interest
	 	 	122	 
	Section 9.2 Release of Lien on Collateral
	 	 	122	 
	Section 9.3 Further Assurances
	 	 	123	 
	Section 9.4 Remedies
	 	 	123	 
	Section 9.5 Waiver of Certain Laws
	 	 	123	 
	Section 9.6 Power of Attorney
	 	 	123	 
	 
	 	 	 	 
	ARTICLE X TERMINATION EVENTS
	 	 	124	 
	 
	 	 	 	 
	Section 10.1 Termination Events
	 	 	124	 
	Section 10.2 Remedies
	 	 	126	 
	 
	 	 	 	 
	ARTICLE XI INDEMNIFICATION
	 	 	127	 
	 
	 	 	 	 
	Section 11.1 Indemnities by the Seller
	 	 	127	 
	Section 11.2 Indemnities by the Servicer
	 	 	130	 
	Section 11.3 After-Tax Basis
	 	 	131	 
	 
	 	 	 	 
	ARTICLE XII THE ADMINISTRATIVE AGENT
	 	 	131	 
	 
	 	 	 	 
	Section 12.1 The Administrative Agent
	 	 	131	 
	 
	 	 	 	 
	ARTICLE XIII MISCELLANEOUS
	 	 	135	 
	 
	 	 	 	 
	Section 13.1 Amendments and Waivers
	 	 	135	 
	Section 13.2 Notices, Etc.
	 	 	135	 
	Section 13.3 Ratable Payments
	 	 	135	 
	Section 13.4 No Waiver; Remedies
	 	 	136	 
	Section 13.5 Binding Effect; Benefit of Agreement
	 	 	136	 
	Section 13.6 Term of this Agreement
	 	 	136	 
	Section 13.7 Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue
	 	 	136	 
	Section 13.8 Waiver of Jury Trial
	 	 	137	 
	Section 13.9 Costs, Expenses and Taxes
	 	 	137	 

iii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	Section 13.10 No Proceedings
	 	 	138	 
	Section 13.11 Recourse Against Certain Parties
	 	 	138	 
	Section 13.12 Protection of Right, Title and Interest in the Collateral; Further Action Evidencing Advances
	 	 	139	 
	Section 13.13 Confidentiality
	 	 	140	 
	Section 13.14 Execution in Counterparts; Severability; Integration
	 	 	141	 
	Section 13.15 Waiver of Set-off
	 	 	142	 
	Section 13.16 Assignments
	 	 	142	 
	Section 13.17 Heading and Exhibits
	 	 	145	 
	Section 13.18 Loans Subject to Retained Interest Provisions
	 	 	145	 
	Section 13.19 Tax Treatment of Advances
	 	 	145	 

EXHIBITS

	 	 	 
	EXHIBIT A-1

	 	Form of Borrowing Notice (Advances and Reduction of Facility Amount)
	EXHIBIT A-2

	 	Form of Borrowing Notice (Reinvestments of Principal Collections)
	EXHIBIT A-3

	 	Form of Borrowing Base Certificate
	EXHIBIT B

	 	Form of Variable Funding Certificate (Purchasers)
	EXHIBIT C

	 	Form of Monthly Report
	EXHIBIT D

	 	Form of Hedging Agreement (including Schedule and Confirmation)
	EXHIBIT E-1

	 	Form of Officer’s Certificate to Solvency (CapitalSource Real Estate Loan LLC, 2007-A)
	EXHIBIT E-2

	 	Form of Officer’s Certificate to Solvency (CSE Mortgage LLC)
	EXHIBIT F-1

	 	Form of Officer’s Closing Certificate (CapitalSource Real Estate Loan LLC, 2007-A)
	EXHIBIT F-2

	 	Form of Officer’s Closing Certificate (CSE Mortgage LLC)
	EXHIBIT G-1

	 	Form of Power of Attorney (CapitalSource Real Estate Loan LLC, 2007-A)
	EXHIBIT G-2

	 	Form of Power of Attorney (CSE Mortgage LLC)
	EXHIBIT H

	 	Form of Release of Required Asset Documents
	EXHIBIT I

	 	Form of Assignment of Mortgage
	EXHIBIT J

	 	Form of Servicer’s Certificate
	EXHIBIT K

	 	[Intentionally omitted]
	EXHIBIT L

	 	Form of Certificate of Outside Counsel
	EXHIBIT M

	 	Form of Assignment and Acceptance Agreement
	EXHIBIT N

	 	Form of Parent Undertaking — Originator
	EXHIBIT O

	 	Form of Parent Undertaking — Servicer

SCHEDULES

	 	 	 
	SCHEDULE I

	 	Condition Precedent Documents
	SCHEDULE II

	 	List of Lock-Box Banks and Lock-Box Accounts
	SCHEDULE III

	 	Location of Required Asset Documents and Asset Files
	SCHEDULE IV

	 	Asset List
	SCHEDULE V

	 	Residential Mortgage Policies and Procedures
	SCHEDULE VI

	 	Investors
	SCHEDULE VII

	 	Intentionally Omitted
	SCHEDULE VIII

	 	Excess Concentration Loans

iv

 

SALE AND SERVICING AGREEMENT

     THIS SALE AND SERVICING AGREEMENT (such agreement as amended, modified, waived, supplemented,
restated or replaced from time to time, the “Agreement”) is made as of this 10th day of September,
2007, by and among:

     (1) CAPITALSOURCE REAL ESTATE LOAN LLC, 2007-A, a Delaware limited liability company, as the
seller (together with its successors and assigns in such capacity, the “Seller”);

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

     (3) EACH OF THE ISSUERS FROM TIME TO TIME PARTY HERETO (together with their respective
successors and assigns in such capacities, each an “Issuer”);

     (4) EACH OF THE LIQUIDITY BANKS FROM TIME TO TIME PARTY HERETO (together with their respective
successors and assigns in such capacities, each a “Liquidity Bank”);

     (5) CITICORP NORTH AMERICA, INC., a Delaware corporation (“CNAI”), as the administrative agent
for the Issuers and Liquidity Banks hereunder (together with its successors and assigns in such
capacity, including any successor appointed pursuant to ARTICLE XII, the “Administrative
Agent”); and

     (6) WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”), not in its individual capacity but
as the backup servicer (together with its successors and assigns in such capacity, the “Backup
Servicer”), and not in its individual capacity but as the collateral custodian (together with its
successors and assigns in such capacity, the “Collateral Custodian”).

R
E C I T A L S

     WHEREAS, the Seller has acquired, and may from time to time continue to acquire, certain
Assets (as defined below) from the Originator pursuant to the Sale Agreement (as defined below);

     WHEREAS, the Seller is prepared to transfer and assign, and grant security interests in,
certain Assets and other proceeds with respect thereto to the Purchasers (as defined below) from
time to time;

     WHEREAS, the Purchasers may, in accordance with the terms of this Agreement, purchase such
Assets; and

     WHEREAS, all other conditions precedent to the execution of this Agreement have been complied
with.

 

 

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

ARTICLE I

DEFINITION

     Section 1.1 Certain Defined Terms.

     Certain capitalized terms used throughout this Agreement are defined above or in this
Section 1.1. As used in this Agreement and its schedules, exhibits and other attachments,
unless the context requires a different meaning, the following terms shall have the following
meanings:

“1940 Act”: Defined in Section 10.1(i).

“Accrual Period”: (a) with respect to each Advance (or portion thereof) funded at an Interest
Rate other than the CP Rate, (i) with respect to the first Payment Date, the period from and
including the Closing Date to but excluding such first Payment Date and (ii) with respect to any
subsequent Payment Date, the period from and including the previous Payment Date to but excluding
such subsequent Payment Date, and (b) with respect to each Advance (or portion thereof) funded at
an Interest Rate equal to the CP Rate, (i) with respect to the first Payment Date, the period from
and including the Closing Date to and including the last day of the calendar month in which the
Closing Date occurs and (ii) with respect to any subsequent Payment Date, the period ending on the
last day of the calendar month immediately preceding the month in which the Payment Date occurs and
commencing on the first day of such immediately preceding calendar month.

“Acquired Loan”: A Loan that is originated by a Person other than the Originator, CapitalSource
Finance LLC or any of their respective Subsidiaries and acquired by the Originator in a “true sale”
transaction pursuant to an acquisition agreement, provided that the foregoing shall exclude any
Retained Interest.

“Addition Date”: With respect to any Additional Assets, the date on which such Additional Assets
become part of the Collateral.

“Additional Assets”: All Assets that become part of the Collateral after the initial Funding Date.

“Adjusted Eurodollar Rate”: For any Accrual Period, an interest rate per annum equal to a
fraction, expressed as a percentage and rounded upwards (if necessary) to the nearest 1/100 of 1%,
(i) the numerator of which is equal to the offered quotation to first-class banks in the New York
interbank Eurodollar market by the Administrative Agent for Dollar deposits of amounts in same day
funds comparable to the outstanding principal amount of the Advance for which an interest rate is
then being determined with maturities comparable to the Accrual Period to be applicable to such
Advance, determined as of 10:00 a.m. (New York City, New York time) on the date which is two
Business Days prior to the commencement of such Accrual Period (and rounded upward to the next
whole multiple of 1/16 of 1%) to a fraction, expressed as a

2

 

percentage and rounded upwards (if necessary) to the nearest 1/100 of 1%, and (ii) the denominator
of which is equal to 100% minus the Eurodollar Reserve Percentage for such Accrual Period.

“Administrative Agent”: Defined in the Preamble of this Agreement.

“Advance”: Defined in Section 2.1(b).

“Advance Rate”: 80% with respect to any Senior Secured ABLs on any date of determination, and for
all other Eligible Assets the corresponding percentage set forth below:

Senior Secured Loan

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Classification	 	LTV <=65%	 	LTV <=70%	 	LTV<=75%	 	LTV <=80%	 	LTV <=85%	 	LTV <=90%
	Multifamily
	 	 	80	%	 	 	80	%	 	 	80	%	 	 	75	%	 	 	65	%	 	 	55	%
	Retail, Office,
Industrial,
Healthcare, Land
Development,
Construction
Properties and
other
	 	 	80	%	 	 	80	%	 	 	80	%	 	 	75	%	 	 	65	%	 	 	60	%
	Hotel
	 	 	80	%	 	 	75	%	 	 	70	%	 	 	65	%	 	 	N/A	 	 	 	N/A	 

Sale/Leaseback Loan

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Classification	 	LTV <=65%	 	LTV <=70%	 	LTV<=75%	 	LTV <=80%	 	LTV <=85%	 	LTV <=90%
	Multifamily
	 	 	80	%	 	 	80	%	 	 	80	%	 	 	75	%	 	 	65	%	 	 	55	%
	Retail, Office,
Industrial,
Healthcare, Land
Development and
other
	 	 	80	%	 	 	80	%	 	 	80	%	 	 	75	%	 	 	60	%	 	 	50	%
	Hotel
	 	 	80	%	 	 	75	%	 	 	70	%	 	 	65	%	 	 	N/A	 	 	 	N/A	 

B-Note Loans

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Classification	 	LTV<=75%	 	LTV <=80%	 	LTV <=85%	 	LTV <=90%
	Multifamily
	 	 	60	%	 	 	60	%	 	 	60	%	 	 	50	%
	Retail, Office,
Industrial,
Healthcare, Land
Development and
other
	 	 	55	%	 	 	55	%	 	 	55	%	 	 	50	%
	Hotel
	 	 	60	%	 	 	55	%	 	 	N/A	 	 	 	N/A	 

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Mezzanine Loan

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Classification	 	LTV <=80%	 	LTV <=85%	 	LTV <=90%
	Multifamily
	 	 	40	%	 	 	40	%	 	 	40	%
	Retail, Office,
Industrial, Healthcare
and other
	 	 	40	%	 	 	40	%	 	 	40	%
	Hotel
	 	 	50	%	 	 	N/A	 	 	 	N/A	 

For purposes of calculating the Advance Rate with respect to any Acquired Loans, Assigned
Loans, Agented Loans and Participation Loans, the applicable Advance Rate will be determined by
reference to the type of underlying Loan being acquired, assigned, agented or participated in, as
the case may be.

“Advances Outstanding”: On any day, the aggregate principal amount of all Advances outstanding on
such day, after giving effect to all repayments of Advances and the making of new Advances on such
day.

“Affected Party”: The Administrative Agent, the Purchasers, each Liquidity Bank, all assignees,
participants and Affiliates of the Purchasers and each Liquidity Bank, any successor to CNAI as
Administrative Agent and any sub-agent of the Administrative Agent.

“Affiliate”: With respect to a Person, means any other Person that, directly or indirectly,
controls, is controlled by or under common control with such Person, or is a director or officer of
such Person. For 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 20% or more of the voting securities
of such Person or to direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by contract or otherwise.

“Agent’s Account”: A special account (account number 40517805) in the name of the Administrative
Agent maintained at Citibank, N.A.

“Agented Loans”: With respect to any Loan, one or more loans to an Eligible Obligor wherein (a)
the loan(s) are originated by the Originator in accordance with the Credit and Collection Policy as
a part of a syndicated loan transaction that has been fully consummated between the Originator and
the related Obligor (without regard to any subsequent syndication of such Loan) prior to such
Agented Loans becoming part of the Collateral hereunder, (b) upon an assignment of the note under
the Sale Agreement to the Seller, any original note related thereto will be endorsed to the
Administrative Agent and held by the Collateral Custodian, on behalf of the Secured Parties, (c)
the Seller, as assignee of the loan, will have all of the rights but none of the obligations of the
Originator with respect to such loan and the Originator’s right, title and interest in and to the
Related Property including the right to receive and collect payments directly in its own name and
to enforce its rights directly against the Obligor thereof, (d) the loan, if secured, is secured by
an undivided interest in the Related Property that also secures and is shared by, on a pro rata
basis, all other holders of such Obligor’s loan of equal priority and (e) CapitalSource Finance LLC
or the Originator (or a wholly owned subsidiary of the Originator) is the collateral agent and
payment agent for loans to such Obligor.

4

 

“Aggregate Notional Amount”: On any date of determination, the aggregate notional amount in
respect of the payment obligations of the relevant Hedge Counterparty that is outstanding on that
date under all Hedge Transactions or any group thereof, as the context requires.

“Aggregate Outstanding Asset Balance”: On any date of determination, the sum of the Outstanding
Asset Balances of all Eligible Assets included as part of the Collateral on such date.

“Aggregate Outstanding Principal Balance”: As of any date of determination, the sum of Advances
Outstanding, plus the amount of the Seller Investment.

“Aggregate Unpaids”: At any time, an amount equal to the sum of all unpaid Advances Outstanding,
Interest, Breakage Costs, Hedge Breakage Costs and all other amounts owed by the Seller to the
Purchasers, the Administrative Agent, the Backup Servicer, each Hedge Counterparty and the
Collateral Custodian hereunder (including, without limitation, all Indemnified Amounts, other
amounts payable under Article XI and amounts required under Section 2.9,
Section 2.10, Section 2.14, Section 2.15 and Section 2.16 to the
Affected Parties or Indemnified Parties) or under any Hedging Agreement (including, without
limitation, payments in respect of the termination of any such Hedging Agreement) or by the Seller
or any other Person under any fee letter (including, without limitation, the Purchaser Fee Letter,
the Backup Servicer and Collateral Custodian Fee Letter) delivered in connection with the
transactions contemplated by this Agreement (whether due or accrued).

“Alternative Currency”: At any time, any of Canadian Dollars, British Pounds Sterling or Euros.

“Alternative Rate”: An interest rate per annum equal to the Adjusted Eurodollar Rate calculated on
a daily basis; provided that the Alternative Rate shall be the Base Rate (i) for all Advances of
any Liquidity Bank which has provided a notice pursuant to clause (a), (b), (c) or (d) of the
definition of Eurodollar Disruption Event and (ii) for the relevant Advances of any Liquidity Bank
which has provided a notice pursuant to clause (e) of the definition of Eurodollar Disruption
Event.

“Amortization Period”: The period beginning on the occurrence of the Termination Date pursuant to
clause (a), (b), (c) or (d) of the definition thereof and ending on the earlier of (i) the
commencement of the Turbo Period and (ii) the Collection Date.

“Applicable Law”: For any Person or property of such Person, all existing and future applicable
laws, rules, regulations (including proposed, temporary and final income tax regulations),
statutes, treaties, codes, ordinances, permits, certificates, orders and licenses of and
interpretations by any Governmental Authority (including, without limitation, usury laws, the
Federal Truth in Lending Act, and Regulation Z and Regulation B of the Board of Governors of the
Federal Reserve System), and applicable judgments, decrees, injunctions, writs, awards or orders of
any court, arbitrator or other administrative, judicial, or quasi-judicial tribunal or agency of
competent jurisdiction.

“Appraisal”: With respect to any Mortgaged Property as to which an appraisal is required or
permitted to be performed pursuant to the terms of this Agreement, an appraisal performed in
conformance with the guidelines of the Appraisal Institute.

5

 

“Appraisal Institute”: The international membership association of professional real estate
appraisers.

“Asset Checklist”: The list of loan documents attached as Schedule 5 to the Sale Agreement or an
electronic list delivered by or on behalf of the Seller to the Collateral Custodian that identifies
each of the items contained in the related Asset File, as amended from time to time.

“Asset Files”: With respect to any Asset, as applicable, and Related Security, copies of each of
the Required Asset Documents and duly executed originals (to the extent required by the Credit and
Collection Policy) and copies of any other Records relating to such Asset and Related Security.

“Asset List”: The Asset List provided by or on behalf of the Seller to the Administrative Agent
and the Collateral Custodian, in the form of Schedule IV hereto, as such list may be
amended, supplemented or modified from time to time in accordance with this Agreement.

“Assets”: Loans, individually or collectively, as the context requires.

“Assigned Loan”: A Loan (other than an Agented Loan) originated by a Person other than the
Originator in which a constant percentage interest has been assigned to the Originator by such
Person in accordance with the Credit and Collection Policy and (i) the transaction has been fully
consummated prior to such Loan becoming part of the Collateral hereunder, (ii) the Originator is a
party to a credit agreement and/or an assignment agreement with the Obligor with respect to such
Loan, and (iii) the agent receives payment directly from the Obligor thereof on behalf of each
lender that has been assigned a percentage interest in such Loan; provided that any such Loan shall
exclude any Retained Interest.

“Assignment and Acceptance”: An assignment and acceptance agreement entered into by a Bank, an
Eligible Assignee and the Agent, pursuant to which such Eligible Assignee may become a party to
this Agreement, in substantially the form of Exhibit M hereto.

“Assignment of Leases and Rents”: With respect to any Mortgaged Property, any assignment of
leases, rents and profits or similar instrument executed by the Obligor, assigning to the mortgagee
all of the income, rents and profits derived from the ownership, operation, leasing or disposition
of all or a portion of such Mortgaged Property, whether contained in the Mortgage or in a document
separate from the Mortgage, in the form that was duly executed, acknowledged and delivered, as
amended, modified, renewed or extended through the date hereof and from time to time hereafter in
accordance with the Credit and Collection Policy.

“Assignment of Mortgage”: As to each Loan, other than Agented Loans or Assigned Loans (or other
Loans for which an Assignment of Mortgage has been delivered to Wells Fargo in its capacity as
trustee or custodian pursuant to a prior term transaction or warehouse facility involving the
Originator or one of its Affiliates) 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 the related Mortgage or
similar security instrument and all other documents related to such Loan and to the Seller and to
grant a perfected lien thereon by the Seller in favor of the Administrative Agent, on behalf of

6

 

the
Secured Parties, each such Assignment of Mortgage to be substantially in the form of Exhibit
I hereto.

“Available Collections Amount”: As of any Payment Date, the amount of funds remaining after making
the distributions required by clauses (1) through (5) of Section 2.9(a).

“Available Collections Shortfall”: As of any Payment Date, the Total Principal Payable exceeds the
Available Collections Amount.

“Availability”: At any time, an amount equal to the excess, if any, of (i) the lesser of (a)
the Facility Amount and (b) the Maximum Availability over (ii) the Advances Outstanding on such
day; provided that during the Amortization Period and the Turbo Period, the Availability shall be
zero.

“Available Funds”: With respect to any Payment Date, all amounts received in the Collection
Account (including, without limitation, any Collections on the Assets included in the Collateral
and earnings from Permitted Investments in the Collection Account) during the Collection Period
that ended on the last day of the calendar month immediately preceding the calendar month in which
such Payment Date occurs.

“Average Pool Charged-Off Ratio”: As of any Determination Date, the percentage equivalent of a
fraction (i) the numerator of which is equal to the sum of the Outstanding Asset Balance of all
Assets that became Charged-Off Assets (net of Recoveries during such Collection Period) during the
Collection Period related to such Determination Date and each of the 11 preceding Determination
Dates (or such lesser number as shall have elapsed as of such Determination Date), and (ii) the
denominator of which is equal to a fraction the numerator of which is the sum of the Aggregate
Outstanding Asset Balance as of the first day of the Collection Period related to such
Determination Date and each of the 11 preceding Determination Dates (or such lesser number as shall
have elapsed as of such Determination Date) and the denominator of which is 12 (or the
corresponding lesser number of Determination Dates included in the calculations described herein).

“Average Portfolio Charged-Off Ratio”: As of any Determination Date, the percentage equivalent of
a fraction (i) the numerator of which is equal to the sum of the Portfolio Outstanding Asset
Balance of all Portfolio Assets (excluding equity investments) that became Charged-Off Portfolio
Assets (net of Recoveries during such Collection Period) during the Collection Period related to
such Determination Date and each of the 11 preceding Determination Dates (or such lesser number as
shall have elapsed as of such Determination Date), and (ii) the denominator of which is equal to a
fraction the numerator of which is the sum of the Portfolio Outstanding Asset Balance (excluding
equity investments) as of the first day of the Collection Period related to such Determination Date
and each of the 11 preceding Determination Dates (or such lesser number as shall have elapsed as of
such Determination Date) and the denominator of which is 12 (or the corresponding lesser number of
Determination Dates included in the calculations described herein); provided that such calculation
shall exclude the effects of any Liquid Real Estate Assets that are acquired and levered by the
Originator solely to satisfy REIT asset and income tests.

7

 

“Average Portfolio Delinquency Ratio”: As of any Determination Date, the percentage equivalent of
a fraction the numerator of which is equal to the sum of the Portfolio Delinquency Ratio on such
Determination Date and each of the two preceding Determination Dates (or such
lesser number as shall have elapsed as of such Determination Date) and the denominator of which is
equal to three (or the corresponding lesser number of Determination Dates included in the
calculations described herein); provided that such calculation shall exclude the effects of any
Liquid Real Estate Assets that are acquired and levered by the Originator solely to satisfy REIT
asset and income tests.

“Backup Servicer”: Wells Fargo Bank, National Association, not in its individual capacity, but
solely as Backup Servicer, its successor in interest pursuant to Section 7.3 or such Person
as shall have been appointed as Backup Servicer pursuant to Section 7.5.

“Backup Servicer and Collateral Custodian Fee Letter”: The Backup Servicer Fee Letter and
Collateral Custodian Fee Letter, dated as of the date hereof, by and among the Servicer, the
Administrative Agent, the Backup Servicer and the Collateral Custodian, as such letter may be
amended, modified, supplemented, restated or replaced from time to time.

“Backup Servicer Fee Rate”: The rate per annum set forth in the Backup Servicer and Collateral
Custodian Fee Letter as the “Backup Servicer Fee Rate.”

“Backup Servicer Termination Notice”: Defined in Section 7.5.

“Backup Servicing Fee”: Defined in the Backup Servicer and Collateral Custodian Fee Letter.

“Banded Floating Rate Loan”: A Loan where the interest rate payable by the Obligor thereof
fluctuates between a minimum interest rate and a maximum interest rate allowable under its
Underlying Instruments.

“Bankruptcy Code”: The United States Bankruptcy Reform Act of 1978 (11 U.S.C. § 101, et seq.), as
amended from time to time.

“Base Rate”: On any date, a fluctuating interest rate per annum equal to the highest of (a) the
Prime Rate, (b) the CD Rate and (c) the Federal Funds Rate plus 1.5%.

“Benefit Plan”: Any employee benefit plan as defined in Section 3(3) of ERISA in respect
of which the Seller or any ERISA Affiliate of the Seller is, or at any time during the immediately
preceding six years was, an “employer” as defined in Section 3(5) of ERISA.

“B-Note Loan”: Any Term Loan that (i) is a multilender loan, (ii) is secured by a first or second
priority Lien on all of the Obligor’s assets constituting Related Property for the Loan, (iii) has
a “first dollar” at risk not to exceed 65% of the Loan to Value Ratio and a “last dollar” at risk
not to exceed 90% of the Loan to Value Ratio, and (iv) contains terms which, upon the occurrence of
an event of default under the Underlying Instruments or in the case of any liquidation or
foreclosure on the Related Property, provide that the principal of the Seller’s portion of such
Loan would be paid only after the other lenders parties on the senior tranche related to such Loan
are paid in full.

8

 

“Borrowing Base”: On any date of determination, the sum of (i) the Aggregate Outstanding Asset
Balance and (ii) (a) the Outstanding Asset Balances of all Additional Assets that are Eligible
Assets to be included as part of the Collateral on such date minus (b) the amount
(calculated without duplication) by which such Eligible Assets exceed any applicable Pool
Concentration Criteria.

“Borrowing Base Certificate”: Each certificate, in the form of Exhibit A-3, required to be
delivered by the Seller along with each Borrowing Notice.

“Borrowing Notice”: Each notice, in the form of Exhibit A-1 or A-2 (as
applicable), required to be delivered by the Seller (i) in respect of (a) the Initial Advance and
each incremental Advance (as applicable), (b) any reduction of the Facility Amount or repayment of
the Advances Outstanding, or (c) any reinvestment of Principal Collections under Section
2.9(b); and (ii) on each Determination Date.

“Breakage Costs”: Any amount or amounts as shall compensate a Purchaser for any loss, cost or
expense incurred by such Purchaser (as determined by the Administrative Agent in its sole
discretion) as a result of a prepayment by the Seller of Advances Outstanding or Interest. All
Breakage Costs shall be due and payable hereunder upon demand.

“British Pound Sterling”: The lawful currency of the United Kingdom.

“Business Day”: Any day other than a Saturday or a Sunday on which (a) banks are not required or
authorized to be closed in Minneapolis, Minnesota or New York City, New York, and (b) if the term
“Business Day” is used in connection with the determination of the LIBOR Rate, dealings in United
States dollar deposits are carried on in the London interbank market.

“CAFCO”: CAFCO, LLC, together with its successors and assigns, each as permitted pursuant to this
Agreement.

“Canadian Dollars”: The lawful currency of Canada.

“Capital Stock”: Any capital stock or membership interests (in the case of a limited
liability company) or equivalent equity interests of CapitalSource Inc. or any Consolidated
Subsidiary (to the extent issued to a Person other than CapitalSource Inc.), whether common or
preferred.

“CD Rate”: A fluctuating interest rate per annum equal to 1/2 of one percent above the latest
three-week moving average of secondary market morning offering rates in the United States for
three-month certificates of deposit of major United States money market banks, such three-week
moving average being determined weekly on each Monday (or, if such day is not a Business Day, on
the next succeeding Business Day) for the three-week period ending on the previous Friday by
Citibank on the basis of such rates reported by certificate of deposit dealers to and published by
the Federal Reserve Bank of New York or, if such publication shall be suspended or terminated, on
the basis of quotations for such rates received by Citibank from three New York certificate of
deposit dealers of recognized standing selected by Citibank, in either case adjusted to the nearest
1/4 of one percent or, if there is no nearest 1/4 of one percent, to the next higher 1/4 of one
percent.

9

 

“Change-in-Control”: Any of the following:

     (a) Any “Person” or “group"(as such terms are used in Sections 13(d) and 14(d) of the
Securities and Exchange Act of 1934, as amended), other than the Investors, shall become the
“beneficial owner” (as defined in Section 13(d)-3 and 13(d)-5 under such Act), directly or
indirectly, of shares representing more than the greater of (i) 20% of the shares outstanding of
CapitalSource Inc. and (ii) the percentage of the aggregate then outstanding voting stock of
CapitalSource Inc. owned beneficially, directly or indirectly, by the Investors;

     (b) the board of directors of CapitalSource Inc. shall not consist of at least a majority of
Continuing Directors;

     (c) the failure of CapitalSource Inc. to own (directly or through wholly owned subsidiaries),
free and clear of all Liens, the greater of (x) 51% of the outstanding Voting Stock of the
Originator and (y) the aggregate amount of the outstanding Voting Stock of the Originator necessary
to require the consolidation of the Originator’s financial statements with those of CapitalSource
Inc. in accordance with GAAP; or

     (d) the failure by the Originator to own all of the limited liability company membership
interests in the Seller.

“Charged-Off Asset”: An Asset with respect to which either of the following occurs: (a) the
Servicer has deemed such Asset to be “charged-off” pursuant to the criteria set forth in the Credit
and Collection Policy, excluding the balance of any Asset for which a loss was specifically
provided as of August 31, 2007 or (b) all or any portion of one or more principal or interest
payments (other than in respect of default rate interest) remain unpaid for at least 120 days from
the original due date for such payment (without giving effect to any Servicer Advance thereon).

“Charged-Off Portfolio Asset”: A Portfolio Asset the Servicer has deemed to be “charged-off”
pursuant to the criteria set forth in the Credit and Collection Policy, excluding the balance of
any Portfolio Asset for which a loss was specifically provided as of August 31, 2007.

“CIESCO”: CIESCO, LLC, together with its successors and assigns, each as permitted pursuant to
this Agreement.

“Citibank”: Citibank, N.A.

“Clearing Agency”: An organization registered as a “clearing agency” pursuant to Section 17A of
the Exchange Act.

“Closing Date”: September 10, 2007.

“Code”: The Internal Revenue Code of 1986, as amended from time to time.

“Collateral”: All right, title, and interest (whether now owned or hereafter acquired or arising,
and wherever located) of the Seller in all accounts, cash and currency, chattel paper, tangible
chattel paper, electronic chattel paper, copyrights, copyright licenses, equipment, fixtures,
general intangibles, instruments, commercial tort claims, deposit accounts, securities accounts,

10

 

inventory, investment property, letter-of-credit rights, software, supporting obligations,
accessions, and other property consisting of, arising out of, or related to any of the following
(in each case excluding the Retained Interest and the Excluded Amounts): (i) the Existing Assets
and the Additional Assets, and all monies due or to become due in payment under such Existing
Assets and the Additional Assets on and after the related Cut-Off Date, including but not limited
to all Collections, but excluding any Excluded Amounts; and (ii) all Related Security with respect
to the Existing Assets and the Additional Assets, and (iii) all income and Proceeds of the
foregoing.

“Collateral Custodian”: Wells Fargo Bank, National Association, not in its individual capacity,
but solely as Collateral Custodian, its successor in interest pursuant to Section 8.3 or
such Person as shall have been appointed Collateral Custodian pursuant to Section 8.5.

“Collateral Custodian Fee”: Defined in the Backup Servicer and Collateral Custodian Fee Letter.

“Collateral Custodian Termination Notice”: Defined in Section 8.5.

“Collection Account”: Defined in Section 6.4(f).

“Collection Date”: The date following the Termination Date on which the Aggregate Unpaids have
been reduced to zero and indefeasibly paid in full.

“Collection Period”: With respect to the first Payment Date, the period from and including the
Closing Date to but excluding the 11th day of the calendar month immediately preceding the first
Payment Date; and with respect to each Payment Date thereafter, the period from and including the
11th day of the previous calendar month to but excluding the 11th day of the month in which such
Payment Date occurs.

“Collections”: (a) All cash collections and other cash proceeds of any Asset, including, without
limitation, Scheduled Payments, Finance Charges, Prepayments, Insurance Proceeds, all Recoveries or
other amounts received in respect thereof but excluding any Excluded Amounts, (b) any cash proceeds
or other funds received by the Seller or the Servicer with respect to any Related Security, (c) all
payments received pursuant to any Hedging Agreement or Hedge Transaction and (d) all Deemed
Collections.

“Commercial Paper Notes”: On any day, any short-term promissory notes of any Issuer issued by such
Issuer in the commercial paper market.

“Commitment”: With respect to each Liquidity Bank the commitment of such Liquidity Bank to make
Advances in accordance herewith in an amount not to exceed (a) with respect to Citibank, prior to
the Termination Date, an amount equal to $1,250,000,000 (provided that such amount may be increased
pursuant to Section 2.4(d) to an amount not exceeding $1,500,000,000) or such amount as
reduced or increased by any Assignment and Acceptance Agreement or (b) on or after the Termination
Date, such Liquidity Bank’s pro rata share of the aggregate Advances Outstanding. Any reduction
(or termination) of the Facility Amount pursuant to the terms of this Agreement shall reduce
ratably (or terminate) each Liquidity Bank’s Commitment.

11

 

“Commitment Fee”: With respect to any Purchaser, as defined in such Purchaser’s Purchaser Fee
Letter.

“Confirmation and Undertaking Letter”: The Intercreditor and Lockbox Confirmation and Undertaking
Letter, dated the date hereof, among the Administrative Agent, the Seller, the Servicer and
Originator, CapitalSource Inc., CapitalSource Funding Inc. and CapitalSource Finance LLC, regarding
certain agreements between the parties with respect to the Lock-Box Agreement and the Intercreditor
Agreement, as the Confirmation and Undertaking Letter may be amended, restated, modified or
supplemented from time to time.

“Consolidated Funded Indebtedness”: As of any date of determination, all outstanding Indebtedness
of the Originator and its Subsidiaries determined on a consolidated basis in accordance with GAAP.

“Consolidated Subsidiary”: At any date any Subsidiary the accounts of which, in accordance with
GAAP, would be consolidated with those of CapitalSource Inc. in its consolidated and consolidating
financial statements as of such date.

“Consolidated Tangible Net Worth”: As of any date of determination, the assets less the
liabilities of any Person and its Subsidiaries on a consolidated basis, less intangible assets
(including goodwill), all determined in accordance with GAAP.

“Construction Loan”: A Senior Secured Loan (which may be a Revolving Loan or a Loan with an
unfunded commitment) that is secured by Construction Properties and has a shadow rating of at least
Caa1/CCC+ from Moody’s or S&P.

“Construction Properties”: Properties that (a) are subject to ground up construction of new
improvements, involving, without limitation, new foundations, new structural steel or wood frame,
and new mechanical, electrical and plumbing systems and (b) secure a future advance loan or
Revolving Loan, and which either (x) the related future funding obligation represented more than
30% of the total committed amount of the underlying loan as of the date the Seller acquired such
future advance loan or Revolving Loan or (y) the related future funding obligation represented more
than 40% of the total committed amount of the underlying loan as of the date of origination of such
future advance loan or Revolving Loan.

“Continuing Directors”: The directors of CapitalSource Inc. on the Closing Date, and each other
director if, in each case, such other director’s nomination for election to the board of directors
is recommended by majority of the then Continuing Directors or such other director receives the
vote of the Investors in his or her election by the stockholders of CapitalSource Inc.

“Contractual Obligation”: 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”: With respect to Wells Fargo, the office at which any particular time its
corporate trust business shall be principally administered, which office at the date of the

12

 

execution of this Agreement is located at the address set forth under the signature of Wells Fargo
on the applicable signature page hereto.

“CP Rate”: For any day during any Accrual Period, the per annum rate equivalent to the weighted
average of the per annum rates paid or payable by an Issuer from time to time as interest on or
otherwise (by means of interest rate hedges or otherwise taking into consideration any incremental
carrying costs associated with short-term promissory notes issued by such Issuer maturing on dates
other than those certain dates on which such Issuer is to receive funds) in respect of the
promissory notes issued by such Issuer that are allocated, in whole or in part, by the
Administrative Agent on behalf of such Issuer to fund or maintain the Advances Outstanding funded
by such Issuer during such period, as determined by the Administrative Agent (on such Issuer’s
behalf) and reported to the Seller and the Servicer, which rates shall reflect and give effect to
(i) the commissions of placement agents and dealers in respect of such promissory notes, to the
extent such commissions are allocated, in whole or in part, to such promissory notes by the
Administrative Agent (on such Issuer’s behalf) and (ii) other borrowings by such Issuer, including,
without limitation, borrowings to fund small or odd dollar amounts that are not easily accommodated
in the commercial paper market; provided that if any component of such rate is a discount rate, in
calculating the CP Rate, the Administrative Agent shall for such component use the rate resulting
from converting such discount rate to an interest bearing equivalent rate per annum.

“CRC Funding”: CRC Funding, LLC, together with its successors and assigns, each as permitted
pursuant to this Agreement.

“Credit and Collection Policy”: The written credit policies and procedures manual of the
Originator and the Servicer (which policies shall include without limitation policies on a risk
rating system, due diligence format, underwriting parameters and credit approval procedures) in the
form provided to the Administrative Agent prior to the Closing Date, as it may be as amended or
supplemented from time to time in accordance with Section 5.1(h) and Section
5.4(f).

“CSE Management Agreement”: The management agreement, dated as of January 1, 2006, by and among
CapitalSource Inc., CSE Mortgage and CapitalSource Finance LLC, as the same may be amended,
restated, modified or supplemented from time to time.

“CSE Prime Rate”: The rate designated by CSE Mortgage (or the originator of an Assigned Loan) from
time to time and/or pursuant to the related Underlying Instruments as its prime rate in the United
States, such rate to change as and when the designated rate changes; provided that the CSE Prime
Rate is not intended to be the lowest rate of interest charged by CSE Mortgage (or such originator)
in connection with extensions of credit to debtors.

“CSE LIBOR Rate”: The Eurodollar or LIBO rate for 30, 60, 90 or 180 day, as applicable, deposits
in Dollars, as and when determined in accordance with the applicable Required Asset Documents.

“Cut-Off Date”: With respect to each Asset and Additional Asset, the related Funding Date
therefor.

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“Currency”: Dollars or any Alternative Currency.

“Deemed Collection”: Defined in Section 2.4(c).

“Delayed-Draw Term Loan”: A Loan that is fully committed on the closing date thereof and is
required by its terms to be fully funded in one or more installments on draw dates to occur within
three years after the closing date thereof but which, once fully funded, has the characteristics of
a Term Loan.

“Delinquent Asset”: An Asset (that is not a Charged-Off Asset) as to which either of the following
first occurs: (a) all or any portion of one or more principal or interest payments (other than in
respect of default rate interest) remain unpaid for at least 60 days from the original due date for
such payment (without giving effect to any Servicer Advance thereon) or (b) consistent with the
Credit and Collection Policy such Asset would be classified as delinquent by the Servicer.

“Delinquent Portfolio Asset”: A Portfolio Asset (that is not a Charged-Off Portfolio Asset)
(excluding equity investments) as to which either of the following first occurs: (a) all or any
portion of one or more principal or interest payments (other than in respect of default rate
interest) remain unpaid for at least 60 days from the original due date for such payment (without
giving effect to any Servicer Advance thereon) or (b) consistent with the Credit and Collection
Policy (or such similar policies and procedures utilized by the Servicer in servicing such
Portfolio Asset) such Portfolio Asset would be classified as delinquent by the Servicer.

“Derivatives”: Any exchange-traded or over-the-counter (i) forward, future, option, swap, cap,
collar, floor or foreign exchange contract or any combination thereof, whether for physical
delivery or cash settlement, relating to any interest rate, interest rate index, currency, currency
exchange rate, currency exchange rate index, debt instrument, debt price, debt index, depository
instrument, depository price, depository index, equity instrument, equity price, equity index,
commodity, commodity price or commodity index, (ii) any similar transaction, contract, instrument,
undertaking or security, or (iii) any transaction, contract, instrument, undertaking or security
containing any of the foregoing.

“Determination Date”: The last day of each Collection Period.

“Development Properties”: An existing property that is undergoing renovation or redevelopment that
either (i) disrupts at least 30% of the occupancy of the property, or (ii) temporarily reduces the
NOI of the property by more than 30%; provided that a property will not be considered a Development
Property after it has an occupancy rate of at least 80%.

“DIP Loan”: A loan to an Obligor that is a “debtor-in-possession” as defined under the Bankruptcy
Code.

“Discretionary Sale”: Defined in Section 2.20.

“Discretionary Sale Date”: The Business Day identified by the Seller to the Administrative Agent
in a Discretionary Sale Notice as the proposed date of a Discretionary Sale.

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“Discretionary Sale Notice”: Defined in Section 2.20(a).

“Dollar Equivalent”: On any day, with respect to the amount of any Alternative Currency, the
amount of Dollars that would be required to purchase such amount of Alternative Currency on such
day, based on the spot selling rate from the prior Business Day as determined by the Servicer
reported on Wall Street Journal to sell such Alternative Currency for Dollars in the London foreign
exchange market.

“Dollars”: Means, and the conventional “$” signifies, the lawful currency of the United States.

“Eligible Asset”: On any date of determination, each Asset (A) for which the Administrative Agent,
Collateral Custodian and Backup Servicer have received the following no later than 2:00 p.m. (New
York City, New York time) on the day prior to the related Funding Date: (1) a faxed copy of the
duly executed original promissory note, master purchase agreement and purchase statements, Loan
Register and Asset Checklist, as applicable, in a form and substance satisfactory to the
Administrative Agent and, with respect to any Loans closed in escrow, a certificate (in the form of
Exhibit L) from the counsel to the Originator or the Obligor of such Loans certifying the
possession of the Required Asset Documents; provided that notwithstanding the foregoing, the
Required Asset Documents (including any UCCs included in the Required Asset Documents) shall be in
the possession of the Collateral Custodian within two Business Days of any related Funding Date as
to any Additional Assets; (2) a Borrowing Notice delivered by the Seller to the Collateral
Custodian and the Administrative Agent as part of the Borrowing Notice or Monthly Report delivered
by the Servicer, (3) a Borrowing Base Certificate, and (4) a Certificate of Assignment (Exhibit A
to the Sale Agreement, including Schedule I thereto); provided that if such Asset is part of a
capital contribution to the Seller the Collateral Custodian shall have received the Required Asset
Documents within three Business Days of receipt of the Certificate of Assignment and (B) that
satisfies each of the following eligibility requirements, as applicable:

(1) With respect to any Asset:

     (a) the Asset, together with the Related Security, has been originated or acquired by the
Originator, sold to the Seller pursuant to (and in accordance with) the Sale Agreement and the
Seller has good title, free and clear of all Liens (other than Permitted Liens), on such Asset and
Related Security;

     (b) the Asset, (i) (together with the Collections and Related Security related thereto) has
been the subject of a grant by the Seller in favor of the Administrative Agent on behalf of the
Secured Parties, of a first priority perfected security interest, and (ii) with respect to which,
at the time of the sale of such Asset to the Seller, the Originator had a first priority (other
than in the case of B-Note Loans or Mezzanine Loans) perfected security interest in the Related
Property (other than additional or “boot” collateral) relating to such Loan;

     (c) at the time such Asset is included in the Collateral, the Asset (i) is not (and since its
origination by the Originator or, in the case of Acquired Loans, acquisition by the Originator has
never been) a Charged-Off Asset (either in whole or in part), (ii) is not past due in the case of a
Loan, with respect to payments of principal or interest (provided that if such Asset is past due

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at the time it is included in the Collateral but not more than ten days past due, the
Originator and the Servicer must reasonably believe that such Asset will promptly and in no event
later than the date of the next Scheduled Payment due on such Asset, be brought current with
respect to all payments due thereunder), and (iii) has never been more than 60 days past due, with
respect to payments of principal or interest, or, in the case of Acquired Loans, to the best of the
Originator’s knowledge after due inquiry, has never been more than 60 days past due in the 12
months prior to acquisition;

     (d) the Asset is an “eligible asset” as defined in Rule 3a-7 under the 1940 Act;

     (e) the Asset is an “account”, “chattel paper”, “instrument” or a “general intangible” within
the meaning of Article 9 of the UCC of all applicable jurisdictions;

     (f) the Obligor with respect to such Asset is an Eligible Obligor and such Asset is payable
only in Dollars and does not permit the currency in which or the country in which such Asset is
payable to be changed; provided that notwithstanding the foregoing, any such Asset denominated in
an Alternative Currency shall be deemed to satisfy the requirements in this clause that it be
payable in Dollars if such Asset is subject to appropriate currency hedging as determined by the
Administrative Agent in its sole discretion;

     (g) the Asset is evidenced by a promissory note, Loan Register, security agreement, loan or
note purchase agreement or other Underlying Instruments that have been duly authorized and
executed, are in full force and effect and constitute the legal, valid, binding and absolute and
unconditional payment obligation of the related Obligor, enforceable against such Obligor in
accordance with their terms (subject to applicable bankruptcy, insolvency, moratorium or other
similar laws affecting the rights of creditors generally and to general principles of equity,
whether considered in a suit at law or in equity), and there are no conditions precedent to the
enforceability or validity of the Asset that have not been satisfied or validly waived;

     (h) the Asset does not contravene in any material respect any Applicable Laws (including,
without limitation all applicable predatory and abusive lending laws and all laws, rules and
regulations relating to usury, truth in lending, fair credit billing, fair credit reporting, equal
credit opportunity, fair debt collection practices, licensing and privacy) and with respect to
which no part thereof is in violation of any Applicable Law in any material respect;

     (i) neither the assignment of the Asset under the Sale Agreement by the Originator, the sale
of the Asset hereunder or the granting of a security interest hereunder by the Seller violates,
conflicts with or contravenes any Applicable Laws or any contractual or other restriction,
limitation or encumbrance;

     (j) on or before the applicable Cut-Off Date, the Obligor of such Asset shall have been
directed to make all payments to the Lock-Box or directly to the Lock-Box Account;

     (k) the Asset requires the Obligor thereof to maintain reasonable and customary property
damage and loss insurance with respect to the real or personal property constituting the Related
Property (if any) if such Related Property is of a type customarily so insured;

16

 

     (l) the Related Property (if any) (i) has not been foreclosed on or repossessed from the
current Obligor by the Servicer, and (ii) has not suffered any material loss or damage that has not
been repaired or restored or for which insurance proceeds are not available;

     (m) the Asset provides by its terms that the Obligor’s payment obligations are absolute and
unconditional without any right of rescission, setoff, counterclaim or defense for any reason
against the Originator and the Asset contains a clause that has the effect of unconditionally and
irrevocably obligating the Obligor to make periodic payments (including taxes) notwithstanding any
damage to, defects in, or destruction of the Related Property (if any) or any other event,
including obsolescence of any property or improvements;

     (n) the Asset is not subject to any litigation, dispute, refund, claims of rescission, setoff,
netting, counterclaim or defense whatsoever, including but not limited to, claims by or against the
Obligor thereof or a payor to or account debtor of such Obligor;

     (o) the Asset requires the Obligor to maintain the Related Property in good condition and to
bear all the costs of operating and maintaining same, including taxes and insurance relating
thereto;

     (p) the Asset shall not have been originated in, nor shall it be subject to the laws of, any
jurisdiction under which the sale, transfer and assignment of such Asset under the Transaction
Documents would be unlawful, void or voidable;

     (q) the Asset, together with the Required Asset Documents and Asset File related thereto, is
assignable and does not require the consent of or notice to the Obligor to consummate the
transactions contemplated by the Transaction Documents or contain any other restriction on the
transfer or the assignment of the Asset for the purpose of consummating the transactions
contemplated by the Transaction Documents other than a consent or waiver of such restriction that
has been obtained prior to the date on which the Asset was sold to the Seller; provided that with
respect to Loans which are secured by an interest in commercial real estate, the Required Asset
Documents may restrict the transfer or the assignment of the related Loan so long as such Loan is
freely assignable or transferable to a Qualified Transferee;

     (r) the Obligor of such Asset is legally responsible for all taxes relating to the Related
Security or other security relating to such Asset, and all payments in respect of the Asset 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 Applicable Law in which case the
Obligor thereof is required to make “gross-up” payments that cover the full amount of any such
withholding taxes on an after-tax basis;

     (s) the Asset complies with the representations and warranties made by the Seller and Servicer
hereunder and all information provided by the Seller or the Servicer with respect to the Asset is
true and correct in all material respects;

     (t) the Asset and the Related Security have not been sold, transferred, assigned or pledged by
the Seller to any Person;

17

 

     (u) no selection procedure adverse to the interests of the Administrative Agent or the Secured
Parties was utilized by the Seller or Originator in the selection of Assets for inclusion in the
Collateral;

     (v) the Asset has not been compromised, adjusted, extended, satisfied, rescinded, set-off or
modified by the Seller, the Originator or the Obligor with respect thereto, and no Asset is subject
to compromise, adjustment, extension, satisfaction, rescission, set-off, counterclaim, defense,
abatement, suspension, deferment, deductible, reduction, termination or modification, whether
arising out of transactions concerning the Asset, or otherwise, by the Seller, the Originator or
the Obligor with respect thereto except as otherwise permitted under Section 6.4(a) of this
Agreement and in accordance with the Credit and Collection Policy;

     (w) the particular Asset is not one as to which the Seller or the Servicer has knowledge which
should lead it to expect such Asset will not be paid in full;

     (x) the Obligor of such Asset is not the subject of an Insolvency Event or Insolvency
Proceedings;

     (y) the Asset is secured by a valid, perfected, first priority (other than with respect to
B-Note Loans and Mezzanine Loans) security interest in all assets that constitute the collateral
for the Asset (subject to Liens expressly permitted by the Underlying Instruments);

     (z) 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 or performance of the Asset have been duly obtained, effected or given
and are in full force and effect;

     (aa) the Asset satisfies all applicable requirements of and was originated or acquired,
underwritten and closed in accordance with the Credit and Collection Policy (including without
limitation the execution by the Obligor of all documentation required by the Credit and Collection
Policy);

     (bb) the Asset was originated or acquired in the ordinary course of the Originator’s business;

     (cc) the Asset arises pursuant to documentation with respect to which the Originator has
performed all obligations required to be performed by it thereunder;

     (dd) the Asset is not Margin Stock;

     (ee) the acquisition of the Asset by the Seller will not cause the Seller or the pool of
Collateral to be required to be registered as an investment company under the 1940 Act;

     (ff) the Asset is not subject to a guaranty by the Originator or any Affiliate thereof; and

18

 

     (gg) the proceeds of the Asset will not be used to finance “ground-up” construction
activities; provided that financing for purposes of Land Development shall not be considered a
“ground-up” construction activity.

