Document:

Ex. 10.16(a) first Amdmt to Rec Loan and Security Agmt

    EXECUTION
      COPY

     

    FIRST
      AMENDMENT TO RECEIVABLES LOAN AND SECURITY AGREEMENT

     

    THIS
      FIRST AMENDMENT TO THE RECEIVABLES LOAN AND SECURITY AGREEMENT, dated as
      December 21, 2006 (this “Amendment”),
      is
      entered into by RESOURCE CAPITAL FUNDING II, LLC, (the “Borrower”),
      LEAF
      FINANCIAL CORPORATION (“LEAF
      Financial”
      or the
“initial
      Servicer”)
      as the
      Servicer and MORGAN STANLEY BANK (“Morgan
      Stanley”)
      as a
      Lender.

     

    R E C I T A L S

     

    A.  The
      Borrower, LEAF Financial, Morgan Stanley, U.S. Bank National Association and
      Lyon Financial Services, Inc. are parties to the Receivables Loan and Security
      Agreement, dated as of October 31, 2006 (as amended, supplemented or otherwise
      modified from time to time, the “Agreement”);

     

    B. The
      parties hereto desire to amend the Agreement on the terms and conditions set
      forth herein.

     

    NOW
      THEREFORE,
      for
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties agree as follows:

     

    1.  Certain
      Defined Terms.
      Capitalized terms used but not defined herein shall have the meanings set forth
      for such terms in Section
      1.01
      of the
      Agreement.

     

    2.  Amendments
      to the Agreement.
      The
      Agreement is hereby amended to incorporate the changes reflected on Exhibit
      A
      hereto.

     

    3.  Consent.
      Morgan
      Stanley hereby consents to the execution and delivery of the First Amendment
      to
      the Purchase and Sale Agreement, dated as of the date hereof (the “PSA
      Amendment”),
      between the Originator and the Borrower.

     

    4.  Conditions
      Precedent.
      The
      effectiveness of this Amendment is expressly conditioned upon the satisfaction
      of the following conditions precedent:

     

    (a)  the
      execution and delivery by all of the parties hereto of this Amendment and the
      PSA Amendment; and

     

    (b)  The
      execution and delivery by all of the parties thereto of the Membership Interest
      Purchase Agreement, dated as of the date hereof, between RCC Commercial, Inc.,
      as seller, and the Originator, as buyer; and

     

    (c)  the
      delivery of favorable opinions of counsel regarding true sale and substantive
      nonconsolidation matters, in form and substance reasonably satisfactory to
      Morgan Stanley.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d)  The
      delivery of a reliance letter to Morgan Stanley Capital Services, Inc. with
      respect to the opinions of counsel dated October 31, 2006 and delivered in
      connection with the execution and delivery of the Receivables Loan and Security
      Agreement, excluding any such opinions delivered with respect to true sale
      and
      nonconsolidation matters. 

     

    5.  Representations
      and Warranties.
      Both
      the Borrower and the Servicer represents and warrants to Morgan Stanley
      that:

     

    (a)  this
      Amendment has been duly authorized, executed and delivered on its behalf, and
      the Agreement, as so amended, constitutes its legal, valid and binding
      obligation enforceable against it in accordance with the terms hereof or
      thereof;

     

    (b)  the
      representations and warranties made by it in the Agreement (as amended by this
      Amendment) are true and correct as of the date hereof (except to the extent
      such
      representations and warranties speak as a prior date or have been the subject
      of
      any prior notice or waiver); and

     

    (c)  after
      giving effect to this Amendment, no Program Termination Event, Event of Default,
      or Unmatured Event of Default shall exist on the date hereof.

     

    6.  Effect
      of Amendment.
      Except
      as expressly amended and modified by this Amendment, all provisions of the
      Agreement shall remain in full force and effect. After the date hereof, all
      references in the Agreement to “this Agreement”, “hereof”, or words of similar
      effect referring to such Agreement shall be deemed to be references to the
      Agreement as amended by this Amendment. This Amendment shall not be deemed
      to
      expressly or impliedly waive, amend or supplement any provision of the Agreement
      other than as set forth herein.

     

    7.  Counterparts.
      This
      Amendment may be executed in any number of counterparts and by different parties
      on separate counterparts, each of which shall be deemed to be an original and
      all of which when taken together shall constitute but one and the same
      instrument.

     

    8.  Governing
      Law.
      This
      Amendment shall be governed by, and construed in accordance with, the law of
      the
      State of New York without regard to any otherwise applicable principles of
      conflicts of law.

     

    9.  Section
      Headings.
      The
      various headings of this Amendment are included for convenience only and shall
      not affect the meaning or interpretation of this Amendment, the Agreement or
      any
      provision hereof or thereof.

     

    Signature
      pages follow

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

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

     

    

     

    
      	
              THE
                BORROWER:

            	
              RESOURCE
                CAPITAL FUNDING II, LLC

               

              By: ______________________________

                  Name:

                  Title:

               

            
	
              THE
                SERVICER:

            	
              LEAF
                FINANCIAL CORPORATION

               

              By: ______________________________

                  Name:

                  Title:

               

            
	 	 
	
              THE
                LENDER:

            	
              MORGAN
                STANLEY BANK

               

              By: ______________________________

                  Name:

                  Title:

               

            

    

    

    
      
        
        

      

      
        S-1

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    AMENDMENTSEx 10.16(b) Purchase and Sale Agrement dated 122106

    PURCHASE
      AND SALE AGREEMENT

     

    THIS
      PURCHASE AND SALE AGREEMENT, dated as of October 31, 2006 (this “Agreement”),
      between LEAF Funding, Inc., a Delaware corporation (“LEAF”), and Resource
      Capital Funding II, LLC, a Delaware limited liability company (the “Purchaser”).