(2) With respect to any Loan:

     (a) the Loan provides (i) for periodic payments of interest and/or principal in cash, which
are due and payable on a monthly, quarterly or semi-annual basis unless otherwise consented to in
writing by the Administrative Agent, and (ii) that the Servicer (or, with respect to Assigned Loans
or Agented Loans, that the agent or a majority of the related lenders) may accelerate all payments
if the Obligor is in default under the Loan and any applicable grace period has expired (in the
case of any B-Note Loan or Mezzanine Loan, subject to any applicable intercreditor or subordination
agreement); provided that Sale/Leaseback Loans shall provide for payments of interest and/or
principal in cash, no less frequently than on a quarterly basis;

     (b) the Loan is underwritten as (i) a rediscount loan, (ii) a commercial real estate loan, or
(iii) a Sale/Leaseback Loan, in each case pursuant to and in accordance with the Credit and
Collection Policy;

     (c) the Loan is a Sale/Leaseback Loan, Senior Secured ABL Loan, Senior Secured Loan, B-Note
Loan or Mezzanine Loan;

     (d) the Loan has an original term to maturity of not more than 25 years;

     (e) the Loan provides for cash payments that fully amortize the Outstanding Asset Balance of
such Loan on or by its maturity and does not provide for such Outstanding Asset Balance to be
discounted pursuant to a prepayment in full;

     (f) the Loan does not permit the Obligor to defer all or any portion of the current cash
interest due thereunder;

     (g) the Loan does not permit the payment obligation of the Obligor thereunder to be converted
or exchanged for equity capital of such Obligor;

     (h) other than Participation Loans, Agented Loans and Assigned Loans, with respect to the
Originator’s obligation to fund and the actual funding of the Loan by the Originator, the
Originator has not assigned or granted participations to, in whole or in part;

     (i) except with respect to B-Note Loans, Mezzanine Loans and certain Loans that, in the
Originator’s reasonable judgment cannot be cross-collateralized or cross-defaulted because of REIT
eligibility criteria, if the Obligor of such Loan is the Obligor of more than one Loan, all such
Loans are cross-collateralized and cross-defaulted;

     (j) the Loan does not represent capitalized interest or payment obligations relating to “put”
rights;

     (k) the Loan is not a Loan or extension of credit by the Originator to the Obligor for the
purpose of making any past due principal, interest or other payments due on such Loan;

19

 

     (l) the Originator (i) has completed to its satisfaction, in accordance with the Credit and
Collection Policy, a due diligence audit and collateral assessment with respect to such Loan and
(ii) has done nothing to impair the rights of the Administrative Agent or the Secured Parties with
respect to the Loan, the Related Security, the Scheduled Payments or any income or Proceeds
therefrom;

     (m) except with respect to B-Note Loans and Mezzanine Loans and, to the extent set forth in
the definition thereof, the Loan is not subordinated to any other loan or financing to the related
Obligor;

     (n) if the Loan is a Revolving Loan, either it provides by its terms that any future funding
thereunder is in the Originator’s sole and absolute discretion or it is subject to the Retained
Interest provision of this Agreement;

     (o) the Face Amount of the Loan is the dollar amount thereof shown on the books and records of
the Originator and Seller;

     (p) with respect to B-Note Loans or Mezzanine Loans, the Originator has entered into an
intercreditor agreement or subordination agreement (or such provisions are contained in the
principal Underlying Instruments) with, or provisions for the benefit of, the senior lender, which
agreement or provisions are assignable to and have been assigned to the Seller, and which provide
that any standstill of remedies by the Originator or its assignee is limited (A) such that no
standstill of remedies may be imposed unless (x) a default with respect to the senior obligation
has occurred and is continuing and (y) in the case of such a default, other than a payment default,
the Originator’s or assignee’s receipt from the senior lender or Obligor of a notice of default by
the Obligor under the senior debt, and (B) to no longer than 180 days in duration in the aggregate
in any given year;

     (q) with respect to any Acquired Loan or Assigned Loan, such Loan has been re-underwritten by
the Originator and satisfies all of the Originator’s underwriting criteria;

     (r) with respect to any Acquired Loan acquired from an Affiliate of the Originator, the
Administrative Agent has received a satisfactory legal opinion concerning the acquisition of such
Loan by the Originator in a true sale transaction;

     (s) with respect to any Acquired Loan that was acquired in a pool by the Originator along with
one or more other Acquired Loans, the Administrative Agent has approved in writing such Loan for
inclusion in the Collateral and has completed its own due diligence with respect to such Loan;

     (t) with respect to Agented Loans, the related Underlying Instruments (a) shall include a note
purchase or similar agreement containing provisions relating to the appointment and duties of a
payment agent and a collateral agent and intercreditor and (if applicable) subordination
provisions, and (b) are duly authorized, fully and properly executed and are the valid, binding and
unconditional payment obligation of the Obligor thereof;

     (u) with respect to Agented Loans, CapitalSource Finance LLC or the Originator (or a wholly
owned subsidiary of CapitalSource Inc.) has been appointed the collateral agent of the

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security and the payment agent for all such notes prior to such Agented Loan becoming a part
of the Collateral;

     (v) with respect to Agented Loans, if the entity serving as the collateral agent of the
security for all syndicated notes of the Obligor has or will change from the time of the
origination of the notes, all appropriate assignments of the collateral agent’s rights in and to
the collateral on behalf of the noteholders have been or will be executed and filed or recorded as
appropriate prior to such Agented Loan becoming a part of the Collateral;

     (w) with respect to any Agented Loan, all required notifications, if any, have been given to
the collateral agent, the payment agent and any other parties required by the Required Asset
Documents of, and all required consents, if any, have been obtained with respect to, the
Originator’s assignment of such Agented Loan and the Originator’s right, title and interest in the
Related Property to the Seller and the Administrative Agent’s security interest therein on behalf
of the Secured Parties;

     (x) with respect to Agented Loans, the right to control the actions of and replace the
collateral agent and/or the paying agent of the syndicated notes is to be exercised by at least a
majority in interest of all holders of such Agented Loans;

     (y) with respect to Agented Loans, all syndicated notes of the Obligor of the same priority
are cross-defaulted, the Related Property securing such notes is held by the collateral agent for
the benefit of all holders of the syndicated notes and all holders of such notes (a) have an
undivided interest in the collateral securing such notes and (b) share in the proceeds of the sale
or other disposition of such collateral on a pro rata basis;

     (z) no portion of the proceeds used to make payments of principal or interest on such Loan
have come from a new loan by the Originator;

     (aa) does not contain a confidentiality provision that restricts or purports to restrict the
ability of the Administrative Agent or any Secured Party to exercise their rights under this
Agreement, including, without limitation, their rights to review the Loan, the Required Asset
Documents and Asset File;

     (bb) is not a consumer loan;

     (cc) is not a DIP loan; and

     (dd) none of the Loans secured by a Mortgage are high-cost loans as defined by applicable
predatory and abusive-lending laws.

(3) In addition to the criteria set forth in clauses (1) and (2) above, with
respect to any Sale/Leaseback Loan, the following additional criteria:

     (a) the Originator or CapitalSource Finance LLC shall be the lender of record for such Loan;
provided that with respect to any Sale/Leaseback Loan for which CapitalSource Finance LLC is the
lender of record prior to such Sale/Leaseback Loan becoming part of the

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Collateral the Seller shall deliver a true sale opinion in form and substance acceptable to
the Administrative Agent;

     (b) (i) the Collateral Custodian or an escrow agent (pursuant to an escrow agreement in form
and substance acceptable to the Administrative Agent in its sole discretion) shall hold a Mortgage
in blank for the benefit of each Purchaser with respect to all real property assets of the SPE
Obligor and (ii) the Administrative Agent shall have the right to cause the Collateral Custodian
(at the expense of the Originator) to file the Mortgage(s) for the benefit of the Administrative
Agent and the Purchasers upon (A) the occurrence of a Termination Event or an Unmatured Termination
Event or (B) a default or event of default (however defined or described) in the Underlying
Instruments for such Sale/Leaseback Loan;

     (c) the Originator shall provide an indemnity to the Purchasers to cover any losses suffered
by the Purchasers as a result of any Lien against any of the SPE Obligor’s assets that is pari
passu or takes priority over the Liens granted pursuant to the Transaction Documents;

     (d) the Underlying Lessee is not an Affiliate of CapitalSource Inc. or its Subsidiaries;

     (e) the SPE Obligor owns the fee simple or ground lease interest in the underlying property
and shall not grant a Lien on such underlying property to any Person other than the Originator;

     (f) in no event shall the payments on the Lease abate or diminish, except:

          (I) upon a purchase by the Underlying Lessee of the underlying Property (the “Leased
Property”) following (A) a condemnation with respect to the Leased Property, in which such a
material part of the Leased Property is taken, or all points of ingress and/or egress to
public roadways servicing the underlying property are materially impaired by a taking, so as
to have a material adverse effect on Underlying Lessee’s business, and (B) the making of a
rejectable offer (the “Rejectable Offer”) by the Underlying Lessee to SPE Obligor to
purchase the Leased Property, together with all condemnation awards at a purchase price
equal to the fair market value thereof as determined by an Appraisal on an as-is basis but
disregarding the related condemnation but in no event shall such purchase price be less than
the outstanding principal of and accrued interest on the related Sale/Leaseback Loan,

          (II) upon the making of a Rejectable Offer following such condemnation and its
rejection by SPE Obligor, such rejection to be conditioned upon (i) the prepayment by SPE
Obligor of the Sale/Leaseback Loan at par plus any accrued interest or (ii) SPE Obligor
providing assurances of such prepayment which are acceptable to the Administrative Agent,

          (III) upon the termination of the Underlying Lease following a casualty with respect to
the Leased Property which renders the Leased Property unsuitable for its primary intended
use, such termination to be conditioned upon (i) the prepayment by SPE Obligor of the
Sale/Leaseback Loan at par plus any accrued interest or (ii) SPE Obligor providing
assurances of such prepayment which are acceptable to the Administrative Agent, or

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          (IV) in the event a condemnation or casualty described in clauses (I)(A) and (III)
above, respectively, occurs in the final 12 months of the term of the Underlying Lease, the
Underlying Lessee shall have the right to terminate the Underlying Lease with no further
obligations thereunder other than the satisfaction of all accrued and unpaid obligations to
the date of termination.

In the event that SPE Obligor accepts the Rejectable Offer, SPE Obligor shall convey title to the
Leased Property by deed (or, in the case of a ground lease, assignment of its rights and
obligations under such ground to the Underlying Lessee) and assign its rights and interests in the
related condemnation awards to the Underlying Lessee upon payment of the purchase price therefor.
In the event that the SPE Obligor rejects the Rejectable Offer, then subject to the Underlying
Lessee’s satisfaction of all accrued and unpaid obligations to the date of termination, the
Underlying Lessee shall have the right to terminate the Underlying Lease upon notice thereof;

     (g) the terms of the Lease shall provide periodic payments (which shall not be subject to
defense, set-off or counterclaim) from Underlying Lessee to SPE Obligor no less frequently than on
a quarterly basis to at least equal the interest and principal payments on the related Loan,
including with an appropriate rate of return to SPE Obligor which shall be similar to interest
rates charged by Originator to other third parties on loans with a similar risk profile;

     (h) the term of the Lease shall be at least equal to the term of the related Loan;

     (i) the Underlying Lessee shall not be in default under the Lease at the time of contribution
and thereafter shall not be in payment default;

     (j) any extraordinary payments by Underlying Lessee to SPE Obligor, including, but not limited
to, default, bankruptcy and early lease termination payments (but excluding late payment fees)
shall be applied to effectuate a reduction in the principal to the related Loan;

     (k) (i) the Underlying Lessee or SPE Obligor shall maintain risk property insurance in an
amount at least equal to the full replacement cost of the underlying property, (ii) shall maintain
general liability, business interruption and any other insurance agreed upon in the Lease and (iii)
all such insurance policies shall name the Originator and each Purchaser as additional insured;

     (l) either the rights of the SPE Obligor under the Lease are freely assignable by the SPE
Obligor or the Underlying Lessee has consented to the assignment of such rights to the Originator
and its assignees;

     (m) the Loan shall contain customary representations, warranties, indemnities, events of
default and remedies (including liquidated damages) similar to other transactions that Originator
would make to a third party in an arms-length transaction; and

     (n) the Seller shall have a pledge of the SPE Obligor’s equity interest.

“Eligible Assignee": Means (i) CNAI or any of its Affiliates, (ii) any Person managed by Citibank,
CNAI or any of their Affiliates, or (iii) any financial or other institution acceptable to

23

 

the Administrative Agent and approved by the Seller (which approval by the Seller shall not be
unreasonably withheld, delayed or conditioned and shall not be required if a Termination, Event or
an Unmatured Termination Event has occurred and is continuing).

“Eligible Obligor”: On any date of determination, any Obligor that:

     (i) is a business organization (and not a natural person) duly organized and validly
existing under the laws of its jurisdiction of organization,

     (ii) [intentionally omitted];

     (iii) has not entered into the Loan primarily for personal, family or household
purposes,

     (iv) is not a Governmental Authority,

     (v) except with respect to Sale/Leaseback Loans to SPE Obligors, the Obligor is not an
Affiliate of the Originator or Seller,

     (vi) is not in the gaming (other than Obligors in the business of providing services to
the gaming industry), nuclear waste or natural resource exploration/production and oil field
service industries,

     (vii) is not engaged in the business of conducting proprietary research on new drug
development,

     (viii) is not the subject of an Insolvency Proceeding,

     (ix) as of the applicable Cut-Off Date, has an Eligible Risk Rating, and

     (x) is not an Obligor of a Charged-Off Asset or Delinquent Asset.

“Eligible Repurchase Obligations”: 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 Permitted
Investments.

“Eligible Risk Rating”: With respect to a designated Obligor, a “Rating 1,” “Rating 2,” “Rating
3,” or “Rating 4” each as determined in accordance with the Credit and Collection Policy.

“Environmental Laws”: Any and all foreign, federal, state and local laws, statutes, ordinances,
rules, regulations, permits, licenses, approvals, interpretations and orders of courts or
Governmental Authorities, relating to the protection of human health or the environment, including,
but not limited to, requirements pertaining to the manufacture, processing, distribution, use,
treatment, storage, disposal, transportation, handling, reporting, licensing, permitting,
investigation or remediation of hazardous materials. Environmental Laws include, without
limitation, the Comprehensive Environmental Response, Compensation, and Liability

24

 

Act (42 U.S.C. § 9601 et seq.), the Hazardous Material Transportation Act (49 U.S.C. § 331
et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.),
the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42
U.S.C. § 7401 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et
seq.), the Safe Drinking Water Act (42 U.S.C. § 300, et seq.), the Environmental
Protection Agency’s regulations relating to underground storage tanks (40 C.F.R. Parts 280 and
281), and the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.), and the rules
and regulations thereunder, each as amended or supplemented from time to time.

“ERISA”: The United States Employee Retirement Income Security Act of 1974, as amended from time
to time, and the regulations promulgated and rulings issued thereunder.

“ERISA Affiliate”: (a) Any corporation that is a member of the same controlled group of
corporations (within the meaning of Section 414(b) of the Code) as the Seller, (b) a trade or
business (whether or not incorporated) under common control (within the meaning of Section 414(c)
of the Code) with the Seller, or (c) a member of the same affiliated service group (within the
meaning of Section 414(m) of the Code) as the Seller, any corporation described in clause (a) above
or any trade or business described in clause (b) above.

“Euro”: The lawful currency of the Participating Member States.

“Eurocurrency Liabilities”: Defined in Regulation D of the Board of Governors of the Federal
Reserve System, as in effect from time to time.

“Eurodollar Disruption Event”: The occurrence of any of the following: (a) any Liquidity Bank
shall have notified the Administrative Agent of a determination by such Liquidity Bank or any of
its assignees or participants that it would be contrary to law or to the directive of any central
bank or other governmental authority (whether or not having the force of law) to obtain Dollars in
the London interbank market to fund any Advance, (b) any Liquidity Bank shall have notified the
Administrative Agent of the inability, for any reason, of such Liquidity Bank or any of its
assignees or participants to determine the Adjusted Eurodollar Rate, (c) any Liquidity Bank shall
have notified the Administrative Agent of a determination by such Liquidity Bank or any of its
assignees or participants that the rate at which deposits of Dollars are being offered to such
Liquidity Bank or any of its assignees or participants in the London interbank market does not
accurately reflect the cost to such Liquidity Bank, such assignee or such participant of making,
funding or maintaining any Advance, (d) any Liquidity Bank shall have notified the Administrative
Agent of the inability of such Liquidity Bank or any of its assignees or participants to obtain
Dollars in the London interbank market to make, fund or maintain any Advance or (e) any Liquidity
Bank shall have notified the Administrative Agent that the principal amount of Advances to be
funded by it is less than $500,000.

“Eurodollar Reserve Percentage”: For any period means the percentage, if any, applicable during
such period (or, if more than one such percentage shall be so applicable, the daily average of such
percentages for those days in such period during which any such percentage shall be so applicable)
under regulations issued from time to time by the Board of Governors of the Federal Reserve System
(or any successor) for determining the maximum reserve requirement (including, without limitation,
any basic, emergency, supplemental, marginal or other reserve

25

 

requirements) with respect to liabilities or assets consisting of or including Eurocurrency
Liabilities having a term of one month.

“Excepted Person”: Defined in Section 13.13(a).

“Excess Concentration Loan”: Each Loan listed on Schedule VIII attached hereto.

“Exchange Act”: The United States Securities Exchange Act of 1934, as amended.

“Excluded Amounts”: (a) Any amount received in the Lock-Box by, on or with respect to any Asset
included as part of the Collateral, which amount is attributable to the payment of any tax, fee or
other charge imposed by any Governmental Authority on such Asset, (b) any amount representing a
reimbursement of insurance premiums and (c) any amount with respect to any Asset retransferred or
substituted for upon the occurrence of a Warranty Event (if the Seller has decided that such Asset
is no longer to be included in the Collateral) or that is otherwise replaced by a Substitute Asset
(if the Seller has decided that such Asset is no longer to be included in the Collateral), to the
extent such amount is attributable to a time after the effective date of such replacement.

“Existing Assets”: Each Asset purchased by the Seller under the Sale Agreement and owned by the
Seller on the initial Funding Date.

“Face Amount”: With respect to any Asset, the Outstanding Asset Balance thereof, in each case as
shown on the applicable Asset List.

“Facility Amount”: The aggregate Commitments then in effect; provided that such amount may not at
any time exceed $1,500,000,000 without the written agreement of the parties hereto; provided
further that, on or after the Termination Date, the Facility Amount shall mean the Advances
Outstanding.

“FDIC”: The Federal Deposit Insurance Corporation, and any successor thereto.

“Federal Funds Rate”: For any period, a fluctuating interest rate per annum equal for each day
during such period to the weighted average of the overnight federal funds rates as in Federal
Reserve Board Statistical Release H.15(519) or any successor or substitute publication selected by
the Administrative Agent (or, if such day is not a Business Day, for the next preceding Business
Day), or, if, for any reason, such rate is not available on any day, the rate determined, in the
sole opinion of the Administrative Agent, to be the rate at which overnight federal funds are being
offered in the national federal funds market at 9:00 a.m. (New York City, New York time).

“Finance Charges”: With respect to any Asset, any interest or finance charges owing by an Obligor
pursuant to or with respect to such Asset.

“Financial Sponsor”: Any Person, including any Subsidiary of another Person, whose principal
business activity is acquiring, holding, and selling investments (including controlling interests)
in otherwise unrelated companies that each are distinct legal entities with separate management,
books and records and bank accounts, whose operations are not integrated one with another and

26

 

whose financial condition and creditworthiness are independent of the other companies so owned by
such Person.

“Fitch”: Fitch, Inc. or any successor thereto.

“Fixed Rate Asset”: A Loan that is an Eligible Asset other than a Floating Rate Asset.

“Fixed Rate Asset Percentage”: As of any date of determination, the percentage equivalent of a
fraction (a) the numerator of which is equal to the sum of the Outstanding Asset Balances of all
Fixed Rate Assets and Banded Floating Rate Loans that are within 0.50% of the maximum interest rate
allowable under their Required Asset Documents as of such date, and (b) the denominator of which is
equal to the Aggregate Outstanding Asset Balance as of such date.

“Floating Rate Asset”: A Loan that is an Eligible Asset where the interest rate payable by the
Obligor thereof is based on the CSE Prime Rate or CSE LIBOR Rate, plus some specified interest
percentage in addition thereto, and the Loan provides that such interest rate will reset
immediately upon any change in the related CSE Prime Rate or CSE LIBOR Rate.

“Floating Prime Rate Permitted Excess Amount”: $25,000,000 in the aggregate.

“Funding Date”: With respect to the initial Funding Date, the second Business Day following the
Closing Date, and as to any incremental Advance, any Business Day that is two Business Days
immediately following the receipt by the Administrative Agent of a Borrowing Notice (along with a
Borrowing Base Certificate) in accordance with Section 2.3.

“GAAP”: Generally accepted accounting principles as in effect from time to time in the United
States.

“Governmental Authority”: 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 body or entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government and any court or arbitrator having
jurisdiction over such Person.

“H.15”: Federal Reserve Statistical Release H.15.

“Hedge Collateral”: Defined in Section 5.3(b).

“Hedge Breakage Costs”: For any Hedge Transaction, any amount payable by the Seller for the early
termination of that Hedge Transaction or any portion thereof.

“Hedge Counterparty”: Means (a) Citibank, N.A. and its successors and assigns, and (b) any entity
that (i) on the date of entering into a Hedging Agreement (x) is an interest rate swap dealer that
has been approved in writing by the Administrative Agent (which approval shall not be unreasonably
withheld), and (y) has a long-term unsecured debt rating of not less than “A” by S&P, not less than
“A2” by Moody’s and not less than “A” by Fitch (if such entity is rated by Fitch) (“Long-term
Rating Requirement”) and a short-term unsecured debt rating of not less than “A-1” by S&P, not less
than “P-1” by Moody’s and not less than “F-1” by Fitch (if such entity is

27

 

rated by Fitch) (“Short-term Rating Requirement”), and (ii) in a Hedging Agreement (x) consents to
the assignment of the Seller’s rights under each Hedging Agreement to the Administrative Agent for
the benefit of the Secured Parties pursuant to Section 5.3(b) and (y) agrees that in the
event that Moody’s, S&P or Fitch reduces its long-term unsecured debt rating below the Long-term
Rating Requirement, or reduces its short-term unsecured debt rating below the Short-term Rating
Requirement, it shall transfer its rights and obligations under each Hedge Transaction to another
entity that meets the requirements of clause (i) and (ii) hereof and has entered into a Hedging
Agreement with the Seller on or prior to the date of such transfer.

“Hedge Guaranty”: The Guarantee Agreement, dated as of September ___, 2007, by and between CSE
Mortgage in favor of the applicable Hedge Counterparty, as amended, modified, waived, supplemented,
restated or replaced from time to time.

“Hedge Transaction”: Each interest rate or index rate swap transaction between the Seller and a
Hedge Counterparty that is entered into pursuant to Section 5.3(a) and is governed by a
Hedging Agreement.

“Hedged Rate”: For any Advance, the interest rate payable to a Hedge Counterparty under the Hedge
Transaction related to such Advance computed as of the Cut-Off Date under or with respect to the
Asset to which that Advance relates.

“Hedging Agreement”: Each agreement between the Seller and a Hedge Counterparty that governs one
or more Hedge Transactions entered into pursuant to Section 5.3(a), which agreement shall
consist of a “Master Agreement” in a form published by the International Swaps and Derivatives
Association, Inc., together with a “Schedule” thereto substantially in the form of Exhibit
D hereto or such other form as the Administrative Agent shall approve in writing, detailing the
specific terms of each such Hedge Transaction.

“Highest Required Investment Category”: (i) With respect to ratings assigned by Moody’s, “Aa2” or
“P-1” for one month instruments, “Aa2” and “P-1” for three month instruments, “Aa3” and “P-1” for
six month instruments and “Aa2” and “P-1” for instruments with a term in excess of six months, (ii)
with respect to rating assigned by S&P, “A-1” for short-term instruments and “A” for long-term
instruments, and (iii) with respect to rating assigned by Fitch (if such investment is rated by
Fitch), “F-1+” for short-term instruments and “AAA” for long-term instruments.

“Increased Costs”: Any amounts required to be paid by the Seller to an Affected Party pursuant to
Section 2.15.

“Indebtedness”: 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 that is evidenced by a note, bond, debenture or similar instrument or other
evidence of indebtedness customary for indebtedness of that type, (b) all obligations of such
Person under leases that shall have been or should be, in accordance with generally accepted
accounting principles, recorded as capital leases, (c) all obligations of such Person in respect of
acceptances issued or created for the account of such Person, (d) all liabilities secured by any

28

 

Lien on any property owned by such Person even though such Person has not assumed or otherwise
become liable for the payment thereof, (e) all indebtedness, obligations or liabilities of that
Person in respect of Derivatives, and (f) obligations under direct or indirect guaranties in
respect of obligations (contingent or otherwise) to purchase or otherwise acquire, or to otherwise
assure a creditor against loss in respect of, indebtedness or obligations of others of the kind
referred to in clauses (a) through (e) above.

“Indemnified Amounts”: Defined in Section 11.1.

“Indemnified Parties”: Defined in Section 11.1.

“Independent Director”: Defined in Section 4.1(u).

“Industry”: The industry of an Obligor as determined by reference to the two digit standard
industry classification or North American Industry Classification System codes.

“Initial Advance”: The first Advance.

“Insolvency Event”: 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 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 any such law, or the consent by such
Person to the appointment of or taking possession by a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official for such Person or for any substantial part of its
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”: The Bankruptcy Code 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 Proceeding”: Any case, action or proceeding before any court or other Governmental
Authority relating to any Insolvency Event.

“Instrument”: Any “instrument” (as defined in Article 9 of the UCC), other than an instrument that
constitutes part of chattel paper.

“Insurance Policy”: With respect to any Asset an insurance policy covering liability and physical
damage to or loss of the Related Property.

29

 

“Insurance Proceeds”: Any amounts payable or any payments made on or with respect to an Asset
under any Insurance Policy.

“Intercreditor Agreement”: The Fourth Amended and Restated Intercreditor and Lockbox
Administration Agreement, dated as of June 30, 2005, by and among each of the financing agents from
time to time party thereto, Bank of America, N.A., as the lockbox bank, CapitalSource Finance LLC,
as the originator, as the original servicer and as the lockbox servicer, and CapitalSource Funding
LLC, as the owner of the account and as the owner of the lockbox, as amended, modified, waived,
supplemented, restated or replaced from time to time.

“Interest”: For each Accrual Period and each Advance outstanding, the sum of the products of:

	 	 	 	 	 
	where:
	 
	 	 	 	 
	IR

	 	=
	 	the Interest Rate applicable on such day; and
	 
	 	 	 	 
	P

	 	=
	 	the principal amount of such Advance on such day.

provided that (i) no provision of this Agreement shall require the payment or permit the collection
of Interest in excess of the maximum permitted by Applicable Law and (ii) Interest shall not be
considered paid by any distribution if at any time such distribution is rescinded or must otherwise
be returned for any reason.

“Interest Collections”: Any and all amounts received in respect of any interest, fees or other
similar charges (including any Finance Charges) from or on behalf of any Obligor that are deposited
into the Collection Account, or received by or on behalf of the Seller by the Servicer or
Originator in respect of an Asset, in the form of cash, checks, wire transfers, electronic
transfers or any other form of cash payment (net of any payment owed by the Seller to, and
including any receipts from, any Hedge Counterparties).

“Interests in Real Property”: A fee simple interest, a financeable estate for years or a leasehold
interest, in each case in real property.

“Interest Rate”: For any Accrual Period and for each Advance outstanding for each day during such
Accrual Period:

     (i) to the extent the applicable Purchaser is an Issuer that has funded the applicable
Advance through the issuance of commercial paper or other senior notes, a rate equal to the
applicable CP Rate; or

     (ii) to the extent the applicable Purchaser is (x) an Issuer that did not fund the
applicable Advance through the issuance of commercial paper or other senior notes, or (y) is
a Liquidity Bank, a rate equal to the Alternative Rate;

30

 

provided that the Interest Rate shall be the Base Rate for any Accrual Period for any Advance as to
which a Purchaser has funded the making or maintenance thereof without having received at least two
Business Days’ prior written notice thereof (including, without limitation, by reason of a sale of
an interest therein to any Liquidity Bank under the applicable Liquidity Agreement).

“Investors”: The Persons listed on Schedule VI attached hereto.

“ISDA Definitions”: The 2000 ISDA Definitions as published by the International Swaps and
Derivatives Association, Inc.

“Issuer”: CAFCO, CIESCO, CRC Funding and any other any Person that becomes an owner of Advances,
by assignment or otherwise, and whose principal business consists of issuing commercial paper or
other securities to fund its acquisition or maintenance of receivables, accounts, instruments,
chattel paper, general intangibles and other similar assets.

“Issuer
Purchase Limit”: (a) With respect to CAFCO, $600,000,000, (b) with respect to CIESCO,
$600,000,000 and (c) with respect to CRC Funding, $600,000,000. Any reduction (or termination) of
the Facility Amount pursuant to the terms of this Agreement shall reduce ratably (or terminate)
each Issuer’s Issuer Purchase Limit.

“Land Development”: Financing to an entity engaged in the business of purchasing land for the
purposes of resale to a developer.

“Lease”: The underlying triple-net lease between SPE Obligor and any Underlying Lessee pursuant to
which the Underlying Lessee is responsible for all expenses arising from the use or operation of
the underlying property, including, without limitation, taxes, insurance premiums, alterations, and
repairs and maintenance costs.

“Leased Property”: Defined in clause 3(f) of the definition of Eligible Asset.

“LIBOR Rate”: For any day during any Accrual Period and any Advance or portion thereof, an
interest rate per annum equal to:

     (1) the posted rate for 30 day deposits in Dollars appearing on the Reuters Screen
LIBO Page as of 11:00 a.m. (London time) on the Business Day which is the second Business
Day immediately preceding the applicable Funding Date (with respect to the initial Accrual
Period for such Advance) and as of the second Business Day immediately preceding the first
day of the applicable Accrual Period (with respect to all subsequent Accrual Periods for
such Advance); or

     (2) if no such rate appears on the Reuters Screen LIBO Page at such time and day,
then the LIBOR Rate shall be determined by Citibank at its principal office in New York,
New York as its rate (each such determination, absent manifest error, to be conclusive and
binding on all parties hereto and their assignees) at which 30 day deposits in Dollars are
being, have been, or would be offered or quoted by Citibank to major banks in the
applicable interbank market for Eurodollar deposits at or about 11:00 a.m. (New York, New
York time) on such day.

31

 

“Lien”: Any mortgage, lien, pledge, charge, right, claim, security interest or encumbrance of any
kind of or on any Person’s assets or properties in favor of any other Person (including any UCC
financing statement or any similar instrument filed against such Person’s assets or properties).

“Liquid Real Estate Assets”: (a) Residential mortgage-backed securities that (i) have a rating of
not less than “AA” by S&P/Fitch and “Aa2” by Moody’s, (ii) are purchased by CapitalSource Inc. or
its Consolidated Subsidiaries solely to meet REIT asset and income tests, and (iii) are leveraged
through debt facilities utilizing leverage greater than 12 times the amount of equity investment in
such Liquid Real Estate Assets and (b) residential mortgage whole loan purchases made by
CapitalSource Inc. or its Consolidated Subsidiaries solely to meet REIT asset and income tests, all
in accordance with the Residential Mortgage Policies and Procedures.

“Liquidation Expenses”: With respect to (a) any Asset, 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 counsel (if any), in each case in accordance with the Servicer’s
customary procedures in connection with the repossession, refurbishing and disposition of any
related assets securing such Asset upon or after the expiration or earlier termination of such
Asset and other out-of-pocket costs related to the liquidation of any such assets, including the
attempted collection of any amount owing pursuant to such Asset if it is a Charged-Off Asset, and
if requested by the Administrative Agent, the Servicer and Originator must provide to the
Administrative Agent a breakdown of the Liquidation Expenses for any Asset along with any
supporting documentation therefor, and (b) any Portfolio Asset, 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 counsel (if any), in each case in accordance
with the Servicer’s customary procedures in connection with the repossession, refurbishing and
disposition of any related assets securing such Portfolio Asset upon or after the expiration or
earlier termination of such Portfolio Asset and other out-of-pocket costs related to the
liquidation of any such assets, including the attempted collection of any amount owing pursuant to
such Portfolio Asset if it is a Charged-Off Portfolio Asset, and if requested by the Administrative
Agent, the Servicer and Originator must provide to the Administrative Agent a breakdown of the
Liquidation Expenses for any Portfolio Asset along with any supporting documentation therefor.

“Liquidity Agreement”: With respect to each Purchaser which is an Issuer, the asset purchase
agreement, secondary market agreement or other liquidity agreement, by and among such Purchaser,
the Liquidity Banks named therein, and the Administrative Agent, as such agreement may be amended,
modified, waived, supplemented, restated or replaced from time to time.

“Liquidity Bank”: Citibank and each other Person or Persons who provide liquidity support to any
Purchaser which is an Issuer pursuant to a Liquidity Agreement in connection with the issuance by
such Issuer of Commercial Paper Notes.

“Loan”: Any loan originated by the Originator or, in the case of an Assigned Loan or an Acquired
Loan, otherwise acquired by the Originator, that is identified on an Asset List and sold or
contributed to the Seller hereunder and included as part of the Collateral, which loan includes,
without limitation, (i) the Required Asset Documents and Asset File, and (ii) all right, title and
interest of the Originator in and to the loan and any Related Property.

32

 

“Loan Register”: Defined in Section 5.4(n).

“Loan-to-Liquidation Value” or “LLV”: With respect to any Loan, as of the date of its origination,
the percentage equivalent of a fraction (i) the numerator of which is equal to the maximum
availability (as provided in the applicable Underlying Instruments) of such Loan as of the date of
its origination and (ii) the denominator of which is equal to the liquidation value of the Related
Property securing such Loan that is subject to a first priority lien in favor of the Originator (as
determined by the Servicer in accordance with the Credit and Collection Policy and in a
commercially reasonable manner).

“Loan-to-Value Ratio” or “LTV”: With respect to any Loan, as of the date of its origination, the
percentage equivalent of a fraction (a) the numerator of which is equal to the total commitment
amount of such Loan as of the date of its origination (as provided in the related Underlying
Instruments) (or the Outstanding Asset Balance with respect to Delayed-Draw Term Loans as
determined on the last day of each calendar month) plus the total commitment amount or principal
amount, as the case may be, as of the applicable date of origination or incurrence, of all loans
and other indebtedness which is senior to or pari passu with such Loan in the “capital structure”
of the related Obligor (as defined in, and as determined by the Servicer in accordance with, the
Credit and Collection Policy and in a commercially reasonable manner), and (b) the denominator of
which is equal to the lower of the Obligor’s cost to acquire the Related Property or the current
value (determined by means of an Appraisal) of the Related Property.

“Lock-Box”: The post office box to which Collections are remitted for retrieval by a Lock-Box Bank
and deposited by such Lock-Box Bank into a Lock-Box Account, the details of which are contained in
Schedule II.

“Lock-Box Account”: The account maintained at the Lock-Box Bank for the purpose of receiving
Collections, the details of which are contained in Schedule II, as such schedule may be
amended from time to time.

“Lock-Box Agreement”: The Fifth Amended and Restated Three Party Agreement Relating to Lockbox
Services and Control (with Activation Upon Notice), dated as of June 30, 2005, by and among certain
financing agents party thereto, Bank of America, N.A., as the lockbox bank, CapitalSource Finance
LLC, as the originator, as the original servicer and as the lockbox servicer, and CapitalSource
Funding LLC, as the owner of the account and as the owner of the lockbox, as amended, modified,
waived, supplemented, restated or replaced from time to time.

“Lock-Box Bank”: Bank of America, N.A., or any of the banks or other financial institutions
holding one or more Lock-Box Accounts.

“Margin Stock”: Margin Stock as defined under Regulation U.

“Material Adverse Effect”: With respect to any event or circumstance, means a material adverse
effect on (a) the business, financial condition, operations, performance or properties of the
Servicer or the Seller, (b) the validity, enforceability or collectibility of this Agreement or any
other Transaction Document or the validity, enforceability or collectibility of the Assets
generally or any material portion of the Assets, (c) the rights and remedies of the Administrative
Agent, the Purchasers and the Secured Parties under the Transaction Documents, (d) the ability

33

 

of the Seller, the Servicer, the Backup Servicer or the Collateral Custodian to perform its
obligations under this Agreement or any Transaction Document, or (e) the status, existence,
perfection, priority or enforceability of the Administrative Agent’s or the Secured Parties’
interest in the Collateral.

“Material Mortgage Loan”: Any Loan for which the underlying Related Property consisting of real
property owned by the Obligor (i) represents 25% or more (measured by the book value of the three
most valuable parcels of real property as of the date of such Loan) of (a) the original commitment
for such Loan and (b) the fair value of the underlying Obligor and Related Property as a whole and
(ii) is material to the operations of the related business of such Obligor; provided that a
Material Mortgage Loan shall not include certain parcels of real property which the Obligor is in
the process of disposing.

“Materials of Environmental Concern”: Any gasoline or petroleum (including crude oil or any
fraction thereof) or petroleum products or any hazardous or toxic substances, materials or wastes,
defined or regulated as such in or under any Environmental Laws, including, without limitation,
asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

“Maximum Availability”: On any date of determination an amount equal to the least of:

     (a) the Facility Amount;

     (b) an amount equal to (i) the product of the Borrowing Base and the Weighted Average Advance
Rate on such date plus (ii) the amount on deposit in the Principal Collections Account; and

     (c) an amount equal to (i) the Borrowing Base minus (ii) the Minimum Overcollateralization
Amount plus (iii) the amount on deposit in the Principal Collections Account;

provided that in case of each of the foregoing clauses (a)-(c), during the Amortization
Period and the Turbo Period, the Maximum Availability shall be equal to the Advances Outstanding.

“Mezzanine Loan”: Any Term Loan (i) that is subordinate to a B-Note Loan, if any, in terms of
priority of payment obligations, (ii) the payment of which may contain a form of equity
participation in the issuer or Obligor and is secured by a pledge from the parent of the Obligor of
the equity in such Obligor, and (iii) that does not share in the same collateral package as the
Obligor’s senior loans.

“Minimum Overcollateralization Amount”: As of any date of determination, an amount equal to the
product of 3.0 and the sum of the Outstanding Asset Balances of all Eligible Assets attributable to
the Obligor having the largest aggregate Outstanding Asset Balance of Eligible Assets included as
part of the Collateral (excluding the amount, calculated without duplication, by which such
Eligible Assets exceed any applicable Pool Concentration Criteria).

“Minimum Pool Yield”: A Pool Yield equal to 2.70%.

“Monthly Report”: Defined in Section 6.10(b).

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“Moody’s”: Moody’s Investors Service, Inc., and any successor thereto.

“Mortgage”: The mortgage, deed of trust or other instrument creating a first or second Lien on an
Interest in Real Property securing a Loan subject to this Agreement, including the Assignment of
Leases and Rents related thereto.

“Mortgaged Property”: The underlying Interests in Real Property which are subject to the Lien of a
Mortgage that secures a Loan, consisting of Interests in Real Property in a parcel or parcels of
land, at least one of which parcels is improved by a commercial building or facility, together with
Interests in Real Property in such commercial building or facility and any personal property,
fixtures, leases and other property or rights pertaining to such land, commercial building or
facility which are subject to the related Mortgage.

“Multiemployer Plan”: A “multiemployer plan” as defined in Section 4001(a)(3) of ERISA that is or
was at any time during the current year or the immediately preceding five years contributed to by
the Seller or any ERISA Affiliate on behalf of its employees.

“NAICS Code”: the North American Industry Classification System Codes by at least four digits.

“Net Proceeds of Capital Stock/Conversion of Debt”: Any and all proceeds (whether cash or
non-cash) or other consideration received by CapitalSource Inc. and its Consolidated Subsidiaries,
on a consolidated basis, in respect of the issuance of Capital Stock (including, without
limitation, the aggregate amount of any and all Indebtedness converted into Capital Stock), after
deducting therefrom all reasonable and customary costs and expenses incurred by CapitalSource Inc.
and such Consolidated Subsidiary in connection with the issuance of such Capital Stock in each case
to the extent classified as equity on the consolidated balance sheet of CapitalSource Inc. and its
Consolidated Subsidiaries.

“NOI”: With respect to any Mortgaged Property, as of the last day of any fiscal quarter, the
amount determined for the period consisting of such fiscal quarter and each of the three
immediately preceding fiscal quarters of the sum of all rents and other revenues received in the
ordinary course from such Mortgaged Property minus all expenses paid related to the
ownership, operation and maintenance of such Mortgaged Property.

“Noteless Loan”: A Loan with respect to which the Underlying Instruments do not require the
Obligor to execute and deliver a promissory note to evidence the indebtedness created under such
Loan.

“Obligor”: With respect to any Asset, as applicable, any Person or Persons obligated to make
payments pursuant to or with respect to such Asset, including any guarantor thereof. For purposes
of calculating any of the Pool Concentration Criteria only, all Assets included as part of the
Collateral or to be transferred to the Collateral the Obligor of which is an Affiliate of another
Obligor (excluding any Financial Sponsor or Obligors that are Affiliates solely because of common
ownership or control by a Financial Sponsor) shall be aggregated with all Assets of such other
Obligor; for example, if Corporation A is an Affiliate (other than because of a
common Financial Sponsor) of Corporation B, and the sum of the Outstanding Asset Balances of all of
Corporation A’s Loans included as part of the Collateral constitutes 10% of the Aggregate

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Outstanding Asset Balance and the sum of the Outstanding Asset Balances all of Corporation B’s
Loans included as part of the Collateral constitutes 10% of the Aggregate Outstanding Asset
Balance, the combined Obligor concentration for Corporation A and Corporation B would be 20%.

“Officer’s Certificate”: A certificate signed by a Responsible Officer of the Seller or the
Servicer, as the case may be, and delivered to the Collateral Custodian.