     

    W
      I T
      N E S S E T H:

     

    WHEREAS,
      the Purchaser has agreed to purchase from LEAF from time to time, and LEAF
      has
      agreed to Sell (as hereinafter defined) to the Purchaser from time to time,
      certain Receivables, Related Security and Other Conveyed Property (in each
      case,
      as hereinafter defined) related thereto on the terms set forth
      herein.

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual agreements
      hereinafter contained, and for other good and valuable consideration, the
      receipt of which is hereby acknowledged, the Purchaser and LEAF, intending
      to be
      legally bound, hereby agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    SECTION
      1.1 General.
      The
      specific terms defined in this Article include the plural as well as the
      singular. Words herein importing a gender include the other gender. References
      herein to “writing” include printing, typing, lithography, and other means of
      reproducing words in visible form. References to agreements and other
      contractual instruments include all subsequent amendments thereto or changes
      therein entered into in accordance with their respective terms and not
      prohibited by this Agreement or the RLSA (as hereinafter defined). References
      herein to Persons include their successors and assigns permitted hereunder
      or
      under the RLSA. The terms “include” or “including” mean “include without
      limitation” or “including without limitation”. The words “herein”, “hereof” and
“hereunder” and other words of similar import refer to this Agreement as a whole
      and not to any particular Article, Section or other subdivision, and Article,
      Section, Schedule and Exhibit references, unless otherwise specified, refer
      to
      Articles and Sections of and Schedules and Exhibits to this Agreement.
      Capitalized terms used herein but not defined herein shall have the respective
      meanings assigned to such terms in the RLSA.

     

    SECTION
      1.2 Specific
      Terms.
      Whenever used in this Agreement, the following words and phrases, unless the
      context otherwise requires, shall have the following meanings:

     

    “Agreement”
means
      this Purchase and Sale Agreement and all amendments hereof and supplements
      hereto made in accordance with the terms hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Assignment”
means
      an Assignment executed by LEAF, substantially in the form of Exhibit A attached
      hereto.

     

    “Collateral
      Agent”
has
      the
      meaning specified in the RLSA.

     

    “Convey”
means
      to Sell Receivables, Related Security and Other Conveyed Property
      hereunder.

     

    “Conveyance”
means,
      collectively, a Sale of Receivables, Related Security and Other Conveyed
      Property by LEAF to the Purchaser.

     

    “Conveyance
      Date”
has
      the
      meaning specified in Section
      2.1(e).
      

     

    “Cut-Off
      Date”
means
      with respect to any Receivable Conveyed on any Conveyance Date, the first day
      of
      the calendar month immediately following such Conveyance Date.

     

    “LEAF
      Pension Plan”
means
      a
“pension plan” as such term is defined in section 3(2) of ERISA, which is
      subject to title IV of ERISA and to which LEAF or any ERISA Affiliate of LEAF
      may have any liability, including any liability by reason of having been a
      substantial employer within the meaning of section 4063 of ERISA at any time
      during the preceding five years, or by reason of being deemed to be a
      contributing sponsor under section 4069 of ERISA.

     

    “LEAF
      Purchase Event”
means
      the occurrence of a material breach of any of LEAF’s representations and
      warranties under Section
      4.1(a).

     

    “Lender”
means
      any present or future “Lender” named under the RLSA. 

     

    “Originator”
means
      LEAF Funding, Inc., a Delaware corporation. 

     

    “Other
      Conveyed Property”
means,
      with respect to any Receivable, all of LEAF’s right, title and interest in, to
      and under (i) all Collections and other monies at any time received or
      receivable with respect to such Receivable after the applicable Cut-Off Date,
      (ii) the Equipment or Underlying Equipment related to such Receivable (to the
      extent of LEAF’s ownership rights, if any, therein), (iii) in the case of a
      Receivable related to any Contract, any and all agreements, documents,
      certificates and instruments evidencing LEAF’s security interest or other
      interest in and to the related Obligor Collateral or any intercreditor agreement
      with respect thereto, including, without limitation, any Certificate of Title,
      (iv) the security interest in the Obligor Collateral related to such Receivable
      granted by the related Obligor to the Originator under the related Contract,
      (v)
      the Obligor Financing Statement, if any, related to such Receivable, (vi) the
      Insurance Policy and any Underlying Insurance Policy and any proceeds from
      the
      Insurance Policy and any Underlying Insurance Policy relating to such
      Receivable, including rebates of premiums not otherwise due to an Obligor,
      (vii)
      the related Contract and all other items required to be contained in the related
      Receivable File, any and all other documents or electronic records that LEAF
      keeps on file in accordance with its customary procedures relating to such
      Receivable, the related Obligor Collateral or the related Obligor, (viii) any
      Security Deposits or Cash Reserves related to such Receivable, (ix) all property
      (including the right to receive future Liquidation Proceeds) that secures such
      Receivable and that has been

     

    
      
        
        

      

      
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    acquired
      by or on behalf of LEAF pursuant to the liquidation of such Receivable, and
      (x)
      all present and future rights, claims, demands, causes and choses in action
      in
      respect of any or all of the foregoing and all payments on or under and all
      proceeds and investments of any kind and nature in respect of any of the
      foregoing.

     

    “Pool
      A
      Receivable”
means
      the rights to all payments from an Obligor under a Pool A Contract, including,
      without limitation, any right to the payment with respect to (i) Scheduled
      Payments, (ii) any prepayments or overdue payments made with respect to such
      Scheduled Payments, (iii) any Guaranty Amounts, (iv) any Insurance Proceeds,
      (v)
      any Servicing Charges and (vi) any Recoveries.