“Opinion of Counsel”: A written opinion of counsel, which opinion and counsel are acceptable to
the Administrative Agent in its sole discretion.

“Optional Sale”: Defined in Section 2.19(a).

“Optional Sale Date”: Any Business Day, provided 10 Business Days written notice is given in
accordance with Section 2.19(a).

“Originator”: Defined in the Preamble of this Agreement and the Originator shall be deemed
to be the originator of the Loans listed on the Asset List on the first two Funding Dates, all of
which Loans have either been originated by the Originator or acquired by the Originator from
CapitalSource Finance LLC.

“Other Costs”: Defined in Section 13.09(c).

“Outstanding Asset Balance”: With respect to any Asset at any time, the sum of (a) all future
Scheduled Payments becoming due under or with respect to such Asset plus (b) any past due Scheduled
Payments with respect to such Asset (other than with respect to those payments to the extent a
Servicer Advance is outstanding with respect thereto); provided that notwithstanding anything to
the contrary contained herein, for purposes of determining the Outstanding Asset Balance, if any
Asset is a Charged-Off Asset or if any portion of an Asset is deemed to be “charged-off” in
accordance with the provisions of the definition of Charged-Off Asset, then the entire Asset shall
be deemed to have an Outstanding Asset Balance of zero, except for purposes of calculating the
Average Pool Charged-Off Ratio.

“Overcollateralization Amount”: As of any date of determination, an amount equal to the product of
(i) the Overcollateralization Percentage on such date and (ii) the Borrowing Base on such date.

“Overcollateralization Percentage”: As of any date of determination, the percentage equivalent of
(a) one minus (b) a fraction (i) the numerator of which is equal to the Advances
Outstanding on such date and (ii) the denominator of which is equal to the Aggregate Outstanding
Asset Balance as of such date.

“Overcollateralization Shortfall”: As of any date of determination, the positive difference, if
any, of (a) the Minimum Overcollateralization Amount on such date minus (b) the
Overcollateralization Amount on such date.

“Parent Undertaking — Originator”: The Parent Undertaking Agreement, in substantially the form of
Exhibit N hereto, dated as of the date hereof, relating to the obligations of the Originator,

36

 

made
by CapitalSource Inc. in favor of the Seller, and assigned to the Administrative Agent, as
such Parent Undertaking Agreement may be amended, modified, supplemented, restated or replaced from
time to time.

“Parent Undertaking — Servicer”: The Parent Undertaking Agreement, in substantially the form of
Exhibit O hereto, dated as of the date hereof, relating to the obligations of the Servicer, made by
CapitalSource Inc. in favor of the Administrative Agent, as such Parent Undertaking Agreement may
be amended, modified, supplemented, restated or replaced from time to time.

“Participating Member State”: A member of the European Community that adopts or has adopted the
Euro as its lawful currency in accordance with legislation of the European Economic Community
relating to the Economic and Monetary Union.

“Participation Loan”: A Loan to an Obligor, originated by the Originator and serviced by the
Servicer in the ordinary course of its business, in which a participation interest has been granted
to another Person in accordance with the Credit and Collection Policy and (i) such transaction has
been fully consummated, pursuant to a participation agreement, (ii) such Loan (other than in the
case of a Noteless Loan) is represented by a separate promissory note, and (iii) the Originator has
the right to receive and collect payments directly in its own name, and to enforce its rights
directly against the Obligor thereof including the right to proceed against collateral; provided
that any such Loan shall exclude any Retained Interest.

“Payment Date”: The 20th day of each calendar month or, if such day is not a Business Day, the
next succeeding Business Day, commencing October 22, 2007.

“Payment Duties”: Defined in Section 8.2(b).

“Permitted Investments”: With respect to any Payment Date means 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
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 Business Day immediately preceding the next Payment Date immediately
following such date of determination, and (c) that evidence:

     (1) 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);

     (2) 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 Seller’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

37

 

institution
or trust company shall have a credit rating from Fitch and each Rating
Agency in the Highest Required Investment Category granted by Fitch and such Rating
Agency, which in the case of Fitch, shall be “F-1+”;

     (3) commercial paper, or other short term obligations, having, at the time of the
Seller’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 “F-1+”;

     (4) 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 “F-1+”;

     (5) notes that are payable on demand or bankers’ acceptances issued by any depository
institution or trust company referred to in clause (ii) above;

     (6) investments in taxable money market funds or other regulated investment companies
having, at the time of the Seller’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);

     (7) time deposits (having maturities of not more than 90 days) by an entity the
commercial paper of which has, at the time of the Seller’s investment or contractual
commitment to invest therein, a rating of the Highest Required Investment Category granted
by Fitch and each Rating Agency; or

     (8) Eligible Repurchase Obligations with a rating acceptable to the Rating Agencies,
which in the case of Fitch, shall be “F-1+” and in the case of S&P shall be “A-1”.

The Collateral Custodian may pursuant to the direction of the Servicer or Administrative Agent, as
applicable, purchase or sell to itself or an Affiliate, as principal or agent, the Permitted
Investments described above.

“Permitted Liens”: With respect to the Collateral (i) Liens for state, municipal or other local
taxes (other than payroll taxes) if such taxes shall not at the time be due and payable or are
being contested in good faith by appropriate proceedings and with respect to which adequate
reserves or other appropriate provisions are being maintained in accordance with GAAP so long as
there exists no material risk of sale, forfeiture, loss, or loss of or interference with use or
possession of, or diminution of value, utility or useful life of, the related Collateral, (ii)
Liens imposed by operation of law, such as materialmen’s, mechanics’, carriers’, workmen’s and
repairmen’s liens and other similar liens arising in the ordinary course of business securing
obligations that are not overdue for a period of more than thirty (30) days or are being contested
in good faith by appropriate proceedings and with respect to which adequate reserves or other
appropriate provisions are being maintained in accordance with GAAP so long as there exists no
material risk of sale, forfeiture, loss, or loss of or interference with use or possession of, or
diminution of value, utility or useful life of, the related Collateral, (iii) Liens (other than any
Lien imposed by

38

 

ERISA) on or in respect of deposits or pledges of cash or letters of credit posted
in the ordinary
course of business (including, without limitation, surety bonds and appeal bonds) in connection
with workers’ compensation, unemployment insurance and other types of social security benefits or
to secure the performance of tenders, bids, leases, contracts (other than for the repayment of
Indebtedness), statutory obligations and other similar obligations, provided that any such Lien
attaches only to the cash collateral or letter of credit posted to secure such obligation, and (iv)
Liens pursuant to indebtedness incurred by an Obligor that is subordinated, pursuant to a customary
and appropriate subordination agreement, to all present and future obligations, indebtedness and
liabilities of Obligor or any related guarantor under or in respect of the related Asset at any
time and from time to time of every kind, nature and description, direct or indirect, secured or
unsecured, joint and several, absolute or contingent, due or to become due, matured or unmatured,
now existing or hereafter arising, contractual or tortious, liquidated or unliquidated, such that
the Lien in favor of the Originator is senior in priority and the subordinated lien holder is
subject to restrictions for a customary and reasonable period of time with respect to its right to
take foreclosure actions or exercise other remedies with respect to the related collateral (other
than the subordinated lien holder’s customary purchase option of the senior indebtedness at par) in
accordance with its credit and collection policies. With respect to the Assets, Liens in favor of
the Administrative Agent.

“Person”: An individual, partnership, corporation (including a business trust), limited liability
company, joint stock company, trust, unincorporated association, sole proprietorship, joint
venture, government (or any agency or political subdivision thereof) or other entity.

“Pool Charged-Off Ratio”: As of any Determination Date, the product of (i) 12 and (ii) the
percentage equivalent of a fraction, (a) the numerator of which is equal to the sum of the
Outstanding Asset Balances of all Eligible Assets that became Charged-Off Assets (net of Recoveries
during such Collection Period) during the Collection Period related to such Determination Date, and
(b) the denominator of which is equal to the Aggregate Outstanding Asset Balance as of the first
day of the Collection Period related to such Determination Date.

“Pool Concentration Criteria”: On any day, each of the concentration limitations as set forth
below, which concentration limitations (unless otherwise indicated) shall be measured on the basis
of a percentage of the Aggregate Outstanding Asset Balance:

     (1) the sum of the Outstanding Asset Balance of all Eligible Assets the Obligors of
which are resident of the same state shall not exceed 20%, with the exception of the State
of Florida, the State of California and the State of New York, which shall not exceed 30%;

     (2) the sum of the Outstanding Asset Balances of all Eligible Assets that are Loans
secured by Development Properties shall not exceed 20%; provided that condominium
conversions shall not exceed 15%;

     (3) the sum of the Outstanding Asset Balances of all Eligible Assets that are Senior
Secured ABLs shall not exceed 35%;

39

 

     (4) the sum of the Outstanding Asset Balances of all Eligible Assets that are B-Note
Loans or Mezzanine Loans shall not exceed 10%;

     (5) the sum of the Outstanding Asset Balances comprised of all Eligible Assets that
are Construction Loans shall not exceed 5%;

     (6) the sum of the Outstanding Asset Balances of all Eligible Assets that are Loans
secured by the same classification of Mortgaged Property shall not exceed 30% with the
exception of Loans secured by Mortgaged Property classified as hotel property, which shall
not exceed 20%;

     (7) the sum of the Outstanding Asset Balances of all Eligible Assets that are Loans
used to finance Land Development activities shall not exceed 10%;

     (8) the sum of the Outstanding Asset Balances of all Eligible Assets that are
Sale/Leaseback Loans shall not exceed 20%;

     (9) the sum of the Outstanding Asset Balances of all Eligible Assets with a “Risk
Rating 4”, a “Risk Rating 5” and a “Risk Rating 6” shall not exceed 20%, 10% and 0%,
respectively;

     (10) the sum of the Outstanding Asset Balances of all Eligible Assets to a single
Obligor shall not exceed 3%, except that with respect to the Excess Concentration Loans,
the sum of the Outstanding Asset Balances of all Excess Concentration Loans to a single
Obligor shall not exceed the lesser of (a) 3.5% (measured on the initial Funding Date) and
(b) the amount set forth for such Obligor on Schedule VIII hereto;

     (11) the Aggregate Outstanding Asset Balances of all Eligible Assets divided by the
number of Obligors (including Affiliates thereof) shall not exceed the greater of (a)
1.75% or (b) $15 million;

     (12) the sum of the Outstanding Asset Balances of all Eligible Assets that are
Acquired Loans shall not exceed 15%;

     (13) the sum of the Outstanding Asset Balances of all Eligible Assets that are Fixed
Rate Assets shall not exceed 5%;

     (14) the sum of the Outstanding Asset Balances of all Eligible Assets where all or
any portion of the Related Property is located outside of the United States and its
territories and protectorates shall not exceed 15%;

     (15) subject to the requirements of (1)(f) of the definition of Eligible Asset, the
sum of the Outstanding Asset Balances of all Eligible Assets which provide for interest
and principal payments in British Pounds Sterling, Euros or Canadian Dollars shall not
exceed 10%; and

40

 

     (16) the sum of the Outstanding Asset Balances of all Loans which provide for
payments of interest on a semi-annual basis shall not exceed the lesser of (a) 5% and (b)
$20,000,000.

“Pool Rate”: As of any Determination Date, the annualized percentage equivalent of a fraction, (a)
the numerator of which is equal to all Interest Collections on Assets included in the Aggregate
Outstanding Asset Balance as of the first day of the Collection Period related to such
Determination Date that are deposited into the Collection Account during such Collection Period,
and (b) the denominator of which is equal to the Aggregate Outstanding Asset Balance as of the
first day of such Collection Period.

“Pool Yield”: On any day, the excess, if any, of (a) the Pool Rate on such day over (b)
the sum of (i) the Interest Rate multiplied by the Weighted Average Advance Rate, (ii) the weighted
average Program Fee Rate applicable to the Advances multiplied by the Weighted Average Advance Rate
and (iii) the Servicing Fee Rate, in each case as of such day.

“Portfolio Aggregate Outstanding Asset Balance”: With respect to all Portfolio Assets, on any day,
the sum of the Portfolio Outstanding Asset Balances of such Portfolio Assets on such date.
Notwithstanding anything to the contrary contained herein, for purposes of determining the
Portfolio Aggregate Outstanding Asset Balance, if any portion of a Portfolio Asset is deemed to be
“charged-off” in accordance with the provisions of the definition of Charged-Off Portfolio Asset,
then the entire Portfolio Asset shall have a zero Outstanding Asset Balance, except for purposes of
calculating the Average Portfolio Charged-Off Ratio.

“Portfolio Asset”: Any asset owned or serviced by the Originator (including each Asset). For the
avoidance of doubt, the term Portfolio Asset shall not include any asset owned and/or serviced
solely by one or more Affiliates of the Originator (but not by the Originator); provided that (i)
such asset shall not have been originated or acquired by the Originator and (ii) such asset shall
not be included in the consolidated financial statements of the Originator.

“Portfolio Charged-Off Ratio”: As of any Determination Date, the product of (i) 12 and (ii) the
percentage equivalent of a fraction, (a) the numerator of which is equal to the sum of the
Portfolio Outstanding Asset Balances of all Portfolio Assets (excluding equity and preferred stock
investments) that became Charged-Off Portfolio Asset (net of Recoveries during such Collection
Period) during the Collection Period related to such Determination Date and (b) the denominator of
which is equal to the Portfolio Aggregate Outstanding Asset Balance (excluding equity and preferred
stock investments) as of the first day of the Collection Period related to such Determination Date;
provided that such calculation shall exclude the effects of any Liquid Real Estate Assets that are
acquired and levered by the Originator solely to satisfy REIT asset and income tests.

“Portfolio Delinquency Ratio”: As of any Determination Date, the percentage equivalent of a
fraction, (i) the numerator of which is equal to the sum of the Portfolio Outstanding Asset
Balances of all Delinquent Portfolio Assets on such date and (ii) the denominator of which is equal
to the Portfolio Aggregate Outstanding Asset Balance on such date; provided that, such calculation
shall exclude the effects of any Liquid Real Estate Assets that are acquired and levered by the
Originator solely to satisfy REIT asset and income tests.

41

 

“Portfolio Outstanding Asset Balance”: With respect to any Portfolio Asset, the sum of (i) the
portion of all future Scheduled Payments becoming due under or with respect to such Portfolio Asset
plus (ii) any past due Scheduled Payments with respect to such Portfolio Asset.

“Prepaid Asset”: Any Asset (other than a Charged-Off Asset) that was terminated or has been
prepaid in full or in part prior to its scheduled expiration date.

“Prepayment Amount”: Defined in Section 6.4(b).

“Prepayments”: Any and all (i) partial or full prepayments on or with respect to an Asset
(including, with respect to any Asset and any Collection Period, any Scheduled Payment, Finance
Charge or portion thereof that is due in a subsequent Collection Period that the Servicer has
received, and pursuant to the terms of Section 6.4(b) expressly permitted the related
Obligor to make, in advance of its scheduled due date, and that will be applied to such Scheduled
Payment on such due date), (ii) Recoveries, and (iii) Insurance Proceeds.

“Prime Rate”: The rate announced publicly by Citibank from time to time as its base rate in the
United States, such rate to change as and when such designated rate changes. The Prime Rate is not
intended to be the lowest rate of interest charged by Citibank or any other specified financial
institution in connection with extensions of credit to debtors.

“Principal Collections”: Any and all amounts received in respect of any principal due and payable
from or on behalf of Obligors that are deposited into the Principal Collections Account, or
received by or on behalf of the Seller by the Servicer or Originator in respect of Assets, in the
form of cash, checks, wire transfers, electronic transfers or any other form of cash payment.

“Principal Collections Account”: Defined in Section 6.4(f).

“Proceeds”: With respect to any Collateral, whatever is receivable or received when such
Collateral is sold, liquidated, foreclosed, exchanged, or otherwise disposed of, whether such
disposition is voluntary or involuntary, and includes all rights to payment with respect to any
insurance relating to such Collateral.

“Program Fee”: With respect to any Purchaser, as defined in the Purchaser Fee Letter.

“Program Fee Rate”: With respect to any Purchaser, the rate set forth in the Purchaser Fee Letter.

“Purchaser”: (i) any Issuer and (ii) any Liquidity Bank, as the context requires; and “Purchasers”
means collectively (a) the Issuers and (b) the Liquidity Banks.

“Purchaser Affiliate”: With respect to a Purchaser, means any other Person that, directly or
indirectly, controls, is controlled by or under common control with such Person. For 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 50% or more of the voting securities of such Person or to direct or
cause the direction of the management or policies of such Person, whether through the ownership of
voting securities, by contract or otherwise

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“Purchaser Fee Letter”: Each Fee Letter Agreement, dated as of the date hereof, by and among the
Seller, the Servicer, and the Administrative Agent, as amended, modified, waived, supplemented,
restated or replaced from time to time.

“Qualified Institution”: Defined in Section 6.4(f).

“Qualified Transferee”:

     (a) The Seller, the Administrative Agent or any of their Affiliates; or

     (b) any other Person which:

     (i) has at least $50,000,000 in capital/statutory surplus or shareholders’ equity
(except with respect to a pension advisory firm or similar fiduciary); and

     (ii) is regularly engaged in the business of making or owning commercial real estate
loans or operating commercial real estate properties; and

     (iii) is one of the following: (I) an insurance company, bank, savings and loan
association, investment bank, trust company, commercial credit corporation, pension plan,
pension fund, pension fund advisory firm, mutual fund, real estate investment trust,
governmental entity or plan; (II) an investment company, money management firm or a
“qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of
1933, as amended, or an “institutional accredited investor” within the meaning of
Regulation D under the Securities Act of 1933, as amended; or (III) the trustee, collateral
agent or administrative agent in connection with (x) a securitization of the subject Asset
through the creation of collateralized debt or loan obligations or (y) an asset-backed
commercial paper transaction funded by a commercial paper conduit whose commercial paper
notes are rated at least “A-1” by S&P or at least “P-1” by Moody’s, or (z) a repurchase
transaction funded by an entity which would otherwise be a Qualified Transferee so long as
the “equity interest” (other than any nominal or de minimis equity interest) in the special
purpose entity that issues notes or certificates in connection with any such collateralized
debt or loan obligation, asset-backed commercial paper funded transaction or repurchase
transaction is owned by one or more entities that are Qualified Transferees under subclauses
(A) or (B) above; or (IV) any entity Controlled (as defined below) by any of the entities
described in subclauses (i), (ii) or (iii) above.

For purposes of this definition only, “Control” means the ownership, directly or indirectly, in the
aggregate of more than 50% of the beneficial ownership interests of an entity and the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies
of an entity, whether through the ability to exercise voting power, by contract or otherwise, and
“Controlled” has the meaning correlative thereto.

“Quarterly Determination Date”: March 31, June 30, September 30 and December 31 of each calendar
year.

“Rating Agency”: Each of S&P and Moody’s.

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“Records”: All documents relating to the Assets, including books, records and other information
(including without limitation, computer programs, tapes, disks, punch cards, data processing
software and related property and rights) executed in connection with the origination or
acquisition of the Collateral or maintained with respect to the Collateral and the related Obligors
that the Seller, the Originator or the Servicer have generated, in which the Seller, the Originator
or the Servicer have acquired an interest pursuant to the Sale Agreement or in which the Seller,
the Originator or the Servicer have otherwise obtained an interest.

“Recoveries”: As of the time any Related Property or any other related property is sold, discarded
(after a determination by the Servicer that such Related Property or any other related property has
little or no remaining value) or otherwise determined to be fully liquidated by the Servicer in
accordance with the Credit and Collection Policy (or such similar policies and procedures utilized
by the Servicer in servicing the Portfolio Assets) with respect to any Charged-Off Asset or
Charged-Off Portfolio Asset, the proceeds from the sale of the Related Property or any other
related property, the proceeds of any related Insurance Policy, any other recoveries with respect
to such Charged-Off Asset or Charged-Off Portfolio Asset, the Related Property, any other related
property, and amounts representing late fees and penalties, net of Liquidation Expenses and
amounts, if any, received that are required under such Asset or Portfolio Asset, as applicable, to
be refunded to the related Obligor.

“Register”: Defined in Section 13.16(c).

“Regulation U”: Regulation U of the Board of Governors of the Federal Reserve System, 12 C.F.R.
§221, or any successor regulation.

“REIT”: A “real estate investment trust” as defined in Section 856(c)(5)(B) of the Code.

“Rejectable Offer”: Defined in clause 3(f) of the definition of Eligible Asset.

“Related Property”: With respect to an Asset, any property or other assets pledged as collateral
to the Originator to secure repayment of such Asset including all Proceeds from any sale or other
disposition of such property or other assets.

“Related Security”: All of the Seller’s right, title and interest in and to:

     (a) any Related Property securing an Asset and all Recoveries related thereto;

     (b) all Required Asset Documents, Asset Files related to any Asset, Records, and the
documents, agreements, and instruments included in the Asset File or Records, including without
limitation, rights of recovery of the Seller against the Originator;

     (c) all Insurance Policies with respect to any Asset;

     (d) all security interests, liens, guaranties, warranties, letters of credit, accounts, bank
accounts, mortgages or other encumbrances and property subject thereto from time to time purporting
to secure or support payment of any Asset, together with all UCC financing statements or similar
filings signed by an Obligor relating thereto;

44

 

     (e) the Collection Account, the Reserve Account, Lock Box and all Lock Box Accounts together
with all cash and investments in each of the foregoing other than amounts earned on investments
therein;

     (f) any Hedging Agreement and any payment from time to time due thereunder;

     (g) the Sale Agreement and the assignment to the Administrative Agent of all UCC financing
statements filed by the Seller against the Originator under or in connection with the Sale
Agreement; and

     (h) the proceeds of each of the foregoing.

“Replaced Asset”: Defined in Section 2.18(a).

“Reporting Date”: The date that is two Business Days prior to each Payment Date.

“Required Asset Documents”: With respect to (i) any Noteless Loan identified as a Noteless Loan on
the Asset Checklist, a copy of the related Loan Register (together with a certificate of a
Responsible Officer of the Servicer certifying to the accuracy of such Loan Register as of the date
such Loan is included as a part of the Collateral), (ii) all Loans other than Noteless Loans, the
duly executed original of the promissory note and an assignment (which may be by endorsement or
allonge) of each such promissory note to the Seller and then the Administrative Agent, signed by an
officer of the Originator and the Seller, respectively, (iii) any Loan, any related loan agreement
and the Asset Checklist together with, to the extent set forth on the Asset Checklist, duly
executed (if applicable) originals or copies of each of any related participation agreement,
acquisition agreement, subordination agreement, intercreditor agreement, security agreements or
similar instruments, UCC financing statements, guarantee, or Insurance Policy (iv) for each Loan,
other than Agented Loans or Assigned Loans (or other Loans for which an Assignment of Mortgage has
been delivered to Wells Fargo in its capacity as trustee or custodian pursuant to a prior term
transaction or warehouse facility involving the Originator or one of its Affiliates), secured by
real property, an Assignment of Mortgage and (v) for any Loan identified as an Assigned Loan on the
Asset Checklist, the duly executed original assignment agreement; provided that with respect to any
Assigned Loan, any of the foregoing documents, other than any related promissory notes in the case
of Assigned Loans only, may be copies.

“Required Reports”: Collectively, the Monthly Report, the Servicer’s Certificate required pursuant
to Section 6.10(c), the financial statements of the Servicer required pursuant to
Section 6.10(d), the annual statements as to compliance required pursuant to Section
6.11, and the annual independent public accountant’s report required pursuant to Section
6.12.

“Required Reserve Amount” means, with respect to each Payment Date, an amount equal to the
Outstanding Asset Balance of each Delinquent Asset as of the related Determination Date.

“Reserve Account”: Defined in Section 6.4(g).

“Residential Mortgage Policies and Procedures”: The written residential mortgage policies and
procedures manual of CapitalSource Inc. attached hereto as Schedule V as it may be amended
or supplemented from time to time.

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“Responsible Officer”: With respect to any Person, any duly authorized officer of such Person with
direct responsibility for the administration of this Agreement and also, with respect to a
particular matter, any other duly authorized officer to whom such matter is referred because of
such officer’s knowledge of and familiarity with the particular subject.

“Restricted Junior Payment”: (i) any dividend or other distribution, direct or indirect, on
account of any class of membership interests of the Seller now or hereafter outstanding, except a
dividend payment solely in interests of that class of membership interests or in any junior class
of membership interests of the Seller; (ii) any redemption, retirement, sinking fund or similar
payment, purchase or other acquisition for value, direct or indirect, of any class of membership
interest of the Seller now or hereafter outstanding, (iii) any payment made to redeem, purchase,
repurchase or retire, or to obtain the surrender of, any outstanding warrants, options or other
rights to acquire membership interests of Seller now or hereafter outstanding, and (iv) any payment
of management fees by the Seller (except for reasonable management fees to the Originator or its
Affiliates in reimbursement of actual management services performed).

“Retained Interest”: (A) With respect to any Revolving Loan or any Loan with an unfunded
commitment on the part of the Originator that does not provide by its terms that funding thereunder
is in Originator’s sole and absolute discretion and that is transferred by the Originator to the
Seller and/or by the Seller to the Purchasers, all of the obligations, if any, to provide
additional funding with respect to such Revolving Loan, and (B) with respect to any Assigned Loan,
any Participation Loan or any Agented Loan that is transferred by the Originator to the Seller
and/or by the Seller to the Purchasers, (i) all of the obligations, if any, of the agent(s) under
the documentation evidencing such Assigned Loan, Participation Loan, or Agented Loan and (ii) the
applicable portion of the interests, rights and obligations under the documentation evidencing such
Assigned Loan, Participation Loan, or Agented Loan that relate to such portion(s) of the
indebtedness that is owned by another lender or is being retained by the Originator pursuant to
clause (A) of this definition.

“Retransfer Date”: Defined in Section 4.6.

“Revolving Loan”: A Loan that is a line of credit or contains an unfunded commitment arising from
an extension of credit by the Originator to an Obligor, pursuant to the terms of which amounts
borrowed may be repaid and subsequently reborrowed; provided that any such Loan shall exclude any
Retained Interest.

“Revolving Period”: The period commencing on the Closing Date and ending on the day immediately
preceding the Termination Date.

“S&P”: Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and any successor
thereto.

“Sale Agreement”: The Sale and Contribution Agreement, dated as of the date hereof, between the
Originator and the Seller, as amended, modified, waived, supplemented, restated or replaced from
time to time.

“Sale/Leaseback Loan”: Any Loan by the Originator to an SPE Obligor that is collateralized by real
estate and the SPE Obligor’s rights under a Lease with an Underlying Lessee.

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“Scheduled Payments”: With respect to any Asset, each monthly, quarterly, or annual payment of
principal required to be made by the Obligor thereof under the terms of such Asset; in all cases,
excluding any payment in the nature of, or constituting, interest.

“Secured Party”: (i) each Purchaser, (ii) the Administrative Agent and (iii) each Hedge
Counterparty that is either a Purchaser or an Affiliate of the Administrative Agent if that
Affiliate is a Hedge Counterparty that executes a counterpart of this Agreement agreeing to be
bound by the terms of this Agreement applicable to a Secured Party.

“Seller”: Defined in the Preamble of this Agreement.

“Seller Investment”: As of any date of determination, the sum, with respect to each Funding Date
that has occurred on or prior to such determination date, of the excess of (x) the Outstanding
Asset Balance (as of such Funding Date) of all Eligible Assets which became part of the Collateral
on such Funding Date, over (y) the Advance made on such Funding Date.

“Senior Secured ABL Loan”: Any Revolving Loan that (i) is secured by a first priority Lien on all
of the Obligor’s assets constituting Related Property for the Loan, (ii) provides the related
Obligor with the option to receive additional borrowings thereunder based on the value of its
eligible accounts receivable, residential mortgage receivables, inventory (other than real estate
property or land) or equipment, (iii) has a Loan-to-Liquidation Value of less than or equal to (a)
85% with respect to the Related Property which constitutes accounts receivable, (b) 90% with
respect to the Related Property which constitutes residential mortgage receivables, (c) 50% with
respect to the Related Property which constitutes inventory (other than real estate property or
land), and (d) 80% with respect to the Related Property which constitutes equipment, and (iii)
provides that the payment obligation of the Obligor on such Loan is either senior to, or pari passu
with, all other loans or financings to such Obligor.

“Senior Secured Loan”: Any Loan that (i) is secured by a first priority Lien on all of the
Obligor’s assets constituting Related Property for the Loan, (ii) has a Loan-to-Value of not
greater than 90%, and (iii) provides that the payment obligation of the Obligor on such Loan is
either senior to, or pari passu with, all other loans or financings to such Obligor.

“Servicer”: CSE Mortgage, and each successor (in the same capacity) appointed as Successor Servicer
pursuant to Section 6.16(a).

“Servicer Advance”: An advance of Scheduled Payments made by the Servicer pursuant to Section
6.5.

“Servicer Default”: Defined in Section 6.15.

“Servicer Termination Notice”: Defined in Section 6.15.

“Servicer’s Certificate”: Defined in Section 6.10(c).

“Servicing Fee”: Defined in Section 2.14(b).

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“Servicing Fee Rate”: 0.50% per annum for Eligible Assets which are not Workout Assets and 0.75%
per annum for Workout Assets, without duplication.

“Solvent”: As to any Person at any time, having a state of affairs such that all of the following
conditions are met: (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) the present fair salable value of the property of such Person in an orderly liquidation
of such Person is not less than the amount that will be required to pay the probable liability of
such Person on its debts as they become absolute and matured; (c) 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; (d) 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 (e) such Person is not engaged in a
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.

“SPE Obligor”: An Obligor that (a) is organized as a bankruptcy remote, special purpose entity (as
evidenced by an Opinion of Counsel in form and substance satisfactory to the Administrative Agent)
and is not an operating company and (b) has as its primary assets real property and rights under a
Lease.

“Subsidiary”: As to any Person, a corporation, partnership or other entity of which shares of
stock or other ownership interests having ordinary voting power (other than stock or such other
ownership interests having such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation, partnership or other
entity are at the time owned, or the management of which is otherwise controlled, directly or
indirectly, through one or more intermediaries, or both, by such Person; provided that any joint
ventures in which each party to the joint venture possesses 50% of the voting stock of such entity
shall be expressly excluded from this definition.

“Substitute Asset”: On any day, an Eligible Asset that meets each of the conditions for
substitution set forth in Section 2.18.

“Successor Servicer”: Defined in Section 6.16(a).

“Tape”: Defined in Section 7.2(b)(ii).

“Taxes”: Any present or future taxes, levies, imposts, duties, charges, assessments or fees of any
nature (including interest, penalties, and additions thereto) that are imposed by any Governmental
Authority.

“Termination Date”: The earliest of (a) the date of the termination of the Facility Amount
pursuant to Section 2.4, (b) the Business Day designated by the Seller to the
Administrative Agent as the Termination Date at any time following two Business Days’ prior written
notice thereof to the Administrative Agent, (c) November 30, 2007, (d) with respect to any
Purchaser who is an Issuer the date any Liquidity Agreement shall cease to be in full force and
effect, or

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(e) the date of the declaration of the Termination Date pursuant to Section 10.2(a) or
10.2(c) or the date of the automatic occurrence of the Termination Date pursuant to
Section 10.2(b).

“Termination Event”: Defined in Section 10.1.

“Term Loan”: A Loan that is a term loan that has been fully funded and does not contain any
unfunded commitment on the part of the Originator arising from an extension of credit by the
Originator to an Obligor.

“Total Principal Payable”: As of any date of determination, the excess, if any, of the Aggregate
Outstanding Principal Balance over the Aggregate Outstanding Asset Balance.

“Transaction”: Defined in Section 3.2.

“Transaction Documents”: The Agreement, the Sale Agreement, each Hedging Agreement, the Hedge
Guaranty, the Lock-Box Agreement, the Intercreditor Agreement, the Confirmation and Undertaking
Letter, the Parent Undertaking-Originator, the Parent Undertaking-Servicer, each Variable Funding
Certificate, each Purchaser Fee Letter, the Backup Servicer and Collateral Custodian Fee Letter,
any UCC financing statements filed pursuant to the terms of this Agreement, and any additional
document the execution of which is necessary or incidental to carrying out the terms of the
foregoing documents.

“Transition Expenses”: The reasonable costs (including reasonable attorneys’ fees) of the Backup
Servicer incurred in connection with the transferring the servicing obligations under this
Agreement and amending this Agreement to reflect such transfer in an amount not to exceed $100,000.

“Turbo Period”: The period beginning on the date of the declaration of the Turbo Period pursuant
to Section 10.2(a) or 10.2(c) or the date of the automatic occurrence of the Turbo
Period pursuant to Section 10.2(b) and ending on the Collection Date.

“UCC”: The Uniform Commercial Code as from time to time in effect in the applicable jurisdiction
or jurisdictions.

“Underlying Instruments”: The indenture, loan agreement, credit agreement or other agreement
pursuant to which a Loan has been issued or created and each other agreement that governs the terms
of or secures the obligations represented by such Loan or of which the holders of such Loan are the
beneficiaries related thereto.

“Underlying Lessee”: A lessee that is obligated on a Lease with an SPE Obligor.

“United States”: The United States of America.

“Unmatured Termination Event”: Any event that, with the giving of notice or the lapse of time, or
both, would become a Termination Event.

“Variable Funding Certificate” or “VFC”: Defined in Section 2.1(a).

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“Voting Stock”: With respect to any Person, capital stock or membership interests (in the case of a limited liability company) issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such contingency.

“Warranty Asset”: Any Asset that fails to satisfy any criteria of the definition of Eligible Asset; provided that notwithstanding the foregoing, for purposes of determining what is a Warranty Asset, the criteria set forth in clauses (1)(c), (1)(d), 1(l)(i), 1(s) (but solely to the extent the criteria in such clause 1(s) relates to any express representation and warranty that an Asset is an Eligible Asset), 1(w), 1(x), (1)(y)
and clauses (2)(e) and 2(f) (but solely to the extent that the criteria in such clauses 2(e) and 2(f) would not be satisfied as a result of the operation of law or an effective court order in connection with an Insolvency Event) and clause (3)(i) of the definition of Eligible Asset and clauses (viii) and (x) in the definition of Eligible Obligor shall apply only as of the applicable Cut-Off Date of such Asset.

“Warranty Event”: As to any Asset, the discovery that as of the related Cut-Off Date or Funding Date there had existed a breach of any representation or warranty relating to such Asset and the continuance of such breach through any applicable determination date or beyond any applicable cure period.

“Weighted Average Advance Rate”: For any Advances Outstanding on any day, the weighted average of the Advance Rates applicable to the Eligible Assets backing such Advances on such day, weighted according to the proportion of the Aggregate Outstanding Asset Balance each type of Asset represents; provided that the Weighted Average Advance Rate shall in no event exceed 75%.

“Workout Asset”: A Delinquent Asset or a Charged-Off Asset.

“Zero-Coupon Bond”: A bond that, at the time of determination, does not make periodic payments of interest.

     Section 1.2 Other Terms.

     All accounting terms used but not specifically defined herein shall be construed in accordance
with GAAP. All terms used in Article 9 of the UCC in the State of New York, and used but not
specifically defined herein, are used herein as defined in such Article 9.

     Section 1.3 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” and the words
“to” and “until” each mean “to but excluding.”

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     Section 1.4 Interpretation.

     In each Transaction Document, 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;

     (iii) reference to any gender includes each other gender;

     (iv) reference to day or days without further qualification means calendar days;

     (v) reference to any time means New York, New York time;

     (vi) reference to any agreement (including any Transaction Document), document or
instrument means such agreement, document or instrument as amended, modified, waived,
supplemented, restated or replaced 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; and

     (vii) reference to any Applicable Law means such Applicable 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 Applicable Law means that provision of such Applicable Law from time to
time in effect and constituting the substantive amendment, modification, codification,
replacement or reenactment of such Section or other provision.

     Section 1.5 Special Provisions Relating to Alternative Currency Loans.

     For purposes of (a) complying with any requirement of this Agreement stated in Dollars and (b)
calculating any ratio or other test set forth in this Agreement, the amount of any Asset that is
denominated in an Alternative Currency shall be deemed to be the Dollar Equivalent of such amount
of Alternative Currency determined as of the date of such calculation including, without
limitation, the following (together with any defined terms in which such defined terms are used):
“Aggregate Outstanding Asset Balance”, “Borrowing Base”, “Pool Concentration Criteria”, “Interest
Collections”, “Outstanding Asset Balance”, “Permitted Investments”, “Portfolio Aggregate
Outstanding Asset Balance”, “Portfolio Outstanding Asset Balance”, “Principal Collections”,
“Scheduled Payment” and “Servicing Fee”.

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ARTICLE II

PURCHASE OF THE VARIABLE FUNDING CERTIFICATES

     Section 2.1 The Variable Funding Certificates.

     (a) On the terms and conditions hereinafter set forth, Seller shall deliver a duly executed
variable funding certificate (each such certificate, a “Variable Funding Certificate” or “VFC”), in
substantially the form of Exhibit B, on the Closing Date, to the Administrative Agent at
its address set forth on the signature pages of this Agreement. Each Variable Funding Certificate
shall evidence an undivided ownership interest (and the Seller does hereby sell, transfer, assign
and convey such undivided ownership interest to the Administrative Agent for the benefit of the
Purchasers) in the Collateral purchased by a Purchaser in an amount equal, at any time, to the
percentage equivalent of a fraction (i) the numerator of which is the Advances outstanding under
the applicable VFC on such day, and (ii) the denominator of which is the total aggregate Advances
Outstanding on such day. Interest shall accrue, and each VFC shall be payable, as described
herein; provided that the aggregate amount outstanding under all VFCs at any one time shall not
exceed the Facility Amount.

     (b) On the terms and conditions hereinafter set forth, from the Closing Date to, but excluding
the Termination Date, the Seller may, at its option, request advances of funds under the VFCs
(each, an “Advance”) and the Issuers may, in their sole discretion, fund such Advance ratably in
accordance with their Issuer Purchase Limits (or in such other proportion as the Issuers may
mutually agree), and if the Issuers do not fund the entire amount of such Advance, the Liquidity
Banks shall fund, ratably in accordance with their Commitments, any portion of such Advance not
funded by the Issuers; provided that in no event shall the Purchasers make any Advance if, after
giving effect to such Advance, the aggregate Advances Outstanding hereunder would exceed the lesser
of (x) the Facility Amount or (y) the Maximum Availability. Notwithstanding anything contained in
this Section 2.1 or elsewhere in this Agreement to the contrary, (i) no Issuer shall fund
any Advance at any time if, after giving effect thereto, the outstanding principal amount of
Advances funded by such Issuer would exceed such Issuer’s Issuer Purchase Limit, and (ii) no
Liquidity Bank shall be obligated to provide the Administrative Agent or the Seller with aggregate
funds in connection with an Advance that would exceed such Liquidity Bank’s Commitment then in
effect. Each Advance made by the Purchasers hereunder is subject to the interests of the Hedge
Counterparties under Section 2.9(a)(1) and Section 2.10(a)(2) of this Agreement.

     (c) Notwithstanding the foregoing or anything in this Agreement or any other Transaction
Document to the contrary, (i) nothing contained in this Agreement or any other Transaction Document
shall constitute a commitment by any Issuer to fund any Advance and (ii) the Issuers shall not be
liable to make any payments under this Agreement or any other Transaction Document (all liability
with respect to which shall be an obligation of the Liquidity Banks or the Administrative Agent).

     (d) [Intentionally Omitted.]

     (e) [Intentionally Omitted.]

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     (f) Notwithstanding anything to the contrary contained herein, this Agreement and the VFCs to
be issued thereunder shall constitute a single revolving debt facility with a single maturity and
in no event shall Seller effect a sale of any VFC to an existing Purchaser or take any other
action under the Agreement that would cause Seller to have outstanding one or more debt obligations
with two or more maturities hereunder. For purposes of this section, debt obligations have “two or
more maturities” if they have different stated maturities or if the holders of the debt obligations
possess different rights concerning the acceleration of or delay in the maturities of the
obligations.

     Section 2.2 [Intentionally Omitted].

     Section 2.3 Procedures for Advances.

     (a) Each Advance from a Purchaser hereunder shall be effected by the Seller (or the Servicer
on its behalf) delivering to the Administrative Agent (with a copy to the Collateral Custodian and
the Backup Servicer) a duly completed Borrowing Notice (along with a Borrowing Base Certificate) no
later than 11:00 a.m. (New York City, New York time) at least two Business Days prior to the
proposed Funding Date; provided that no more than four Advances shall be made in any one calendar
month without the Administrative Agent’s prior consent. Each Borrowing Notice (along with a
Borrowing Base Certificate) shall (i) specify the desired amount of such Advance, which amount must
be at least equal to $250,000, (ii) specify the date of such Advance, (iii) specify the Assets to
be financed on such Funding Date (including the appropriate file number and Outstanding Asset
Balance for each Asset, and identifying each Loan by type and whether such Loan is a Senior Secured
ABL Loan, Senior Secured Loan, B-Note Loan, Mezzanine Loan, Acquired Loan, Assigned Loan, or
Participation Loan) and (iv) include a representation that all conditions precedent for an Advance
described in Article III hereof have been met. Each Borrowing Notice shall be irrevocable.

     Each Issuer shall promptly thereafter notify the Administrative Agent whether such Issuer has
determined to make the requested Advance on the terms specified by the Seller, and the Issuers
shall notify the Administrative Agent of the funding allocation as between them (if other than
proportional to their Issuer Purchase Limits). The Administrative Agent shall promptly thereafter
notify the Seller whether the Issuers have determined to make the requested purchase and, if so,
whether all of the terms specified by the Seller are acceptable to the Issuers. If the Issuers
have determined not to make the entire amount of an Advance requested to be made, the
Administrative Agent shall promptly send notice of the proposed Advance to all of the Liquidity
Banks concurrently specifying the date of such Advance, the aggregate amount of such Advance to be
funded by the Liquidity Banks (which amount shall be equal to the portion of the Advance not funded
by the Issuers), and each such Liquidity Bank’s portion thereof (determined ratably in accordance
with its respective Commitment).

     (b) On the date of each Advance, the applicable Purchasers shall upon satisfaction of the
applicable conditions set forth in Article III, make available to the Seller in same day
funds, at such bank or other location reasonably designated by Seller in its Borrowing Notice given
pursuant to this Section 2.3, an aggregate amount equal to the least of (i) the amount
requested by the Seller for such Advance, (ii) an amount equal to the Availability on such Funding
Date or (iii) the Facility Amount.

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     (c) Effective on the date of each Advance pursuant to this Section 2.2, the Seller hereby
sells and assigns to the Administrative Agent, for the benefit of the Purchasers making such
Advance, all Assets listed on the attachment to the Borrowing Notice delivered in connection with
such Advance, and the Related Security and Collections with respect thereto.

     (d) On each Funding Date, the obligation of each Liquidity Bank to remit its pro rata share of
each Advance shall be several from that of each other Liquidity Bank and the failure of any
Liquidity Bank to so make such amount available to the Seller shall not relieve any other Liquidity
Bank of its obligation hereunder. No Liquidity Bank shall be responsible for the failure of any
other Liquidity Bank to make funds available in connection with any Advance.

     (e) Notwithstanding the foregoing, an Additional Asset may not be included in the Assets being
financed unless (x) if all Pool Concentration Criteria were satisfied immediately prior to giving
effect to such inclusion, all Pool Concentration Criteria continue to be satisfied if after giving
effect to the inclusion of such Additional Asset or (y) if any Pool Concentration Criteria was not
satisfied immediately prior to giving effect to such inclusion, the degree of non-satisfaction of
each Pool Concentration Criteria will be maintained or improved after giving effect to the
inclusion of such Additional Asset.

     (f) Notwithstanding the foregoing, (x) no Construction Loan may become an Additional Asset, if
after giving effect thereto, the Outstanding Asset Balance of all Construction Loans that are
included in the Collateral (expressed as a percentage of Aggregate Outstanding Asset Balance) would
exceed the Outstanding Asset Balance (as of the initial Funding Date) of all Construction Loans
included in the Collateral on the initial Funding Date (expressed as a percentage of Aggregate
Outstanding Asset Balance as of the initial Funding Date), and (y) no Loan due from the Obligor of
an Excess Concentration Loan may become an Additional Asset.

     Section 2.4 Reduction of the Facility Amount; Mandatory and Optional Repayments; Increase of Commitment.

     (a) The Seller may, upon at least 10 days’ prior written notice (such notice to be received by
the Administrative Agent no later than 5:00 p.m. (New York City, New York time) on such day) to the
Administrative Agent, terminate in whole or reduce in part the portion of the Facility Amount that
exceeds the sum of the Advances Outstanding, accrued Interest, Breakage Costs and Hedge Breakage
Costs; provided that each partial reduction of the Facility Amount shall be in an aggregate amount
equal to at least $1,000,000. Each notice of reduction or termination pursuant to this Section
2.4(a) shall be irrevocable.

     (b) The Seller may, upon two Business Days’ prior written notice (such notice to be received
by the Administrative Agent and each Hedge Counterparty no later than 11:00 a.m. (New York City,
New York time) on such day) to the Administrative Agent, reduce the Advances Outstanding by
remitting, to the Administrative Agent, for payment to the applicable Purchasers, (i) cash and (ii)
instructions to reduce such Advances Outstanding, related accrued Interest, Breakage Costs and
Hedge Breakage Costs; provided that no such reduction shall be given effect unless the Seller has
complied with the terms of any Hedging Agreement requiring that one or more Hedge Transactions be
terminated in whole or in part as the result of any such reduction of the Advances Outstanding, and
Seller has paid all Hedge Breakage Costs and any

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payments owing to the relevant Hedge Counterparty for any such termination. Any reduction of
the Advances Outstanding shall be in a minimum amount of $250,000. Any such reduction will occur
only if sufficient funds have been remitted to pay all such amounts in the succeeding sentence in
full. Upon receipt of such amounts, the Administrative Agent shall apply such amounts
first to the pro rata reduction of the Advances Outstanding by paying such amounts to the
applicable Purchasers, second to the payment of related accrued Interest on the amount of
the Advances Outstanding to be repaid by paying such amounts to the applicable Purchasers, and
third to the payment of any Breakage Costs and Hedge Breakage Costs and any other payments
owing to the applicable Hedge Counterparty in respect of the termination of any Hedge Transaction;
provided, however, if such amounts are received during the Amortization Period or the Turbo Period,
such amounts shall be applied in the order of priority set forth in Section 2.10. Any
notice relating to any prepayment pursuant to this Section 2.4(b) shall be irrevocable.