     

    “Pool
      B
      Receivable”
means
      the rights to all payments from an Obligor under a Pool B Contract, including,
      without limitation, any right to the payment with respect to (i) Scheduled
      Payments and Underlying Scheduled Payments, (ii) any prepayments or overdue
      payments made with respect to such Scheduled Payments and Underlying Scheduled
      Payments, (iii) any Guaranty Amounts, (iv) any Insurance Proceeds, (v) any
      Servicing Charges and (vi) any Recoveries.

     

    “Purchase
      Price”
means,
      with respect to any Receivable and the Related Security and Other Conveyed
      Property related thereto Conveyed hereunder pursuant to a Sale, an amount
      determined on the related Conveyance Date equal to the sum of the Originator’s
      costs in originating such Receivable minus
      the
      amount of Collections received with respect to such Receivables prior to the
      Cut-Off Date therefor.

     

    “Purchaser”
has
      the
      meaning specified in the Preamble.

     

    “Receivable”
means
      a
      Pool A Receivable or a Pool B Receivable.

     

    “Repurchase
      Date”
has
      the
      meaning specified in Section
      6.1(b).

     

    “Repurchase
      Price”
      means,
      with respect to a Conveyed Receivable to be released hereunder, an amount equal
      to the Discounted Balance of such Conveyed Receivable at the time of such
      release plus
      interest
      accrued thereon at the Discount Rate from and including the Remittance Date
      immediately preceding the date such Conveyed Receivable is to be released
      through (but not including) the next succeeding Remittance Date.

     

    “Request
      Notice”
means
      a
      notice, which shall include a computer print-out, tape or other form acceptable
      to the Purchaser sufficient to enable the Purchaser to identify all Receivables
      to be Sold by LEAF to the Purchaser on a Conveyance Date.

     

    “Request
      Notice Date”
has
      the
      meaning specified in Section
      2.1(b).

     

    “RLSA”
means
      the Receivables Loan and Security Agreement, dated as of the date hereof, by
      and
      among the Purchaser, LEAF Financial Corporation, as Servicer, the Lenders named
      therein, Lyon Financial Services, Inc., as Backup Servicer, U.S. Bank National
      Association, as Lender’s Bank and the Custodian, as amended and/or restated from
      time to time pursuant to the terms thereof.

     

    
      
        
        

      

      
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    “Sale”
and
      “Sell”
have
      the meanings specified in Section
      2.1(a).

     

    “Schedule
      of Pool A Receivables”
means
      the schedule of all Pool A Receivables Sold pursuant to this Agreement which
      is
      attached hereto as Schedule
      C-1,
      as
      amended or supplemented from time to time pursuant to the terms
      hereof.

     

    “Schedule
      of Pool B Receivables”
means
      the schedule of all Pool B Receivables Sold pursuant to this Agreement which
      is
      attached hereto as Schedule
      C-2,
      as
      amended or supplemented from time to time pursuant to the terms
      hereof.

     

    “Schedule
      of Representations”
means
      the Schedule of Representations and Warranties attached hereto as Schedule
      A.

     

    “Transfer
      Taxes”
means
      any tax, fee or governmental charge payable by the Purchaser, LEAF or any other
      Person to any federal, state or local government arising from or otherwise
      related to the Conveyance of any Receivable, the related Obligor Collateral
      and/or any other related Other Conveyed Property from LEAF to the Purchaser
      under this Agreement (excluding taxes measured by net income).

     

                SECTION
      1.3 Certain
      References.
      All
      references to the Discounted Balance of a Receivable as of a Conveyance Date
      shall refer to the close of business on such day.

     

    ARTICLE
      II

     

    CONVEYANCE
      OF THE RECEIVABLES AND THE OTHER CONVEYED PROPERTY

        

                SECTION
      2.1 Conveyance
      of the Receivables and the Other Conveyed Property.

     

    (a) Subject
      to the terms and conditions of this Agreement, on and after the date of this
      Agreement (but not after the occurrence of the Program Termination Date under
      the RLSA), LEAF hereby agrees to, from time to time, (i) sell or contribute
      (in
      accordance with subsection
      (f)
      below),
      transfer, assign, and otherwise convey (collectively, “Sell” and any such sale,
      transfer, assignment, and/or other conveyance, a “Sale”) to the Purchaser,
      without recourse (but with personal liability to the extent specifically
      provided in Sections
      4.3
      and
6.1(a)
      hereof),
      and the Purchaser hereby agrees to purchase, all right, title and interest
      of
      LEAF in and to certain Receivables acquired by LEAF and the Related Security
      and
      Other Conveyed Property related thereto, (ii) transfer, or cause the deposit,
      into the Collection Account of all Collections received by LEAF on account
      of
      any Receivables, Related Security and Other Conveyed Property Conveyed hereunder
      on and after Cut-Off Date related to such Receivables, Related Security and
      Other Conveyed Property, in each case, within one Business Day of the
      identification thereof, (iii) transfer, or cause the deposit, into the Security
      Deposit Account of funds in an amount equal to any Security Deposits related
      to
      any Receivables Conveyed hereunder, in each case, concurrent with the Conveyance
      of such Receivables and (iv) transfer, or cause the deposit, into the Cash
      Reserve Account of funds in an amount equal to any Cash Reserves related to
      any
      Receivables Conveyed hereunder, in each case, concurrent with the Conveyance
      of
      such Receivables. LEAF hereby acknowledges that each Conveyance to the Purchaser
      hereunder is absolute and irrevocable, without reservation or retention of
      any
      interest whatsoever by LEAF.