     (c) If on any day (i) the Administrative Agent, as agent for the Secured Parties, does not own
or have a valid and perfected first priority security interest in any of the Collateral or (ii) any
Asset which has been represented by the Seller to be an Eligible Asset is later determined not to
have been an Eligible Asset as of the related Cut-Off Date, upon the earlier of the Seller’s
receipt of notice from the Administrative Agent or the Seller becoming aware thereof and the
Seller’s failure to cure such breach within 30 days, the Seller shall be deemed to have received on
such day a collection (a “Deemed Collection”) of such Asset in full and shall on such day pay to
the Administrative Agent, on behalf of the Purchasers and each Hedge Counterparty, an amount equal
to (x) (1) the Outstanding Asset Balance of the Asset to be applied to the pro rata reduction of
the principal of each VFC plus (y) any Breakage Costs and Hedge Breakage Costs and any other
payments owing to the applicable Hedge Counterparty in respect of the termination of any Hedge
Transaction required as a result of the Deemed Collection and retransfer of the related Asset
contemplated by this Section 2.4(c). In connection with any such Deemed Collection, the
Administrative Agent, as agent for the Secured Parties, shall automatically and without further
action, be deemed to transfer to the Seller, free and clear of any Lien created by the
Administrative Agent, all of the right, title and interest of the Administrative Agent, as agent
for the Secured Parties, in, to, and under the Asset with respect to which the Administrative Agent
has received such Deemed Collection, but without any other representation and warranty of any kind,
express or implied.

     (d) At any time prior to the Termination Date, the Seller may, upon at least two (2) Business
Days’ prior written notice to the Administrative Agent, request that the aggregate Commitments be
increased in increments of $125,000,000 up to a maximum incremental amount of $250,000,000, with a
commensurate increase in the Commitment of each Liquidity Bank, any such increase to be subject to
the written consent of the Administrative Agent and each Liquidity Bank.

     Section 2.5 Determination of Interest.

     To the extent any Purchaser’s Interest Rate is determined by reference to the CP Rate, the
Administrative Agent shall determine such Purchaser’s CP Rate and the Interest (including unpaid
Interest, if any, due and payable on a prior Payment Date) to be paid by the Seller with respect to
each Advance, as applicable, on each Payment Date for the related Accrual Period and shall advise
the Servicer thereof on or before the third Business Day prior to such Payment Date.

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     Section 2.6 Percentage Evidenced by each Variable Funding Certificate.

     The variable percentage ownership interest in the Collateral represented by each VFC shall be
initially computed on its date of purchase as set forth in Section 2.1(a). Thereafter,
until the Termination Date, each VFC shall be automatically recomputed (or deemed to be recomputed)
on each day prior to the Termination Date as set forth in Section 2.1(a). The variable
percentage ownership interest in the Collateral represented by each VFC as computed (or deemed to
be recomputed) as of the close of business on the day immediately preceding the Termination Date
shall remain constant at all times on and after the Termination Date. The variable percentage
ownership interest in the Collateral represented by each VFC shall become zero when its Advances
and Interest have been indefeasibly paid in full.

     Section 2.7 [Reserved].

     Section 2.8 Notations on Variable Funding Certificates.

     The Administrative Agent is hereby authorized to enter on a schedule attached to the VFC a
notation (which may be computer generated) with respect to each Advance under the VFC made by the
applicable Purchaser of: (a) the date and principal amount thereof, and (b) each repayment of
principal thereof, and any such recordation shall constitute prima facie evidence of the accuracy
of the information so recorded. The failure of the Administrative Agent to make any such notation
on the schedule attached to the VFC shall not limit or otherwise affect the obligation of the
Seller to repay the Advances in accordance with their respective terms as set forth herein.

     Section 2.9 Settlement Procedures During the Revolving Period and the Amortization Period.

     (a) On each Payment Date during the Revolving Period and the Amortization Period, the Servicer
shall direct the Collateral Custodian to pay pursuant to the Monthly Report to the following
Persons, from (1) the Collection Account, to the extent of Available Funds, (2) Servicer Advances
received with respect to the immediately preceding Collection Period that ended on the last day of
the calendar month immediately preceding the calendar month in which such Payment Date occurs, and
(3) from the Reserve Account (to the extent of all funds therein), the following amounts in the
following order of priority:

     (1) pro rata to each Hedge Counterparty, any amounts, (other than any Hedge Breakage
Costs and any payments due in respect of the termination of any Hedging Transaction),
owing to that Hedge Counterparty under its respective Hedging Agreement in respect of any
Hedge Transaction(s), for the payment thereof;

     (2) to the Servicer, in an amount equal to any unreimbursed Servicer Advances, for
the payment thereof;

     (3) to the Servicer, in an amount equal to any accrued and unpaid Servicing Fees to
the end of the preceding Collection Period, for the payment thereof;

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     (4) to the extent not paid for by the Originator, pro rata to the Backup Servicer and
the Collateral Custodian, in an amount equal to any accrued and unpaid Backup Servicing
Fees, Collateral Custodian Fees and Transition Expenses, for the payment thereof;

     (5) to the Administrative Agent, for the account of the applicable Purchasers pro
rata in accordance with the amount of Advances Outstanding hereunder (or portions thereof)
held by each Purchaser, in an amount equal to any accrued and unpaid Interest, Program
Fee, Commitment Fee and Breakage Costs, for the payment thereof;

     (6) to the Administrative Agent, the Total Principal Payable for the account of the
applicable Purchasers pro rata in accordance with the amount of Advances Outstanding
hereunder (or portions thereof) held by each Purchaser, for the payment thereof;

     (7) to the Reserve Account, until the amount on deposit therein equals the Required
Reserve Amount;

     (8) pro rata to each Hedge Counterparty, any Hedge Breakage Costs and payments due in
termination of any Hedge Transaction, owing to that Hedge Counterparty under its
respective Hedging Agreement, for the payment thereof;

     (9) to the Administrative Agent, the applicable Purchasers, the Backup Servicer, the
Collateral Custodian, the Affected Parties, the Indemnified Parties or the Secured
Parties, pro rata in accordance with the amount owed to such Person under this clause
(8), all other amounts, including Increased Costs but other than Advances Outstanding,
then due under this Agreement, for the payment thereof; and

     (10) any remaining amount shall be distributed to the Seller.

     (b) Intentionally Omitted.

     Section 2.10 Settlement Procedures During the Turbo Period.

     (a) On each Payment Date during the Turbo Period or during any period in which the Advances
Outstanding exceeds the lesser of the Facility Amount and Maximum Availability, the Servicer shall
direct the Collateral Custodian to pay pursuant to the Monthly Report to the following Persons, (i)
from the Collection Account, to the extent of Available Funds, (ii) from Servicer Advances received
with respect to the immediately preceding Collection Period, and (iii) from the Reserve Account (to
the extent of all funds therein), the following amounts in the following order of priority:

     (1) pro rata to each Hedge Counterparty, any amounts, (including any Hedge Breakage
Costs and any payments due in respect of the termination of any Hedge Transaction in an
amount not to exceed $250,000 in the aggregate for all Hedging Agreements), owing to that
Hedge Counterparty under its respective Hedging Agreement in respect of any Hedge
Transaction(s), for the payment thereof;

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     (2) to the Servicer, in an amount equal to any unreimbursed Servicer Advances, for
the payment thereof;

     (3) to the Servicer, in an amount equal to any accrued and unpaid Servicing Fees to
the end of the preceding Collection Period, for the payment thereof;

     (4) to the extent not paid for by the Originator, pro rata to the Backup Servicer and
the Collateral Custodian, in an amount equal to any accrued and unpaid Backup Servicing
Fees, Collateral Custodian Fees and Transition Expenses, for the payment thereof;

     (5) to the Administrative Agent, for the account of the applicable Purchasers pro
rata in accordance with the amount of Advances Outstanding hereunder (or portions thereof)
held by each Purchaser, in an amount equal to any accrued and unpaid Interest, Program
Fee, Commitment Fee and Breakage Costs, for the payment thereof;

     (6) to the Administrative Agent, for the account of the applicable Purchasers pro
rata in accordance with the amount of Advances Outstanding hereunder (or portions thereof)
held by each Purchaser, in an amount necessary to reduce the Advances Outstanding and all
other Aggregate Unpaids to zero, for the payment thereof;

     (7) pro rata to each Hedge Counterparty, any Hedge Breakage Costs and payments due in
termination of any Hedge Transaction, owing to that Hedge Counterparty under its
respective Hedging Agreement to the extent not reimbursed pursuant to clause (1)
above, for the payment thereof;

     (8) to the Administrative Agent, the applicable Purchasers, the Backup Servicer, the
Collateral Custodian, the Affected Parties, the Indemnified Parties or the Secured
Parties, pro rata in accordance with the amount owed to such Person under this clause
(8), all other amounts, including Increased Costs but other than Advances Outstanding,
then due under this Agreement, for the payment thereof; and

     (9) any remaining amount shall be distributed to the Seller.

     Section 2.11 Collections and Allocations.

     (a) Collections. The Servicer shall promptly identify any collections received as
being on account of Interest Collections, Principal Collections or other Collections and shall
transfer, or cause to be transferred, all Collections received directly by it or on deposit in the
form of available funds in the Lock-Box Accounts to the Collection Account by the close of business
on the second Business Day after such Collections are received. In transferring Collections to the
Collection Account, the Servicer shall segregate Principal Collections and transfer the same to the
corresponding Principal Collections Account. The Servicer shall make such deposits or payments on
the date indicated therein by wire transfer, in immediately available funds. The Servicer shall
further include a statement as to the amount of Principal Collections and Interest Collections on
deposit in the Collection Account on each Reporting Date in the Monthly Report delivered pursuant
to Section 6.10(b).

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     (b) Initial Deposits. On the initial Funding Date and on each Addition Date
thereafter, the Servicer will deposit (in immediately available funds) into the Collection Account
all Collections received after the applicable Cut-Off Date and through and including the initial
Funding Date or Addition Date, as the case may be, in respect of Eligible Assets being transferred
to and included as part of the Collateral on such date.

     (c) Excluded Amounts. With the prior written consent of the Administrative Agent,
which consent shall not be unreasonably withheld (a copy of which will be provided by the Servicer
to the Backup Servicer), the Servicer may withdraw from the Collection Account any deposits thereto
constituting Excluded Amounts if the Servicer has, prior to such withdrawal and consent, delivered
to the Administrative Agent a report setting forth the calculation of such Excluded Amounts in a
format satisfactory to the Administrative Agent in its sole discretion.

     (d) Investment of Funds. Until the occurrence of a Termination Event, to the extent
there are uninvested amounts deposited in the Collection Account or the Reserve Account, all
amounts shall be invested in Permitted Investments selected by the Servicer that mature no later
than the Business Day immediately preceding the next Payment Date; from and after the occurrence of
a Termination Event, to the extent there are uninvested amounts in the Collection Account or the
Reserve Account (net of losses and investment expenses), all amounts may be invested in Permitted
Investments selected by the Administrative Agent that mature no later than the Business Day
immediately preceding the next Payment Date. All earnings (net of losses and investment expenses)
thereon shall be retained or deposited into the Collection Account or the Reserve Account, as the
case may be, and shall be applied pursuant to the provisions of Section 2.9 and Section
2.10.

     Section 2.12 Payments, Computations, Etc.

     (a) Unless otherwise expressly provided herein, all amounts to be paid or deposited by the
Seller or the Servicer hereunder shall be paid or deposited in accordance with the terms hereof no
later than 11:00 a.m. (New York City, New York time) on the day when due in lawful money of the
United States in immediately available funds to the Agent’s Account and if not received before such
time shall be deemed received on the next Business Day. The Seller shall, to the extent permitted
by law, pay to the Secured Parties interest on all amounts not paid or deposited when due hereunder
at 2.0% per annum above the Base Rate, payable on demand; provided that such interest rate shall
not at any time exceed the maximum rate permitted by Applicable Law. Such interest shall be for
the account of, and distributed to, each applicable Purchaser. All computations of interest and
all computations of Interest and other fees hereunder shall be made on the basis of a year
consisting of 360 days for the actual number of days (including the first but excluding the last
day) elapsed.

     (b) Whenever any payment hereunder shall be stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day, and such extension of time
shall in such case be included in the computation of the payment of Interest or any fee payable
hereunder, as the case may be. For avoidance of doubt, to the extent that Available Funds are
insufficient on any Payment Date to satisfy the full amount of any Increased Costs pursuant to
Section 2.9(a)(8) or Section 2.10(a)(8), such unpaid amounts shall remain due and
owing and shall accrue Interest until repaid in full.

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     (c) If any Advance requested by the Seller and approved by the Purchasers and the
Administrative Agent, pursuant to Section 2.3 is not, for any reason made or effectuated,
as the case may be, on the date specified therefor, the Seller shall indemnify the applicable
Purchasers against any reasonable loss, cost or expense incurred by the applicable Purchasers
including, without limitation, any loss (including loss of anticipated profits, net of anticipated
profits in the reemployment of such funds in the manner determined by each applicable Purchaser),
cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by the applicable Purchaser to fund or maintain such Advance.

     Section 2.13 Optional and Mandatory Repurchase.

     (a) At any time following the Termination Date when the Borrowing Base is less than 15%
percent of the Borrowing Base as of the Termination Date, the Seller may notify the Administrative
Agent in writing of its intention to purchase all remaining Collateral; provided that all Hedge
Transactions have been terminated in accordance with their terms. On the Payment Date next
succeeding any such notice, the Seller shall purchase all such Collateral for a price equal to the
Aggregate Unpaids and the proceeds of such purchase will be deposited into the Collection Account
and paid in accordance with Section 2.10.

     (b) On the first Payment Date following the Termination Date when the Borrowing Base is less
than 10% of the Borrowing Base as of the Termination Date, the Seller shall notify the
Administrative Agent in writing of its intention to purchase all remaining Collateral. On the
Payment Date next succeeding any such notice, the Seller shall (i) terminate all Hedge Transactions
in accordance with their terms and (ii) purchase all remaining Collateral for a price equal to the
Aggregate Unpaids and the proceeds of such purchase will be deposited into the Collection Account
and paid in accordance with Section 2.10.

     Section 2.14 Fees.

     (a) The Servicer on behalf of the Seller shall pay in accordance with Section
2.9(a)(5) and Section 2.10(a)(5), as applicable, to the Administrative Agent from the
Collection Account to the extent funds are available on each Payment Date, monthly in arrears, the
applicable Program Fee and the applicable Commitment Fee agreed to between the Seller and the
Administrative Agent in the Purchaser Fee Letter.

     (b) The Servicer shall be entitled to receive a fee (the “Servicing Fee”), monthly in arrears
in accordance with Section 2.9(a)(3) and Section 2.10(a)(3), as applicable, which
fee shall be equal to the sum of (a) the product of (i) the Servicing Fee Rate applicable to
Eligible Assets which are not Workout Assets, (ii) the Aggregate Outstanding Asset Balance
(excluding Workout Assets), as of the first day of the immediately preceding Collection Period and
(iii) the actual number of days in such Collection Period divided by 360, and (b) the product of
(i) the Servicing Fee Rate applicable to Workout Assets, (ii) the sum of the Outstanding Asset
Balances of all Workout Assets, as of the first day of the immediately preceding Collection Period
and (iii) the actual number of days in such Collection Period divided by 360.

     (c) The Backup Servicer shall be entitled to receive the Backup Servicing Fee in accordance
with Section 2.9(a)(4) and Section 2.10(a)(4), as applicable.

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     (d) The Collateral Custodian shall be entitled to receive the Collateral Custodian Fee in
accordance with Section 2.9(a)(4) and Section 2.10(a)(4), as applicable.

     (e) The Seller shall pay to Kaye Scholer LLP as counsel to the Administrative Agent, on the
initial Funding Date, its reasonable estimated fees and out-of-pocket expenses in immediately
available funds and shall pay all additional reasonable fees and out-of-pocket expenses of Kaye
Scholer LLP within 30 Business Days after receiving an invoice for such amounts.

     Section 2.15 Increased Costs; Capital Adequacy; Illegality.

     (a) If either (i) the introduction of or any change (including, without limitation, any change
by way of imposition or increase of reserve requirements) in or in the interpretation of any law or
regulation or (ii) the compliance by an Affected Party with any guideline or request from any
central bank or other Governmental Authority (whether or not having the force of law), shall (a)
subject an Affected Party to any Tax (except for Taxes on the overall net income of such Affected
Party), duty or other charge with respect to any ownership interest in the Collateral, or any right
to make Advances hereunder, or on any payment made hereunder, (b) impose, modify or deem applicable
any reserve requirement (including, without limitation, any reserve requirement imposed by the
Board of Governors of the Federal Reserve System, but excluding any reserve requirement, if any,
included in the determination of Interest), special deposit or similar requirement against assets
of, deposits with or for the amount of, or credit extended by, any Affected Party or (c) impose any
other condition affecting the ownership interest in the Collateral conveyed to the Purchasers
hereunder or the Purchasers’ rights or obligations hereunder, the result of which is to increase
the cost to any Affected Party or to reduce the amount of any sum received or receivable by an
Affected Party under this Agreement, then within ten days after demand by such Affected Party
(which demand shall be accompanied by a statement setting forth the basis for such demand), the
Servicer shall pay (and to the extent the Servicer does not make such payment the Seller shall pay)
directly to such Affected Party such additional amount or amounts as will compensate such Affected
Party for such additional or increased cost incurred or such reduction suffered.

     (b) If either (i) the introduction of or any change in or in the interpretation of any law,
guideline, rule, regulation, directive or request or (ii) compliance by any Affected Party with any
law, guideline, rule, regulation, directive or request from any central bank or other governmental
authority or agency (whether or not having the force of law), including, without limitation,
compliance by an Affected Party with any request or directive regarding capital adequacy, has or
would have the effect of reducing the rate of return on the capital of any Affected Party as a
consequence of its obligations hereunder or arising in connection herewith to a level below that
which any such Affected Party could have achieved but for such introduction, change or compliance
(taking into consideration the policies of such Affected Party with respect to capital adequacy) by
an amount deemed by such Affected Party to be material, then from time to time, within ten days
after demand by such Affected Party (which demand shall be accompanied by a statement setting forth
the basis for such demand), the Servicer shall pay (and to the extent the Servicer does not make
such payment the Seller shall pay) directly to such Affected Party such additional amount or
amounts as will compensate such Affected Party for such reduction. For the avoidance of doubt, if
the issuance of Interpretation No. 46 by the Financial Accounting

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Standards Board or any other change in accounting standards or the issuance of any other
pronouncement, release or interpretation, causes or requires the consolidation of all or a portion
of the assets and liabilities of the Originator or Seller with the assets and liabilities of the
Administrative Agent, any Purchaser or any Liquidity Bank, such event shall constitute a
circumstance on which such Affected Party may base a claim for reimbursement under this Section
2.15.

     (c) If as a result of any event or circumstance similar to those described in clause
(a) or (b) of this Section 2.15, any Affected Party is required to compensate a
bank or other financial institution providing liquidity support, credit enhancement or other
similar support to such Affected Party in connection with this Agreement or the funding or
maintenance of Advances hereunder, then within ten days after demand by such Affected Party, the
Servicer shall pay (or to the extent the Servicer does not make such payment the Seller shall pay)
to such Affected Party such additional amount or amounts as may be necessary to reimburse such
Affected Party for any amounts payable or paid by it.

     (d) In determining any amount provided for in this Section 2.15, the Affected Party
may use any reasonable averaging and attribution methods. Any Affected Party making a claim under
this Section 2.15 shall submit to the Servicer a written description as to such additional
or increased cost or reduction and the calculation thereof, which written description shall be
conclusive absent demonstrable error.

     (e) If any Purchaser shall notify the Administrative Agent that a Eurodollar Disruption Event
as described in clause (a) of the definition of “Eurodollar Disruption Event” has occurred,
the Administrative Agent shall in turn so notify the Seller, whereupon all Advances Outstanding of
the affected Purchaser in respect of which Interest accrues at the Adjusted Eurodollar Rate shall
immediately be converted into Advances Outstanding in respect of which Interest accrues at the Base
Rate.

     Section 2.16 Taxes.

     (a) All payments made by an Obligor in respect of an Asset and all payments made by the Seller
or the Servicer under this Agreement will be made free and clear of and without deduction or
withholding for or on account of any Taxes. If any Taxes are required to be withheld from any
amounts payable to the Administrative Agent, any Affected Party or any Secured Party, then the
amount payable to such Person will be increased (such increase, the “Additional Amount”) such that
every net payment made under this Agreement after withholding for or on account of any Taxes
(including, without limitation, any Taxes on such increase) is not less than the amount that would
have been paid had no such deduction or withholding been deducted or withheld. The foregoing
obligation to pay Additional Amounts, however, will not apply with respect to net income or
franchise taxes imposed on the Purchasers, any Affected Party or the Administrative Agent,
respectively, with respect to payments required to be made by the Seller or Servicer under this
Agreement, by a taxing jurisdiction in which the Purchasers, any Affected Party or the
Administrative Agent, are organized, conducts business or is paying taxes (as the case may be).

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     (b) The Servicer will indemnify (and to the extent the indemnification provided by the
Servicer is insufficient the Seller will indemnify) each Affected Party for the full amount of
Taxes payable by such Person in respect of Additional Amounts and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto. All payments in
respect of this indemnification shall be made within ten days from the date a written invoice
therefor is delivered to the Seller.

     (c) Within 30 days after the date of any payment by the Seller and the Servicer of any Taxes,
the Seller and the Servicer will furnish to the Administrative Agent at its address set forth under
its name on the signature pages hereof, appropriate evidence of payment thereof.

     (d) If a Purchaser is not created or organized under the laws of the United States or a
political subdivision thereof, such Purchaser shall deliver to the Seller, with a copy to the
Administrative Agent, (i) within 15 days after the date hereof, two (or such other number as may
from time to time be prescribed by Applicable Laws) duly completed copies of IRS Form W-8BEN or
Form W-8ECI (or any successor forms or other certificates or statements that may be required from
time to time by the relevant United States taxing authorities or Applicable Laws), as appropriate,
to permit the Seller to make payments hereunder for the account of such Purchaser without deduction
or withholding of United States federal income or similar Taxes and (ii) upon the obsolescence of
or after the occurrence of any event requiring a change in, any form or certificate previously
delivered pursuant to this Section 2.16(d), copies (in such numbers as may from time to
time be prescribed by Applicable Laws or regulations) of such additional, amended or successor
forms, certificates or statements as may be required under Applicable Laws or regulations to permit
the Seller and the Servicer to make payments hereunder for the account of such Purchaser without
deduction or withholding of United States federal income or similar Taxes.

     (e) If, in connection with an agreement or other document providing liquidity support, credit
enhancement or other similar support to the Purchasers in connection with this Agreement or the
funding or maintenance of Advances hereunder, the Purchasers are required to compensate a bank or
other financial institution in respect of Taxes under circumstances similar to those described in
this Section 2.16, then, within ten days after demand by the Purchasers, the Servicer shall
pay (or to the extent the Servicer does not make such payment the Seller shall pay) to the
Purchasers such additional amount or amounts as may be necessary to reimburse the Purchasers for
any amounts paid by them.

     (f) Without prejudice to the survival of any other agreement of the Seller and the Servicer
hereunder, the agreements and obligations of the Seller and the Servicer contained in this
Section 2.16 shall survive the termination of this Agreement.

     Section 2.17 Assignment of the Sale Agreement.

     The Seller hereby assigns to the Administrative Agent, for the ratable benefit of the Secured
Parties hereunder, all of the Seller’s right, title and interest in and to, but none of its
obligations under, the Sale Agreement and any UCC financing statements filed under or in connection
therewith. In furtherance and not in limitation of the foregoing, the Seller hereby assigns to the
Administrative Agent for the benefit of the Secured Parties its right to

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indemnification under Article VIII of the Sale Agreement. The Seller confirms that
the Administrative Agent on behalf of the Secured Parties shall have the sole right to enforce the
Seller’s rights and remedies under the Sale Agreement and any UCC financing statements filed under
or in connection therewith for the benefit of the Secured Parties.

     Section 2.18 Substitution of Assets.

     On any day prior to the occurrence of a Termination Event (and after the occurrence of a
Termination Event at the discretion of the Administrative Agent), the Seller may, subject to the
conditions set forth in this Section 2.18 and subject to the other restrictions contained
herein, replace any Asset with one or more Eligible Assets (each, a “Substitute Asset”); provided
that no such replacement shall occur unless each of the following conditions is satisfied as of the
date of such replacement and substitution:

     (a) the Seller has recommended to the Administrative Agent (with a copy to the Collateral
Custodian) in writing that the Asset to be replaced should be replaced (each a “Replaced Asset”);

     (b) each Substitute Asset is an Eligible Asset on the date of substitution;

     (c) (x) if all Pool Concentration Criteria were satisfied immediately prior to giving effect
to the inclusion of the Substitute Asset, all Pool Concentration Criteria continue to be satisfied
after giving effect to such inclusion or (y) if any Pool Concentration Criteria was not satisfied
immediately prior to giving effect to such inclusion, the degree of non-satisfaction of each Pool
Concentration Criteria will be maintained or improved after giving effect to the inclusion of such
Substitute Asset;

     (d) for purposes only of substitutions pursuant to Section 4.6 undertaken because an
Asset has become a Warranty Asset, the aggregate Outstanding Asset Balance of such Substitute
Assets shall be equal to or greater than the aggregate Outstanding Asset Balances of the Replaced
Assets;

     (e) for purposes only of substitutions pursuant to Section 4.6 undertaken because an
Asset has become a Warranty Asset, such Substitute Assets, at the time of substitution by the
Seller, shall have no greater weighted average life than the Replaced Asset;

     (f) all representations and warranties of the Seller contained in Section 4.1 and
Section 4.2 shall be true and correct as of the date of substitution of any such Substitute
Asset;

     (g) the substitution of any Substitute Asset does not cause a Termination Event or Unmatured
Termination Event to occur;

     (h) the sum of the Outstanding Asset Balance of all Assets that are Substitute Assets (other
than in the case of substitutions pursuant to Section 4.6 undertaken because an Asset has become a
Warranty Asset) does not exceed 20% of the Facility Amount;

     (i) the sum of the Outstanding Asset Balance of all Substitute Assets (other than in the case
of substitutions pursuant to Section 4.6 undertaken because an Asset has become a

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Warranty Asset) substituted for Delinquent Assets and Charged-Off Assets shall not exceed 10%
of the Facility Amount; and

     (j) the Seller shall deliver to the Administrative Agent on the date of such substitution a
certificate of a Responsible Officer certifying that each of the foregoing is true and correct as
of such date.

     In addition, the Seller shall in connection with such substitution deliver to the Collateral
Custodian the related Required Asset Documents. In connection with any such substitution, the
Administrative Agent, as agent for the Secured Parties, shall, automatically and without further
action, be deemed to transfer to the Seller, free and clear of any Lien created pursuant to this
Agreement, all of the right, title and interest of the Administrative Agent, as agent for the
Secured Parties, in, to and under such Replaced Asset, but without any representation and warranty
of any kind, express or implied.

     Section 2.19 Optional Sales.

     (a) On any Optional Sale Date, the Seller shall have the right to prepay all or a portion of
the Advances Outstanding in connection with the sale and assignment to the Seller by the
Administrative Agent, on behalf of the Secured Parties, of the Collateral (each, an “Optional
Sale”), subject to the following terms and conditions:

     (i) The Seller shall have given the Administrative Agent at least ten Business Days’
prior written notice of its intent to effect an Optional Sale, unless such notice is waived
or reduced by the Administrative Agent;

     (ii) Intentionally Omitted;

     (iii) Unless an Optional Sale is to be effected on a Payment Date (in which case the
relevant calculations with respect to such Optional Sale shall be reflected on the
applicable Monthly Report), the Servicer shall deliver to the Administrative Agent a
certificate and evidence to the reasonable satisfaction of the Administrative Agent (which
evidence may consist solely of a certificate from the Servicer) that the Seller shall have
sufficient funds on the related Optional Sale Date to effect the contemplated Optional Sale
in accordance with this Agreement. In effecting an Optional Sale, the Seller may use the
Proceeds of sales of the Collateral;

     (iv) After giving effect to the Optional Sale and the assignment to the Seller of the
Collateral on any Optional Sale Date, (a) the remaining Advances Outstanding shall not
exceed the lesser of the Facility Amount and the Maximum Availability, (b) [intentionally
omitted], (c) the representations and warranties contained in Section 4.1 hereof
shall continue to be correct in all material respects, except to the extent relating to an
earlier date, (d) the eligibility of any Asset remaining as part of the Collateral after the
Optional Sale will be redetermined as of the Optional Sale Date, (e) the Pool Concentration
Criteria will be redetermined as of the Optional Sale Date, and (f) neither an Unmatured
Termination Event nor a Termination Event shall have resulted;

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     (v) On the related Optional Sale Date, the Administrative Agent, on behalf of the
Purchasers and Hedge Counterparties, shall have received, as applicable, in immediately
available funds, an amount equal to the sum of (a) the portion of the Advances Outstanding,
to be prepaid plus (b) an amount equal to all unpaid Interest to the extent reasonably
determined by the Administrative Agent to be attributable to that portion of the Advances
Outstanding, to be paid in connection with the Optional Sale plus (c) an aggregate amount
equal to the sum of all other amounts due and owing to the Administrative Agent, the
Collateral Custodian, the Backup Servicer, the Purchasers, the Affected Parties and the
Hedge Counterparties, as applicable, under this Agreement and the other Transaction
Documents, to the extent accrued to such date and to accrue thereafter (including, without
limitation, Breakage Costs, Hedge Breakage Costs and any other payments owing to the
applicable Hedge Counterparty in respect of the termination of any Hedge Transaction);
provided that the Administrative Agent shall have the right to determine whether the amount
paid (or proposed to be paid) by the Seller on the Optional Sale Date is sufficient to
satisfy the requirements of clauses (iii), (iv) and (v) and is
sufficient to reduce the Advances Outstanding, to the extent requested by the Seller in
connection with the Optional Sale; and

     (vi) On or prior to each Optional Sale Date, the Seller shall have delivered to the
Administrative Agent a list specifying all Assets to be sold and assigned pursuant to such
Optional Sale.

     (b) In connection with any Optional Sale, following receipt by the Administrative Agent of the
amounts referred to in clause (v) above, there shall be sold and assigned to the Seller
without recourse, representation or warranty all of the right, title and interest of the
Administrative Agent, the Purchasers and the Secured Parties in, to and under the portion of the
Collateral so retransferred and such portion of the Collateral so retransferred shall be released
from the Lien of this Agreement (subject to the requirements of clause (iv) above).

     (c) The Seller hereby agrees to pay the reasonable legal fees and expenses of the
Administrative Agent and the Secured Parties in connection with any Optional Sale (including, but
not limited to, expenses incurred in connection with the release of the Lien of the Administrative
Agent, the Secured Parties and any other party having an interest in the Collateral in connection
with such Optional Sale).

     (d) In connection with any Optional Sale, on the related Optional Sale Date, the
Administrative Agent, on behalf of the Secured Parties, shall, at the expense of the Seller (i)
execute such instruments of release with respect to the portion of the Collateral to be
retransferred to the Seller, in recordable form if necessary, in favor of the Seller as the Seller
may reasonably request, (ii) deliver any portion of the Collateral to be retransferred to the
Seller in its possession to the Seller and (iii) otherwise take such actions, and cause or permit
the Collateral Custodian to take such actions, as are necessary and appropriate to release the Lien
of the Administrative Agent and the Secured Parties on the portion of the Collateral to be
retransferred to the Seller and release and deliver to the Seller such portion of the Collateral to
be retransferred to the Seller.

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     Section 2.20 Discretionary Sales.

     Prior to the occurrence of an Unmatured Termination Event or a Termination Event, on any
Discretionary Sale Date, the Seller shall have the right to prepay all or a portion of the Advances
Outstanding, in connection with the transfer and assignment to the Seller by the Administrative
Agent, on behalf of the Secured Parties, of the Collateral (each, a “Discretionary Sale”), subject
to the following terms and conditions:

     (a) At least one Business Day prior to each Discretionary Sale Date, the Servicer, on behalf
of the Seller, shall have given the Administrative Agent and each Hedge Counterparty written notice
of its intent to effect a Discretionary Sale (each such notice a “Discretionary Sale Notice”),
specifying the Discretionary Sale Date and including a list of all Assets to be sold and assigned
pursuant to such Discretionary Sale, and a revised Borrowing Base Certificate;

     (b) Any Discretionary Sale shall be made by the Servicer, on behalf of the Seller, to an
unaffiliated third party purchaser in a transaction (i) reflecting arms-length market terms and
(ii) in which the Seller makes no representations, warranties or covenants for the benefit of any
other party to the Discretionary Sale and provides no indemnification for the benefit of any other
party to the Discretionary Sale;

     (c) After giving effect to the Discretionary Sale and the assignment to the Seller of the
Collateral on any Discretionary Sale Date, (a) the Availability is greater than or equal to zero,
(b) the representations and warranties contained in Section 4.1 hereof shall continue to be
correct in all material respects, except to the extent relating to an earlier date and (c) neither
an Unmatured Termination Event nor a Termination Event shall have resulted;

     (d) On the related Discretionary Sale Date, the Administrative Agent, on behalf of the
Purchasers, the Hedge Counterparties, the Collateral Custodian and the Backup Servicer, as
applicable, shall have received, as applicable, in immediately available funds, an amount equal to
the sum of (a) an amount sufficient to reduce the Advances Outstanding such that, after giving
effect to the transfer of the Assets that are the subject of such Discretionary Sale, the
Availability will be equal to or greater than $0 plus (b) an amount equal to all unpaid Interest to
the extent reasonably determined by the Administrative Agent to be attributable to that portion of
the Advances Outstanding to be repaid in connection with the Discretionary Sale plus (c) an
aggregate amount equal to the sum of all other Aggregate Unpaids due and owing to the
Administrative Agent, the Purchasers, the Affected Parties, the Indemnified Parties and the Hedge
Counterparties, as applicable, under this Agreement and the other Transaction Documents, to the
extent accrued to such date; provided that the Administrative Agent shall have the right to
determine whether the amount paid (or proposed to be paid) by the Seller on the Discretionary Sale
Date is sufficient to satisfy the requirements of clauses (a) through (c) and is
sufficient to reduce the Advances Outstanding to the extent requested by the Seller in connection
with the Discretionary Sale;

     (e) The Outstanding Asset Balance of the Asset(s) which are the subject of the proposed
Discretionary Sale, together with the Outstanding Asset Balance of the Asset(s) sold in all other
Discretionary Sales made in the preceding 12 month period, shall not exceed 20% of the Facility
Amount;

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     (f) On the related Discretionary Sale Date, the proceeds from such Discretionary Sale have
been sent directly into the Collection Account;

     (g) The Seller hereby agrees to pay the reasonable legal fees and expenses of the
Administrative Agent and the Secured Parties in connection with any Discretionary Sale (including,
but not limited to, expenses incurred in connection with the release of the Lien of the
Administrative Agent, the Secured Parties and any other party having an interest in the Collateral
in connection with such Discretionary Sale); and

     (h) In connection with any Discretionary Sale, on the related Discretionary Sale Date, the
Administrative Agent, on behalf of the Secured Parties, shall, at the expense of the Seller (i)
execute such instruments of release with respect to the portion of the Collateral to be
retransferred to the Seller, in recordable form if necessary, in favor of the Seller as the Seller
may reasonably request, (ii) deliver any portion of the Collateral to be retransferred to the
Seller in its possession to the Seller and (iii) otherwise take such actions, and cause or permit
the Collateral Custodian to take such actions, as are necessary and appropriate to release the Lien
of the Administrative Agent and the Secured Parties on the portion of the Collateral to be
retransferred to the Seller and release and deliver to the Seller such portion of the Collateral to
be retransferred to the Seller.

ARTICLE III

CONDITIONS TO ADVANCES

     Section 3.1 Conditions to Closing and Initial Advance.

     The Purchasers shall not be obligated to make any Advance hereunder on the occasion of the
Initial Advance, nor shall any Purchaser, Administrative Agent, the Backup Servicer and the
Collateral Custodian be obligated to take, fulfill or perform any other action hereunder, until the
following conditions have been satisfied, in the sole discretion of, or waived in writing by, the
Administrative Agent:

     (a) Each Transaction Document (excluding any Hedge Agreement) shall have been duly executed
by, and delivered to, the parties thereto, and the Administrative Agent shall have received such
other documents, instruments, agreements and legal opinions as the Administrative Agent shall
reasonably request in connection with the transactions contemplated by this Agreement, including,
without limitation, all those specified in the Schedule of Documents attached hereto as
Schedule I, each in form and substance satisfactory to the Administrative Agent;

     (b) The Administrative Agent shall have received (i) satisfactory evidence that the Seller and
the Servicer have obtained all required consents and approvals of all Persons, including all
requisite Governmental Authorities, to the execution, delivery and performance of this Agreement
and the other Transaction Documents to which each is a party and the consummation of the
transactions contemplated hereby or thereby or (ii) an Officer’s Certificate from each of the
Seller and the Servicer in form and substance reasonably satisfactory to the

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Administrative Agent affirming that no such consents or approvals are required; it being
understood that the acceptance of such evidence or officer’s certificate shall in no way limit the
recourse of the Administrative Agent or any Secured Party against the Originator or the Seller for
a breach of the Originator’s and the Seller’s representation or warranty that all such consents and
approvals have, in fact, been obtained;

     (c) The Seller, the Servicer and the Originator shall each be in compliance in all material
respects with all Applicable Laws and shall have delivered to the Administrative Agent as to this
and other closing matters certification in the form of Exhibits F-1 and F-2;

     (d) The Seller and the Servicer shall have delivered to the Administrative Agent duly executed
Powers of Attorney in the form of Exhibits G-1 and G-2; and

     (e) The Seller and the Servicer shall each have delivered to the Administrative Agent a
certificate as to Solvency in the form of Exhibits E-1 and E-2.

     Section 3.2 Conditions Precedent to All Advances.

     Each Advance to the Seller by the applicable Purchaser (each, a “Transaction”) shall be
subject to the further conditions precedent that:

     (a) (i) With respect to any Advance (including the Initial Advance), the Servicer shall have
delivered to the Administrative Agent (with a copy to the Collateral Custodian and the Backup
Servicer), in the case of an Advance, no later than 11:00 a.m. (New York City, New York time), two
Business Days prior to the related Funding Date in a form and substance satisfactory to the
Administrative Agent, (1) a Borrowing Notice (Exhibit A-1), Borrowing Base Certificate
(Exhibit A-3), Asset List and Monthly Report, if applicable, and (2) a Certificate of
Assignment (Exhibit A to the Sale Agreement including Schedule I, thereto) and
containing such additional information as may be reasonably requested by the Administrative Agent,
and (ii) with respect to any reduction in Advances Outstanding pursuant to Section 2.4(b)
or any reinvestment of Principal Collections permitted by Section 2.9(b), the Servicer
shall have delivered to the Administrative Agent (with a copy to the Backup Servicer) at least two
Business Days prior to any reduction of Advances Outstanding or same day notice no later than 11:00
a.m. (New York City, New York time) on such day for any reinvestment of Principal Collections a
Borrowing Notice (Exhibit A-2) and a Borrowing Base Certificate (Exhibit A-3)
executed by the Servicer and the Seller;

     (b) On the date of such Transaction the following statements shall be true, and the Seller
shall be deemed to have certified that:

     (i) The representations and warranties contained in Section 4.1, Section
4.2 and Section 4.3 are true and correct on and as of such day as though made on
and as of such day and shall be deemed to have been made on such day;

     (ii) No event has occurred and is continuing, or would result from such Transaction,
that constitutes a Termination Event or Unmatured Termination Event;

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     (iii) On and as of such day, after giving effect to such Transaction, the Advances
Outstanding shall not exceed the lesser of (x) the Facility Amount and (y) the Maximum
Availability;

     (iv) On and as of such day, the Seller and the Servicer each has performed all of the
covenants and agreements contained in this Agreement to be performed by such person at or
prior to such day; and

     (v) No law or regulation shall prohibit, and no order, judgment or decree of any
federal, state or local court or governmental body, agency or instrumentality shall prohibit
or enjoin, the making of such Advance or incremental Advance by the Purchasers in accordance
with the provisions hereof, the reduction of Advances Outstanding, the reinvestment of
Principal Collections or any other transaction contemplated herein;

     (c) The Seller shall have delivered to the Collateral Custodian (with a copy to the Backup
Servicer and the Administrative Agent) in the case of an Advance, no later than 2:00 p.m. (New York
City, New York time) one Business Day prior to any Funding Date a faxed copy of the duly executed
original promissory notes, master purchase agreement and purchase statements or a copy of the Loan
Register, as applicable, for the Loans, and, if any Assets are closed in escrow, a certificate (in
the form of Exhibit L) from the counsel to the Originator or the Obligor of such Assets
certifying the possession of the Required Asset Documents, provided that notwithstanding the
foregoing, the Required Asset Documents (including any UCCs included in the Required Asset
Documents) shall be in the possession of the Collateral Custodian within two Business Days of any
related Funding Date as to any Additional Assets;

     (d) Intentionally Omitted;

     (e) Intentionally Omitted;

     (f) Intentionally Omitted;

     (g) The Termination Date shall not have occurred;

     (h) On the date of such Transaction, the Administrative Agent shall have received such other
approvals, opinions or documents as the Administrative Agent may reasonably require;

     (i) Intentionally Omitted;

     (j) The Administrative Agent shall have received from the Seller any required Hedging
Agreement and related hedging confirms required in connection with the Transaction;

     (k) The Seller and Servicer shall have delivered to the Administrative Agent all reports
required to be delivered as of the date of such Transaction including, without limitation, all
deliveries required by Section 2.3;

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     (l) With respect to any Acquired Loan acquired from an Affiliate of the Originator, the
Administrative Agent has received a satisfactory legal opinion concerning the acquisition of such
Loan by the Originator in a true sale transaction;

     (m) The Seller shall have paid all fees required to be paid, including all fees required
hereunder and under the Purchaser Fee Letter and shall have reimbursed the Purchasers and the
Administrative Agent for all fees, costs and expenses of closing the transactions contemplated
hereunder and under the other Transaction Documents, including the reasonable attorney fees and any
other legal and document preparation costs incurred by the Purchasers and the Administrative Agent;
and

     (n) The Seller shall have delivered to the Administrative Agent an Officer’s Certificate
(which may be part of the Borrowing Notice) in form and substance reasonably satisfactory to the
Administrative Agent certifying that each of the foregoing conditions precedent has been satisfied.

     The failure of the Seller to satisfy any of the foregoing conditions precedent in respect of
any Advance shall give rise to a right of the Administrative Agent, which right may be exercised at
any time by the Administrative Agent, to refuse to fund the requested Advance or Advances or if any
Advances were funded during any such time that any of the foregoing conditions precedent were not
satisfied, the Administrative Agent may direct the Seller to pay to the Administrative Agent for
the benefit of the applicable Purchasers an amount equal to all such Advances.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.1 Representations and Warranties of the Seller.

     The Seller represents and warrants as follows:

     (a) Organization and Good Standing. The Seller has been duly organized, and is
validly existing as a limited liability company in good standing, under the laws of the State of
Delaware, with all requisite company power and authority to own or lease its properties and conduct
its business as such business is presently conducted, and had at all relevant times, and now has
all necessary power, authority and legal right to acquire, own and sell the Collateral.

     (b) Due Qualification. The Seller is duly qualified to do business and is in good
standing as a limited liability company, and has obtained all necessary licenses and approvals, in
all jurisdictions in which the ownership or lease of property or the conduct of its business
requires such qualification, licenses or approvals.

     (c) Power and Authority; Due Authorization; Execution and Delivery. The Seller (i)
has all necessary power, authority and legal right to (a) execute and deliver this Agreement and
the other Transaction Documents to which it is a party, (b) carry out the terms of the Transaction

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Documents to which it is a party, (c) sell and assign an ownership interest in the Collateral,
and (d) receive Advances and sell the Collateral on the terms and conditions provided herein and
(ii) has duly authorized by all necessary company action the execution, delivery and performance of
this Agreement and the other Transaction Documents to which it is a party and the sale and
assignment of an ownership interest in the Collateral on the terms and conditions herein provided.
This Agreement and each other Transaction Document to which the Seller is a party have been duly
executed and delivered by the Seller.

     (d) Binding Obligation. This Agreement and each other Transaction Document to which
the Seller is a party constitutes a legal, valid and binding obligation of the Seller enforceable
against the Seller in accordance with its respective terms, except as such enforceability may be
limited by Insolvency Laws and by general principles of equity (whether considered in a suit at law
or in equity).

     (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the other Transaction Documents to which it is a party and the fulfillment of the terms hereof
and thereof will not (i) conflict with, result in any breach of any of the terms and provisions of,
or constitute (with or without notice or lapse of time or both) a default under, the Seller’s
operating agreement or any Contractual Obligation of the Seller, (ii) result in the creation or
imposition of any Lien (other than Permitted Liens) upon any of the Seller’s properties pursuant to
the terms of any such Contractual Obligation, other than this Agreement, or (iii) violate any
Applicable Law.

     (f) No Proceedings. There is no litigation, proceeding or investigation pending or,
to the best knowledge of the Seller, threatened against the Seller, before any Governmental
Authority (i) asserting the legality, invalidity or enforceability of this Agreement or any other
Transaction Document to which the Seller is a party, (ii) seeking to prevent the consummation of
any of the transactions contemplated by this Agreement or any other Transaction Document to which
the Seller is a party or (iii) seeking any determination or ruling that could reasonably be
expected to have Material Adverse Effect.

     (g) All Consents Required. All approvals, authorizations, consents, orders or other
actions of any Person or of any Governmental Authority (if any) required for the due execution,
delivery and performance by the Seller of this Agreement and any other Transaction Document to
which the Seller is a party have been obtained.