     

    
      
        
        

      

      
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    (b) The
      Sales
      of Receivables, Related Security and Other Conveyed Property by LEAF to the
      Purchaser pursuant to this Agreement are intended to be absolute assignments
      (free and clear of any Liens) of all of LEAF’s right, title and interest in, to
      and under such Receivables, Related Security and Other Conveyed Property for
      all
      purposes and, except for personal liability to the extent specifically provided
      in Sections
      4.3
      and
6.1(a)
      hereof,
      without recourse.

     

    (c) It
      is the
      intention of LEAF and the Purchaser that the Receivables, Related Security
      and
      Other Conveyed Property Sold by LEAF to the Purchaser pursuant to this Agreement
      shall not be part of LEAF’s estate in the event of the filing of a bankruptcy
      petition by or against LEAF under any bankruptcy or similar law.

     

    (d) In
      the
      event that the Sales of Receivables, Related Security and Other Conveyed
      Property by LEAF to the Purchaser pursuant to this Agreement are deemed to
      be a
      secured financing (or are otherwise determined not to be absolute assignments
      of
      all of LEAF’s right, title and interest in, to and under the Receivables,
      Related Security and Other Conveyed Property Sold, or purportedly Sold
      hereunder), then (i) LEAF shall be deemed hereunder to have granted to the
      Purchaser, and LEAF does hereby grant to the Purchaser, a security interest
      in
      all of LEAF’s right, title and interest in, to and under such Receivables,
      Related Security and Other Conveyed Property, whether now owned or hereafter
      acquired and all proceeds of, and all amounts received or receivable under
      any
      or all of, the foregoing and (ii) this Agreement shall constitute a security
      agreement under applicable law.

     

    (e) LEAF
      may
      on any Business Day (each a “Conveyance Date”) deliver to the Purchaser a
      Request Notice identifying the Receivables, Related Security and Other Conveyed
      Property to be Sold by LEAF to the Purchaser on such Conveyance Date. Each
      delivery of a Request Notice shall be accompanied by an updated Schedule of
      Pool
      A Receivables and an updated Schedule of Pool B Receivables, which schedules
      shall be attached hereto as Schedules
      C-1
      and
C-2,
      as
      applicable, and made a part hereof. Each schedule so delivered shall supersede
      any prior schedules so delivered.

     

    (f) The
      price
      paid for Receivables and the Related Security and Other Conveyed Property
      related thereto which are Sold hereunder shall be the Purchase Price with
      respect thereto. Subject to the following sentence, such Purchase Price shall
      be
      paid by means of an immediate cash payment to LEAF by wire transfer on the
      applicable Conveyance Date to an account designated by LEAF on or before such
      Conveyance Date, and documented by means of proper accounting entries upon
      the
      accounts and records of LEAF and the Purchaser on the applicable Conveyance
      Date. In the event that LEAF owns any membership interests in the Purchaser,
      and
      the Purchaser does not have sufficient cash to pay the full amount of the
      Purchase Price for any Sale hereunder, LEAF may, in its sole discretion, elect
      to contribute to the capital of the Purchaser a portion of the Receivables
      (and
      the Related Security and Other Conveyed Property related thereto) being Sold
      on
      the applicable Conveyance Date in an amount equal to such deficiency. LEAF
      and
      the Purchaser intend that the Purchase Price for any Receivables and the Related
      Security and Other Conveyed Property related thereto Sold by LEAF to the
      Purchaser hereunder reflect the fair market value which would be obtained in
      an
      arm’s length transaction with an unaffiliated party of such Receivables, at the
      time of the applicable Sale.

     

    
      
        
        

      

      
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    (g) On
      and
      after each Conveyance Date hereunder, the Purchaser shall own the Receivables,
      Related Security and Other Conveyed Property Sold by LEAF to the Purchaser
      on
      such Conveyance Date and LEAF shall not take any action inconsistent with such
      ownership and shall not claim any ownership interest in such Receivables,
      Related Security and/or Other Conveyed Property.

     

    (h) Until
      the
      occurrence of a Servicer Default and the replacement of LEAF Financial
      Corporation as Servicer pursuant to the terms of the RLSA, LEAF Financial
      Corporation, as Servicer, shall conduct the servicing, administration and
      collection of the Receivables Conveyed hereunder and shall take, or cause to
      be
      taken, all such actions as may be necessary or advisable to service, administer
      and collect such Conveyed Receivables, from time to time, all in accordance
      with
      the terms of the RLSA. In accordance with the Custodial Agreement, certain
      documents relating to Receivables Conveyed hereunder shall be delivered to
      and
      held in trust by the Custodian for the benefit of the Purchaser and its
      assignees, and the Purchaser hereby instructs LEAF to so deliver such documents
      to the Custodian. Such delivery to the Custodian of such documents and the
      possession thereof by the Custodian is at the will of the Purchaser and its
      assignees and in a custodial capacity for their benefit only.

     

    (i) On
      each
      Conveyance Date, LEAF shall deliver to the Custodian on behalf of the Purchaser
      and any assignee thereof each item contained in the Receivable Files of, and
      any
      other chattel paper (as defined in the UCC) representing or evidencing, any
      of
      the Receivables, the Related Security and the Other Conveyed Property related
      thereto being Conveyed on such Conveyance Date.

     

    ARTICLE
      III

     

    CONDITIONS
      OF CONVEYANCE

     

                SECTION
      3.1 Conditions
      Precedent to the Initial Conveyance.
      The
      initial Conveyance hereunder is subject to the condition precedent that the
      Purchaser shall have received on or before the date of the initial Conveyance
      under this Agreement, in form and substance satisfactory to the
      Purchaser:

     

    (i) a
      copy of
      this Agreement duly executed by each of the parties hereto, and an Assignment
      executed by LEAF and setting forth the Receivables to be Conveyed on the date
      of
      the initial Conveyance under this Agreement;

     

    (ii) a
      copy of
      resolutions duly adopted by LEAF approving this Agreement, the Assignments
      and
      the other documents to be delivered by it hereunder and the transactions and
      matters contemplated hereby and thereby, certified by LEAF’s secretary or
      assistant secretary;

     

    (iii) the
      certificate of incorporation, as amended, of LEAF, certified by the Secretary
      of
      State of Delaware and LEAF’s secretary or assistant secretary;

     

    (iv) a
      good
      standing certificate for LEAF issued by the Secretary of State of Delaware,
      dated as of a recent date;

     

    
      
        
        

      

      
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    (v) a
      copy of
      LEAF’s by-laws as amended, certified by LEAF’s secretary or assistant
      secretary;

     

    (vi) a
      certificate of the secretary or assistant secretary of LEAF certifying the
      names
      and true signatures of the officers authorized on its behalf to sign this
      Agreement, the Assignments, and the other documents to be delivered by it
      hereunder (on which certificate the Purchaser may conclusively rely until such
      time as the Purchaser shall receive from LEAF a revised certificate meeting
      the
      requirements of this subsection (vi)) and certifying that all representations
      and warranties made by LEAF in this Agreement are true and correct in all
      material respects;

     

    (vii) copies
      of
      proper financing statements (on Form UCC-1) (x) accurately describing the
      Conveyed Receivables, the Related Security and the Other Conveyed Property
      related thereto and naming LEAF as the “Debtor/Seller”, the Purchaser as
“Secured Party/Purchaser”, and the Collateral Agent as the “Total Assignee of
      Secured Party/Purchaser”, and (y) other similar instruments or documents, in
      form and substance sufficient for filing under the UCC or any comparable law
      of
      any and all jurisdictions as may be necessary or, in the opinion of the
      Purchaser or any assignee thereof, desirable to perfect the Purchaser’s
      ownership interest in all Conveyed Receivables, the Related Security and the
      Other Conveyed Property related thereto;

     

    (viii) copies
      of
      properly executed termination statements or statements of release (on Form
      UCC-3) or other similar instruments or documents, if any, in form and substance
      satisfactory for filing under the UCC or any comparable law of any and all
      jurisdictions as may be necessary or, in the opinion of the Purchaser and its
      assigns, desirable to release all security interests and similar rights of
      any
      Person in the Conveyed Receivables and Other Conveyed Property related thereto
      previously granted by LEAF;

     

    (ix) certified
      copies of requests for information or copies (or a similar search report
      certified by a party acceptable to the Purchaser and any assignee thereof),
      dated a date reasonably near and prior to the date of such initial Conveyance,
      listing all effective financing statements and other similar instruments and
      documents which name LEAF (under its present name, any previous name or any
      trade name) as debtor and which are filed in the jurisdictions in which filings
      are to be made pursuant to such subsections
      (vii)
      and
      (viii)
      above,
      together with copies of such financing statements, none of which, except those
      filed pursuant to subsection
      (vii),
      above,
      shall cover any Conveyed Receivables or Related Security or Other Conveyed
      Property related thereto;

     

    (x) any
      necessary third party consents to the closing of the transactions contemplated
      hereby, in the form and substance satisfactory to the Purchaser;
      and

     

    (xi) one
      or
      more favorable opinions of counsel to LEAF, with respect to true sale,
      non-consolidation, good standing, authorization, non-contravention,
      enforceability, perfection, and such other matters as are customarily requested
      in transactions of the type contemplated by the Transaction
      Documents.

     

    
      
        
        

      

      
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    SECTION
      3.2 Conditions
      Precedent to All Conveyances.
      The
      Conveyance to take place on the initial Conveyance Date and each Conveyance
      to
      take place on a subsequent Conveyance Date hereunder shall be subject to the
      further conditions precedent that:

     

    (a) The
      following statements shall be true:

     

    (i) the
      representations and warranties of LEAF contained in Section
      4.1
      shall be
      correct on and as of such Conveyance Date in all material respects, before
      and
      after giving effect to the Conveyance to take place on such Conveyance Date
      and
      to the application of proceeds therefrom, as though made on and as of such
      date;
      and

     

    (ii) LEAF
      is
      in compliance with each of its covenants and other agreements set forth
      herein.

     

    (b) The
      Purchaser shall have received an Assignment, dated the date of such Conveyance
      Date, executed by LEAF, listing each Receivable being Conveyed on such
      Conveyance Date.

     

    (c) LEAF
      shall have delivered to the Custodian on behalf of the Purchaser and any
      assignee thereof each item contained in the Receivable Files of, and any other
      chattel paper (as defined in the UCC) representing or evidencing, any of the
      Receivables or Related Security or Other Conveyed Property related thereto
      being
      Conveyed on such Conveyance Date.

     

    (d) LEAF
      shall have taken such other action, including delivery of approvals, consents,
      opinions, documents and instruments to the Purchaser, as the Purchaser or any
      assignee thereof may reasonably request.