     (h) Bulk Sales. The execution, delivery and performance of this Agreement and the
transactions contemplated hereby do not require compliance with any “bulk sales” act or similar law
by Seller.

     (i) Solvency. The Seller is not the subject of any Insolvency Proceedings or
Insolvency Event. The transactions under this Agreement and any other Transaction Document to
which the Seller is a party do not and will not render the Seller not Solvent and the Seller shall
deliver to the Administrative Agent on the Closing Date a certification in the form of Exhibit
E-1.

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     (j) Selection Procedures. No procedures believed by the Seller to be adverse to the
interests of any Purchaser were utilized by the Seller in identifying and/or selecting the Assets
in the Collateral. In addition, each Asset shall have been underwritten in accordance with and
satisfy the standards of any Credit and Collection Policy that has been established by the Seller
or the Originator and is then in effect.

     (k) Taxes. The Seller has filed or caused to be filed all tax returns that are
required to be filed by it. The Seller has paid or made adequate provisions for the payment of all
Taxes and all assessments made against it or any of its property (other than any amount of Tax the
validity of which is currently being contested in good faith by appropriate proceedings and with
respect to which reserves in accordance with GAAP have been provided on the books of the Seller),
and no tax lien has been filed and, to the Seller’s knowledge, no claim is being asserted, with
respect to any such Tax, fee or other charge.

     (l) Exchange Act Compliance; Regulations T, U and X. None of the transactions
contemplated herein (including, without limitation, the use of the proceeds from the sale of the
Collateral) will violate or result in a violation of Section 7 of the Securities Exchange Act, or
any regulations issued pursuant thereto, including, without limitation, Regulations T, U and X of
the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. The Seller does not
own or intend to carry or purchase, and no proceeds from the Advances will be used to carry or
purchase, any “margin stock” within the meaning of Regulation U or to extend “purpose credit”
within the meaning of Regulation U.

     (m) Security Interest.

     (i) This Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Collateral in favor of the Administrative Agent, on behalf of the
Secured Parties, 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 Seller;

     (ii) each of the Assets, along with the related Asset Files, constitutes a “general
intangible,” an “instrument,” an “account,” or “chattel paper,” within the meaning of the
applicable UCC;

     (iii) the Seller owns and has good and marketable title to the Collateral free and
clear of any Lien (other than Permitted Liens), claim or encumbrance of any Person;

     (iv) the Seller has received all consents and approvals required by the terms of any
Asset to the sale and granting of a security interest in the Assets hereunder to the
Administrative Agent, on behalf of the Secured Parties;

     (v) the Seller has caused the filing of all appropriate financing statements in the
proper filing office in the appropriate jurisdictions under Applicable Law in order to
perfect the security interest in the Collateral granted to the Administrative Agent, on
behalf of the Secured Parties, under this Agreement;

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     (vi) other than the security interest granted to the Administrative Agent, on behalf of
the Secured Parties, pursuant to this Agreement, the Seller has not pledged, assigned, sold,
granted a security interest in or otherwise conveyed any of the Collateral. The Seller has
not authorized the filing of and is not aware of any financing statements against the Seller
that include a description of collateral covering the Collateral other than any financing
statement (A) relating to the security interest granted to the Seller under the Sale
Agreement, or (B) that have been terminated. The Seller is not aware of the filing of any
judgment or tax lien filings against the Seller;

     (vii) all original executed copies of each underlying promissory note or copies of each
Loan Register, as applicable, that constitute or evidence each Loan has been, or subject to
the delivery requirements contained herein, will be delivered to the Collateral Custodian;

     (viii) the Seller has received a written acknowledgment from the Collateral Custodian
that the Collateral Custodian or its bailee is holding the underlying promissory notes (if
any), the copies of the Loan Registers that constitute or evidence the Assets solely on
behalf of and for the benefit of the Secured Parties;

     (ix) none of the underlying promissory notes or Loan Registers, as applicable, that
constitute or evidence the Assets has any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Administrative Agent,
on behalf of the Secured Parties;

     (x) none of the Collateral has been pledged or otherwise made subject to a Lien; and

     (xi) with respect to (1) any Asset comprising “financial assets” within the meaning of
the UCC, such Assets have been delivered to and are being held in a “securities account”
within the meaning of the UCC that is maintained in the name of, and under the control and
direction of the Collateral Custodian or another institution that for the purposes of the
UCC is a “securities intermediary” whose “jurisdiction” with respect to the Collateral is
the State of New York, the terms of which account treat the Collateral Custodian as entitled
to exercise the rights that comprise any financial assets credited to such account solely on
behalf of and for the benefit of the Secured Parties and (2) any Asset comprising
certificated securities within the meaning of the UCC, such Assets have been delivered to
the Collateral Custodian and indorsed in blank to the Collateral Custodian solely on behalf
of and for the benefit of the Secured Parties.

     (n) Reports Accurate. All Monthly Reports (if prepared by the Seller, or to the
extent that information contained therein is supplied by the Seller), information, exhibits,
financial statements, documents, books, records or reports furnished or to be furnished by the
Seller to the Administrative Agent or any Purchaser in connection with this Agreement are true,
complete and correct, and no Monthly Report contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements contained therein not
misleading.

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     (o) Location of Offices. The Seller’s location (within the meaning of Article 9 of
the UCC) is Delaware. The office where the Seller keeps all the Records is at the address of the
Seller referred to in Section 13.2 hereof (or at such other locations as to which the
notice and other requirements specified in Section 5.2(g) shall have been satisfied). The
Seller’s Federal Employee Identification Number is 26-0821696. The Seller has not changed its
name, whether by amendment of its certificate of formation, by reorganization or otherwise, and has
not changed its location within the four months preceding the Closing Date.

     (p) Lock-Boxes. The names and addresses of all the Lock-Box Banks, together with the
account numbers of the Lock-Box Accounts of the Seller at such Lock-Box Banks and the names,
addresses and account numbers of all accounts to which Collections of the Collateral outstanding
before the Initial Advance hereunder have been sent, are specified in Schedule II (which
shall be deemed to be amended in respect of terminating or adding any Lock-Box Account or Lock-Box
Bank upon satisfaction of the notice and other requirements specified in Section 5.2(k)).
The Seller has not granted or agreed to grant to any Person other than the Administrative Agent and
Collateral Custodian an interest in any Lock-Box Account except as disclosed to the Administrative
Agent and in a manner consistent with the Intercreditor Agreement.

     (q) Tradenames. The Seller has no trade names, fictitious names, assumed names or
“doing business as” names or other names under which it has done or is doing business.

     (r) Sale Agreement. The Sale Agreement is the only agreement pursuant to which the
Seller purchases Collateral.

     (s) Value Given. The Seller shall have given reasonably equivalent value to the
Originator in consideration for the transfer to the Seller of the Collateral under the Sale
Agreement, no such transfer shall have been made for or on account of an antecedent debt owed by
the Originator to the Seller, and no such transfer is or may be voidable or subject to avoidance
under any section of the Bankruptcy Code.

     (t) Accounting. The Seller accounts for the transfers to it from the Originator of
interests in Collateral under the Sale Agreement as financings of such Collateral for consolidated
accounting purposes (with a notation that it is treating the transfers as a sale for legal and all
other purposes on its books, records and financial statements, in each case consistent with GAAP
and with the requirements set forth herein).

     (u) Special Purpose Entity. The Seller has not and shall not:

     (i) engage in any business or activity other than the purchase and receipt of
Collateral and related assets from the Originator under the Sale Agreement, the sale of
Collateral under the Transaction Documents, and such other activities as are incidental
thereto;

     (ii) acquire or own any material assets other than (a) the Collateral and related
assets from the Originator under the Sale Agreement and (b) incidental property as may be
necessary for the operation of the Seller;

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     (iii) merge into or consolidate with any Person or dissolve, terminate or liquidate in
whole or in part, transfer or otherwise dispose of all or substantially all of its assets or
change its legal structure, without in each case first obtaining the consent of the
Administrative Agent;

     (iv) fail to preserve its existence as an entity duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization or formation, or
without the prior written consent of the Administrative Agent, amend, modify, terminate or
fail to comply with the provisions of its operating agreement, or fail to observe limited
liability company formalities;

     (v) own any Subsidiary or make any investment in any Person without the consent of the
Administrative Agent;

     (vi) except as permitted by this Agreement and the Lock-Box Agreement, commingle its
assets with the assets of any of its Affiliates, or of any other Person;

     (vii) incur any debt, secured or unsecured, direct or contingent (including
guaranteeing any obligation), other than indebtedness to the Secured Parties hereunder or in
conjunction with a repayment of all Advances owed to the Purchasers, except for trade
payables in the ordinary course of its business; provided that such debt is not evidenced by
a note and is paid when due;

     (viii) become insolvent or fail to pay its debts and liabilities from its assets as the
same shall become due;

     (ix) fail to maintain its records, books of account and bank accounts separate and
apart from those of any other Person;

     (x) enter into any contract or agreement with any Person, except upon terms and
conditions that are commercially reasonable and intrinsically fair and substantially similar
to those that would be available on an arms-length basis with third parties other than such
Person;

     (xi) seek its dissolution or winding up in whole or in part;

     (xii) fail to correct any known misunderstandings regarding the separate identity of
Seller and the Originator or any principal or Affiliate thereof or any other Person;

     (xiii) guarantee, become obligated for, or hold itself out to be responsible for the
indebtedness of another Person;

     (xiv) make any loan or advances to any third party, including any principal or
Affiliate, or hold evidence of indebtedness issued by any other Person (other than cash and
investment-grade securities);

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     (xv) fail to file its own separate tax return, or file a consolidated federal income
tax return with any other Person, except as may be required by the Internal Revenue Code and
regulations;

     (xvi) fail either to hold itself out to the public as a legal entity separate and
distinct from any other Person or to conduct its business solely in its own name in order
not (a) to mislead others as to the identity with which such other party is transacting
business, or (b) to suggest that it is responsible for the indebtedness of any third party
(including any of its principals or Affiliates);

     (xvii) fail to maintain adequate capital for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its contemplated
business operations;

     (xviii) file or consent to the filing of any petition, either voluntary or involuntary,
to take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization
statute, or make an assignment for the benefit of creditors;

     (xix) except as may be required by the Internal Revenue Code and regulations, share any
common logo with or hold itself out as or be considered as a department or division of (a)
any of its principals or affiliates, (b) any Affiliate of a principal or (c) any other
Person;

     (xx) permit any transfer (whether in one or more transactions) of any direct or
indirect ownership interest in the Seller to the extent it has the ability to control the
same, unless the Seller delivers to the Administrative Agent an acceptable non-consolidation
opinion and the Administrative Agent consents to such transfer;

     (xxi) fail to maintain separate financial statements, showing its assets and
liabilities separate and apart from those of any other Person;

     (xxii) fail to pay its own liabilities and expenses only out of its own funds;

     (xxiii) fail to pay the salaries of its own employees in light of its contemplated
business operations;

     (xxiv) acquire the obligations or securities of its Affiliates or stockholders;

     (xxv) fail to allocate fairly and reasonably any overhead expenses that are shared with
an Affiliate, including paying for office space and services performed by any employee of an
Affiliate;

     (xxvi) fail to use separate invoices and checks bearing its own name;

     (xxvii) pledge its assets for the benefit of any other Person, other than with respect
to payment of the indebtedness to the Secured Parties hereunder;

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     (xxviii) fail at any time to have at least one independent director who is not and has
not been for at least five years a director, officer, employee, trade credit or shareholder
(or spouse, parent, sibling or child of the foregoing) of (a) the Servicer, (b) the Seller,
(c) any principal of the Servicer, (d) any Affiliate of the Servicer, or (e) any Affiliate
of any principal of the Servicer (an “Independent Director”); provided that such Independent
Director may be an independent director of another special purpose entity affiliated with
the Servicer or its Affiliates or fail to ensure that all limited liability company action
relating to the selection, maintenance or replacement of the Independent Director are duly
authorized by the unanimous vote of the board of directors (including the Independent
Director);

     (xxix) take any of the following actions without obtaining the prior unanimous consent
of all directors (including the consent of the Independent Director): (a) dissolve or
liquidate, in whole or part, or institute proceedings to be adjudicated bankrupt or
insolvent, (b) institute or 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 or insolvency, (d) seek or
consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator,
custodian or any similar official for the Seller, (e) make any assignment for the benefit of
the Seller’s creditors, (f) admit in writing its inability to pay its debts generally as
they become due, or (g) take any action in furtherance of any of the foregoing; and

     (xxx) take or refrain from taking, as applicable, each of the activities specified in
the non-consolidation opinion of Patton Boggs LLP, dated as of the date hereof.

     (v) [Intentionally Omitted].

     (w) Investment Company Act. The Seller is not, and is not controlled by, an
“investment company” within the meaning of, or is exempt from the registration requirement of, the
1940 Act.

     (x) ERISA. The present value of all benefits vested under all “employee pension
benefit plans,” as such term is defined in Section 3 of ERISA, maintained by the Seller, or
in which employees of the Seller are entitled to participate, as from time to time in effect
(herein called the “Pension Plans”), does not exceed the value of the assets of the Pension Plan
allocable to such vested benefits (based on the value of such assets as of the last annual
valuation date). No prohibited transactions, accumulated funding deficiencies, withdrawals or
reportable events have occurred with respect to any Pension Plans that, in the aggregate, could
subject the Seller to any material tax, penalty or other liability. No notice of intent to
terminate a Pension Plan has been billed, nor has any Pension Plan been terminated under Section
4041(f) of ERISA, nor has the Pension Benefit Guaranty Corporation instituted proceedings to
terminate, or appoint a trustee to administer a Pension Plan and no event has occurred or condition
exists that might constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan.

     (y) Compliance with Law. The Seller has complied in all respects with all Applicable
Laws to which it may be subject, and no item of Collateral contravenes any Applicable Laws

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(including, without limitation, all applicable predatory and abusive lending laws and all
laws, rules and regulations relating to licensing, truth in lending, fair credit billing, fair
credit reporting, equal credit opportunity, fair debt collection practices, and privacy).

     (z) Credit and Collection Policy. The Seller has complied in all material respects
with the Credit and Collection Policy with respect to all of the Collateral.

     (aa) Collections. The Seller acknowledges that all Collections received by it or its
Affiliates with respect to the Collateral sold hereunder are held and shall be held in trust for
the benefit of the Secured Parties until deposited into the Collection Account within two Business
Days from receipt as required herein.

     (bb) Set-Off, etc. Other than B-Note Loans or Mezzanine Loans, no Collateral has been
compromised, adjusted, extended, satisfied, subordinated, rescinded, set-off or modified by the
Seller, the Originator or the Obligor thereof, and no Collateral is subject to compromise,
adjustment, extension, satisfaction, subordination, rescission, set-off, counterclaim, defense,
abatement, suspension, deferment, deduction, reduction, termination or modification, whether
arising out of transactions concerning the Collateral or otherwise, by the Seller, the Originator
or the Obligor with respect thereto, except as otherwise permitted under Section 6.4(a) of
this Agreement and in accordance with the Credit and Collection Policy.

     (cc) Full Payment. The Seller has no knowledge of any fact which should lead it to
expect that any Collateral will not be paid in full.

     (dd) Accuracy of Representations and Warranties. Each representation or warranty by
the Seller contained herein or in any certificate or other document furnished by the Seller
pursuant hereto or in connection herewith is true and correct in all material respects.

     (ee) Representations and Warranties in Sale Agreement. The representations and
warranties made by the Originator to the Seller in the Sale Agreement are hereby remade by the
Seller on each date to which they speak in the Sale Agreement as if such representations and
warranties were set forth herein. For purposes of this Section 4.1(ee), such
representations and warranties are incorporated herein by reference as if made by the Seller to the
Administrative Agent and each of the Secured Parties under the terms hereof mutatis
mutandis.

     (ff) Reaffirmation of Representations and Warranties by the Seller. On each day that
any Advance is made hereunder, the Seller shall be deemed to have certified that all
representations and warranties described in Section 4.1 hereof are correct on and as of
such day as though made on and as of such day.

     (gg) Participation, Acquired and Assigned Loans. The participations created with
respect to the Participation Loans and the sale to the Originator with respect to the Acquired
Loans and Assigned Loans do not violate any provisions of the underlying Required Asset Documents
and such documents do not contain any express or implied prohibitions on participations or sales of
such Loans other than those that have been complied with.

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     (hh) Environmental.

     (i) Each item of the Related Property is in compliance with all applicable
Environmental Laws, and there is no violation of any Environmental Law with respect to such
Related Property and there are no conditions relating to such Related Property that could
give rise to liability under any applicable Environmental Laws.

     (ii) None of the Related Property contains, or has previously contained, any Materials
of Environmental Concern at, on or under the Related Property in amounts or concentrations
that constitute or constituted a violation of, or could give rise to liability under,
Environmental Laws.

     (iii) None of the Seller, the Originator nor the Servicer has received any written or
verbal notice of, or inquiry from any Governmental Authority regarding, any violation,
alleged violation, non-compliance, liability or potential liability regarding environmental
matters or compliance with Environmental Laws with regard to any of the Related Property,
nor does any such Person have knowledge or reason to believe that any such notice will be
received or is being threatened.

     (iv) Materials of Environmental Concern have not been transported or disposed of from
the Related Property, or generated, treated, stored or disposed of at, on or under any of
the Related Property or any other location, in each case by or on behalf of the Seller, the
Originator and/or the Servicer in violation of, or in a manner that would be reasonably
likely to give rise to liability under, any applicable Environmental Law.

     (v) No judicial proceeding or governmental or administrative action is pending or, to
the best knowledge of the Seller, the Originator and/or the Servicer, threatened, under any
Environmental Law to which any of the Seller, the Originator and/or the Servicer is or will
be named as a party, nor are there any consent decrees or other decrees, consent orders,
administrative orders or other orders, or other administrative or judicial requirements,
outstanding under any Environmental Law with respect to any of the Seller, the Originator,
the Servicer or the Related Property.

     (vi) There has been no release or threat of release of Materials of Environmental
Concern at or from any of the Related Property, or arising from or related to the operations
(including, without limitation, disposal) of any of the Seller, the Originator and/or the
Servicer in connection with the Related Property in violation of or in amounts or in a
manner that could give rise to liability under Environmental Laws.

     (ii) USA PATRIOT Act. Neither the Seller nor any Affiliate of the Seller is (i) a
country, territory, organization, person or entity named on an Office of Foreign Asset Control
(OFAC) list, (ii) a Person that resides or has a place of business in a country or territory named
on such lists or which is designated as a “Non-Cooperative Jurisdiction” by the Financial Action
Task Force on Money Laundering, or whose subscription funds are transferred from or through such a
jurisdiction; (iii) a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act, i.e., a
foreign bank that does not have a physical presence in any country and that is not affiliated with
a bank that has a physical presence and an acceptable level of regulation and supervision; or

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(iv) a person or entity that resides in or is organized under the laws of a jurisdiction
designated by the United States Secretary of the Treasury under Sections 311 or 312 of the USA
PATRIOT Act as warranting special measures due to money laundering concerns.

     (jj) Material Adverse Effect. The Seller represents and warrants that (i) since June
30, 2007 and (ii) as of the most recent Addition Date there has been no Material Adverse Effect.

     The representations and warranties in Section 4.1(m) shall survive the termination of
this Agreement.

     Section 4.2 Representations and Warranties of the Seller Relating to the Agreement and the Collateral.

     The Seller hereby represents and warrants, (i) with respect to clauses (a) through
(c) below, as of the Closing Date, as of the initial Funding Date and as of each Addition
Date and (ii) with respect to clause (d) below, since June 30, 2007 and as of the most
recent Addition Date:

     (a) Binding Obligation, Valid Transfer and Security Interest.

     (i) This Agreement and each other Transaction Document to which the Seller is a party
each constitute a legal, valid and binding obligation of the Seller, enforceable against the
Seller in accordance with its respective terms, except as such enforceability may be limited
by Insolvency Laws and except as such enforceability may be limited by general principles of
equity (whether considered in a suit at law or in equity).

     (ii) This Agreement constitutes a valid transfer to the Administrative Agent, as agent
for the Secured Parties, of all right, title and interest of the Seller in, to and under all
of the Collateral, free and clear of any Lien of any Person claiming through or under the
Seller or its Affiliates, except for Permitted Liens. If the conveyances contemplated by
this Agreement are determined to be transfer for security, then this Agreement constitutes a
grant of a security interest in all of the Collateral to the Administrative Agent, as agent
for the Secured Parties, which upon the delivery of the Required Asset Documents to the
Collateral Custodian and the filing of the financing statements described in Section
4.1(m) and, in the case of Additional Assets on the applicable Addition Date, shall be a
first priority perfected security interest in all Collateral, subject only to Permitted
Liens. Neither the Seller nor any Person claiming through or under Seller shall have any
claim to or interest in the Collection Account and, if this Agreement constitutes the grant
of a security interest in such property, except for the interest of Seller in such property
as a debtor for purposes of the UCC.

     (b) Eligibility of Collateral. As of the initial Funding Date and each Addition Date,
(i) the Asset List and the information contained in the Borrowing Notice delivered pursuant to
Section 2.3 is an accurate and complete listing in all respects of all Collateral as of the
Cut-Off Date and the information contained therein with respect to the identity of such Collateral
and the amounts owing thereunder is true and correct in all respects as of the related Cut-Off
Date, (ii) each such Asset that is part of the Borrowing Base is an Eligible Asset as of such date,
(iii) each

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such item of Collateral is free and clear of any Lien of any Person (other than Permitted
Liens) and in compliance with all Applicable Laws, (iv) with respect to each such item of
Collateral, all consents, licenses, approvals or authorizations of or registrations or declarations
of any Governmental Authority required to be obtained, effected or given by the Seller in
connection with the transfer of an ownership interest in such Collateral to the Administrative
Agent as agent for the Secured Parties have been duly obtained, effected or given and are in full
force and effect, and (v) the representations and warranties set forth in Section 4.2(a)
are true and correct with respect to each item of Collateral.

     (c) No Fraud. Each Asset was originated without any fraud or material
misrepresentation by the Originator or, to the best of the Seller’s knowledge, on the part of the
Obligor.

     (d) Material Adverse Effect. There has been no Material Adverse Effect.

     Section 4.3 Representations and Warranties of the Servicer.

     The Servicer represents and warrants as follows:

     (a) Organization and Good Standing. The Servicer has been duly organized and is
validly existing as a limited liability company in good standing under the laws of the State of
Delaware, with all requisite company power and authority to own or lease its properties and to
conduct its business as such business is presently conducted and to enter into and perform its
obligations pursuant to this Agreement.

     (b) Due Qualification. The Servicer is duly qualified to do business as a limited
liability company and is in good standing as a limited liability company, and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or lease of its
property and or the conduct of its business requires such qualification, licenses or approvals.

     (c) Power and Authority; Due Authorization; Execution and Delivery. The Servicer (i)
has all necessary power, authority and legal right to (a) execute and deliver this Agreement and
the other Transaction Documents to which it is a party, (b) carry out the terms of the Transaction
Documents to which it is a party, and (ii) has duly authorized by all necessary company action the
execution, delivery and performance of this Agreement and the other Transaction Documents to which
it is a party. This Agreement and each other Transaction Document to which the Servicer is a party
have been duly executed and delivered by the Servicer.

     (d) Binding Obligation. This Agreement and each other Transaction Document to which
the Servicer is a party constitutes a legal, valid and binding obligation of the Servicer
enforceable against the Servicer in accordance with its respective terms, except as such
enforceability may be limited by Insolvency Laws and general principles of equity (whether
considered in a suit at law or in equity).

     (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the other Transaction Documents to which it is a party and the fulfillment of the terms hereof
and thereof will not (i) conflict with, result in any breach of any of the terms and

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provisions of, or constitute (with or without notice or lapse of time or both) a default
under, the Servicer’s operating agreement or any Contractual Obligation of the Servicer, (ii)
result in the creation or imposition of any Lien upon any of the Servicer’s properties pursuant to
the terms of any such Contractual Obligation, other than this Agreement, or (iii) violate any
Applicable Law.

     (f) No Proceedings. There is no litigation, proceedings or investigations pending or,
to the best knowledge of the Servicer, threatened against the Servicer, before any Governmental
Authority (i) asserting the legality, invalidity or enforceability of this Agreement or any other
Transaction Document to which the Servicer is a party, (ii) seeking to prevent the consummation of
any of the transactions contemplated by this Agreement or any other Transaction Document to which
the Servicer is a party or (iii) seeking any determination or ruling that could reasonably be
expected to have Material Adverse Effect.

     (g) All Consents Required. All approvals, authorizations, consents, orders, licenses
or other actions of any Person or of any Governmental Authority (if any) required for the due
execution, delivery and performance by the Servicer of this Agreement and any other Transaction
Document to which the Servicer is a party have been obtained.

     (h) Reports Accurate. All Servicer’s Certificates and other written and electronic
information, exhibits, financial statements, documents, books, records or reports furnished by the
Servicer to the Administrative Agent or any Purchaser in connection with this Agreement are
accurate, true and correct, and no Servicer’s Certificate contains any untrue statement of a
material fact or omits to state a material fact necessary in order to make the statements contained
therein not misleading.

     (i) Credit and Collection Policy. The Servicer has complied in all material respects
with the Credit and Collection Policy with regard to the origination, underwriting and servicing of
the Assets.

     (j) Collections. The Servicer acknowledges that all Collections received by it or its
Affiliates with respect to the Collateral sold hereunder are held and shall be held in trust for
the benefit of the Secured Parties until deposited into the Collection Account within two Business
Days from receipt as required herein.

     (k) Bulk Sales. The execution, delivery and performance of this Agreement do not
require compliance with any “bulk sales” act or similar law by the Servicer.

     (l) Solvency. The Servicer is not the subject of any Insolvency Proceedings or
Insolvency Event. The transactions under this Agreement and any other Transaction Document to
which the Servicer is a party do not and will not render the Servicer not Solvent and the Servicer
shall deliver to the Administrative Agent on the Closing Date a certification in the form of
Exhibit E-2.

     (m) Taxes. The Servicer has filed or caused to be filed all tax returns that are
required to be filed by it. The Servicer has paid or made adequate provisions for the payment of
all Taxes and all assessments made against it or any of its property (other than any amount of Tax
the validity of which is currently being contested in good faith by appropriate proceedings and
with respect to which reserves in accordance with GAAP have been provided on the books of the

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Servicer), and no tax lien has been filed and, to the Servicer’s knowledge, no claim is being
asserted, with respect to any such Tax, fee or other charge.

     (n) Exchange Act Compliance; Regulations T, U and X. None of the transactions
contemplated herein (including, without limitation, the use of the Proceeds from the sale of the
Collateral) will violate or result in a violation of Section 7 of the Securities Exchange Act, or
any regulations issued pursuant thereto, including, without limitation, Regulations T, U and X of
the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. The Servicer does not
own or intend to carry or purchase, and no proceeds from the Advances will be used to carry or
purchase, any “margin stock” within the meaning of Regulation U or to extend “purpose credit”
within the meaning of Regulation U.

     (o) Security Interest. The Servicer will take all steps necessary to ensure that the
Seller has granted a security interest (as defined in the UCC) to the Administrative Agent, as
agent for the Secured Parties, in the Collateral, which is enforceable in accordance with
Applicable Law upon execution and delivery of this Agreement. Upon the filing of UCC-1 financing
statements naming the Administrative Agent as secured party and the Seller as debtor, the
Administrative Agent, as agent for the Secured Parties, shall have a first priority perfected
security interest in the Collateral (except for any Permitted Liens). All filings (including,
without limitation, such UCC filings) as are necessary for the perfection of the Secured Parties’
security interest in the Collateral have been (or prior to the date of the applicable will be)
made.

     (p) ERISA. The present value of all benefits vested under all “employee pension
benefit plans,” as such term is defined in Section 3 of ERISA, maintained by the Servicer,
or in which employees of the Servicer are entitled to participate, as from time to time in effect
(herein called the “Pension Plans”), does not exceed the value of the assets of the Pension Plan
allocable to such vested benefits (based on the value of such assets as of the last annual
valuation date). No prohibited transactions, accumulated funding deficiencies, withdrawals or
reportable events have occurred with respect to any Pension Plans that, in the aggregate, could
subject the Servicer to any material tax, penalty or other liability. No notice of intent to
terminate a Pension Plan has been billed, nor has any Pension Plan been terminated under Section
4041(f) of ERISA, nor has the Pension Benefit Guaranty Corporation instituted proceedings to
terminate, or appoint a trustee to administer, a Pension Plan and no event has occurred or
condition exists that might constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan.

     (q) Investment Company Act. The Servicer is not, and is not controlled by, an
“investment company” within the meaning of, or is exempt from the registration requirement of, the
1940 Act.

     (r) USA PATRIOT Act. Neither the Servicer nor any Affiliate of the Servicer is (i) a
country, territory, organization, person or entity named on an OFAC list, (ii) a Person that
resides or has a place of business in a country or territory named on such lists or which is
designated as a “Non-Cooperative Jurisdiction” by the Financial Action Task Force on Money
Laundering, or whose subscription funds are transferred from or through such a jurisdiction;
(iii) a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act, i.e., a foreign bank
that does not have a physical presence in any country and that is not affiliated with a bank that

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has a physical presence and an acceptable level of regulation and supervision; or (iv) a
person or entity that resides in or is organized under the laws of a jurisdiction designated by the
United States Secretary of the Treasury under Sections 311 or 312 of the USA PATRIOT Act as
warranting special measures due to money laundering concerns.

     (s) Material Adverse Effect. The Servicer represents and warrants that (i) since June
30, 2007 there has been no Material Adverse Effect.

     Section 4.4 Representations and Warranties of the Backup Servicer.

     The Backup Servicer in its individual capacity and as Backup Servicer represents and warrants
as follows:

     (a) Organization and Corporate Power. It is a duly organized and validly existing
national banking association in good standing under the laws of the United States. It has full
corporate power, authority and legal right to execute, deliver and perform its obligations as
Backup Servicer under this Agreement.

     (b) Due Authorization. The execution and delivery of this Agreement and the
consummation of the transactions provided for herein have been duly authorized by all necessary
association action on its part, either in its individual capacity or as Backup Servicer, as the
case may be.

     (c) No Conflict. The execution and delivery of this Agreement, the performance of the
transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with,
result in any breach of any of the material terms and provisions of, or constitute (with or without
notice or lapse of time or both) a default under any indenture, contract, agreement, mortgage, deed
of trust, or other instrument to which the Backup Servicer is a party or by which it or any of its
property is bound.

     (d) No Violation. The execution and delivery of this Agreement, the performance of
the transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with
or violate, in any material respect, any Applicable Law.

     (e) All Consents Required. All approvals, authorizations, consents, orders or other
actions of any Person or Governmental Authority applicable to the Backup Servicer, required in
connection with the execution and delivery of this Agreement, the performance by the Backup
Servicer of the transactions contemplated hereby and the fulfillment by the Backup Servicer of the
terms hereof have been obtained.

     (f) Validity, Etc. This Agreement constitutes the legal, valid and binding obligation
of the Backup Servicer, enforceable against the Backup Servicer in accordance with its terms,
except as such enforceability may be limited by applicable Insolvency Laws or general principles of
equity (whether considered in a suit at law or in equity).

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     Section 4.5 Representations and Warranties of the Collateral Custodian.

     The Collateral Custodian in its individual capacity and as Collateral Custodian represents and
warrants as follows:

     (a) Organization and Corporate Power. It is a duly organized and validly existing
national banking association in good standing under the laws of the United States. It has full
corporate power, authority and legal right to execute, deliver and perform its obligations as
Collateral Custodian under this Agreement.

     (b) Due Authorization. The execution and delivery of this Agreement and the
consummation of the transactions provided for herein have been duly authorized by all necessary
association action on its part, either in its individual capacity or as Collateral Custodian, as
the case may be.

     (c) No Conflict. The execution and delivery of this Agreement, the performance of the
transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with,
result in any breach of any of the material terms and provisions of, or constitute (with or without
notice or lapse of time or both) a default under any indenture, contract, agreement, mortgage, deed
of trust, or other instrument to which the Collateral Custodian is a party or by which it or any of
its property is bound.

     (d) No Violation. The execution and delivery of this Agreement, the performance of
the Transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with
or violate, in any material respect, any Applicable Law.

     (e) All Consents Required. All approvals, authorizations, consents, orders or other
actions of any Person or Governmental Authority applicable to the Collateral Custodian, required in
connection with the execution and delivery of this Agreement, the performance by the Collateral
Custodian of the transactions contemplated hereby and the fulfillment by the Collateral Custodian
of the terms hereof have been obtained.

     (f) Validity, Etc. The Agreement constitutes the legal, valid and binding obligation
of the Collateral Custodian, enforceable against the Collateral Custodian in accordance with its
terms, except as such enforceability may be limited by applicable Insolvency Laws and general
principles of equity (whether considered in a suit at law or in equity).

     Section 4.6 Breach of Certain Representations and Warranties.

     If on any day an Asset is (or becomes) a Warranty Asset, no later than two Business Days
following the earlier of knowledge by the Seller of such Asset becoming a Warranty Asset or receipt
by the Seller from the Administrative Agent or the Servicer of written notice thereof, the Seller
shall either: (a) make a deposit to the Collection Account (for allocation pursuant to Section
2.9 or Section 2.10, as applicable) in immediately available funds in an amount equal
to the sum (the “Retransfer Price”) of (i) if such deposit is made during the Revolving Period, the
amount which, if deposited to the Collection Account on such date, would cause the Availability as
of such date (after giving effect to such Warranty Asset ceasing to be an Eligible Asset) to be
greater than or equal to zero, (ii) if such deposit is made during the Amortization Period or the

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Turbo Period, an amount equal to the product of the Outstanding Asset Balance of such Warranty
Asset (without giving effect to the proviso in the definition of Outstanding Asset Balance)
multiplied by the Advance Rate applicable to such Warranty Asset on the Funding Date thereof, (iii)
any outstanding Servicer Advances thereon, (iv) any accrued and unpaid interest on such Warranty
Asset, (v) all Hedge Breakage Costs owed to the relevant Hedge Counterparty for any termination of
one or more Hedge Transactions, in whole or in part, as required by the terms of any Hedging
Agreement and (vi in the case of a Loan, any costs and damages incurred in connection with any
violation by such Loan of any predatory- or abusive-lending law; or (b) subject to the satisfaction
of the conditions in Section 2.18, substitute for such Warranty Asset a Substitute Asset.
In either of the foregoing instances, the Seller may (in its discretion) accept retransfer of each
such Warranty Asset and any Related Security and the Borrowing Base shall be reduced by the
Outstanding Asset Balance of each such Warranty Asset and, if applicable, increased by the
Outstanding Asset Balance of each Substitute Asset. Upon confirmation of the deposit of such
Retransfer Price into the Collection Account or the delivery by the Seller of a Substitute Asset
for each Warranty Asset (the “Retransfer Date”), such Warranty Asset shall not be included in the
Borrowing Base (and, if and when the Seller elects to accept the retransfer of such Warranty Asset,
the Collateral) and, as applicable, the Substitute Asset shall be included in the Collateral. Upon
the Retransfer Date of each Warranty Asset, the Administrative Agent, as agent for the Secured
Parties, shall (if and when the Seller elects to accept the retransfer of such Warranty Asset)
automatically and without further action be deemed to transfer, assign and set-over to the Seller,
without recourse, representation or warranty, all the right, title and interest of the
Administrative Agent, as agent for the Secured Parties in, to and under such Warranty Asset and all
future monies due or to become due with respect thereto, the Related Security, all Proceeds of such
Warranty Asset, Recoveries and Insurance Proceeds relating thereto, all rights to security for any
such Warranty Asset, and all Proceeds and products of the foregoing. The Administrative Agent, as
agent for the Secured Parties, shall (if and when the Seller elects to accept the retransfer of
such Warranty Asset), at the sole expense of the Servicer, execute such documents and instruments
of transfer as may be prepared by the Servicer on behalf of the Seller and take other such actions
as shall reasonably be requested by the Seller to effect the transfer of such Warranty Asset
pursuant to this Section 4.6.

ARTICLE V

GENERAL COVENANTS

     Section 5.1 Affirmative Covenants of the Seller.

     From the date hereof until the Collection Date:

     (a) Compliance with Laws. The Seller will comply in all material respects with all
Applicable Laws, including those with respect to the Collateral or any part thereof.

     (b) Preservation of Company Existence. The Seller will preserve and maintain its
company existence, rights, franchises and privileges in the jurisdiction of its formation, and
qualify and remain qualified in good standing as a limited liability company in each jurisdiction
where the failure to preserve and maintain such existence, rights, franchises, privileges and
qualification has had, or could reasonably be expected to have, a Material Adverse Effect.

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     (c) Performance and Compliance with Collateral. The Seller will, at its expense,
timely and fully perform and comply (or direct the Originator to perform and comply pursuant to the
Sale Agreement) with all provisions, covenants and other promises required to be observed by it
under the Collateral and all other agreements related to such Collateral.

     (d) Keeping of Records and Books of Account. The Seller will maintain and implement
administrative and operating procedures (including, without limitation, an ability to recreate
records evidencing the Collateral in the event of the destruction of the originals thereof), and
keep and maintain all documents, books, records and other information reasonably necessary or
advisable for the collection of all or any portion of the Collateral.

     (e) Originator’s Collateral. With respect to the Collateral acquired by the Seller,
the Seller will (i) acquire such Collateral pursuant to and in accordance with the terms of the
Sale Agreement, (ii) (at the Servicer’s expense) take all action necessary to perfect, protect and
more fully evidence the Seller’s ownership of such Collateral free and clear of any Lien other than
the Lien created hereunder and Permitted Liens, including, without limitation, (a) filing and
maintaining (at the Servicer’s expense), effective financing statements against the Originator in
all necessary or appropriate filing offices, and filing continuation statements, amendments or
assignments with respect thereto in such filing offices, and (b) executing or causing to be
executed such other instruments or notices as may be necessary or appropriate, (iii) permit the
Administrative Agent or its agents or representatives to visit the offices of the Seller during
normal office hours and upon reasonable notice examine and make copies of all documents, books,
records and other information concerning the Collateral and discuss matters related thereto with
any of the officers or employees of the Seller having knowledge of such matters, and (iv) take all
additional action that the Administrative Agent may reasonably request to perfect, protect and more
fully evidence the respective interests of the parties to this Agreement in the Collateral.

     (f) Delivery of Collections. The Seller will pay to the Servicer promptly (but in no
event later than two Business Days after receipt) all Collections received by Seller in respect of
the Collateral and cause the same to be promptly deposited into the Collection Account by the
Servicer in accordance with Section 5.4(l).

     (g) Separate Limited Liability Company Existence. The Seller shall be in compliance
with the Special Purpose Entity requirements set forth in Section 4.1(u).

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

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     (i) Termination Events. The Seller will provide the Administrative Agent with
immediate written notice of the occurrence of each Termination Event and each Unmatured Termination
Event of which the Seller has knowledge or has received notice. In addition, no later than two
Business Days following the Seller’s knowledge or notice of the occurrence of any Termination Event
or Unmatured Termination Event, the Seller will provide to the Administrative Agent a written
statement of the chief financial officer or chief accounting officer of Seller setting forth the
details of such event and the action that the Seller proposes to take with respect thereto.

     (j) Taxes. The Seller will file and pay any and all Taxes required to meet the
obligations of the Transaction Documents.

     (k) Use of Proceeds. The Seller will use the proceeds of the Advances only to acquire
Collateral or to make distributions to its members in accordance with the terms hereof.

     (l) Obligor Notification Forms. The Seller shall furnish the Administrative Agent
with an appropriate power of attorney to send (at the Administrative Agent’s discretion after the
occurrence of a Termination Event or an Unmatured Termination Event) Obligor notification forms to
give notice to the Obligors of the Secured Parties’ interest in the Collateral and the obligation
to make payments as directed by the Administrative Agent.

     (m) Adverse Claims. The Seller will not create, or participate in the creation of, or
permit to exist, any Liens in relation to each Lock-Box Account other than as disclosed to the
Administrative Agent and in a manner consistent with the Intercreditor Agreement.

     (n) Seller’s Collateral. With respect to each item of Collateral acquired by the
Secured Parties, the Seller will (i) take all action necessary to perfect, protect and more fully
evidence the Secured Parties’ ownership of such Collateral, including, without limitation, (a)
filing and maintaining (at the Servicer’s expense), effective financing statements against the
Seller in all necessary or appropriate filing offices, and filing continuation statements,
amendments or assignments with respect thereto in such filing offices, and (b) executing or causing
to be executed such other instruments or notices as may be necessary or appropriate and (ii) take
all additional action that the Administrative Agent may reasonably request to perfect, protect and
more fully evidence the respective interests of the parties to this Agreement in such Collateral.
The Seller authorizes the Administrative Agent to file financing or continuation statements, and
amendments thereto and assignments thereof, relating to the Collateral, which financing statements
may (x) describe the collateral covered thereby as “all assets of the Seller,” “all personal
property of the Seller” or words of similar effect and (y) be filed by the Administrative Agent if
the Seller fails to file such financing statements in a timely manner and in any event promptly
after the Administrative Agent’s request.

     (o) Notices. The Seller will furnish to the Administrative Agent:

     (i) Income Tax Liability. Within ten Business Days after the receipt of
revenue agent reports or other written proposals, determinations or assessments of the
Internal Revenue Service or any other taxing authority which propose, determine or otherwise
set forth positive adjustments to the Tax liability of any Affiliated group

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(within the meaning of Section 1504(a)(l) of the Internal Revenue Code of 1986 (as
amended from time to time)) which equal or exceed $1,000,000 in the aggregate, telephonic,
telex or telecopy notice (confirmed in writing within five Business Days) specifying the
nature of the items giving rise to such adjustments and the amounts thereof;

     (ii) Auditors’ Management Letters. Promptly after the receipt thereof, any
auditors’ management letters that are received by the Seller or by its accountants;

     (iii) Representations. Forthwith upon receiving knowledge of same, the Seller
shall notify the Administrative Agent if any representation or warranty set forth in
Section 4.1 was incorrect at the time it was given or deemed to have been given and
at the same time deliver to the Administrative Agent a written notice setting forth in
reasonable detail the nature of such facts and circumstances. In particular, but without
limiting the foregoing, the Seller shall notify the Administrative Agent in the manner set
forth in the preceding sentence before any Funding Date of any facts or circumstances within
the knowledge of the Seller which would render any of the said representations and
warranties untrue at the date when such representations and warranties were made or deemed
to have been made;

     (iv) ERISA. Promptly after receiving notice of any “reportable event” (as
defined in Title IV of ERISA) with respect to the Seller (or any ERISA Affiliate thereof), a
copy of such notice;

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

     (vi) Notice of Material Events. Promptly upon becoming aware thereof, notice
of any other event or circumstances that, in the reasonable judgment of the Seller, is
likely to have a Material Adverse Effect.

     (p) Reporting Requirements. The Seller will provide to the Administrative Agent and
each Liquidity Bank the following:

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     (i) as soon as available and in any event within 45 days after the end of each of the
first three quarters and within 90 days after the end of the fourth fiscal quarter of each
fiscal year of CapitalSource Inc., consolidated and consolidating balance sheets of
CapitalSource Inc. and its Subsidiaries as of the end of such quarter and consolidated and
consolidating statements of income and retained earnings of CapitalSource Inc. and its
Subsidiaries for the period commencing at the end of the previous fiscal year and ending
with the end of such quarter, certified by the chief financial officer of CapitalSource Inc.
(which consolidating financial statements shall separately break out the financial
information of the Originator as a Subsidiary of CapitalSource Inc.); and

     (ii) as soon as available and in any event within 45 days after the end of each of the
first three quarters and within 90 days after the end of the fourth fiscal quarter of each
fiscal year of the Seller, an unaudited balance sheet of the Seller as of the end of such
quarter and an unaudited statement of income and retained earnings of the Seller for the
period commencing at the end of the previous fiscal year and ending with the end of such
quarter, certified by the chief financial officer of the Seller.

     (q) Other. The Seller will furnish to the Administrative Agent promptly, from time to
time, such other information, documents, records or reports respecting the Collateral or the
condition or operations, financial or otherwise, of Seller or Originator as the Administrative
Agent may from time to time reasonably request in order to protect the interests of the
Administrative Agent or the Secured Parties under or as contemplated by this Agreement.

     Section 5.2 Negative Covenants of the Seller.

     From the date hereof until the Collection Date:

     (a) Other Business. Seller will not (i) engage in any business other than the
transactions contemplated by the Transaction Documents, (ii) incur any Indebtedness, obligation,
liability or contingent obligation of any kind other than pursuant to this Agreement or under any
Hedging Agreement required by Section 5.3(a), or (iii) form any Subsidiary or make any
Investments in any other Person.

     (b) Collateral Not to be Evidenced by Instruments. The Seller will take no action to
cause any Collateral that is not, as of the Closing Date, as of the initial Funding Date or the
related Addition Date, as the case may be, evidenced by an Instrument, to be so evidenced except in
connection with the enforcement or collection of such Collateral.

     (c) Security Interests. Except as otherwise permitted herein and in respect of any
Optional Sale and Discretionary Sale, the Seller will not sell, pledge, assign or transfer to any
other Person, or grant, create, incur, assume or suffer to exist any Lien on any Collateral,
whether now existing or hereafter transferred hereunder, or any interest therein, and the Seller
will not sell, pledge, assign or suffer to exist any Lien on its interest, if any, hereunder. The
Seller will promptly notify the Administrative Agent of the existence of any Lien on any Collateral
and the Seller shall defend the right, title and interest of the Administrative Agent as agent for
the Secured Parties in, to and under the Collateral against all claims of third parties;

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provided that nothing in this Section 5.2(c) shall prevent or be deemed to prohibit
the Seller from suffering to exist Permitted Liens upon any of the Collateral.

     (d) Mergers, Acquisitions, Sales, etc. The Seller will not be a party to any merger
or consolidation, or purchase or otherwise acquire any of the assets or any stock of any class of,
or any partnership or joint venture interest in, any other Person, or sell, transfer, convey or
lease any of its assets, or sell or assign with or without recourse any Collateral or any interest
therein (other than pursuant hereto or to the Sale Agreement).