     

    (e) LEAF
      shall have taken all steps necessary under all applicable law in order to (A)
      Convey to the Purchaser the Receivable being Conveyed on such Conveyance Date
      and the Related Security and the Other Conveyed Property related thereto and
      (B)
      ensure that, upon the Conveyance of such Receivable and the Related Security
      and
      the Other Conveyed Property related thereto from LEAF to the Purchaser pursuant
      to the terms hereof, the Purchaser will have acquired good and marketable title
      to and a valid and perfected ownership interest in the Conveyed Receivables
      and
      the Related Security and Other Conveyed Property related thereto, free and
      clear
      of any Adverse Claim or restrictions on transferability.

     

    (f) There
      shall have been no material adverse change in the condition (financial or
      otherwise), business, or results of operations of LEAF since the preceding
      Conveyance Date.

     

    ARTICLE
      IV

     

    REPRESENTATIONS
      AND WARRANTIES

     

    SECTION
      4.1 Representations
      and Warranties of LEAF.
      LEAF
      makes the following representations and warranties, on which the Purchaser
      relies in acquiring the Receivables and the Related Security and the Other
      Conveyed Property related thereto Conveyed hereunder and in granting a security
      interest in such Receivables and the Related Security and

     

    
      
        
        

      

      
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    the
      Other
      Conveyed Property related thereto to the Collateral Agent under the RLSA. Such
      representations are made as of the execution and delivery of this Agreement,
      as
      of each Conveyance Date and at such other times specified below or specified
      in
      the Schedule of Representations, but shall survive the Conveyance hereunder
      of
      the Receivables and the Other Conveyed Property related thereto and the grant
      of
      a security interest therein to the Collateral Agent under the RLSA.

     

    (a) Schedule
      of Representations.
      All of
      the representations and warranties set forth on the Schedule of Representations
      are true and correct with respect to all of the Contracts, and, as applicable,
      Underlying Contracts and Underlying Originators, related to the Receivables
      which are referred to in any Assignment (or any annex or schedule thereto)
      delivered by LEAF to the Purchaser as of the date of such
      Assignment.

     

    (b) Organization
      and Good Standing.
      LEAF
      has been duly incorporated and is validly existing as a corporation in good
      standing under the laws of the State of Delaware, with power and authority
      to
      own its properties and to conduct its business as such properties are currently
      owned and such business is currently conducted, and had at all relevant times
      and now has power, authority and legal right to acquire and own the Receivables
      and the Related Security and the Other Conveyed Property related thereto
      Conveyed hereunder.

     

    (c) Due
      Qualification.
      LEAF is
      duly qualified to do business as a foreign corporation in good standing, and
      has
      obtained all necessary licenses and approvals, in all jurisdictions in which
      the
      ownership or lease of its property or the conduct of its business requires
      such
      qualification, licenses and/or approvals.

     

    (d) Power
      and Authority.
      LEAF
      has the power and authority to execute and deliver this Agreement and the other
      Transaction Documents to which it is a party and to carry out its terms and
      their terms, respectively; LEAF has the full power and authority to Convey
      the
      Receivables and the Related Security and Other Conveyed Property related thereto
      to be Conveyed to the Purchaser hereunder and has duly authorized such
      Conveyance to the Purchaser by all necessary corporate action and the execution,
      delivery and performance of this Agreement. and the other Transaction Documents
      to which it is a party have been duly authorized by LEAF by all necessary
      corporate action.

     

    (e) Valid
      Conveyance; Binding Obligations.
      This
      Agreement, each Assignment and the Transaction Documents to which LEAF is party
      have been and, in the case of each Assignment delivered after the date hereof,
      will be duly executed and delivered by LEAF, and this Agreement shall effect
      valid Conveyances of Receivables and the Related Security and the Other Conveyed
      Property related thereto, enforceable against LEAF and creditors of and
      purchasers from LEAF, and this Agreement and such Transaction Documents shall
      constitute legal, valid and binding obligations of LEAF enforceable in
      accordance with their respective terms, except as enforceability may be limited
      by bankruptcy, insolvency, reorganization, conservatorship, receivership,
      liquidation or other similar laws affecting the enforcement of creditors’ rights
      generally and general principles of equity.

     

    (f) No
      Violation.
      The
      consummation of the transactions contemplated by this Agreement and the
      Transaction Documents to which it is a party, and the fulfillment of the
      terms

     

    
      
        
        

      

      
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    of
      this
      Agreement and the Transaction Documents to which it is a party, shall not
      conflict with, result in any breach of any of the terms and provisions of,
      or
      constitute (with or without notice or lapse of time) a default under, the
      certificate of incorporation or by-laws of LEAF, or any material indenture,
      agreement, mortgage, deed of trust or other instrument to which LEAF is a party
      or by which it is bound or any of its properties are subject, or result in
      the
      creation or imposition of any lien upon any of its properties pursuant to the
      terms of any such indenture, agreement, mortgage, deed of trust or other
      instrument, other than liens created under this Agreement or the RLSA, or
      violate any law, order, rule or regulation applicable to LEAF of any court
      or of
      any federal or state regulatory body, administrative agency or other
      governmental instrumentality having jurisdiction over LEAF or any of its
      properties.

     

    (g) No
      Proceedings.
      There
      are no proceedings or investigations pending or, to the best of LEAF’s
      knowledge, threatened against LEAF before any court, regulatory body,
      administrative agency or other tribunal or governmental instrumentality having
      jurisdiction over LEAF or its properties (i) asserting the invalidity of this
      Agreement or any of the Transaction Documents, (ii) seeking to prevent the
      consummation of any of the transactions contemplated by this Agreement or any
      of
      the Transaction Documents, (iii) seeking any determination or ruling that could
      have an adverse effect on the performance by LEAF of its obligations under,
      or
      the validity or enforceability of, this Agreement or any of the Transaction
      Documents, (iv) that would reasonably be likely to have an adverse effect on
      the
      federal or state income tax attributes of, or seek to impose any excise,
      franchise, transfer or similar tax upon, the transfer and acquisition of the
      Receivables and the Related Security and the Other Conveyed Property related
      thereto Conveyed hereunder or (v) that would reasonably be likely to have an
      adverse effect on the Receivables and the Related Security and Other Conveyed
      Property related thereto Conveyed to the Purchaser hereunder.

     

    (h) No
      Consents.
      LEAF is
      not required to obtain the consent of any other party or any consent, license,
      approval or authorization, or registration or declaration with, any governmental
      authority, bureau or agency in connection with the execution, delivery,
      performance, validity or enforceability of this Agreement except those which
      may
      have been obtained.

     

    (i) Approvals.
      All
      approvals, authorizations, orders or other actions of any person, corporation
      or
      other organization, or of any court, governmental agency or body or official,
      required in connection with the execution and delivery by LEAF of this Agreement
      and the consummation of the transactions contemplated hereby (including the
      Conveyance of Receivables and the Related Security and the Other Conveyed
      Property related thereto to the Purchaser) have been or will be taken or
      obtained on or prior to the date hereof or the applicable Conveyance
      Date.

     

    (j) Chief
      Executive Office.
      The
      chief executive office of LEAF and the office where LEAF keeps its records
      regarding the Receivables (other than those delivered to the Custodian) is
      located at 1818 Market Street, 9th
      Floor,
      Philadelphia, PA 19103. LEAF’s legal name is as set forth in this Agreement;
      other than as disclosed on Schedule
      B
      hereto,
      LEAF has not changed its name since its incorporation; LEAF does not have
      tradenames, fictitious names, assumed names or “doing business as” names other
      than as disclosed on Schedule
      B
      hereto.

     

    
      
        
        

      

      
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    (k) Solvency.
      LEAF is
      solvent and will not become insolvent after giving effect to the transactions
      contemplated by this Agreement and the other Transaction Documents. LEAF, after
      giving effect to the transactions contemplated by this Agreement and the other
      Transaction Documents, will have an adequate amount of capital to conduct its
      business in the foreseeable future.

     

    (l) Accounting
      Treatment.
      For
      accounting purposes, LEAF will treat the transactions effected by this Agreement
      as sales of assets to, or contributions of assets to the capital of, the
      Purchaser in accordance with GAAP. LEAF’s financial records shall reflect that
      the assets Conveyed hereunder have been Conveyed to the Purchaser, are no longer
      owned by LEAF and are not intended to be available to the creditors of
      LEAF.

     

    (m) Compliance
      With Laws.
      LEAF
      has complied and will comply in all material respects with all applicable laws,
      rules, regulations, judgments, agreements, decrees and orders with respect
      to
      its business and properties.

     

    (n) Taxes.
      LEAF
      has filed on a timely basis all tax returns (including, without limitation,
      foreign, federal, state, local and otherwise) required to be filed, is not
      liable for taxes payable by any other Person and has paid or made adequate
      provisions for the payment of all taxes, assessments and other governmental
      charges due from LEAF other than those being disputed in good faith by
      appropriate proceedings and in respect of which no penalty may be assessed
      from
      such contest and it has made proper reserves on its books. No tax lien or
      similar adverse claim has been filed, and LEAF has received no notice of any
      claim being asserted, with respect to any such tax, assessment or other
      governmental charge. Any taxes, fees and other governmental charges payable
      by
      LEAF in connection with the execution and delivery of this Agreement and the
      other Transaction Documents and the transactions contemplated hereby or thereby
      have been paid.

     

    (o) Request
      Notices.
      Each
      Request Notice is accurate in all material respects.

     

    (p) Assignments.
      Each
      Assignment is accurate in all material respects.

     

    (q) No
      Liens, Etc.
      The
      Receivables and the Related Security and Other Conveyed Property related thereto
      to be Conveyed to the Purchaser hereunder are owned by LEAF free and clear
      of
      any Adverse Claim or restrictions on transferability and LEAF has the full
      right, corporate power and lawful authority to Convey the same and interests
      therein and, upon Conveyance thereof hereunder, the Purchaser will have acquired
      good and marketable title to and a valid and perfected ownership interest in
      such Receivables and the Related Security and Other Conveyed Property related
      thereto, free and clear of any Adverse Claim or restrictions on transferability.
      No effective financing statement or other instrument similar in effect covering
      all or any part of any Receivables or the Related Security and Other Conveyed
      Property related thereto Conveyed hereunder is on file in any recording office,
      except such as may have been filed in favor of the Collateral Agent as “Secured
      Party” or “Assignee” or except as shall be released upon the Conveyance of such
      Receivables and Related Security and Other Conveyed Property to the
      Purchaser.

     

    
      
        
        

      

      
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    (r) Information
      True and Correct.
      All
      information heretofore or hereafter furnished by or on behalf of LEAF to the
      Purchaser or any assignee thereof in connection with this Agreement or any
      transaction contemplated hereby is and will be true and complete in all material
      respects and does not and will not omit to state a material fact necessary
      to
      make the statements contained therein not misleading.