     (e) Deposits to Special Accounts. Except as otherwise provided in the Lock-Box
Agreement, the Seller will not deposit or otherwise credit, or cause or permit to be so deposited
or credited, to any Lock-Box Account cash or cash proceeds other than Collections in respect of the
Collateral.

     (f) Restricted Payments. The Seller shall not make any Restricted Junior Payment,
except that, so long as no Termination Event or Unmatured Termination Event has occurred and is
continuing or would result therefrom. The Seller may declare and make distributions to its members
on their membership interests.

     (g) Change of Name or Location of Loan Files. The Seller shall not (x) change its
name, move the location of its principal place of business and chief executive office, change the
offices where it keeps the records from the location referred to in Section 13.2, or change
the jurisdiction of its formation, or (y) move, or consent to the Collateral Custodian or Servicer
moving, the Required Asset Documents and the Asset Files from the location thereof on the Closing
Date, unless the Seller has given at least 30 days’ written notice to the Administrative Agent and
has taken all actions required under the UCC of each relevant jurisdiction in order to continue the
first priority perfected security interest of the Administrative Agent, as agent for the Secured
Parties, in the Collateral.

     (h) Accounting of Purchases. Other than for tax and consolidated accounting purposes,
the Seller will not account for or treat (whether in financial statements or otherwise) the
transactions contemplated hereby in any manner other than as a sale of the Collateral by the Seller
to the Secured Parties. Other than for consolidated tax and accounting purposes, the Seller will
not account for or treat (whether in financial statements or otherwise) the transactions
contemplated by the Sale Agreement in any manner other than as a sale of the Collateral by the
Originator to the Seller.

     (i) ERISA Matters. The Seller will not (a) engage or permit any ERISA Affiliate to
engage in any prohibited transaction for which an exemption is not available or has not previously
been obtained from the United States Department of Labor, (b) permit to exist any accumulated
funding deficiency, as defined in Section 302(a) of ERISA and Section 412(a) of the Code, or
funding deficiency with respect to any Benefit Plan other than a Multiemployer Plan, (c) fail to
make any payments to a Multiemployer Plan that the Seller or any ERISA Affiliate may be required to
make under the agreement relating to such Multiemployer Plan or any law pertaining thereto, (d)
terminate any Benefit Plan so as to result in any liability, or (e) permit to exist any occurrence
of any reportable event described in Title IV of ERISA.

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     (j) Operating Agreement; Sale Agreement. The Seller will not amend, modify, waive or
terminate any provision of its operating agreement or the Sale Agreement without the prior written
consent of the Administrative Agent.

     (k) Changes in Payment Instructions to Obligors. The Seller will not add or terminate
any bank as a Lock-Box Bank or any Lock-Box Account from those listed in Schedule II or
make any change, or permit Servicer to make any change, in its instructions to Obligors regarding
payments to be made to Seller or Servicer or payments to be made to any Lock-Box Bank, unless the
Administrative Agent has consented to such addition, termination or change (which consent shall not
be unreasonably withheld) and has received duly executed copies of Lock-Box Agreements with each
new Lock-Box Bank or with respect to each new Lock-Box Account, as the case may be.

     (l) Extension or Amendment of Collateral. The Seller will not, except as otherwise
permitted in Section 6.4(a), waive, extend, amend or otherwise modify, or permit the
Servicer to extend, amend or otherwise modify, the terms of any Collateral (including the Related
Security); provided that no waiver, extension, modification or alteration otherwise permitted under
Section 6.4(a) shall (i) alter the status of any Asset as a Delinquent Asset or Charged-Off
Asset, (ii) in the reasonable judgment of the Administrative Agent, prevent or delay any Asset from
becoming a Delinquent Asset or Charged-Off Asset, or (iii) limit and/or impair the rights of the
Administrative Agent or the Secured Parties under this Agreement.

     (m) Credit and Collection Policy. The Seller may amend, modify, restate or replace,
in whole or in part, the Credit and Collection Policy, if such amendment, modification, restatement
or replacement would not impair the collectibility of any of the Collateral or otherwise adversely
affect the interests or remedies of the Administrative Agent or the Secured Parties under this
Agreement or any other Transaction Document. The Seller may not amend, modify, restate or replace,
in whole or in part, the Credit and Collection Policy, if such amendment, modification, restatement
or replacement would impair the collectibility of any of the Collateral or otherwise adversely
affect the interests or remedies of the Administrative Agent or the Secured Parties under this
Agreement or any other Transaction Document, without the prior written consent of the
Administrative Agent.

     (n) Other Indebtedness. The Seller will not issue or extend any class or type of
Indebtedness whether senior, pari passu or subordinated to the Indebtedness arising under this
Agreement, unless an opinion of special tax counsel is first rendered to the effect that such
issuance of additional Indebtedness will not cause the Seller to be treated as a taxable mortgage
pool.

     Section 5.3 Covenants of the Seller Relating to the Hedging of Assets.

     (a) On or prior to each Funding Date, as applicable, the Seller shall enter into one or more
Hedge Transactions for that Advance; provided that each such Hedge Transaction shall:

     (i) be entered into with a Hedge Counterparty and governed by a Hedging Agreement;

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     (ii) have a schedule of monthly calculation periods the first of which commences on the
Funding Date of that Advance and the last of which ends on the last Scheduled Payment due to
occur under or with respect to the Assets included in the Aggregate Outstanding Asset
Balance to which that Advance relates;

     (iii) have an amortizing notional amount that satisfies the requirements of Section
6.2(c); and

     (iv) provide for two series of monthly payments to be netted against each other, one
such series being payments to be made by the Seller to a Hedge Counterparty (solely on a net
basis) by reference to a fixed rate for that Advance, and the other such series being
payments to be made by such Hedge Counterparty to the Administrative Agent (solely on a net
basis) at a floating rate equal to “USD-LIBOR-BBA” (as defined in the ISDA Definitions), the
net amount of which shall be paid into the Collection Account (if payable by such Hedge
Counterparty) or from the Collection Account to the extent funds are available under
Section 2.9(a)(1) and Section 2.10(a)(1) (if payable by the Seller);

     (b) As additional security hereunder, Seller hereby assigns to the Administrative Agent, as
agent for the Secured Parties, all right, title and interest but none of the obligations of the
Seller in each Hedging Agreement, each Hedge Transaction, and all present and future amounts
payable by a Hedge Counterparty to Seller under or in connection with the respective Hedging
Agreement and Hedge Transaction(s) with that Hedge Counterparty (“Hedge Collateral”), and grants a
security interest to the Administrative Agent, as agent for the Secured Parties, in the Hedge
Collateral. Seller acknowledges that, as a result of that assignment, Seller may not, without the
prior written consent of the Administrative Agent, exercise any rights under any Hedging Agreement
or Hedge Transaction, except for Seller’s right under any Hedging Agreement to enter into Hedge
Transactions in order to meet the Seller’s obligations under Section 5.3(a) hereof.
Nothing herein shall have the effect of releasing the Seller from any of its obligations under any
Hedging Agreement or any Hedge Transaction, nor be construed as requiring the consent of the
Administrative Agent or any Secured Party for the performance by Seller of any such obligations.

     Section 5.4 Affirmative Covenants of the Servicer.

     From the date hereof until the Collection Date:

     (a) Compliance with Law. The Servicer will comply in all material respects with all
Applicable Laws, including those with respect to the Collateral or any part thereof.

     (b) Preservation of Company Existence. The Servicer will preserve and maintain its
company existence, rights, franchises and privileges in the jurisdiction of its formation, and
qualify and remain qualified in good standing as a limited liability company in each jurisdiction
where the failure to preserve and maintain such existence, rights, franchises, privileges and
qualification has had, or could reasonably be expected to have, a Material Adverse Effect.

     (c) Obligations and Compliance with Collateral. The Servicer will duly fulfill and
comply with all obligations on the part of the Seller to be fulfilled or complied with under or in

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connection with each Collateral and will do nothing to impair the rights of the Administrative
Agent, as agent for the Secured Parties, or of the Secured Parties in, to and under the Collateral.

     (d) Keeping of Records and Books of Account.

     (i) The Servicer will maintain and implement administrative and operating procedures
(including without limitation, an ability to recreate records evidencing Collateral in the
event of the destruction of the originals thereof), and keep and maintain all documents,
books, records and other information reasonably necessary or advisable for the collection of
all Collateral and the identification of the Collateral.

     (ii) The Servicer shall permit the Administrative Agent or its agents or
representatives, to visit the offices of the Servicer during normal office hours and upon
reasonable notice and examine and make copies of all documents, books, records and other
information concerning the Collateral and discuss matters related thereto with any of the
officers or employees of the Servicer having knowledge of such matters.

     (iii) The Servicer will on or prior to the date hereof, mark its master data processing
records and other books and records relating to the Collateral with a legend, acceptable to
the Administrative Agent, describing the sale of the Collateral (A) from the Originator to
the Seller, and (B) from the Seller to the Purchasers.

     (e) Preservation of Security Interest. The Servicer (at its own expense) will execute
and file such financing and continuation statements and any other documents that may be required by
any law or regulation of any Governmental Authority to preserve and protect fully the security
interest of the Administrative Agent as agent for the Secured Parties in, to and under the
Collateral.

     (f) Credit and Collection Policy. The Servicer will (i) comply in all material
respects with the Credit and Collection Policy in regard to the Collateral, and (ii) furnish to the
Administrative Agent, prior to its effective date, prompt notice of any proposed material change in
the Credit and Collection Policy. The Servicer may agree to or otherwise permit to occur changes
in Credit and Collection Policy which would not impair the collectibility of any of the Collateral
or otherwise adversely affect the interests or remedies of the Administrative Agent or the Secured
Parties under this Agreement or any other Transaction Document. The Servicer may not agree to or
otherwise permit to occur changes in the Credit and Collection Policy which would impair the
collectibility of any of the Collateral or otherwise adversely affect the interests or remedies of
the Administrative Agent or the Secured Parties under this Agreement or any other Transaction
Document, without the prior written consent of the Administrative Agent.

     (g) Termination Events. The Servicer will provide the Administrative Agent with
immediate written notice of the occurrence of each Termination Event and each Unmatured Termination
Event of which the Servicer has knowledge or has received notice. In addition, no later than two
Business Days following the Servicer’s knowledge or notice of the occurrence of any Termination
Event or Unmatured Termination Event, the Servicer will provide to the Administrative Agent a
written statement of the chief financial officer or chief accounting officer

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of the Servicer setting forth the details of such event and the action that the Servicer
proposes to take with respect thereto.

     (h) Taxes. The Servicer will file and pay any and all Taxes required to meet the
obligations of the Seller and the Servicer under the Transaction Documents.

     (i) Other. The Servicer will promptly furnish to the Administrative Agent such other
information, documents, records or reports respecting the Collateral or the condition or
operations, financial or otherwise, of the Seller or the Servicer as the Administrative Agent may
from time to time reasonably request in order to protect the interests of the Administrative Agent
or Secured Parties under or as contemplated by this Agreement.

     (j) Proceedings. As soon as possible and in any event within three Business Days
after any executive officer of the Servicer receives notice or obtains knowledge thereof, of any
settlement of, material judgment (including a material judgment with respect to the liability phase
of a bifurcated trial) in or commencement of any material labor controversy, material litigation,
material action, material suit or material proceeding before any court or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, affecting the
Collateral, the Transaction Documents, the Secured Parties’ interest in the Collateral, or the
Seller, the Servicer or the Originator or any other Subsidiary of CapitalSource Inc.; provided that
notwithstanding the foregoing, any settlement, judgment, labor controversy, litigation, action,
suit or proceeding affecting the Collateral, the Transaction Documents, the Secured Parties’
interest in the Collateral, or the Seller, the Servicer or the Originator or any other Subsidiary
of CapitalSource Inc. in excess of $2,500,000 or more shall be deemed to be material for purposes
of this Section 5.4(j).

     (k) Deposit of Collections. The Servicer shall promptly (but in no event later than
two Business Days after receipt) deposit into the Collection Account any and all Collections
received by the Seller, the Servicer or any of their Affiliates.

     (l) Servicing of Participation, Acquired and Assigned Loans. With respect to
Participation Loans, Acquired Loans and Assigned Loans, the Servicer shall: (i) segregate all Loan
Files with respect to such Loans; (ii) keep separate records with respect to such Loans; and (iii)
identify each such Type of Loan on the Servicing Reports required hereunder with respect to such
Loans.

     (m) Change-in-Control. Upon the occurrence of a Change-in-Control, the Servicer shall
provide the Administrative Agent and the Hedge Counterparties with notice of such Change-in-Control
within 30 days after completion of the same.

     (n) Loan Register.

     (i) The Servicer shall maintain with respect to each Noteless Loan a register (each, a
“Loan Register”) in which it will record (v) the amount of such Loan, (w) the amount of any
principal or interest due and payable or to become due and payable from the Obligor
thereunder, (x) the amount of any sum in respect of such Loan received from the Obligor and
each Purchaser’s share thereof, (y) the date of origination of such Loan and (z) the
maturity date of such Loan. The entries made in each Loan Register

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maintained pursuant to this Section 5.04(n) shall be prima facie evidence of
the existence and amounts of the obligations therein recorded; provided that the failure of
the Servicer to maintain any such Loan Register or any error therein shall not in any manner
affect the obligations of the Obligor to repay the related Loans in accordance with their
terms or any Purchaser’s interest therein.

     (ii) At any time a Noteless Loan is included as part of the Collateral pursuant to this
Agreement, the Servicer shall deliver to the Collateral Custodian a copy of the related Loan
Register, together with a certificate of a Responsible Officer of the Servicer certifying to
the accuracy of such Loan Register as of the date such Loan is included as part of the
Collateral.

     Section 5.5 Negative Covenants of the Servicer.

     From the date hereof until the Collection Date.

     (a) Deposits to Special Accounts. Except as otherwise provided in the Lock-Box
Agreement, the Servicer will not deposit or otherwise credit, or cause or permit to be so deposited
or credited, to any Lock-Box Account cash or cash proceeds other than Collections in respect of the
Collateral.

     (b) Mergers, Acquisition, Sales, etc. The Servicer will not consolidate with or merge
into any other Person or convey or transfer its properties and assets substantially as an entirety
to any Person, unless the Servicer is the surviving entity and unless:

     (i) the Servicer has delivered to the Administrative Agent an Officer’s Certificate and
an Opinion of Counsel each stating that any consolidation, merger, conveyance or transfer
complies with this Section 5.5 and that all conditions precedent herein provided for
relating to such transaction have been complied with and, in the case of the Opinion of
Counsel, is legal, valid and binding with respect to the Servicer and such other matters as
the Administrative Agent may reasonably request;

     (ii) the Servicer shall have delivered notice of such consolidation, merger, conveyance
or transfer to the Administrative Agent;

     (iii) after giving effect thereto, no Termination Event or Servicer Default or event
that with notice or lapse of time would constitute either a Termination Event or a Servicer
Default shall have occurred; and

     (iv) the Administrative Agent has consented in writing to such consolidation, merger,
conveyance or transfer.

     (c) Change of Name or Location of Loan Files. The Servicer shall not (x) change its
name, move the location of its principal place of business and chief executive office, change the
offices where it keeps records concerning the Collateral from the location referred to in
Section 13.2, or change the jurisdiction of its formation, or (y) move, or consent to the
Collateral Custodian moving, the Required Asset Documents and Asset Files from the location thereof
on the Closing Date, unless the Servicer has given at least 30 days’ written notice to the

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Administrative Agent and has taken all actions required under the UCC of each relevant
jurisdiction in order to continue the first priority perfected security interest of the
Administrative Agent as agent for the Secured Parties in the Collateral.

     (d) Change in Payment Instructions to Obligors. The Servicer will not add or
terminate any bank as a Lock-Box Bank or any Lock-Box Account from those listed in Schedule
II or make any change in its instructions to Obligors regarding payments to be made to the
Seller or the Servicer or payments to be made to any Lock-Box Bank, unless the Administrative Agent
has consented to such addition, termination or change (which consent shall not be unreasonably
withheld) and has received duly executed copies of Lock-Box Agreements with each new Lock-Box Bank
or with respect to each new Lock-Box Account, as the case may be.

     (e) Extension or Amendment of Assets. The Servicer will not, except as otherwise
permitted in Section 6.4(a), extend, amend or otherwise modify the terms of any Assets;
provided that no waiver, extension, modification or alteration otherwise permitted under
Section 6.4(a) shall (i) alter the status of any Asset as a Delinquent Asset or Charged-Off
Asset, (ii) in the reasonable judgment of the Administrative Agent, prevent or delay any Asset from
becoming a Delinquent Asset or Charged-Off Asset, or (iii) limit and/or impair the rights of the
Administrative Agent or the Secured Parties under this Agreement.

     Section 5.6 Affirmative Covenants of the Backup Servicer.

     From the date hereof until the Collection Date:

     (a) Compliance with Law. The Backup Servicer will comply in all material respects
with all Applicable Laws.

     (b) Preservation of Existence. The Backup Servicer will preserve and maintain its
existence, rights, franchises and privileges in the jurisdiction of its formation, and qualify and
remain qualified in good standing in each jurisdiction where the failure to preserve and maintain
such existence, rights, franchises, privileges and qualification has had, or could reasonably be
expected to have, a Material Adverse Effect.

     Section 5.7 Negative Covenants of the Backup Servicer.

     From the date hereof until the Collection Date:

     No Changes in Backup Servicer Fee. The Backup Servicer will not make any changes to
the Backup Servicer Fee set forth in the Backup Servicer and Collateral Custodian Fee Letter
without the prior written approval of the Administrative Agent.

     Section 5.8 Affirmative Covenants of the Collateral Custodian.

     From the date hereof until the Collection Date:

     (a) Compliance with Law. The Collateral Custodian will comply in all material
respects with all Applicable Laws.

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     (b) Preservation of Existence. The Collateral Custodian will preserve and maintain
its existence, rights, franchises and privileges in the jurisdiction of its formation and qualify
and remain qualified in good standing in each jurisdiction where failure to preserve and maintain
such existence, rights, franchises, privileges and qualification has had, or could reasonably be
expected to have, a Material Adverse Effect.

     (c) Location of Required Asset Documents. The Required Asset Documents shall remain
at all times in the possession of the Collateral Custodian at the address set forth herein unless
notice of a different address is given in accordance with the terms hereof or unless the
Administrative Agent agrees to allow certain Required Asset Documents to be released to the
Servicer on a temporary basis in accordance with the terms hereof.

     Section 5.9 Negative Covenants of the Collateral Custodian.

     From the date hereof until the Collection Date:

     (a) Required Asset Documents. The Collateral Custodian will not dispose of any
documents constituting the Required Asset Documents in any manner that is inconsistent with the
performance of its obligations as the Collateral Custodian pursuant to this Agreement and will not
dispose of any Collateral except as contemplated by this Agreement.

     (b) No Changes in Collateral Custodian Fee. The Collateral Custodian will not make
any changes to the Collateral Custodian Fee set forth in the Backup Servicer and Collateral
Custodian Fee Letter without the prior written approval of the Administrative Agent.

     Section 5.10 Covenant of the Seller, the Servicer and the Originator.

     Until the Collection Date, each of the Seller, the Servicer and the Originator will, at their
respective expense, during regular business hours upon reasonable prior notice as requested by the
Administrative Agent (provided that such requests will be limited to two times per year absent an
Event of Default), permit the Administrative Agent or its agents or representatives (such as
independent audit and consulting firms specializing in securitization transactions) two times per
year (provided that if a Termination Event shall have occurred there shall be no such limitation),
(i) to conduct periodic audits of the Assets and the related books and records and collections
systems of the Seller, the Servicer or the Originator, as the case may be, (ii) to examine and make
copies of and abstracts from all books, records and documents (including, without limitation,
computer tapes and disks) in the possession or under the control of the Seller, the Servicer or the
Originator, as the case may be, relating to Assets, and (iii) to visit the offices and properties
of the Seller, the Servicer or the Originator, as the case may be, for the purpose of examining
such materials described in clause (ii) above, and to discuss matters relating to Assets or the
Seller’s, the Servicer’s or the Originator’s performance under the Transaction Documents with any
of the officers or employees of the Seller, the Servicer or the Originator, as the case may be,
having knowledge of such matters.

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ARTICLE VI

ADMINISTRATION AND SERVICING OF ASSETS

     Section 6.1 Designation of the Servicer.

     (a) Initial Servicer. The servicing, administering and collection of the Collateral
shall be conducted by the Person designated as the Servicer hereunder from time to time in
accordance with this Section 6.1. Until the Administrative Agent gives to the Originator a
Servicer Termination Notice, the Originator is hereby designated as, and hereby agrees to perform
the duties and responsibilities of, the Servicer pursuant to the terms hereof.

     (b) Successor Servicer. Upon the Servicer’s receipt of a Servicer Termination Notice
(with a copy to the Backup Servicer) from the Administrative Agent pursuant to the terms of
Section 6.15, the Servicer agrees that it will terminate its activities as Servicer
hereunder in a manner that the Administrative Agent reasonably believes will facilitate the
transition of the performance of such activities to a successor Servicer, and the successor
Servicer shall assume each and all of the Servicer’s obligations to service and administer the
Collateral, on the terms and subject to the conditions herein set forth, and the Servicer shall use
its best reasonable efforts to assist the successor Servicer in assuming such obligations.

     (c) Subcontracts. The Servicer may, with the prior consent of the Administrative
Agent, subcontract with any other Person for servicing, administering or collecting the Collateral;
provided that the Servicer shall remain liable for the performance of the duties and obligations of
the Servicer pursuant to the terms hereof and that any such subcontract may be terminated upon the
occurrence of a Servicer Default.

     (d) Servicing Programs. In the event that the Servicer uses any software program in
servicing the Collateral that it licenses from a third party, the Servicer shall use its best
reasonable efforts to obtain, either before the Closing Date or as soon as possible thereafter,
whatever licenses or approvals are necessary to allow the Administrative Agent or the Backup
Servicer to use such program.

     Section 6.2 Duties of the Servicer.

     (a) Appointment. The Seller hereby appoints the Servicer as its agent, as from time
to time designated pursuant to Section 6.1, to service the Collateral and enforce its
respective rights in and under such Collateral. The Servicer hereby accepts such appointment and
agrees to perform the duties and obligations with respect thereto as set forth herein. The
Servicer and the Seller hereby acknowledge that the Administrative Agent and the Secured Parties
are third party beneficiaries of the obligations undertaken by the Servicer hereunder.

     (b) Duties. The Servicer shall take or cause to be taken all such actions as may be
necessary or advisable to collect on the Collateral from time to time, all in accordance with
Applicable Laws, with reasonable care and diligence, and in accordance with the Credit and
Collection Policy. Without limiting the foregoing, the duties of the Servicer shall include the
following:

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     (i) preparing and submitting of claims to, and post-billing liaison with, Obligors on
each Asset;

     (ii) maintaining all necessary servicing records with respect to the Collateral and
providing such reports to the Administrative Agent in respect of the servicing of the
Collateral (including information relating to its performance under this Agreement) as may
be required hereunder or as the Administrative Agent may reasonably request;

     (iii) maintaining and implementing administrative and operating procedures (including,
without limitation, an ability to recreate servicing records evidencing the Collateral in
the event of the destruction of the originals thereof) and keeping and maintaining all
documents, books, records and other information reasonably necessary or advisable for the
collection of the Collateral;

     (iv) promptly delivering to the Administrative Agent or the Collateral Custodian, from
time to time, such information and servicing records (including information relating to its
performance under this Agreement) as the Administrative Agent or the Collateral Custodian
may from time to time reasonably request;

     (v) identifying each Asset clearly and unambiguously in its servicing records to
reflect that such Asset is owned by the Seller and that the Seller is selling an undivided
ownership interest therein to the Secured Parties pursuant to this Agreement;

     (vi) notifying the Administrative Agent of any material action, suit, proceeding,
dispute, offset, deduction, defense or counterclaim (1) that is or is threatened to be
asserted by an Obligor with respect to any Asset (or portion thereof) of which it has
knowledge or has received notice; or (2) that is reasonably expected to have a Material
Adverse Effect;

     (vii) notifying the Administrative Agent of any proposed change in the Credit and
Collection Policy that could have an adverse effect on the collectibility of the Collateral,
on the Seller or on the interests of the Administrative Agent or any Secured Party;

     (viii) using its reasonable best efforts to maintain the perfected security interest of
the Administrative Agent, as agent for the Secured Parties, in the Collateral;

     (ix) maintaining in the same manner as the Collateral Custodian holds the Required
Asset Documents, the Asset File (other than Required Asset Documents) with respect to each
Asset included as part of the Collateral; and

     (x) the Servicer shall make payments pursuant to the terms of the Monthly Report in
accordance with Section 2.9 and Section 2.10.

     (c) Hedge Covenants.

     (i) As of the initial Payment Date and thereafter, so long as any of the VFCs are
outstanding, if on any date either:

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     (1) the then current Aggregate Notional Amount of all Hedge Transactions (excluding
any interest rate cap transactions) hedging the Prime Rate Assets (i) is less than the
aggregate amount of the Advances Outstanding of such Prime Rate Assets or (ii) is greater
than the amount specified in clause (i) above by more than the Floating Prime Rate
Permitted Excess Amount; or

     (2) the Aggregate Notional Amount for any future calculation period of all Hedge
Transactions (excluding any interest rate cap transactions) hedging the Prime Rate Assets
(i) is less than the projected aggregate amount of the Advances Outstanding of the Prime
Rate Assets for the corresponding Collection Period or (ii) is greater than the amount
specified in clause (i) above by more than the Floating Prime Rate Permitted
Excess Amount;

then, not later than 1:00 p.m. (New York City time) on the Determination Date preceding the next
Payment Date, the Servicer will notify the Administrative Agent, the Hedge Counterparties and the
Rating Agencies of such event and, with effect on such next Payment Date, one or more of the Hedge
Transactions hedging the Prime Rate Assets will be reduced or amended, or the Seller will enter
into one or more additional Hedge Transactions, as the case may be, in accordance with the terms of
the applicable Hedge Agreements so that, as applicable, the Aggregate Notional Amount for each
calculation period of the Hedge Transactions hedging the Prime Rate Assets will be equal to the
aggregate amount of the Advances Outstanding of the Prime Rate Assets at the end of the
corresponding Collection Period or as projected to be outstanding at the end of the corresponding
Collection Period,

     (ii) So long as any of the VFCs are outstanding, if on any date either:

     (1) the then current Aggregate Notional Amount of all Hedge Transactions under all
Hedge Agreements then in effect (excluding any interest rate cap transactions) exceeds the
then Aggregate Outstanding Asset Balance; or

     (2) the Aggregate Notional Amount of all Hedge Transactions (excluding any interest
rate cap transactions) for any future calculation period under all Hedge Agreements then
in effect exceeds the projected Aggregate Outstanding Asset Balance for the corresponding
Collection Period;

then, not later than 1:00 p.m. (New York City time) on the Determination Date preceding the next
Payment Date, the Servicer will notify the Administrative Agent, the Hedge Counterparties and the
Rating Agencies of such event and, with effect on such next Payment Date, one or more of the Hedge
Transactions will be reduced or amended in accordance with the terms of the applicable Hedge
Agreements so that the Aggregate Notional Amount of the Hedge Transactions for any future
calculation period will not exceed the Aggregate Outstanding Asset Balance for the corresponding
Collection Period.

     (d) Notwithstanding anything to the contrary contained herein, the exercise by the
Administrative Agent and the Secured Parties of their rights hereunder shall not release the
Servicer, the Originator or the Seller from any of their duties or responsibilities with respect to
the Collateral. The Secured Parties, the Administrative Agent and the Collateral Custodian

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(except in the role of Backup Servicer) shall not have any obligation or liability with
respect to any Collateral, nor shall any of them be obligated to perform any of the obligations of
the Servicer hereunder.

     (e) Any payment by an Obligor in respect of any Indebtedness owed by it to the Originator or
the Seller shall, except as otherwise specified by such Obligor or otherwise required by contract
or Applicable Law and unless otherwise instructed by the Administrative Agent, be applied as a
Collection of an item of Collateral of such Obligor (starting with the oldest such Collateral) to
the extent of any amounts then due and payable thereunder before being applied to any other
receivable or other obligation of such Obligor.

     Section 6.3 Authorization of the Servicer.

     (a) Each of the Seller, the Administrative Agent, each Purchaser and each Hedge Counterparty
hereby authorizes the Servicer (including any successor thereto) to take any and all reasonable
steps in its name and on its behalf necessary or desirable and not inconsistent with the sale of
the Collateral to the Purchasers and each Hedge Counterparty, in the determination of the Servicer,
to collect all amounts due under any and all Collateral, including, without limitation, endorsing
any of their names on checks and other instruments representing Collections, executing and
delivering any and all instruments of satisfaction or cancellation, or of partial or full release
or discharge, and all other comparable instruments, with respect to the Collateral and, after the
delinquency of any Collateral and to the extent permitted under and in compliance with Applicable
Law, to commence proceedings with respect to enforcing payment thereof, to the same extent as the
Originator could have done if it had continued to own such Collateral. The Originator, the Seller
and the Administrative Agent on behalf of the Secured Parties and each Hedge Counterparty shall
furnish the Servicer (and any successors thereto) with any powers of attorney and other documents
necessary or appropriate to enable the Servicer to carry out its servicing and administrative
duties hereunder, and shall cooperate with the Servicer to the fullest extent in order to ensure
the collectibility of the Collateral. In no event shall the Servicer be entitled to make the
Secured Parties, any Hedge Counterparty, the Collateral Custodian, the Administrative Agent a party
to any litigation without such party’s express prior written consent, or to make the Seller a party
to any litigation (other than any routine foreclosure or similar collection procedure) without the
Administrative Agent’s consent.

     (b) After a Termination Event has occurred and is continuing, at the direction the
Administrative Agent, the Servicer shall take such action as the Administrative Agent may deem
necessary or advisable to enforce collection of the Collateral; provided that the Administrative
Agent may, at any time that a Termination Event or Unmatured Termination Event has occurred and is
continuing, notify any Obligor with respect to any Collateral of the assignment of such Collateral
to the Administrative Agent and direct that payments of all amounts due or to become due be made
directly to the Administrative Agent or any servicer, collection agent or lock-box or other account
designated by the Administrative Agent and, upon such notification and at the expense of the
Seller, the Administrative Agent may enforce collection of any such Collateral, and adjust, settle
or compromise the amount or payment thereof.

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     Section 6.4 Collection of Payments.

     (a) Collection Efforts, Modification of Collateral. The Servicer will use its
reasonable best efforts to collect all payments called for under the terms and provisions of the
Assets included in the Collateral as and when the same become due in accordance with the Credit and
Collection Policy, and will follow those collection procedures that it follows with respect to all
comparable Collateral that it services for itself or others. The Servicer may not waive, modify or
otherwise vary any provision of an item of Collateral in a manner that, in its reasonable judgment,
would impair the collectibility of the Collateral or in any manner contrary to the Credit and
Collection Policy. The Servicer may otherwise amend or modify the underlying documents related to
any item of Collateral in compliance with the Credit and Collection Policy.

     (b) Prepaid Asset. Prior to a Termination Event, upon any Asset becoming a Prepaid
Asset, the Servicer shall either (x) provide a Substitute Asset in accordance with Section
2.18 or (y) deposit to the Collection Account (in addition to all amounts received from the
related Obligor upon the prepayment of such Asset) an amount equal to the excess, if any, of the
sum of (a) the Outstanding Asset Balance on the date of such payment, (b) any outstanding Servicer
Advances thereon, (c) any accrued and unpaid interest, and (d) all Hedge Breakage Costs owing to
the relevant Hedge Counterparty for any termination of one or more Hedge Transactions, in whole or
in part, as required by the terms of any Hedging Agreement as the result of any such Asset becoming
a Prepaid Asset, over the amount received from the related Obligor upon such prepayment
(such excess, the “Prepayment Amount”), in each case, only to the extent necessary to cause the
Availability as of such date (after giving effect to such substitution or deposit, as applicable)
to be greater than or equal to zero. After a Termination Event has occurred, upon any Asset
becoming a Prepaid Asset, the Servicer shall deposit to the Collection Account all amounts received
from the related Obligor upon the prepayment of such Asset plus the Prepayment Amount, if any.

     (c) Acceleration. If required by the Credit and Collection Policy, the Servicer shall
accelerate the maturity of all or any Scheduled Payments and other amounts due under any Asset in
which a default under the terms thereof has occurred and is continuing (after the lapse of any
applicable grace period) promptly after such Asset becomes a Charged-Off Asset.

     (d) Taxes and other Amounts. To the extent provided for in any Asset, the Servicer
will use its reasonable best efforts to collect all payments with respect to amounts due for taxes,
assessments and insurance premiums relating to such Asset and remit such amounts to the appropriate
Governmental Authority or insurer on or prior to the date such payments are due.

     (e) Payments to Lock-Box Account. Subject to Section 5.1(p), on or before the
applicable Cut-Off Date, the Servicer shall have instructed all Obligors to make all payments in
respect of the Collateral to the Lock-Box or directly to the Lock-Box Account.

     (f) Establishment of the Collection Account. The Servicer shall cause to be
established, on or before the Closing Date, with the Collateral Custodian, and maintained in the
name of the Administrative Agent as agent for the Secured Parties, with an office or branch of a
depository institution or trust company a segregated corporate trust account entitled Collection

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Account for Citicorp North America, Inc., as Administrative Agent for the Secured Parties (the
“Collection Account”), and the Servicer shall further maintain a subaccount within the Collection
Account for the purpose of segregating, within two Business Days of the receipt of any Collections,
Principal Collections (the “Principal Collections Account”), over which the Collateral Custodian as
agent for the Secured Parties shall have control and from which neither the Originator, Servicer
nor the Seller shall have any right of withdrawal except in accordance with Section 2.9(b);
provided that at all times such depository institution or trust company shall be acceptable to the
Administrative Agent and a depository institution organized under the laws of the United States of
America 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 of “A” or better by
S&P and “A2” or better by Moody’s or (2) a short-term unsecured debt rating or certificate of
deposit rating of “A-1” or better by S&P or “P-1” or better by Moody’s, (b) the parent corporation
of which has either (1) a long-term unsecured debt rating of “A” or better by S&P and “A2” or
better by Moody’s or (2) a short-term unsecured debt rating or certificate of deposit rating of
“A-1” or better by S&P and “P-1” or better by Moody’s or (c) is otherwise acceptable to the
Administrative Agent and (ii) whose deposits are insured by the Federal Deposit Insurance
Corporation (any such depository institution or trust company, a “Qualified Institution”).

     (g) Establishment of the Reserve Account. The Seller or the Servicer on its behalf
shall establish, on or before the Closing Date, with the Collateral Custodian, and cause to be
maintained in the name of the Seller and assigned to the Administrative Agent, with a Qualified
Institution an account into which all amounts payable pursuant to Section 2.9(a)(7) of this
Agreement shall be deposited (the “Reserve Account”).

     (h) Intentionally Omitted.

     (i) Adjustments. If (i) the Servicer makes a deposit into the Collection Account in
respect of a Collection of an item of Collateral and such Collection 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 6.5 Servicer Advances.

     For each Collection Period, if the Servicer determines that any Scheduled Payment (or portion
thereof) that was due and payable pursuant to an Asset during such Collection Period was not
received prior to the last day of such Collection Period, the Servicer may (in its sole and
absolute discretion) make an advance in an amount up to the amount of such delinquent Scheduled
Payment. The Servicer will deposit any Servicer Advances into the Collection Account on or prior
to 9:00 a.m. (New York City, New York time) on the Business Day prior to the related Payment Date,
in immediately available funds. Notwithstanding anything to the contrary contained herein, no
Successor Servicer shall have any responsibility to make Servicer Advances.

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     Section 6.6 Realization Upon Charged-Off Assets.

     The Servicer will use reasonable efforts to repossess or otherwise comparably convert the
ownership of any Related Property relating to a Charged-Off Asset and will act as sales and
processing agent for Related Property that it repossesses. 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 contracts and other actions by the Servicer in order to realize upon such Related
Property, which practices and procedures may include reasonable efforts to enforce all obligations
of Obligors and repossessing and selling such Related Property at public or private sale in
circumstances other than those described in the preceding sentence. Without limiting the
generality of the foregoing, unless the Administrative Agent has specifically given instruction to
the contrary, the Servicer may sell any such Related Property to the Servicer or its Affiliates for
a purchase price equal to the then fair market value thereof, any such sale to be evidenced by a
certificate of a Responsible Officer of the Servicer delivered to the Administrative Agent setting
forth the Asset, the Related Property, the sale price of the Related Property and certifying that
such sale price is the fair market value of such Related Property. In any case in which any such
Related Property has suffered damage, the Servicer will not expend funds in connection with any
repair or toward the repossession of such Related Property unless it reasonably determines that
such repair and/or repossession will increase the Recoveries by an amount greater than the amount
of such expenses. The Servicer will remit to the Collection Account the Recoveries received in
connection with the sale or disposition of Related Property relating to a Charged-Off Asset.

     Section 6.7 Maintenance of Insurance Policies.

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

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that it is acting solely in the capacity as agent for the Administrative Agent, as agent for
the Secured Parties.

     Section 6.8 Servicing Compensation.

     As compensation for its servicing activities hereunder and reimbursement for its expenses, the
Servicer shall be entitled to receive the Servicing Fee to the extent of funds available therefor
pursuant to the provisions of Section 2.9(a)(3) or Section 2.10(a)(3), as
applicable.

     Section 6.9 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 of independent accountants, 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 for the
account of the Seller, but excluding Liquidation Expenses incurred as a result of activities
contemplated by Section 6.6; provided that for avoidance of doubt, to the extent
Liquidation Expenses relate to a Loan and a Retained Interest such Liquidation Expenses shall be
allocated pro rata. The Servicer will be required to pay all reasonable fees and expenses owing to
any bank or trust company in connection with the maintenance of the Collection Account and the
Lock-Box Account. The Servicer shall be required to pay such expenses for its own account and
shall not be entitled to any payment therefor other than the Servicing Fee.

     Section 6.10 Reports.

     (a) Borrowing Notice. On each Funding Date, on each reduction of Advances Outstanding
pursuant to Section 2.4(b) and on each reinvestment of Principal Collections pursuant to
Section 2.9(b), the Seller (and the Servicer on its behalf) will provide a Borrowing
Notice, updated as of such date, to the Administrative Agent (with a copy to the Collateral
Custodian).

     (b) Monthly Report. On each Reporting Date, the Servicer will provide to the Seller,
the Administrative Agent, the Backup Servicer and the Liquidity Banks, a monthly statement
including a Borrowing Base calculated as of the most recent Determination Date, with respect to the
related Collection Period signed by a Responsible Officer of the Servicer and the Seller and
substantially in the form of Exhibit C (a “Monthly Report”).

     (c) Servicer’s Certificate. Together with each Monthly Report, the Servicer shall
submit to the Administrative Agent and the Liquidity Banks a certificate (a “Servicer’s
Certificate”), signed by a Responsible Officer of the Servicer and substantially in the form of
Exhibit J.

     (d) Financial Statements. The Servicer will submit to the Administrative Agent, each
Purchaser, the Backup Servicer and each Liquidity Bank, (i) within 45 days after the end of each of
its first three fiscal quarters, commencing with the fiscal quarter ending September 30, 2007, a
copy of the quarterly report on Form 10-Q of CapitalSource Inc. for the most recent fiscal quarter
and unaudited consolidating statements, and (ii) within 90 days after the end of each

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fiscal year, commencing with the fiscal year ending December 31, 2007, a copy of the annual
report on Form 10-K of CapitalSource Inc., in each case in the form as filed with the Securities
and Exchange Commission and unaudited consolidating statements.

     (e) Tax Returns. Upon demand by the Administrative Agent or any Liquidity Bank,
copies of all federal, state and local Tax returns and reports filed by the Seller and Servicer, or
in which the Seller or Servicer was included on a consolidated or combined basis (excluding sales,
use and like taxes).

     (f) Financial Statements of Obligors. Upon demand by the Administrative Agent or any
Liquidity Bank, the Servicer will provide to such party the financial statements of any Obligor.

     (g) Other Reports. The Servicer will provide any other reports requested by the
Administrative Agent and reasonably acceptable to the Originator.

     Section 6.11 Annual Statement as to Compliance.

     The Servicer will provide to the Administrative Agent, within 90 days following the end of
each fiscal year of the Servicer, commencing with the fiscal year ending on December 31, 2007, a
fiscal report signed by a Responsible Officer of the Servicer certifying that (a) a review of the
activities of the Servicer, and the Servicer’s performance pursuant to this Agreement, for the
fiscal period ending on the last day of such fiscal year has been made under such Person’s
supervision and (b) the Servicer has performed or has caused to be performed in all material
respects all of its obligations under this Agreement throughout such year and no Servicer Default
has occurred and is continuing.

     Section 6.12 Annual Independent Public Accountant’s Servicing Reports.

     The Servicer will cause a firm of nationally recognized independent public accountants (who
may also render other services to the Servicer) to furnish to the Administrative Agent, the
Collateral Custodian and the Backup Servicer, within 90 days following the end of each fiscal year
of the Servicer, commencing with the fiscal year ending on December 31, 2007: (i) a report
relating to such fiscal year to the effect that (a) such firm has reviewed certain documents and
records relating to the servicing of the Collateral, and (b) based on such examination, such firm
is of the opinion that the Monthly Reports for such year were prepared in compliance with this
Agreement, except for such exceptions as it believes to be immaterial and such other exceptions as
will be set forth in such firm’s report and (ii) a report covering such fiscal year to the effect
that such accountants have applied certain agreed-upon procedures (which procedures shall have been
approved by the Administrative Agent) to certain documents and records relating to the Collateral
under any Transaction Document, compared the information contained in the Monthly Reports and the
Servicer’s Certificates delivered during the period covered by such report with such documents and
records and that no matters came to the attention of such accountants that caused them to believe
that such servicing was not conducted in compliance with this Article VI, except for such
exceptions as such accountants shall believe to be immaterial and such other exception as shall be
set forth in such statement.

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     Section 6.13 Limitation on Liability of the Servicer and Others

     Except as provided herein, the Servicer shall not be under any liability to the Administrative
Agent, the Secured Parties or any other Person for any action taken or for refraining from the
taking of any action pursuant to this Agreement whether arising from express or implied duties
under this Agreement; provided that notwithstanding anything to the contrary contained herein
nothing shall protect the Servicer against any liability that would otherwise be imposed by reason
of its willful misfeasance, bad faith or negligence in the performance of duties or by reason of
its willful misconduct hereunder.

     Section 6.14 The Servicer Not to Resign.

     The Servicer shall not resign from the obligations and duties hereby imposed on it except upon
the Servicer’s determination that (i) the performance of its duties hereunder is or becomes
impermissible under Applicable Law and (ii) there is no reasonable action that the Servicer could
take to make the performance of its duties hereunder permissible under Applicable Law. Any such
determination permitting the resignation of the Servicer shall be evidenced as to clause (i) above
by an Opinion of Counsel to such effect delivered to the Administrative Agent and the Backup
Servicer. No such resignation shall become effective until a Successor Servicer shall have assumed
the responsibilities and obligations of the Servicer in accordance with Section 6.2.

     Section 6.15 Servicer Defaults.

     If any one of the following events (a “Servicer Default”) shall occur and be continuing:

     (a) any failure by the Servicer to make any payment, transfer or deposit (including without
limitation with respect to Collections) as required by this Agreement on the date such payment,
transfer or deposit is required to be made;

     (b) any failure by the Servicer to give instructions or notice to the Administrative Agent as
required by this Agreement, or to deliver any required Monthly Report or other Required Reports
hereunder on or before the date occurring two Business Days after the date such instruction, notice
or report is required to be made or given, as the case may be, under the terms of this Agreement;

     (c) any failure on the part of the Servicer duly to observe or perform in any material respect
any other covenants or agreements of the Servicer set forth in this Agreement or the other
Transaction Documents to which the Servicer is a party and the same continues unremedied for a
period of 10 days after the earlier 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
Administrative Agent and (ii) the date on which the Servicer becomes aware thereof;

     (d) any representation, warranty or certification made by the Servicer in any Transaction
Document or in any certificate delivered pursuant to any Transaction Document shall prove to have
been incorrect in any material respect when made, and which (if capable of being cured without any
adverse impact on the Purchasers or the collectibility of the Assets) continues to be unremedied
for a period of 10 days after the earlier to occur of (i) the date on which written notice of such
incorrectness requiring the same to be remedied shall have been

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given to the Servicer by the Administrative Agent and (ii) the date on which the Servicer
becomes aware thereof;

     (e) an Insolvency Event shall occur with respect to the Servicer;

     (f) any material delegation of the Servicer’s duties that is not permitted by Section
6.1;

     (g) any financial or other information reasonably requested by the Administrative Agent or any
Purchaser is not provided as requested within a reasonable amount of time following such request;

     (h) the rendering against the Servicer of one or more final judgments, decrees or orders for
the payment of money in excess of $10,000,000, individually or in the aggregate, and the
continuance of such judgment, decree or order unsatisfied and in effect for any period of more than
60 consecutive days without a stay of execution;

     (i) the failure of the Servicer to make any payment due with respect to any recourse debt or
other obligations, which debt or other obligations are in excess of $10,000,000, individually or in
the aggregate, or the occurrence of any event or condition that would at such time permit
acceleration of such recourse debt or other obligations;

     (j) CapitalSource Inc.’s Consolidated Tangible Net Worth is less than (i) $2,000,000,000 plus
(ii) 70% of the cumulative Net Proceeds of Capital Stock/Conversion of Debt received at any time
after December 31, 2006;

     (k) [Reserved];

     (l) the Servicer fails in any material respect to comply with the Credit and Collection Policy
regarding the servicing of the Collateral; or

     (m) the Servicer consents or agrees to, or otherwise permits to occur, any amendment,
modification, change, supplement or rescission of or to the Credit and Collection Policy (after the
adoption of same) in whole or in part that could be reasonably expected to have a Material Adverse
Effect upon the Collateral, the Administrative Agent or the Secured Parties, without the prior
written consent of the Administrative Agent.

then notwithstanding anything herein to the contrary, so long as any such Servicer Default shall
not have been remedied within any applicable cure period prior to the date of the Servicer
Termination Notice (defined below), the Administrative Agent, by written notice to the Servicer
(with a copy to the Backup Servicer) (a “Servicer Termination Notice”), may terminate all of the
rights and obligations of the Servicer as Servicer under this Agreement.

     Section 6.16 Appointment of Successor Servicer.

     (a) On and after the receipt by the Servicer of a Servicer Termination Notice pursuant to
Section 6.15, the Servicer shall continue to perform all servicing functions under this
Agreement until the date specified in the Servicer Termination Notice or otherwise specified by

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the Administrative Agent in writing or, if no such date is specified in such Servicer
Termination Notice or otherwise specified by the Administrative Agent, until a date mutually agreed
upon by the Servicer and the Administrative Agent. The Administrative Agent may at the time
described in the immediately preceding sentence, appoint the Backup Servicer as the Servicer
hereunder, and the Backup Servicer shall on such date assume all obligations of the Servicer
hereunder, and all authority and power of the Servicer under this Agreement shall pass to and be
vested in the Backup Servicer. As compensation therefor, the Backup Servicer shall be entitled to
the Servicing Fee, together with other servicing compensation in the form of assumption fees, late
payment charges or otherwise as provided herein; including, without limitation, Transition
Expenses. In the event that the Administrative Agent does not so appoint the Backup Servicer,
there is no Backup Servicer or the Backup Servicer is unable to assume such obligations on such
date, the Administrative Agent shall as promptly as possible appoint a successor servicer (the
“Successor Servicer”), and such Successor Servicer shall accept its appointment by a written
assumption in a form acceptable to the Administrative Agent. In the event that a Successor
Servicer has not accepted its appointment at the time when the Servicer ceases to act as Servicer,
the Administrative Agent shall petition a court of competent jurisdiction to appoint any
established financial institution, having a net worth of not less than $50,000,000 and whose
regular business includes the servicing of Collateral, as the Successor Servicer hereunder.

     (b) Upon its appointment, the Backup Servicer (subject to Section 6.16(a)) or the
Successor Servicer, as applicable, shall be the successor in all respects to the Servicer with
respect to servicing functions under this Agreement and shall be subject to all the
responsibilities, duties and liabilities relating thereto placed on the Servicer by the terms and
provisions hereof, and all references in this Agreement to the Servicer shall be deemed to refer to
the Backup Servicer or the Successor Servicer, as applicable; provided that the Backup Servicer or
Successor Servicer, as applicable, shall have (i) no liability with respect to any action performed
by the terminated Servicer prior to the date that the Backup Servicer or Successor Servicer, as
applicable, becomes the successor to the Servicer or any claim of a third party based on any
alleged action or inaction of the terminated Servicer, (ii) no obligation to perform any advancing
obligations, if any, of the Servicer unless it elects to in its sole discretion, (iii) no
obligation to pay any taxes required to be paid by the Servicer (provided that the Backup Servicer
or Successor Servicer, as applicable, shall pay any income taxes for which it is liable), (iv) no
obligation to pay any of the fees and expenses of any other party to the transactions contemplated
hereby, and (v) no liability or obligation with respect to any Servicer indemnification obligations
of any prior Servicer, including the original Servicer. The indemnification obligations of the
Backup Servicer or the Successor Servicer, as applicable, upon becoming a Successor Servicer, are
expressly limited to those arising on account of its failure to act in good faith and with
reasonable care under the circumstances. In addition, the Backup Servicer or Successor Servicer,
as applicable, shall have no liability relating to the representations and warranties of the
Servicer contained in Article IV. Further, for so long as the Backup Servicer shall be the
Successor Servicer, the provisions of Section 2.15, Section 2.16(b) and Section
2.16(e) of this Agreement shall not apply to it in its capacity as Servicer.

     (c) All authority and power granted to the Servicer under this Agreement shall automatically
cease and terminate upon termination of this Agreement and shall pass to and be vested in the
Seller and, without limitation, the Seller is hereby authorized and empowered to execute and
deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, all documents and

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other instruments, and to do and accomplish all other acts or things necessary or appropriate
to effect the purposes of such transfer of servicing rights. The Servicer agrees to cooperate with
the Seller in effecting the termination of the responsibilities and rights of the Servicer to
conduct servicing of the Collateral.

     (d) Upon the Backup Servicer receiving notice that it is required to serve as the Servicer
hereunder pursuant to the foregoing provisions of this Section 6.16, the Backup Servicer
will promptly begin the transition to its role as Servicer. Notwithstanding the foregoing, the
Backup Servicer may, in its discretion, appoint, or petition a court of competent jurisdiction to
appoint, any established servicing institution as the successor to the Servicer hereunder in the
assumption of all or any part of the responsibilities, duties or liabilities of the Servicer
hereunder. As compensation, any Successor Servicer (including, without limitation, the
Administrative Agent) so appointed shall be entitled to receive the Servicing Fee, together with
any other servicing compensation in the form of assumption fees, late payment charges or otherwise
as provided herein that accrued prior thereto, including, without limitation, Transition Expenses.
In the event the Backup Servicer is required to solicit bids as provided herein, the Backup
Servicer shall solicit, by public announcement, bids from banks and mortgage servicing institutions
meeting the qualifications set forth in Section 6.16(a). Such public announcement shall
specify that the Successor Servicer shall be entitled to the full amount of the Servicing Fee as
servicing compensation, together with the other servicing compensation in the form of assumption
fees, late payment charges or otherwise that accrued prior thereto. Within 30 days after any such
public announcement, the Backup Servicer shall negotiate and effect the sale, transfer and
assignment of the servicing rights and responsibilities hereunder to the qualified party submitting
the highest qualifying bid. The Backup Servicer shall deduct from any sum received by the Backup
Servicer from the successor to the Servicer in respect of such sale, transfer and assignment all
costs and expenses of any public announcement and of any sale, transfer and assignment of the
servicing rights and responsibilities hereunder and the amount of any unreimbursed Servicing
Advances. After such deductions, the remainder of such sum shall be paid by the Backup Servicer to
the Servicer at the time of such sale, transfer and assignment to the Servicer’s successor. The
Backup Servicer and such successor shall take such action, consistent with this Agreement, as shall
be necessary to effectuate any such succession. No appointment of a successor to the Servicer
hereunder shall be effective until written notice of such proposed appointment shall have been
provided by the Backup Servicer to the Administrative Agent and the Backup Servicer shall have
consented thereto. The Backup Servicer shall not resign as servicer until a Successor Servicer has
been appointed and accepted such appointment. Notwithstanding anything to the contrary contained
herein, in no event shall Wells Fargo, in any capacity, 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 under this Agreement and the transactions set forth or provided for by this
Agreement.

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ARTICLE VII

THE BACKUP SERVICER

     Section 7.1 Designation of the Backup Servicer.

     (a) Initial Backup Servicer. The backup servicing role with respect to the Collateral
shall be conducted by the Person designated as Backup Servicer hereunder from time to time in
accordance with this Section 7.1. Until the Administrative Agent shall give to Wells Fargo
a Backup Servicer Termination Notice, Wells Fargo is hereby designated as, and hereby agrees to
perform the duties and obligations of, a Backup Servicer pursuant to the terms hereof.

     (b) Successor Backup Servicer. Upon the Backup Servicer’s receipt of Backup Servicer
Termination Notice from the Administrative Agent of the designation of a replacement Backup
Servicer pursuant to the provisions of Section 7.5, the Backup Servicer agrees that it will
terminate its activities as Backup Servicer hereunder.

     Section 7.2 Duties of the Backup Servicer.

     (a) Appointment. The Seller and the Administrative Agent, as agent for the Secured
Parties, each hereby appoints Wells Fargo to act as Backup Servicer, for the benefit of the
Administrative Agent and the Secured Parties, as from time to time designated pursuant to
Section 7.1. The Backup Servicer hereby accepts such appointment and agrees to perform the
duties and obligations with respect thereto set forth herein.

     (b) Duties. On or before the initial Funding Date, and until its removal pursuant to
Section 7.5, the Backup Servicer shall perform, on behalf of the Administrative Agent and
the Secured Parties, the following duties and obligations:

     (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 Monthly Reports (if any) in hard
copy and on computer tape; provided that the computer tape is in an MS DOS, PC readable
ASCII format or other format to be agreed upon by the Backup Servicer and the Servicer on or
prior to closing.

     (ii) Not later than 12:00 noon (New York City, New York time) on each Reporting Date,
the Servicer shall deliver to the Backup Servicer the asset tape, which shall include but
not be limited to the following information: (x) for each Asset, the name and number of the
related Obligor, the collection status, the loan status, the date of each Scheduled Payment
and the Outstanding Asset Balance, (y) the Borrowing Base and (z) the Aggregate Outstanding
Asset Balance (the “Tape”). The Backup Servicer shall accept delivery of the Tape.

     (iii) Prior to the related Payment Date, the Backup Servicer shall review the Monthly
Report to ensure that it is complete on its face and that the following items in such
Monthly Report have been accurately calculated, if applicable, and reported: (A) the
Borrowing Base, (B) the Backup Servicing Fee, (C) the Assets that are current and not past
due, (D) the Assets that are 1 — 30 days past due, (E) the Assets that are 31 -

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60 days past due, (F) the Assets that are 61 — 90 days past due, (G) the Assets that
are 90+ days past due, (H) the Pool Charged-Off Ratio, and (I) the Aggregate Outstanding
Asset Balance. The Backup Servicer by a separate written report shall notify the
Administrative Agent and the Servicer of any disagreements with the Monthly Report based on
such review not later than the Business Day preceding such Payment Date to such Persons.

     (iv) If the Servicer disagrees with the report provided under paragraph (iii) above 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 Administrative Agent 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 paragraph (iii) above by the Backup Servicer, such
discrepancy is not resolved, the Backup Servicer shall promptly notify the Administrative
Agent of the continued existence of such discrepancy. Following receipt of such notice by
the Administrative Agent, the Servicer shall deliver to the Administrative Agent, the
Secured Parties 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.

     (c) Reliance on Tape. With respect to the duties described in Section 7.2(b),
the Backup Servicer, 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.

     Section 7.3 Merger or Consolidation.

     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 provided
such Person is organized under the laws of the United States of America 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 of “A” or better by S&P and “A2” or better by Moody’s
or (2) a short-term unsecured debt rating or certificate of deposit rating of “A-1” or better by
S&P or “P-1” or better by Moody’s, (b) the parent corporation which has either (1) a long-term
unsecured debt rating of “A” or better by S&P and “A2” or better by Moody’s or (2) a short-term
unsecured debt rating or certificate of deposit rating of “A-1” or better by S&P and “P-1” or
better by Moody’s or (c) is otherwise acceptable to the Administrative Agent.

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     Section 7.4 Backup Servicing Compensation.

     As compensation for its back-up servicing activities hereunder, the Backup Servicer shall be
entitled to receive the Backup Servicing Fee from the Servicer. To the extent that such Backup
Servicing Fee is not paid by the Servicer, the Backup Servicer shall be entitled to receive the
unpaid balance of its Backup Servicing Fee to the extent of funds available therefor pursuant to
Section 2.9(a)(4) and Section 2.10(a)(4), as applicable. The Backup Servicer’s
entitlement to receive the Backup Servicing Fee shall cease (excluding any unpaid outstanding
amounts as of that date) on the earliest to occur of: (i) it becoming the Successor Servicer, (ii)
its removal as Backup Servicer pursuant to Section 7.5, or (iii) the termination of this
Agreement. Upon becoming Successor Servicer pursuant to Section 6.16, the Backup Servicer
shall be entitled to the Servicing Fee.

     Section 7.5 Backup Servicer Removal.

     The Backup Servicer may be removed, with or without cause, by the Administrative Agent by
notice given in writing to the Backup Servicer (the “Backup Servicer Termination Notice”). In the
event of any such removal, a replacement Backup Servicer may be appointed by the Administrative
Agent.

     Section 7.6 Limitation on Liability.

     (a) 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, nominees, 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.

     (b) 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 computer 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 Secured Parties, the
Administrative Agent and the Collateral Custodian each agree to look only to the Servicer to
perform such obligations. The Backup Servicer shall have no responsibility and shall not be in
default hereunder or incur any liability for any failure, error, malfunction or any delay in
carrying out any of its 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

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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, including the
Servicer, (ii) any inaccuracy or omission in a notice or communication received by the Backup
Servicer from any third party, (iii) the invalidity or unenforceability of any Collateral under
Applicable Law, (iv) the breach or inaccuracy of any representation or warranty made with respect
to any Collateral, or (v) the acts or omissions of any successor Backup Servicer.

     Section 7.7 The Backup Servicer Not to Resign.

     The Backup Servicer shall not resign (except with prior consent of the Administrative Agent
which consent shall not be unreasonably withheld) from the obligations and duties hereby imposed on
it except upon the Backup Servicer’s determination that (i) the performance of its duties hereunder
is or becomes impermissible under Applicable Law and (ii) there is no reasonable action that the
Backup Servicer could take to make the performance of its duties hereunder permissible under
Applicable Law. Any such determination permitting the resignation of the Backup Servicer shall be
evidenced as to clause (i) above by an Opinion of Counsel to such effect delivered to the
Administrative Agent. No such resignation shall become effective until a successor Backup Servicer
shall have assumed the responsibilities and obligations of the Backup Servicer hereunder.

ARTICLE VIII

THE COLLATERAL CUSTODIAN

     Section 8.1 Designation of Collateral Custodian.

     (a) Initial Collateral Custodian. The role of collateral custodian with respect to
the Required Asset Documents shall be conducted by the Person designated as Collateral Custodian
hereunder from time to time in accordance with this Section 8.1. Until the Administrative
Agent shall give to Wells Fargo a Collateral Custodian Termination Notice, Wells Fargo is hereby
designated as, and hereby agrees to perform the duties and obligations of, Collateral Custodian
pursuant to the terms hereof.

     (b) Successor Collateral Custodian. Upon the Collateral Custodian’s receipt of a
Collateral Custodian Termination Notice from the Administrative Agent of the designation of a
successor Collateral Custodian pursuant to the provisions of Section 8.5, the Collateral
Custodian agrees that it will terminate its activities as Collateral Custodian hereunder.

     Section 8.2 Duties of Collateral Custodian.

     (a) Appointment. The Seller and the Administrative Agent each hereby appoints Wells
Fargo to act as Collateral Custodian, for the benefit of the Administrative Agent, as agent for the
Secured Parties. The Collateral Custodian hereby accepts such appointment and agrees to perform
the duties and obligation with respect thereto set forth herein.

     (b) Duties. On or before the initial Funding Date, and until its removal pursuant to
Section 8.5, the Collateral Custodian shall perform on behalf of the Administrative Agent
and the Secured Parties, the following duties and obligations:

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     (i) The Collateral Custodian shall take and retain custody of the Required Asset
Documents delivered by the Seller pursuant to Section 3.2 in accordance with the
terms and conditions of this Agreement, all for the benefit of the Secured Parties and
subject to the Lien thereon in favor of the Administrative Agent as agent for the Secured
Parties. Within five Business Days of its receipt of any Required Asset Documents, the
Collateral Custodian shall review the related Collateral and Required Asset Documents to
confirm that (A) such Collateral has been properly executed and has no missing or mutilated
pages, (B) any UCC and other filings (as set forth on the Asset Checklists) have been made,
(C) an Insurance Policy exists with respect to any real or personal property constituting
the Related Property, and (D) confirming the related Outstanding Asset Balance, Asset number
and Obligor name with respect to such Asset is referenced on the related Asset List and is
not a duplicate Asset (collectively, the “Review Criteria”). In order to facilitate the
foregoing review by the Collateral Custodian, in connection with each delivery of Required
Asset Documents hereunder to the Collateral Custodian, the Servicer shall provide to the
Collateral Custodian an electronic file (in EXCEL or a comparable format) that contains the
related Asset List or that otherwise contains the Asset identification number and the name
of the Obligor with respect to each related Asset. If, at the conclusion of such review,
the Collateral Custodian shall determine that (i) the Outstanding Asset Balances of the
Collateral it has received Required Asset Documents with respect to is less than as set
forth on the electronic file, the Collateral Custodian shall immediately notify the
Administrative Agent of such discrepancy, and (ii) any Review Criteria is not satisfied, the
Collateral Custodian shall within one Business Day notify the Servicer of such determination
and provide the Servicer with a list of the non-complying Assets and the applicable Review
Criteria that they fail to satisfy. The Servicer shall have five Business Days to correct
any non-compliance with a Review Criteria. If after the conclusion of such time period the
Servicer has still not cured any non-compliance by an Asset with a Review Criteria, the
Collateral Custodian shall promptly notify the Seller and the Administrative Agent of such
determination by providing a written report to such persons identifying, with particularity,
each Asset and each of the applicable Review Criteria that such Asset fails to satisfy. In
addition, if requested in writing by the Servicer and approved by the Administrative Agent
within ten Business Days of the Collateral Custodian’s delivery of such report, the
Collateral Custodian shall return any Asset which fails to satisfy a Review Criteria to the
Seller. Other than the foregoing, the Collateral Custodian shall not have any
responsibility for reviewing any Required Asset Documents.

     (ii) In taking and retaining custody of the Required Asset Documents, the Collateral
Custodian shall be deemed to be acting as the agent of the Administrative Agent and the
Secured Parties; provided that the Collateral Custodian makes no representations as to the
existence, perfection or priority of any Lien on the Required Asset Documents or the
instruments therein; and provided further that, the Collateral Custodian’s duties as agent
shall be limited to those expressly contemplated herein.

     (iii) All Required Asset Document shall be kept in fire resistant vaults, rooms or
cabinets at the locations specified on Schedule III attached hereto, or at such
other office as shall be specified to the Administrative Agent by the Collateral Custodian
in a written notice delivered at least 45 days prior to such change. All Required Asset

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Documents shall be placed together with an appropriate identifying label and maintained
in such a manner so as to permit retrieval and access. All Required Asset Documents shall
be clearly segregated from any other documents or instruments maintained by the Collateral
Custodian.

     (iv) The Collateral Custodian shall make payments pursuant to the terms of the Monthly
Report in accordance with Section 2.9 and Section 2.10 (the “Payment
Duties”).

     (v) On each Reporting Date, the Collateral Custodian shall provide a written report to
the Administrative Agent and the Servicer (in a form acceptable to the Administrative Agent)
identifying each Asset for which it holds Required Asset Documents, the non-complying Assets
and the applicable Review Criteria that any non-complying Asset fails to satisfy.

     (vi) In performing its duties, the Collateral Custodian shall use the same degree of
care and attention as it employs with respect to similar Collateral that it holds as
Collateral Custodian.

     Section 8.3 Merger or Consolidation.

     Any Person (i) into which the Collateral Custodian may be merged or consolidated, (ii) that
may result from any merger or consolidation to which the Collateral Custodian shall be a party, or
(iii) that may succeed to the properties and assets of the Collateral Custodian substantially as a
whole, which Person in any of the foregoing cases executes an agreement of assumption to perform
every obligation of the Collateral Custodian hereunder, shall be the successor to the Collateral
Custodian under this Agreement without further act of any of the parties to this Agreement.

     Section 8.4 Collateral Custodian Compensation.

     As compensation for its collateral custodian activities hereunder, the Collateral Custodian
shall be entitled to a Collateral Custodian Fee (the “Collateral Custodian Fee”) from the Servicer.
To the extent that such Collateral Custodian Fee is not paid by the Servicer, the Collateral
Custodian shall be entitled to receive the unpaid balance of its Collateral Custodian Fee to the
extent of funds available therefor pursuant to the provision of Section 2.9(a)(4) or
Section 2.10(a)(4), as applicable. The Collateral Custodian’s entitlement to receive the
Collateral Custodian Fee shall cease on the earlier to occur of: (i) its removal as Collateral
Custodian pursuant to Section 8.5 or (ii) the termination of this Agreement.

     Section 8.5 Collateral Custodian Removal.

     The Collateral Custodian may be removed, with or without cause, by the Administrative Agent by
notice given in writing to the Collateral Custodian (the “Collateral Custodian Termination
Notice”); provided that notwithstanding its receipt of a Collateral Custodian Termination Notice,
the Collateral Custodian shall continue to act in such capacity until a successor Collateral
Custodian has been appointed, has agreed to act as Collateral Custodian

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hereunder, and has received all Required Asset Documents held by the previous Collateral
Custodian.

     Section 8.6 Limitation on Liability.

     (i) The Collateral Custodian may conclusively rely on and shall be fully protected in
acting upon any certificate, instrument, opinion, notice, letter, telegram or other document
delivered to it and that in good faith it reasonably believes to be genuine and that has
been signed by the proper party or parties. The Collateral Custodian may rely conclusively
on and shall be fully protected in acting upon (a) the written instructions of any
designated officer of the Administrative Agent or (b) the verbal instructions of the
Administrative Agent.

     (ii) The Collateral Custodian may consult counsel satisfactory to it and the advice or
opinion of such counsel shall be full and complete authorization and protection in respect
of any action taken, suffered or omitted by it hereunder in good faith and in accordance
with the advice or opinion of such counsel.

     (iii) The Collateral Custodian shall not be liable for any error of judgment, or for
any act done or step taken or omitted by it, in good faith, or for any mistakes of fact or
law, or for anything that it may do or refrain from doing in connection herewith except in
the case of its willful misconduct or grossly negligent performance or omission of its
duties and in the case of the negligent performance of its Payment Duties and in the case of
its negligent performance of its duties in taking and retaining custody of the Required
Asset Documents.

     (iv) The Collateral Custodian makes no warranty or representation and shall have no
responsibility (except as expressly set forth in this Agreement) as to the content,
enforceability, completeness, validity, sufficiency, value, genuineness, ownership or
transferability of the Collateral, and will not be required to and will not make any
representations as to the validity or value (except as expressly set forth in this
Agreement) of any of the Collateral. The Collateral Custodian shall not be obligated to
take any legal action hereunder that might in its judgment involve any expense or liability
unless it has been furnished with an indemnity reasonably satisfactory to it.

     (v) The Collateral Custodian shall have no duties or responsibilities except such
duties and responsibilities as are specifically set forth in this Agreement and no covenants
or obligations shall be implied in this Agreement against the Collateral Custodian.

     (vi) The Collateral Custodian shall not be required to expend or risk its own funds in
the performance of its duties hereunder.

     (vii) It is expressly agreed and acknowledged that the Collateral Custodian is not
guaranteeing performance of or assuming any liability for the obligations of the other
parties hereto or any parties to the Collateral.

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     Section 8.7 The Collateral Custodian Not to Resign.

     The Collateral Custodian shall not resign from the obligations and duties hereby imposed on it
except upon the Collateral Custodian’s determination that (i) the performance of its duties
hereunder is or becomes impermissible under Applicable Law and (ii) there is no reasonable action
that the Collateral Custodian could take to make the performance of its duties hereunder
permissible under Applicable Law. Any such determination permitting the resignation of the
Collateral Custodian shall be evidenced as to clause (i) above by an Opinion of Counsel to
such effect delivered to the Administrative Agent. No such resignation shall become effective
until a successor Collateral Custodian shall have assumed the responsibilities and obligations of
the Collateral Custodian hereunder.

     Section 8.8 Release of Documents.

     (a) Release for Servicing. From time to time and as appropriate for the enforcement
or servicing any of the Collateral, the Collateral Custodian is hereby authorized (unless and until
such authorization is revoked by the Administrative Agent), upon written receipt from the Servicer
of a request for release of documents and receipt in the form annexed hereto as Exhibit H
to release to the Servicer the related Required Asset Documents or the documents set forth in such
request and receipt to the Servicer. All documents so released to the Servicer shall be held by
the Servicer in trust for the benefit of the Administrative Agent in accordance with the terms of
this Agreement. The Servicer shall return to the Collateral Custodian the Required Asset Documents
or other such documents (i) immediately upon the request of the Administrative Agent, or (ii) when
the Servicer’s need therefor in connection with such foreclosure or servicing no longer exists,
unless the Asset shall be liquidated, in which case, upon receipt of an additional request for
release of documents and receipt certifying such liquidation from the Servicer to the Collateral
Custodian in the form annexed hereto as Exhibit H, the Servicer’s request and receipt
submitted pursuant to the first sentence of this subsection shall be released by the Collateral
Custodian to the Servicer.

     (b) Limitation on Release. The foregoing provision respecting release to the Servicer
of the Required Asset Documents and documents by the Collateral Custodian upon request by the
Servicer shall be operative only to the extent that at any time the Collateral Custodian shall not
have released to the Servicer active Required Asset Documents (including those requested)
pertaining to more than 15 Assets at the time being serviced by the Servicer under this Agreement.
Any additional Required Asset Documents or documents requested to be released by the Servicer may
be released only upon written authorization of the Administrative Agent. The limitations of this
paragraph shall not apply to the release of Required Asset Documents to the Servicer pursuant to
the immediately succeeding subsection.

     (c) Release for Payment. Upon receipt by the Collateral Custodian of the Servicer’s
request for release of documents and receipt in the form annexed hereto as Exhibit H(which
certification shall include a statement to the effect that all amounts received in connection with
such payment or repurchase have been credited to the Collection Account as provided in this
Agreement), the Collateral Custodian shall promptly release the related Required Asset Documents to
the Servicer.

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     Section 8.9 Return of Required Asset Documents.

     The Seller may, with the prior written consent of the Administrative Agent (such consent not
to be unreasonably withheld), require that the Collateral Custodian return each Required Asset
Document (a) delivered to the Collateral Custodian in error, (b) for which a Substitute Asset has
been substituted in accordance with Section 2.18, (c) as to which the lien on the Related
Property has been so released pursuant to Section 9.2, (d) that has been repaid by the
Seller pursuant to Section 4.6 or (e) that is required to be redelivered to the Seller in
connection with the termination of this Agreement, in each case by submitting to the Collateral
Custodian and the Administrative Agent a written request in the form of Exhibit H hereto
(signed by both the Seller and the Administrative Agent) specifying the Collateral to be so
returned and reciting that the conditions to such release have been met (and specifying the Section
or Sections of this Agreement being relied upon for such release). The Collateral Custodian shall
upon its receipt of each such request for return executed by the Seller and the Administrative
Agent promptly, but in any event within five Business Days, return the Required Asset Documents so
requested to the Seller.

     Section 8.10 Access to Certain Documentation and Information Regarding the Collateral;
Audits.

     The Collateral Custodian shall provide to the Administrative Agent access to the Required
Asset Documents and all other documentation regarding the Collateral including in such cases where
the Administrative Agent is required in connection with the enforcement of the rights or interests
of the Secured Parties, or by applicable statutes or regulations, to review such documentation,
such access being afforded without charge but only (i) upon two Business Days prior written
request, (ii) during normal business hours and (iii) subject to the Servicer’s and Collateral
Custodian’s normal security and confidentiality procedures. Prior to the Closing Date and
periodically thereafter at the discretion of the Administrative Agent, the Administrative Agent may
review the Servicer’s collection and administration of the Collateral in order to assess compliance
by the Servicer with the Credit and Collection Policy, as well as with this Agreement and may
conduct an audit of the Collateral, Required Asset Documents in conjunction with such a review.
Such review shall be reasonable in scope and shall be completed in a reasonable period of time.
Without limiting the foregoing provisions of this Section 8.10, from time to time on
request of the Administrative Agent, the Collateral Custodian shall permit certified public
accountants or other auditors acceptable to the Administrative Agent to conduct, at the Servicer’s
expense, a review of the Required Asset Documents and all other documentation regarding the
Collateral.

     Section 8.11 Intentionally Omitted

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ARTICLE IX

SECURITY INTEREST

     Section 9.1 Grant of Security Interest.

     The parties to this Agreement intend that the conveyance of the Collateral by the Seller to
the applicable Purchasers be treated as sales for all purposes (other than for the purposes
described in Section 13.19 and for accounting purposes). If, despite such intention, a
determination is made that such transactions not be treated as sales, then the parties hereto
intend that this Agreement constitute a security agreement and the transactions effected hereby
constitute secured loans by the applicable Purchasers to the Seller under Applicable Law. For such
purpose, the Seller hereby transfers, conveys, assigns and grants as of the Closing Date to the
Administrative Agent, as agent for the Secured Parties, a lien and continuing security interest in
all of the Seller’s right, title and interest in, to and under (but none of the obligations under)
all Collateral (including any Hedging Agreements), whether now existing or hereafter arising or
acquired by the Seller, and wherever the same may be located, to secure the prompt, complete and
indefeasible payment and performance in full when due, whether by lapse of time, acceleration or
otherwise, of the Aggregate Unpaids of the Seller arising in connection with this Agreement and
each other Transaction Document, whether now or hereafter existing, due or to become due, direct or
indirect, or absolute or contingent, including, without limitation, all Aggregate Unpaids. The
assignment under this Section 9.1 does not constitute and is not intended to result in a
creation or an assumption by the Administrative Agent, any Hedge Counterparty, the Purchasers or
any of the Secured Parties of any obligation of the Seller or any other Person in connection with
any or all of the Collateral or under any agreement or instrument relating thereto. Anything
herein to the contrary notwithstanding, (a) the Seller shall remain liable under the Collateral to
the extent set forth therein to perform all of its duties and obligations thereunder to the same
extent as if this Agreement had not been executed, (b) the exercise by the Administrative Agent, as
agent for the Secured Parties, of any of its rights in the Collateral shall not release the Seller
from any of its duties or obligations under the Collateral, and (c) none of the Administrative
Agent, any Hedge Counterparty, the Purchasers or any Secured Party shall have any obligations or
liability under the Collateral by reason of this Agreement, nor shall the Administrative Agent, any
Hedge Counterparty, the Purchasers or any Secured Party be obligated to perform any of the
obligations or duties of the Seller thereunder or to take any action to collect or enforce any
claim for payment assigned hereunder.

     Section 9.2 Release of Lien on Collateral.

     At the same time as (i) any Collateral expires by its terms and all amounts in respect thereof
have been paid in full by the related Obligor and deposited in the Collection Account, (ii) any
Asset becomes a Prepaid Asset and all amounts in respect thereof have been paid in full by the
related Obligor and deposited in the Collection Account, (iii) such Asset is replaced in accordance
with Section 2.18, or (iv) this agreement terminates in accordance with Section
13.6, the Administrative Agent as agent for the Secured Parties will, to the extent requested
by the Servicer, release its interest in such Collateral. In connection with any sale of such
Related Property, the Administrative Agent as agent for the Secured Parties will after the deposit
by the Servicer of the Proceeds of such sale into the Collection Account, at the sole expense of
the

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Servicer, execute and deliver to the Servicer any assignments, bills of sale, termination
statements and any other releases and instruments as the Servicer may reasonably request in order
to effect the release and transfer of such Related Property; provided that the Administrative Agent
as agent for the Secured Parties will make no representation or warranty, express or implied, with
respect to any such Related Property in connection with such sale or transfer and assignment.
Nothing in this section shall diminish the Servicer’s obligations pursuant to Section 6.6
with respect to the Proceeds of any such sale.

     Section 9.3 Further Assurances.

     The provisions of Section 13.12 shall apply to the security interest granted under
Section 9.1 as well as to the Advances hereunder.

     Section 9.4 Remedies.

     Upon the occurrence of a Termination Event, the Administrative Agent and Secured Parties shall
have, with respect to the Collateral granted pursuant to Section 9.1, and in addition to
all other rights and remedies available to the Administrative Agent and Secured Parties under this
Agreement or other Applicable Law, all rights and remedies of a secured party upon default under
the UCC.

     Section 9.5 Waiver of Certain Laws.

     Each of the Seller and the Servicer agrees, to the full extent that it may lawfully so agree,
that neither it nor anyone claiming through or under it will set up, claim or seek to take
advantage of any appraisement, valuation, stay, extension or redemption law now or hereafter in
force in any locality where any Collateral may be situated in order to prevent, hinder or delay the
enforcement or foreclosure of this Agreement, or the absolute sale of any of the Collateral or any
part thereof, or the final and absolute putting into possession thereof, immediately after such
sale, of the purchasers thereof, and each of the Seller and the Servicer, for itself and all who
may at any time claim through or under it, hereby waives, to the full extent that it may be lawful
so to do, the benefit of all such laws, and any and all right to have any of the properties or
assets constituting the Collateral marshaled upon any such sale, and agrees that the Administrative
Agent or any court having jurisdiction to foreclose the security interests granted in this
Agreement may sell the Collateral as an entirety or in such parcels as the Administrative Agent or
such court may determine.

     Section 9.6 Power of Attorney.

     Each of the Seller and the Servicer hereby irrevocably appoints the Administrative Agent its
true and lawful attorney (with full power of substitution) in its name, place and stead and at is
expense, in connection with the enforcement of the rights and remedies provided for in this
Agreement, including without limitation the following powers: (a) to give any necessary receipts
or acquittance for amounts collected or received hereunder, (b) to make all necessary transfers of
the Collateral in connection with any such sale or other disposition made pursuant hereto, (c) to
execute and deliver for value all necessary or appropriate bills of sale, assignments and other
instruments in connection with any such sale or other disposition, the Seller and the Servicer
hereby ratifying and confirming all that such attorney (or any substitute) shall lawfully do

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hereunder and pursuant hereto, and (d) to sign any agreements, orders or other documents in
connection with or pursuant to any Transaction Document or Hedging Agreement. Nevertheless, if so
requested by the Administrative Agent, the Seller shall ratify and confirm any such sale or other
disposition by executing and delivering to the Administrative Agent or such purchaser all proper
bills of sale, assignments, releases and other instruments as may be designated in any such
request.

ARTICLE X

TERMINATION EVENTS

     Section 10.1 Termination Events.

     The following events shall be Termination Events (“Termination Events”) hereunder:

     (a) as of any Determination Date, the Average Portfolio Delinquency Ratio exceeds 6.5%; or

     (b) as of any Determination Date, the Average Pool Charged-Off Ratio exceeds 3.0%; or

     (c) as of any Determination Date, the Average Portfolio Charged-Off Ratio exceeds 4.0%; or

     (d) the Advances Outstanding on any day exceeds the lesser of the Facility Amount and Maximum
Availability, and the same continues unremedied for two Business Days; provided that during the
period of time that such event remains unremedied, no additional Advances will be made under this
Agreement and any payments required to be made by the Servicer on a Payment Date shall be made
under Section 2.10; or

     (e) a Servicer Default occurs and is continuing; or

     (f) failure on the part of the Seller or Originator to make any payment or deposit (including
without limitation with respect to Collections) of principal by the terms of any Transaction
Document on the day such payment or deposit is required to be made; or;

     (g) failure on the part of the Seller or Originator to make any payment or deposit (including
without limitation with respect to Collections) other than principal required by the terms of any
Transaction Document on the day such payment or deposit is required to be made and such failure
continues unremedied for a period of 2 Business Days; or

     (h) the occurrence of an Insolvency Event relating to the Seller or the Originator; or

     (i) the Seller shall become required to register as an “investment company” within the meaning
of the 1940 Act or the arrangements contemplated by the Transaction Documents shall require
registration as an “investment company” within the meaning of the 1940 Act; or

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     (j) a regulatory, tax or accounting body has ordered that the activities of the Seller or any
other Subsidiary of CapitalSource Inc. contemplated hereby be terminated or, as a result of any
other event or circumstance, the activities of the Seller contemplated hereby may reasonably be
expected to cause the Seller or any other Subsidiary of CapitalSource Inc. to suffer materially
adverse regulatory, accounting or tax consequences; or

     (k) there shall exist any Material Adverse Effect; or

     (l) the Internal Revenue Service shall file notice of a lien pursuant to Section 6323
of the Code with regard to any assets of the Seller or the Originator and such lien shall not have
been released within five Business Days, or the Pension Benefit Guaranty Corporation shall file
notice of a lien pursuant to Section 4068 of ERISA with regard to any of the assets of the Seller
or the Originator and such lien shall not have been released within five Business Days; or

     (m) any Change-in-Control shall occur; or

     (n) (i) any Transaction Document, or any lien or security interest granted thereunder, shall
(except in accordance with its terms), in whole or in part, terminate, cease to be effective or
cease to be the legally valid, binding and enforceable obligation of the Seller, the Originator, or
the Servicer,

     (ii) the Seller, the Originator, the Servicer or any other party shall, directly or
indirectly, contest in any manner the effectiveness, validity, binding nature or
enforceability of any Transaction Document or any lien or security interest thereunder, or

     (iii) any security interest securing any obligation under any Transaction Document
shall, in whole or in part, cease to be a perfected first priority security interest; or

     (o) on any Payment Date, the Seller has not entered into any additional Hedge Transactions or
reduced or amended any Hedge Transactions, in each case as then required pursuant to Section
6.2(c); or

     (p) any failure on the part of the Seller or the Originator duly to observe or perform (i) any
covenants or agreements of the Seller or the Originator set forth in this Agreement (other than as
referred to in Section 10.1(f), 10.1(g), 10.1(o) or 10.1(r) or
clause (ii) of this Section 10.1(p)) or the other Transaction Documents to which the Seller
or the Originator is a party and the same continues unremedied for a period of 10 days after the
earlier to occur of (x) the date on which written notice of such failure requiring the same to be
remedied shall have been given to the Seller or the Originator by the Administrative Agent and (y)
the date on which the Seller or the Originator becomes aware thereof or (ii) any covenant
applicable to it contained in Section 5.2; or

     (q) any representation, warranty or certification made by the Seller or the Originator in any
Transaction Document or in any certificate delivered pursuant to any Transaction Document shall
prove to have been incorrect in any material respect when made, and which (if capable of being
cured without any adverse impact on the Purchasers or the collectibility of the Assets) continues
to be unremedied for a period of 10 days after the earlier to occur of (i) the

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date on which written notice of such incorrectness requiring the same to be remedied shall
have been given to the Seller or the Originator by the Administrative Agent and (ii) the date on
which the Seller or the Originator becomes aware thereof; or

     (r) any failure by the Seller to give instructions or notice to the Administrative Agent as
required by this Agreement, or to deliver any required Monthly Report or other Required Reports
hereunder on or before the date occurring two Business Days after the date such instruction, notice
or report is required to be made or given, as the case may be, under the terms of this Agreement;
or

     (s) the failure of the Seller, the Servicer or the Originator to make any payment due with
respect to recourse debt or other obligations, in the case of the Servicer or the Originator, in
excess of $10,000,000, or the occurrence of any event or condition that would at such time permit
acceleration of such recourse debt or other obligations; or

     (t) (1) the rendering of one or more final judgments, decrees or orders by a court or
arbitrator of competent jurisdiction for the payment of money in excess of $10,000,000,
individually or in the aggregate, against the Originator, or $2,000,000 against the Seller,
individually or in the aggregate, and the Originator shall not have either (i) discharged or
provided for the discharge of any such judgment, decree or order in accordance with its terms or
(ii) perfected a timely appeal of such judgment, decree or order and caused the execution of same
to be stayed during the pendency of the appeal or (2) the failure of the Originator or the Seller
to make any payments due of amounts in excess of $7,500,000 by the Originator, or $2,000,000 by the
Seller, in the settlement of any litigation, claim or dispute (excluding payments made from
insurance proceeds); or

     (u) as of any Determination Date, the Pool Yield does not equal or exceed the Minimum Pool
Yield and the same continues unremedied by the following Determination Date; or

     (v) on any day an Overcollateralization Shortfall exists and continues unremedied for two
Business Days; or

     (w) as of any Quarterly Determination Date, the Originator’s ratio of Consolidated Funded
Indebtedness to Consolidated Tangible Net Worth is more than 6 to 1; provided that such calculation
shall exclude the effects of any Liquid Real Estate Assets that are acquired and levered by the
Originator solely to satisfy REIT asset and income tests; or

     (x) the occurrence of a “Purchase Termination Event” under the Sale Agreement, or

     (y) on any Payment Date an Available Collections Shortfall exists.

     Section 10.2 Remedies.

     (a) Upon the occurrence of a Termination Event described in Sections 10.1(a),
10.1(b), 10.1(c), 10.1(d), 10.1(k) (if such Termination Event arose
under clause (a) of the definition of Material Adverse Effect), 10.1(u), 10.1(w) or
10.1(y), no Advances will thereafter be made and the Administrative Agent may, and at the
request of Liquidity Banks holding at

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least 66 2/3% of the Commitments then in effect, shall by notice to the Seller, declare the
Termination Date to have occurred and the Amortization Period and Turbo Period to have commenced.

     (b) Upon the occurrence of a Termination Event described in Section 10.1(h), no
Advances will thereafter be made and the Termination Date shall occur immediately and the
Amortization Period and Turbo Period shall commence automatically.

     (c) Upon the occurrence of any Termination Event described in Sections 10.1(e),
10.1(f), 10.1(g), 10.1(h), 10.1(i), 10.1(j), 10.1(k) (if
such Termination Event arose under any of clauses (b) through (e) of the definition of Material
Adverse Effect), 10.1(l) through and including 10.1(t), 10.1(v) or
10.1(x), no Advances will thereafter be made, and the Administrative Agent may, and at the
request of Liquidity Banks holding at least 66 2/3% of the Commitments then in effect, shall by
notice to the Seller, declare the Termination Date to have occurred and the Amortization Period and
Turbo Period to have commenced and the Administrative Agent and the Secured Parties shall have, in
addition to all other rights and remedies under this Agreement or otherwise, all other rights and
remedies provided under the UCC of each applicable jurisdiction and other Applicable Laws, which
rights shall be cumulative, and also may require the Seller and Servicer to, and the Seller and
Servicer hereby agree that they will at the Servicer’s expense and upon request of the
Administrative Agent forthwith, (i) assemble all or any part of the Collateral as directed by the
Administrative Agent and make the same available to the Administrative Agent at a place to be
designated by the Administrative Agent and (ii) without notice except as specified below, sell the
Collateral or any part thereof in one or more parcels at a public or private sale, at any of the
Administrative Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon
such other terms as the Administrative Agent may deem commercially reasonable. The Seller agrees
that, to the extent notice of sale shall be required by law, at least ten days’ notice to the
Seller of the time and place of any public sale or the time after which any private sale is to be
made shall constitute reasonable notification. The Administrative Agent shall not be obligated to
make any sale of Collateral regardless of notice of sale having been given. The Administrative
Agent may adjourn any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the time and place to
which it was so adjourned. All cash Proceeds received by the Administrative Agent in respect of
any sale of, collection from, or other realization upon, all or any part of the Collateral (after
payment of any amounts incurred in connection with such sale) shall be deposited into the
Collection Account and to be applied against all or any part of the Aggregate Unpaids pursuant to
Section 2.10 or otherwise in such order as the Administrative Agent shall elect in its
discretion.

ARTICLE XI

INDEMNIFICATION

     Section 11.1 Indemnities by the Seller.

     (a) Without limiting any other rights that any such Person may have hereunder or under
Applicable Law, the Seller hereby agrees to indemnify the Administrative Agent, the Backup
Servicer, the Collateral Custodian, the Secured Parties, the Affected Parties and each of

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their respective assigns, Affiliates, officers, directors, employees, advisors and agents
thereof (collectively, the “Indemnified Parties”), forthwith on demand, from and against any and
all damages, losses, claims, liabilities and related reasonable out of pocket costs and expenses,
including reasonable attorneys’ fees and disbursements (all of the foregoing being collectively
referred to as the “Indemnified Amounts”) awarded against or incurred by such Indemnified Party and
other non-monetary damages of any such Indemnified Party or any of them arising out of or as a
result of this Agreement or the ownership of an interest in the Collateral or in respect of any
Asset included in the Collateral, excluding, however, (a) Indemnified Amounts to the extent
resulting from gross negligence or willful misconduct on the part of such Indemnified Party or (b)
Indemnified Amounts that have the effect of recourse for non-payment of the Assets included in the
Collateral due to credit problems of the Obligors (except as otherwise specifically provided in
this Agreement). If the Seller has made any indemnity payment pursuant to this Section
11.1 and such payment fully indemnified the recipient thereof and the recipient thereafter
collects any payments from others in respect of such Indemnified Amounts then, the recipient shall
repay to the Seller an amount equal to the amount it has collected from others in respect of such
indemnified amounts. Without limiting the foregoing, the Seller shall indemnify each Indemnified
Party for Indemnified Amounts relating to or resulting from:

     (i) any representation or warranty made or deemed made by the Seller, the Servicer (if
the Originator or one of its Affiliates is the Servicer) or any of their respective officers
relating to the eligibility or qualification of any Asset, which shall have been false or
incorrect in any respect when made or deemed made or delivered;

     (ii) any other representation or warranty made or deemed made by the Seller, the
Servicer (if the Originator or one of its Affiliates is the Servicer) or any of their
respective officers under or in connection with this Agreement or any other Transaction
Document, which shall have been false or incorrect in any material respect when made or
deemed made or delivered;

     (iii) the failure by the Seller or the Servicer (if the Originator or one of its
Affiliates is the Servicer) to comply with any term, provision or covenant contained in this
Agreement or any agreement executed in connection with this Agreement, or with any
Applicable Law, with respect to any Collateral or the nonconformity of any Collateral with
any such Applicable Law;

     (iv) the failure to vest and maintain vested in the Administrative Agent, as agent for
the Secured Parties, an undivided ownership interest in the Collateral, together with all
Collections, free and clear of any Lien (other than Permitted Liens) whether existing at the
time of any Advance or at any time thereafter;

     (v) the failure to maintain, as of the close of business on each Business Day prior to
the Termination Date, an amount of Advances Outstanding that is less than or equal to the
lesser of (I) the Facility Amount and (II) the Maximum Availability on such Business Day;

     (vi) the failure to file, or any delay in filing, financing statements, continuation
statements or other similar instruments or documents under the UCC of any

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applicable jurisdiction or other Applicable Laws with respect to any Collateral,
whether at the time of any Advance or at any subsequent time;

     (vii) any dispute, claim, offset or defense (other than the discharge in bankruptcy of
the Obligor) of the Obligor to the payment with respect to any Collateral (including,
without limitation, a defense based on the Collateral not being a legal, valid and binding
obligation of such Obligor enforceable against it in accordance with its terms), or any
other claim resulting from the sale of the merchandise or services related to such
Collateral or the furnishing or failure to furnish such merchandise or services;

     (viii) any failure of the Seller or the Servicer (if the Originator or one of its
Affiliates is the Servicer) to perform its duties or obligations in accordance with the
provisions of this Agreement or any of the other Transaction Documents to which it is a
party or any failure by the Originator, the Seller or any Affiliate thereof to perform its
respective duties under any Collateral;

     (ix) the failure of any Lock-Box Bank to remit any amounts held in a Lock-Box Account
pursuant to the instructions of the Servicer or the Administrative Agent (to the extent such
Person is entitled to give such instructions in accordance with the terms hereof and of any
applicable Lock-Box Agreement) whether by reason of the exercise of set-off rights or
otherwise;

     (x) any inability to obtain any judgment in, or utilize the court or other adjudication
system of, any state in which an Obligor may be located as a result of the failure of the
Seller or the Originator to qualify to do business or file any notice or business activity
report or any similar report;

     (xi) any action taken by the Seller or the Servicer in the enforcement or collection of
any Collateral;

     (xii) any products liability claim or personal injury or property damage suit or other
similar or related claim or action of whatever sort arising out of or in connection with the
Related Property or services that are the subject of any Collateral;

     (xiii) any claim, suit or action of any kind arising out of or in connection with
Environmental Laws including any vicarious liability;

     (xiv) the failure by Seller to pay when due any Taxes for which the Seller is liable,
including without limitation, sales, excise or personal property taxes payable in connection
with the Collateral;

     (xv) any repayment by the Administrative Agent or a Secured Party of any amount
previously distributed in reduction of Advances Outstanding, or payment of Interest or any
other amount due hereunder or under any Hedging Agreement, in each case which amount the
Administrative Agent or a Secured Party believes in good faith is required to be repaid;

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     (xvi) the commingling of Collections on the Collateral at any time with other funds,
unless permitted hereunder;

     (xvii) any investigation, litigation or proceeding related to this Agreement or the use
of proceeds of Advances or the security interest in the Collateral;

     (xviii) any failure by the Seller to give reasonably equivalent value to the Originator
in consideration for the transfer by the Originator to the Seller of any item of Collateral
or any attempt by any Person to void or otherwise avoid any such transfer under any
statutory provision or common law or equitable action, including, without limitation, any
provision of the Bankruptcy Code;

     (xix) the use of the proceeds of any Advance in a manner other than as provided in this
Agreement and the Sale Agreement;

     (xx) the failure of the Seller, the Originator or any of their respective agents or
representatives to remit to the Servicer or the Administrative Agent, Collections on the
Collateral remitted to the Seller, the Originator, the Servicer or any such agent or
representative; or

     (xxi) the failure by the Seller to comply with any of the covenants relating to any
Hedging Agreement in accordance with the Transaction Documents.

     (b) Any amounts subject to the indemnification provisions of this Section 11.1 shall
be paid by the Seller to the Indemnified Party within five Business Days following such Person’s
demand therefor.

     (c) If for any reason the indemnification provided above in this Section 11.1 is
unavailable to the Indemnified Party or is insufficient to hold an Indemnified Party harmless, then
the Seller or the Servicer, as the case may be, shall contribute to the amount paid or payable by
such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as
is appropriate to reflect not only the relative benefits received by such Indemnified Party on the
one hand and the Seller or the Servicer, as the case may be, on the other hand but also the
relative fault of such Indemnified Party as well as any other relevant equitable considerations.

     (d) The obligations of the Seller under this Section 11.1 shall survive the
resignation or removal of the Administrative Agent, the Servicer, the Backup Servicer or the
Collateral Custodian and the termination of this Agreement.

     Section 11.2 Indemnities by the Servicer.

     (a) Without limiting any other rights that any such Person may have hereunder or under
Applicable Law, the Servicer hereby agrees to indemnify each Indemnified Party, forthwith on
demand, from and against any and all Indemnified Amounts awarded against or incurred by any such
Indemnified Party by reason of any acts, omissions or alleged acts or omissions of the Servicer,
including, but not limited to (i) any representation or warranty made by the Servicer under or in
connection with any Transaction Document, any Monthly Report, Servicer’s Certificate or any other
information or report delivered by or on behalf of the Servicer

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pursuant hereto, which shall have been false, incorrect or misleading in any material respect
when made or deemed made, (ii) the failure by the Servicer to comply with any Applicable Law, (iii)
the failure of the Servicer to comply with its duties or obligations in accordance with the
Agreement, (iv) the failure by the Servicer to comply with any of the covenants relating to any
Hedging Agreement in accordance with the Transaction Documents, or (v) any litigation, proceedings
or investigation against the Servicer. The provisions of this indemnity shall run directly to and
be enforceable by an injured party subject to the limitations hereof.

     (b) Any amounts subject to the indemnification provisions of this Section 11.2 shall
be paid by the Servicer to the Indemnified Party within five Business Days following such Person’s
demand therefor.

     (c) The Servicer shall have no liability for making indemnification hereunder to the extent
any such indemnification constitutes recourse for uncollectible or uncollected Assets.

     (d) The obligations of the Servicer under this Section 11.2 shall survive the
resignation or removal of the Administrative Agent, the Backup Servicer or the Collateral Custodian
and the termination of this Agreement.

     (e) Any indemnification pursuant to this Section 11.2 shall not be payable from the
Collateral.

     Section 11.3 After-Tax Basis.

     Indemnification under Section 11.1 and Section 11.2 shall be in an amount
necessary to make the Indemnified Party whole after taking into account any tax consequences to the
Indemnified Party of the receipt of the indemnity provided hereunder, including the effect of such
tax or refund on the amount of tax measured by net income or profits that is or was payable by the
Indemnified Party.

ARTICLE XII

THE ADMINISTRATIVE AGENT

     Section 12.1 The Administrative Agent.

     (a) Each Secured Party hereby appoints and authorizes the Administrative Agent as its agent
and bailee for purposes of perfection pursuant to the applicable UCC or other Applicable Law and
hereby further authorizes the Administrative Agent to appoint additional agents and bailees to act
on its behalf and for the benefit of each Secured Party. Each Secured Party further authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise such powers under
this Agreement and the other Transaction Documents as are delegated to the Administrative Agent by
the terms hereof and thereof, together with such powers as are reasonably incidental thereto. In
furtherance, and without limiting the generality, of the foregoing, each Secured Party hereby
appoints the Administrative Agent as its agent to execute and deliver all further instruments and
documents, and take all further action that the Administrative Agent may deem necessary or
appropriate or that a Secured Party may reasonably request in order to perfect, protect or more
fully evidence the security interests

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granted by the Seller hereunder, or to enable any of them to exercise or enforce any of their
respective rights hereunder, including, without limitation, the execution by the Administrative
Agent as secured party/assignee of such financing or continuation statements, or amendments thereto
or assignments thereof, relative to all or any of the Collateral now existing or hereafter arising,
and such other instruments or notices, as may be necessary or appropriate for the purposes stated
hereinabove. The Purchasers may direct the Administrative Agent to take any such incidental action
hereunder. With respect to other actions which are incidental to the actions specifically
delegated to the Administrative Agent hereunder, the Administrative Agent shall not be required to
take any such incidental action hereunder, but shall be required to act or to refrain from acting
(and shall be fully protected in acting or refraining from acting) upon the direction of the
Liquidity Banks; provided that the Administrative Agent shall not be required to take any action
hereunder if the taking of such action, in the reasonable determination of the Administrative
Agent, shall be in violation of any Applicable Law or contrary to any provision of this Agreement
or shall expose the Administrative Agent to liability hereunder or otherwise. In the event the
Administrative Agent requests the consent of a Purchaser or a Liquidity Bank pursuant to the
foregoing provisions and the Administrative Agent does not receive a consent (either positive or
negative) from such Person within ten Business Days of such Person’s receipt of such request, then
such Purchaser or Liquidity Bank shall be deemed to have declined to consent to the relevant
amendments.

     (b) The Administrative Agent shall exercise such rights and powers vested in it by this
Agreement and the other Transaction Documents, and use the same degree of care and skill in their
exercise as a prudent person would exercise or use under the circumstances in the conduct of such
person’s own affairs. The Administrative Agent shall not have any duties or responsibilities,
except those expressly set forth herein, or any fiduciary relationship with the Purchasers or
Liquidity Banks, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities on the part of the Administrative Agent shall be read into this Agreement or any other
Transaction Document or otherwise exist for the Administrative Agent. In performing its functions
and duties hereunder and under the other Transaction Documents, the Administrative Agent shall act
solely as agent for the Purchasers and Liquidity Banks and does not assume nor shall be deemed to
have assumed any obligation or relationship of trust or agency with or for the Seller or any of its
successors or assigns.

     (c) Administrative Agent’s Reliance, Etc. Neither the Administrative Agent nor any of
its directors, officers, agents or employees shall be liable for any action taken or omitted to be
taken by it or them as Administrative Agent under or in connection with this Agreement or any of
the other Transaction Documents, except for its or their own gross negligence or willful
misconduct. Without limiting the foregoing, the Administrative Agent: (i) may consult with legal
counsel (including counsel for the Seller or the Originator), independent public accountants and
other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes
no warranty or representation and shall not be responsible for any statements, warranties or
representations made in or in connection with this Agreement; (iii) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement or any of the other Transaction Documents on the part of the Seller,
the Originator, or the Servicer or to inspect the property (including the books and records) of the
Seller, the Originator, or the Servicer; (iv) shall not be responsible for the due execution,
legality,

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validity, enforceability, genuineness, sufficiency or value of this Agreement, any of the
other Transaction Documents or any other instrument or document furnished pursuant hereto or
thereto; and (v) shall incur no liability under or in respect of this Agreement or any of the other
Transaction Documents by acting upon any notice (including notice by telephone), consent,
certificate or other instrument or writing (which may be by telex) believed by it to be genuine and
signed or sent by the proper party or parties.

     (d) Credit Decision with Respect to the Administrative Agent. Each Secured Party
acknowledges that it has, independently and without reliance upon the Administrative Agent, or any
of the Administrative Agent’s Affiliates, and based upon such documents and information as it has
deemed appropriate, made its own evaluation and decision to enter into this Agreement and the other
Transaction Documents to which it is a party. Each Secured Party also acknowledges that it will,
independently and without reliance upon the Administrative Agent, or any of the Administrative
Agent’s Affiliates, and based on such documents and information as it shall deem appropriate at the
time, continue to make its own decisions in taking or not taking action under this Agreement and
the other Transaction Documents to which it is a party.

     (e) Indemnification of the Administrative Agent. Each Liquidity Bank agrees to
indemnify the Administrative Agent (to the extent not reimbursed by the Seller or the Servicer),
ratably in accordance with its Commitment (or, if the Commitments have been terminated, then
ratably according to the respective amounts of the sum of (x) the aggregate Advances Outstanding
funded by it plus (y) the additional Advances it may be required to fund under the applicable
Liquidity Agreement) from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by, or asserted against the Administrative Agent in
any way relating to or arising out of this Agreement or any of the other Transaction Documents, or
any action taken or omitted by the Administrative Agent hereunder or thereunder; provided that none
of the Liquidity Banks shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the
Administrative Agent’s gross negligence or willful misconduct. Without limitation of the foregoing,
each Liquidity Bank agrees to reimburse the Administrative Agent, ratably in accordance with its
Commitment (or, if the Commitments have been terminated, then ratably according to the respective
amounts of the sum of (x) the aggregate Advances Outstanding funded by it plus (y) the additional
Advances it may be required to fund under the applicable Liquidity Agreement) promptly upon demand
for any out-of-pocket expenses (including counsel fees) incurred by the Administrative Agent in
connection with the administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement and the other Transaction Documents, to the extent that the
Administrative Agent is not reimbursed for such expenses by the Seller or the Servicer.

     (f) Successor Administrative Agent. The Administrative Agent may resign at any time,
effective upon the appointment and acceptance of a successor Administrative Agent as provided
below, by giving at least five days’ written notice thereof to each Purchaser and the Seller and
may be removed at any time with cause by the Purchasers acting jointly. Upon any such resignation
or removal, the Purchasers and (unless a Termination Event then exists) the Seller acting jointly
shall appoint a successor Administrative Agent. Each of the Purchasers and

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the Seller agrees that it shall not unreasonably withhold or delay its approval of the
appointment of a successor Administrative Agent. If no such successor Administrative Agent shall
have been so appointed, and shall have accepted such appointment, within 30 days after the retiring
Administrative Agent’s giving of notice of resignation or the removal of the retiring
Administrative Agent, then the retiring Administrative Agent may, on behalf of the Secured Parties,
appoint a successor Administrative Agent which successor Administrative Agent shall be either (i) a
commercial bank organized under the laws of the United States or of any state thereof and have a
combined capital and surplus of at least $50,000,000 or (ii) an Affiliate of such a bank. Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor Administrative
Agent, such successor Administrative Agent shall thereupon succeed to and become vested with all
the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations under this Agreement.
After any retiring Administrative Agent’s resignation or removal hereunder as Administrative Agent,
the provisions of this Article XII shall continue to inure to its benefit as to any actions
taken or omitted to be taken by it while it was Administrative Agent under this Agreement.

     (g) Payments by the Administrative Agent. Unless specifically allocated to a specific
Purchaser pursuant to the terms of this Agreement, all amounts received by the Administrative Agent
on behalf of the Purchasers shall be paid by the Administrative Agent to the applicable Purchasers
in accordance with their respective pro rata shares in the applicable Advances Outstanding, or if
there are no Advances Outstanding then to the Purchasers in accordance with the Aggregate Unpaids
due to each of them, on the Business Day received by the Administrative Agent, unless such amounts
are received after 12:00 noon on such Business Day, in which case the Administrative Agent shall
use its reasonable efforts to pay such amounts to the applicable Purchasers on such Business Day,
but, in any event, shall pay such amounts to such Purchasers not later than the following Business
Day.

     (h) Delegation of Duties. The Administrative Agent may execute any of its duties
under this Agreement by or through agents or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

     (i) Non-Reliance on the Administrative Agent. Each Purchaser expressly acknowledges
that neither the Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by
the Administrative Agent hereafter taken, including, without limitation, any review of the affairs
of the Seller, shall be deemed to constitute any representation or warranty by the Administrative
Agent. Each Purchaser represents and warrants to the Administrative Agent that it has and will,
independently and without reliance upon the Administrative Agent, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, prospects, financial and other conditions and creditworthiness of
the Seller and made its own decision to enter into this Agreement, the other Transaction Documents
or any Hedging Agreement, as the case may be.

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     (j) Administrative Agent and its Affiliates. The Administrative Agent and any of its
Affiliates may make loans to, accept deposits from and generally engage in any kind of business
with the Seller, Originator or Servicer or any Affiliate of the foregoing as though the
Administrative Agent was not the Administrative Agent. With respect to the Advances made pursuant
to this Agreement, the Administrative Agent and each of its Affiliates shall have the same rights
and powers under this Agreement as any Liquidity Bank and may exercise the same as though it were
not the Administrative Agent.

ARTICLE XIII

MISCELLANEOUS

     Section 13.1 Amendments and Waivers.

     (a) Except as provided in this Section 13.1, no amendment, waiver or other
modification of any provision of this Agreement shall be effective without the written agreement of
the Seller, the Servicer, the Backup Servicer, the Collateral Custodian, the Administrative Agent
and the Secured Parties; provided that no such amendment, waiver or modification adversely
affecting the rights or obligations of any Hedge Counterparty shall be effective without the
written agreement of such Person.

     (b) The parties hereto acknowledge and agree that after the Closing Date the Agreement may
need to be amended to correct certain ambiguities or errors as well as to correct inconsistencies
with the terms of the other Transaction Documents and each such party agrees to cooperate in good
faith to effectuate, and not to unreasonably withhold, delay or condition its consent to, any such
amendments; provided that notwithstanding the foregoing, to the extent any such amendment would
have an adverse effect on any Secured Party, such Secured Party shall have the right to consent or
withhold consent in its sole discretion.

     Section 13.2 Notices, Etc.

     All notices, reports and other communications provided for hereunder shall, unless otherwise
stated herein, be in writing (including telex communication and communication by facsimile copy)
and mailed, telexed, transmitted or delivered, as to each party hereto, at its address set forth
under its name on the signature pages hereof or at such other address as shall be designated by
such party in a written notice to the other parties hereto. All such notices and communications
shall be effective, upon receipt, or in the case of (a) notice by mail, five days after being
deposited in the United States mail, first class postage prepaid or (b) notice by facsimile copy,
when communication of receipt is obtained.

     Section 13.3 Ratable Payments.

     If any Purchaser, whether by setoff or otherwise, has payment made to it with respect to any
portion of the Aggregate Unpaids owing to such Purchaser (other than payments received pursuant to
Section 11.1) in a greater proportion than that received by any other Purchaser, such
Purchaser agrees, promptly upon demand, to purchase for cash without recourse or warranty a portion
of the Aggregate Unpaids held by the other Purchasers so that after such purchase each Purchaser
will hold its ratable proportion of the Aggregate Unpaids; provided that if all or any

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portion of such excess amount is thereafter recovered from such Purchaser, such purchase shall
be rescinded and the purchase price restored to the extent of such recovery, but without interest.

     Section 13.4 No Waiver; Remedies.

     No failure on the part of the Administrative Agent, the Collateral Custodian, the Backup
Servicer or a Secured Party to exercise, and no delay in exercising, any right or remedy hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy
hereunder preclude any other or further exercise thereof or the exercise of any other right. The
rights and remedies herein provided are cumulative and not exclusive of any rights and remedies
provided by law.

     Section 13.5 Binding Effect; Benefit of Agreement.

     This Agreement shall be binding upon and inure to the benefit of the Seller, the Servicer, the
Administrative Agent, the Backup Servicer, the Collateral Custodian, the Secured Parties and their
respective successors and permitted assigns and, in addition, the provisions of Section
2.9(a)(1) and Section 2.10(a)(1) shall inure to the benefit of each Hedge Counterparty,
whether or not that Hedge Counterparty is a Secured Party.

     Section 13.6 Term of this Agreement.

     This Agreement, including, without limitation, the Seller’s representations and covenants set
forth in Articles IV and V, and the Servicer’s representations, covenants and
duties set forth in Articles VI, VII and VIII, create and constitute the
continuing obligation of the parties hereto in accordance with its terms, and shall remain in full
force and effect until the Collection Date. Upon the occurrence of the Collection Date and the
written request of the Seller, the Administrative Agent shall release its interest in the
Collateral pursuant to Section 9.2; provided however that the rights and remedies with
respect to any breach of any representation and warranty made or deemed made by the Seller pursuant
to Articles III and IV the indemnification and payment provisions of Article
XI and the provisions of Section 13.9, Section 13.10 and Section 13.11,
shall be continuing and shall survive any termination of this Agreement.

     Section 13.7 Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue.

     THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW PROVISIONS THEREOF (OTHER THAN SECTIONS
5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). EACH OF THE PARTIES
HERETO AND EACH HEDGE COUNTERPARTY HEREBY AGREES TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK
STATE OR FEDERAL COURT LOCATED IN NEW YORK CITY. EACH OF THE PARTIES HERETO AND EACH SECURED PARTY
HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION
INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL
OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

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     Section 13.8 Waiver of Jury Trial.

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

     Section 13.9 Costs, Expenses and Taxes.

     (a) In addition to the rights of indemnification granted under Article XI hereof, the Seller
and Originator agrees to pay on demand all reasonable out of pocket costs and expenses of the
Administrative Agent, the Backup Servicer, the Collateral Custodian and the Secured Parties
incurred in connection with the preparation, execution, delivery, administration (including
periodic auditing, which shall be limited to two audits per year prior to the occurrence of a
Termination Event), renewal, amendment or modification of, or any waiver or consent issued in
connection with, this Agreement and the other documents to be delivered hereunder or in connection
herewith (including any Hedging Agreement), including, without limitation, the reasonable fees and
out-of-pocket expenses of counsel for the Administrative Agent, the Backup Servicer, the Collateral
Custodian and the Secured Parties with respect thereto and with respect to advising the
Administrative Agent, the Backup Servicer, the Collateral Custodian and the Secured Parties as to
their respective rights and remedies under this Agreement and the other documents to be delivered
hereunder or in connection herewith (including any Hedging Agreement), and all reasonable out of
pocket costs and expenses, if any (including reasonable counsel fees and expenses), incurred by the
Administrative Agent, the Backup Servicer, the Collateral Custodian or the Secured Parties in
connection with the enforcement of this Agreement and the other documents to be delivered hereunder
or in connection herewith (including any Hedging Agreement).

     (b) The Seller and Originator shall pay on demand any and all stamp, sales, excise and other
taxes and fees payable or determined to be payable in connection with the execution, delivery,
filing and recording of this Agreement, the other documents to be delivered hereunder or any
agreement or other document providing liquidity support, credit enhancement or other similar
support to the Purchasers in connection with this Agreement or the funding or maintenance of
Advances hereunder.

     (c) The Seller and Originator shall pay on demand all other reasonable out of pocket costs,
expenses and Taxes (excluding income taxes) incurred by the Administrative Agent and the Secured
Parties (“Other Costs”), including, without limitation, all costs and expenses incurred by the
Administrative Agent in connection with periodic audits of the Seller’s or the Servicer’s books and
records.

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     Section 13.10 No Proceedings.

     (a) Each of the parties hereto and each Hedge Counterparty (by accepting the benefits of this
Agreement) hereby agrees that it will not institute against, or join any other Person in
instituting against, any Issuer, any Insolvency Proceeding so long as any commercial paper or other
senior indebtedness issued by such Issuer shall be outstanding and there shall not have elapsed one
year and one day since the last day on which any such commercial paper or other senior indebtedness
shall have been outstanding.

     (b) Each of the parties hereto (other than the Administrative Agent acting with the consent of
the Purchasers) hereby agrees that it will not institute against, or join any other Person in
instituting against, the Seller any Insolvency Proceeding so long as there shall not have elapsed
one year and one day since the Collection Date; provided that nothing in this Section 13.10
shall limit any party’s right to file any claim in or otherwise take any action with respect to any
Insolvency Proceeding that was instituted by any other Person.

     Section 13.11 Recourse Against Certain Parties.

     (a) No recourse under or with respect to any obligation, covenant or agreement (including,
without limitation, the payment of any fees or any other obligations) of the Administrative Agent,
the Seller, the Servicer, the Originator or any Secured Party as contained in this Agreement or any
other agreement, instrument or document entered into by it pursuant hereto or in connection
herewith shall be had against any administrator of the Administrative Agent, the Seller, the
Servicer, the Originator or any Secured Party, or any incorporator, affiliate, stockholder,
officer, employee or director of the Administrative Agent, the Seller, the Servicer, the Originator
or any Secured Party, or of any such administrator, as such, by the enforcement of any assessment
or by any legal or equitable proceeding, by virtue of any statute or otherwise; it
being expressly agreed and understood that the agreements
of the Administrative Agent, the Seller, the Servicer, the Originator or any Secured Party
contained in this Agreement and all of the other agreements, instruments and documents entered into
by it pursuant hereto or in connection herewith are, in each case, solely the corporate or limited
liability company obligations of the Administrative Agent, the Seller, the Servicer, the Originator
or any Secured Party, and that no personal liability whatsoever shall attach to or be incurred by
any administrator of the Administrative Agent, the Seller, the Servicer, the Originator or any
Secured Party or any incorporator, stockholder, affiliate, officer, employee or director of the
Administrative Agent, the Seller, the Servicer, the Originator or any Secured Party or of any such
administrator, as such, or any other of them, under or by reason of any of the obligations,
covenants or agreements of the Administrative Agent, the Seller, the Servicer, the Originator or
any Secured Party contained in this Agreement or in any other such instruments, documents or
agreements, or that are implied therefrom, and that any and all personal liability of every such
administrator of the Administrative Agent, the Seller, the Servicer, the Originator or any Secured
Party and each incorporator, stockholder, affiliate, officer, employee or director of the
Administrative Agent, the Seller, the Servicer, the Originator or any Secured Party or of any such
administrator, or any of them, for breaches by the Administrative Agent, the Seller, the Servicer,
the Originator or any Secured Party of any such obligations, covenants or agreements, which
liability may arise either at common law or at equity, by statute or constitution, or otherwise, is
hereby expressly waived as a condition of and in consideration for the execution of this

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Agreement. The provisions of this Section 13.11(a) shall survive the termination of
this Agreement.

     (b) [Intentionally omitted.]

     (c) Notwithstanding any contrary provision set forth herein, no claim may be made by the
Seller, the Originator or the Servicer or any other Person against the Administrative Agent and the
Secured Parties or their respective Affiliates, directors, officers, employees, attorneys or agents
for any special, indirect, consequential or punitive damages in respect to any claim for breach of
contract or any other theory of liability arising out of or related to the transactions
contemplated by this Agreement, or any act, omission or event occurring in connection therewith;
and the Seller, the Originator and the Servicer each hereby waives, releases, and agrees not to sue
upon any claim for any such damages, whether or not accrued and whether or not known or suspected.

     (d) No obligation or liability to any Obligor under any of the Assets is intended to be
assumed by the Administrative Agent and the Secured Parties under or as a result of this Agreement
and the transactions contemplated hereby

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

     (a) The Servicer shall cause this Agreement, all amendments hereto and/or all financing
statements and continuation statements and any other necessary documents covering the right, title
and interest of the Administrative Agent as agent for the Secured Parties and of the Secured
Parties to the Collateral to be promptly recorded, registered and filed, and at all times to be
kept recorded, registered and filed, all in such manner and in such places as may be required by
law fully to preserve and protect the right, title and interest of the Administrative Agent as
agent for the Secured Parties hereunder to all property comprising the Collateral. The Servicer
shall deliver to the Administrative Agent file-stamped copies of, or filing receipts for, any
document recorded, registered or filed as provided above, as soon as available following such
recording, registration or filing. The Seller shall cooperate fully with the Servicer in
connection with the obligations set forth above and will execute any and all documents reasonably
required to fulfill the intent of this Section 13.12(a).

     (b) The Seller agrees that from time to time, at its expense, it will promptly execute and
deliver all instruments and documents, and take all actions, that the Administrative Agent may
reasonably request in order to perfect, protect or more fully evidence the Advances hereunder and
the security interest granted in the Collateral, or to enable the Administrative Agent or the
Secured Parties to exercise and enforce their rights and remedies hereunder or under any
Transaction Document.

     (c) If the Seller or the Servicer fails to perform any of its obligations hereunder, the
Administrative Agent or any Secured Party may (but shall not be required to) perform, or cause
performance of, such obligation; and the Administrative Agent’s or such Secured Party’s costs and
expenses incurred in connection therewith shall be payable by the Seller as provided in Article
XI. The Seller irrevocably authorizes the Administrative Agent and appoints the

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Administrative Agent as its attorney-in-fact to act on behalf of the Seller (i) to execute on
behalf of the Seller as debtor and to file financing statements necessary or desirable in the
Administrative Agent’s sole discretion to perfect and to maintain the perfection and priority of
the interest of the Secured Parties in the Collateral and (ii) to file a carbon, photographic or
other reproduction of this Agreement or any financing statement with respect to the Collateral as a
financing statement in such offices as the Administrative Agent in its sole discretion deems
necessary or desirable to perfect and to maintain the perfection and priority of the interests of
the Secured Parties in the Collateral. This appointment is coupled with an interest and is
irrevocable.

     (d) Without limiting the generality of the foregoing, Seller will, not earlier than six months
and not later than three months prior to the fifth anniversary of the date of filing of the
financing statement referred to in Section 3.1 or any other financing statement filed
pursuant to this Agreement or in connection with any Advance hereunder, unless the Collection Date
shall have occurred:

     (i) deliver and file or cause to be filed an appropriate continuation statement with
respect to such financing statement; and

     (ii) deliver or cause to be delivered to the Administrative Agent an opinion of the
counsel for Seller, in form and substance reasonably satisfactory to the Administrative
Agent confirming and updating the opinion delivered pursuant to Section 3.1 with
respect to perfection and otherwise to the effect that the security interest hereunder
continues to be an enforceable and perfected security interest, subject to no other Liens of
record except as provided herein or otherwise permitted hereunder, which opinion may contain
usual and customary assumptions, limitations and exceptions.

Section 13.13 Confidentiality

     (a) Each of the Administrative Agent, the Secured Parties, the Servicer, the Collateral
Custodian, the Backup Servicer and the Seller shall maintain and shall cause each of its employees
and officers to maintain the confidentiality of the Agreement and all information with respect to
the other parties, including all information regarding the business of CapitalSource Inc. and its
Affiliates, the Seller and the Servicer hereto, and their respective businesses obtained by it or
them in connection with the structuring, negotiating and execution of the transactions contemplated
herein or related to any of the underlying Obligors, except that each such party and its officers
and employees may (i) disclose such information to its external accountants, attorneys, investors,
potential investors parties that provide or may in the future provide first loss or credit
enhancement to such Person and the agents of such Persons (“Excepted Persons”); (ii) disclose the
existence of the Agreement, but not the financial terms thereof, (iii) disclose such information as
is required by Applicable Law and (iv) disclose the Agreement and such information in any suit,
action, proceeding or investigation (whether in law or in equity or pursuant to arbitration)
involving any of the Transaction Documents or any Hedging Agreement for the purpose of defending
itself, reducing its liability, or protecting or exercising any of its claims, rights, remedies, or
interests under or in connection with any of the Transaction Documents or any Hedging Agreement.
It is understood that the financial terms that may not be disclosed except in compliance with this
Section 13.13(a) include, without limitation, all fees and

140

 

other pricing terms, and all Termination Events, Servicer Defaults, and priority of payment
provisions.

     (b) Anything herein to the contrary notwithstanding, the Seller and the Servicer each hereby
consents to the disclosure of any nonpublic information with respect to it (i) to the
Administrative Agent, the Collateral Custodian, the Backup Servicer or the Secured Parties by each
other, (ii) by the Administrative Agent, the Collateral Custodian, the Backup Servicer and the
Secured Parties to any prospective or actual assignee or participant of any of them provided such
Person agrees to hold such information confidential, (iii) by the Administrative Agent and the
Secured Parties to any commercial paper dealer or provider of a surety, guaranty or credit or
liquidity enhancement to any Issuer, or to any subordinated investor in any Issuer, and to any
officers, directors, employees, outside accountants and attorneys of any of the foregoing, provided
each such Person is informed of the confidential nature of such information or (iv) to any Rating
Agency. In addition, the Secured Parties and the Administrative Agent, may disclose any such
nonpublic information as required pursuant to any law, rule, regulation, direction, request or
order of any judicial, administrative or regulatory authority or proceedings (whether or not having
the force or effect of law).

     (c) Notwithstanding anything herein to the contrary, the foregoing shall not be construed to
prohibit (i) disclosure of any and all information that is or becomes publicly known; (ii)
disclosure of any and all information (a) if required to do so by any applicable statute, law, rule
or regulation, (b) to any government agency or regulatory body having or claiming authority to
regulate or oversee any respects of the Administrative Agents’, the Secured Parties’, the
Collateral Custodian’s, the Backup Servicer’s, the Seller, the Servicer or the Originator business
or that of their affiliates, (c) pursuant to any subpoena, civil investigative demand or similar
demand or request of any court, regulatory authority, arbitrator or arbitration to which the
Administrative Agent, the Secured Parties, the Collateral Custodian, the Backup Servicer, the
Seller, the Servicer or the Originator or an officer, director, employer, shareholder or affiliate
of any of the foregoing is a party, (d) in any preliminary or final offering circular, registration
statement or contract or other document approved in advance by the Seller, the Servicer or the
Originator or (e) to any affiliate, independent or internal auditor, agent, employee or attorney of
the Collateral Custodian or Backup Servicer having a need to know the same, provided that the
Collateral Custodian or Backup Servicer advises such recipient of the confidential nature of the
information being disclosed; or (iii) any other disclosure authorized in writing by the Seller,
Servicer or Originator.

     (d) Notwithstanding any other provision herein or in any other Transaction Document, each
Purchaser and the Administrative Agent hereby confirms that the Seller, the Originator and the
Servicer (and each employee, representative or other agent of each such party) may disclose to any
and all Persons, without limitation of any kind, the U.S. tax treatment and U.S. tax structure of
the transaction contemplated by this Agreement and the other Transaction Documents.

     Section 13.14 Execution in Counterparts; Severability; Integration.

     This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts (including by facsimile or by electronic mail in portable

141

 

document format (pdf)), each of which when so executed shall be deemed to be an original and
all of which when taken together shall constitute one and the same agreement. In case any
provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations,
or of such provision or obligation in any other jurisdiction, shall not in any way be affected or
impaired thereby. This Agreement and the Transaction Documents contains the final and complete
integration of all prior expressions by the parties hereto with respect to the subject matter
hereof and shall constitute the entire agreement among the parties hereto with respect to the
subject matter hereof, superseding all prior oral or written understandings delivered by the
Originator to the Administrative Agent and the Secured Parties.

     Section 13.15 Waiver of Set-off.

     (a) The Seller, the Servicer and the Originator each hereby waives any right of setoff it may
have or to which it may be entitled under this Agreement from time to time against the
Administrative Agent, each Purchaser, its Affiliates or its respective assets.

     (b) Without in any way limiting the provisions of Section 13.3, the Administrative Agent and
each Purchaser is hereby authorized (in addition to any other rights it may have) at any time after
the occurrence and during the continuance of a Termination Event to set-off, appropriate and apply
(without presentment, demand, protest or other notice which are hereby expressly waived) any
deposits and any other indebtedness held or owing by the Administrative Agent or such Purchaser to,
or for the respective account of, the Seller, the Servicer or the Originator against any amount
owing by the Seller, the Servicer or the Originator, respectively, to such Person or to the
Administrative Agent on behalf of such Person (even if contingent or unmatured). For the avoidance
of doubt, the right of setoff set forth in this Section 13.15(b) does not permit setoff of deposits
and indebtedness held or owing by one Person to or for the account of a second Person against
amounts owing by any Person other than such second Person.

     Section 13.16 Assignments.

     (a) This Agreement and each Issuer’s rights and obligations herein (including ownership of
each Asset) shall be assignable by the Issuers and their successors and assigns to any Eligible
Assignee (including, without limitation, pursuant to the Liquidity Agreement). Each assigning
Issuer shall notify the Administrative Agent and the Seller of any such assignment.

     (b) Each Liquidity Bank may assign to any Eligible Assignee or to any other Liquidity Bank all
or a portion of its rights and obligations under this Agreement (including, without limitation, all
or a portion of its Commitment and any Assets or interests therein owned by it); provided, however,
that

     (i) each such assignment shall be of a constant, and not a varying, percentage of all
rights and obligations under this Agreement,

     (ii) the amount being assigned pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance Agreement with respect to such

142

 

assignment) shall in no event be less than the lesser of (x) $25,000,000 and (y) all of
the assigning Bank’s Commitment,

     (iii) the parties to each such assignment shall execute and deliver to the
Administrative Agent, for its acceptance and recording in the Register, an Assignment and
Acceptance Agreement, together with a processing and recordation fee of $2,500,

     (iv) concurrently with such assignment, such assignor Liquidity Bank shall assign to
such assignee Liquidity Bank or other Eligible Assignee an equal percentage of its rights
and obligations under the Liquidity Agreement (or, if such assignor Liquidity Bank is
Citibank, it shall arrange for such assignee Liquidity Bank or other Eligible Assignee to
become a party to the Liquidity Agreement for a maximum principal amount equal to the
assignee’s Commitment), and

     (v) Citibank may not assign any portion of its Commitment to the extent that it reduces
such Commitment below 50% of the Facility Amount.

     Upon such execution, delivery, acceptance and recording, from and after the effective date
specified in such Assignment and Acceptance Agreement, (x) the assignee thereunder shall be a party
to this Agreement and, to the extent that rights and obligations hereunder have been assigned to it
pursuant to such Assignment and Acceptance Agreement, have the rights and obligations of a
Liquidity Bank hereunder and (y) the assigning Liquidity Bank shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance
Agreement, relinquish such rights and be released from such obligations under this Agreement (and,
in the case of an Assignment and Acceptance Agreement covering all or the remaining portion of an
assigning Liquidity Bank’s rights and obligations under this Agreement, such Liquidity Bank shall
cease to be a party hereto).

     (c) The Administrative Agent shall maintain at its address referred to in Section 13.2 of this
Agreement a copy of each Assignment and Acceptance Agreement delivered to and accepted by it and a
register for the recordation of the names and addresses of the Liquidity Banks and the Commitment
of, and aggregate outstanding principal of Advances owned by, each Liquidity Bank from time to time
(the “Register”). The entries in the Register shall be conclusive and binding for all purposes,
absent manifest error, and the Seller, the Originator, the Administrative Agent and the Liquidity
Banks may treat each person whose name is recorded in the Register as a Liquidity Bank under this
Agreement for all purposes of this Agreement. The Register shall be available for inspection by
the Seller or any Liquidity Bank at any reasonable time and from time to time upon reasonable prior
notice. Upon its receipt of an Assignment and Acceptance Agreement executed by an assigning
Liquidity Bank and an Eligible Assignee, the Administrative Agent shall, if such Assignment and
Acceptance Agreement has been completed, (i) accept such Assignment and Acceptance Agreement, (ii)
record the information contained therein in the Register and (iii) give prompt notice thereof to
the Seller.

     (d) Notwithstanding any other provision of this Section 13.16, any Liquidity Bank may at any
time pledge or grant a security interest in all or any portion of its rights (including, without
limitation, rights to payment of interest and principal) under this Agreement or under any
Liquidity Agreement to secure obligations of such Liquidity Bank to a Federal Reserve

143

 

Bank, without notice to or consent of the Seller or the Administrative Agent; provided that no
such pledge or grant of a security interest shall release a Liquidity Bank from any of its
obligations hereunder or under the Liquidity Agreement, as the case may be, or substitute any such
pledgee or grantee for such Liquidity Bank as a party hereto or to the Liquidity Agreement, as the
case may be.

     (e) Each Liquidity Bank may sell participations, to one or more banks or other entities, in or
to all or a portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment and the Advances owned by it); provided,
however, that

     (i) such Liquidity Bank’s obligations under this Agreement (including, without
limitation, its Commitment to the Seller hereunder) shall remain unchanged,

     (ii) such Liquidity Bank shall remain solely responsible to the other parties to this
Agreement for the performance of such obligations, and

     (iii) concurrently with such participation, the selling Liquidity Bank shall sell to
such bank or other entity a participation in an equal percentage of its rights and
obligations under the Liquidity Agreement.

     The Administrative Agent, the other Liquidity Banks and the Seller shall have the right to
continue to deal solely and directly with such Liquidity Bank in connection with such Liquidity
Bank’s rights and obligations under this Agreement.

     (f) This Agreement and the rights and obligations of the Administrative Agent herein shall be
assignable by the Administrative Agent and its successors and assigns; provided,
however, that the Administrative Agent agrees that it will not assign such rights and
obligations to any Person other than an Affiliate of Citibank unless:

     (i) in the reasonable judgment of the Administrative Agent, the Administrative Agent
determines that continued service by it (or its Affiliate) as Administrative Agent hereunder
would be inconsistent with, or otherwise disadvantageous under, applicable legal, tax or
regulatory restrictions, in which case the Administrative Agent shall notify the Seller of
such determination and consult with the Seller regarding the selection of an assignee; or

     (ii) there shall have occurred any Termination Event, which shall be continuing; or

     (iii) the Seller shall have consented to such assignment (such consent not to be
unreasonably withheld or delayed).

     (g) The Seller may not assign its rights or obligations hereunder or any interest herein, or
permit any Lien (other than any Permitted Lien) to exist upon, any of the Seller’s rights,
obligations or duties under this Agreement, without the prior written consent of the Administrative
Agent and each Hedge Counterparty.

144

 

     Section 13.17 Heading and Exhibits.

     The headings herein are for purposes of references only and shall not otherwise affect the
meaning or interpretation of any provision hereof. The schedules and exhibits attached hereto and
referred to herein shall constitute a part of this Agreement and are incorporated into this
Agreement for all purposes.

     Section 13.18 Loans Subject to Retained Interest Provisions.

     (a) With respect to any Loan included in the Collateral subject to the Retained Interest
provisions of this Agreement, the Seller will own only the principal portion of such Loans
outstanding as of the applicable Cut-Off Date. Principal Collections received by the Seller or the
Servicer on any Revolving Loans will be allocated first to the portion of such Revolving Loan owned
by the Seller, until the principal amount of such portion is reduced to zero, and then to the
portion not owned by the Seller; provided that if (i) a payment default occurs with respect to any
of the related Loans, (ii) the Originator has determined in its sole discretion that an Obligor’s
credit has deteriorated or the Originator has determined in its sole discretion to reduce its
commitment to an Obligor, then Principal Collections received on the applicable Loan will be
allocated between the portion owned by the Seller and the portion not owned by the Seller, pro rata
based upon the outstanding principal amount of each such portion.

     (b) With respect to any Term Loans included in the Collateral subject to the Retained Interest
provisions of this Agreement, Principal Collections and Interest Collections received by the
Servicer will be allocated between the portion owned by the Seller and to the portion not owned by
the Seller (if any) on a pro rata basis according to the outstanding principal amount of such
portion.

     Section 13.19 Tax Treatment of Advances.

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

     [Remainder of Page Intentionally Left Blank.]

145

 

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

	 	 	 	 	 	 	 	 	 
	THE SELLER:	 	CAPITALSOURCE REAL ESTATE	 	 
	 	 	LOAN LLC, 2007-A	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	/s/ Jeffrey A. Lipson	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	Jeffrey A. Lipson	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	Vice President & Treasurer	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CapitalSource Real Estate Loan LLC, 2007-A

4445 Willard Avenue, 12th Floor

Chevy Chase, Maryland 20815	 	 
	 	 	Attention:	 	Treasurer	 	 
	 	 	Facsimile No.:	 	(301) 841-2375	 	 
	 	 	Confirmation No.:	 	(301) 841-2731]	 	 
	 
	 	 	 	 	 	 	 	 
	THE ORIGINATOR AND SERVICER:	 	CSE MORTGAGE LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	/s/ Jeffrey A. Lipson	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	Jeffrey A. Lipson	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	Vice President & Treasurer	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CSE Mortgage LLC

4445 Willard Avenue, 12th Floor

Chevy Chase, Maryland 20815	 	 
	 	 	Attention:	 	Treasurer	 	 
	 	 	Facsimile No.:	 	(301) 841-2375	 	 
	 	 	Confirmation No.:	 	(301) 841-2731	 	 

[Signatures Continued on the Following Page]

Sale and
Servicing Agreement

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Issuer:	 	CRC FUNDING, LLC,	 	 	 	 
	 	 	in its capacity as an Issuer	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Citicorp North America, Inc.,	 	 	 	 
	 	 	 	 	as Attorney-in-Fact	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	By:	 	/s/ Gerald F. Keefe	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	Name:	 	Gerald F. Keefe	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	Title:	 	Authorized Signatory	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	CRC Funding, LLC

450 Mamaroneck Avenue

Harrison, N.Y. 10528

Attention: Global Securitization

Facsimile No.: 914-899-7890

Confirmation No.: 914-899-7218	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Issuer:	 	CAFCO, LLC,

in its capacity as an Issuer	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Citicorp North America, Inc.,

as Attorney-in-Fact	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	By:	 	/s/ Gerald F. Keefe	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	Name:	 	Gerald F. Keefe	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	Title:	 	Authorized Signatory	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	CAFCO, LLC

450 Mamaroneck Avenue

Harrison, N.Y. 10528

Attention: Global Securitization

Facsimile No.: 914-899-7890

Confirmation No.: 914-899-7218	 	 	 	 

[Signatures Continued on the Following Page]

Sale and
Servicing Agreement

 

 

	 	 	 	 	 	 	 	 	 
	Issuer:	 	CIESCO, LLC,

in its capacity as an Issuer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Citicorp North America, Inc.,	 	 
	 	 	 	 	as Attorney-in-Fact	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Gerald F. Keith	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	Gerald F. Keith	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	Authorized Signatory	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CIESCO, LLC

450 Mamaroneck Avenue

Harrison, N.Y. 10528

Attention: Global Securitization

Facsimile No.: 914-899-7890

Confirmation No.: 914-899-7218	 	 

[Signatures Continued on the Following Page]

 Sale and
Servicing Agreement

 

 

	 	 	 	 	 	 	 	 	 
	Liquidity Bank:	 	CITIBANK, N.A.,	 	 
	 	 	in its capacity as a Liquidity Bank	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ James Huddleston	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	James Huddleston	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Citibank, N.A.

450 Mamaroneck Avenue

Harrison, N.Y. 10528

Attention: Global Securitization

Facsimile No.: 914-899-7890

Confirmation No.: 914-899-7218	 	 
	 
	 	 	 	 	 	 	 	 
	THE ADMINISTRATIVE AGENT	 	 CITICORP NORTH AMERICA, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Gerald F. Keith	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	Gerald F. Keith	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	Authorized Signatory	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Citicorp North America, Inc., as Administrative Agent

450 Mamaroneck Avenue

Harrison, N.Y. 10528

Attention: Global Securitization

Facsimile No.: 914-899-7890

Confirmation No.: 914-899-7218	 	 

[Signatures Continued on the Following Page]

 Sale and
Servicing Agreement

 

 

	 	 	 	 	 	 	 	 	 
	THE BACKUP SERVICER:	 	WELLS FARGO BANK, NATIONAL	 	 
	AND THE COLLATERAL	 	ASSOCIATION, not in its individual capacity but	 	 
	CUSTODIAN:	 	solely as Backup Servicer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	/s/ Joe Nardi	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	Joe Nardi	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	Vice President	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Wells Fargo Bank, National Association

Sixth Street and Marquette Avenue

MAC N9311-161

Minneapolis, Minnesota 55479	 	 
	 	 	Attention:	 	Corporate Trust Services

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

[Signatures Continued on the Following Page]

 Sale and
Servicing Agreement

 

 

Acknowledged and Agreed to

as of the date first written above.

CITIBANK, N.A.,

as the Hedge Counterparty

	 	 	 	 	 
	By:
	 	/s/ Sandro Zorzi	 	 
	Name:

	 	Sandro C. Zorzi

	 	 
	Title:

	 	Vice President, CitiBank, N.A.

	 	 
	 

	 	 

	 	 

Citibank, N.A.

450 Mamaroneck Avenue

Harrison, N.Y. 10528

Attention: Global Securitization

Facsimile No.: 914-899-7890

Confirmation No.: 914-899-7218

 Sale and
Servicing Agreement

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