     

    (s) ERISA
      Compliance.
      LEAF is
      in compliance in all material respects with ERISA and the Internal Revenue
      Code
      of 1986 with respect to any “employee benefit plans” (within the meaning of
      Section 3(1) of ERISA) it maintains or contributes to (the “Plans”). No steps
      have been taken to terminate any LEAF Pension Plan which could result in
      material liability, and no contribution failure has occurred with respect to
      any
      LEAF Pension Plan sufficient to give rise to a lien under section 302(f) of
      ERISA. No condition exists or event or transaction has occurred with respect
      to
      any Leaf Pension Plan which could result in LEAF or any ERISA Affiliate of
      LEAF
      incurring any material liability, fine or penalty. Neither LEAF nor any ERISA
      Affiliate of LEAF contributes to a “multiemployer pension plan,” as defined in
      Section 4001 of ERISA.

     

    (t) No
      Material Adverse Effect; No Default.
      (i)
      LEAF is not a party to any indenture, loan or credit agreement or any lease
      or
      other agreement or instrument or subject to any charter or corporate restriction
      that would reasonably be likely to have, and no provision of applicable law
      or
      governmental regulation would reasonably be likely to have, a material adverse
      effect on the condition (financial or otherwise), business, operations, results
      of operations or properties of LEAF, or would reasonably be likely to have
      such
      an effect on the ability of LEAF to carry out its obligations under this
      Agreement and the other Transaction Documents to which LEAF is a party and
      (ii)
      LEAF is not in default under or with respect to any contract, agreement, lease
      or other instrument to which LEAF is a party and which is material to LEAF’s
      condition (financial or otherwise), business, operations or properties, and
      LEAF
      has not delivered or received any notice of default thereunder.

     

    (u) Financial
      or Other Condition.
      There
      has been no material adverse change in the condition (financial or otherwise),
      business, operations, results of operations, or properties of LEAF since June
      30, 2006.

     

    (v) Investment
      Company Status.
      LEAF is
      not an “investment company” or an “affiliated person” of, or “promoter” or
“principal underwriter” for, an “investment company,” as such terms are defined
      in the Investment Company Act of 1940, as amended. The consummation of the
      transactions contemplated by this Agreement and the other Transaction Documents
      by LEAF will not violate any provision of such Act or any rule, regulation
      or
      order issued by the Securities and Exchange Commission thereunder.

     

    (w) No
      Shared Obligations.
      There
      is not now, nor will there be at any time in the future, any agreement or
      understanding between LEAF and the Purchaser (other than as expressly set forth
      herein or in the other Transaction Documents) providing for the allocation
      or
      sharing of obligations to make payments or otherwise in respect of any taxes,
      fees, assessments or other governmental charges.

     

    
      
        
        

      

      
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    (x) Representation
      and Warranties True and Correct.
      Each of
      the representations and warranties of LEAF contained in this Agreement and
      the
      other Transaction Documents to which it is a party is true and correct in all
      respects as of the date made or deemed made and LEAF hereby makes each such
      representation and warranty to, and for the benefit of, the Purchaser as if
      the
      same were set forth in full herein.

     

    (y) Intent
      of LEAF.
      LEAF
      has not Conveyed any interest in any Receivable or the Related Security or
      the
      Other Conveyed Property related thereto to the Purchaser with any intent to
      hinder, delay or defraud any of LEAF’s creditors.

     

    (z) Consideration.
      LEAF
      has received fair consideration and reasonably equivalent value in exchange
      for
      the Conveyance of the Receivables and the Related Security and the Other
      Conveyed Property related thereto Conveyed hereunder.

     

    (aa) Margin
      Regulations.
      No
      proceeds of any Conveyance hereunder will be used by LEAF for a purpose that
      violates, or would be inconsistent with, Regulation T, U or X promulgated by
      the
      Board of Governors of the Federal Reserve System from time to time.

     

    SECTION
      4.2 Representations
      and Warranties of the Purchaser.
      The
      Purchaser makes the following representations and warranties, on which LEAF
      relies in Conveying Receivables and the Related Security and the Other Conveyed
      Property related thereto to the Purchaser hereunder. Such representations are
      made as of the execution and delivery of this Agreement, but shall survive
      the
      Conveyance of Receivables and the Related Security and the Other Conveyed
      Property related thereto Conveyed hereunder and the grant of a security interest
      in such Receivables and the Related Security and the Other Conveyed Property
      related thereto by the Purchaser under the RLSA.

     

    (a) Organization
      and Good Standing.
      The
      Purchaser has been duly organized and is validly existing and in good standing
      as a limited liability company under the laws of the State of Delaware, with
      the
      power and authority to own its properties and to conduct its business as such
      properties are currently owned and such business is currently conducted, and
      had
      at all relevant times, and has, full power, authority and legal right to acquire
      and own the Receivables and the Related Security and the Other Conveyed Property
      related thereto Conveyed hereunder. 

     

    (b) Due
      Qualification.
      The
      Purchaser is duly qualified to do business as a foreign limited liability
      company in good standing, and has obtained all necessary licenses and approvals
      in all jurisdictions in which the ownership or lease of its property or the
      conduct of its business requires such qualification, licenses and/or
      approvals.

     

    (c) Power
      and Authority.
      The
      Purchaser has the power, authority and legal right to execute and deliver this
      Agreement and to carry out the terms hereof and to acquire the Receivables
      and
      the Related Security and the Other Conveyed Property related thereto Conveyed
      hereunder; and the execution, delivery and performance of this Agreement and
      all
      of the documents required pursuant hereto have been duly authorized by the
      Purchaser by all necessary action.

     

    (d) No
      Consent Required.
      The
      Purchaser is not required to obtain the consent of any other Person, or any
      consent, license, approval or authorization or registration or

     

    
      
        
        

      

      
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    declaration
      with, any governmental authority, bureau or agency in connection with the
      execution, delivery or performance of this Agreement, the RLSA and the other
      Transaction Documents to which it is a party, except for such as have been
      obtained, effected or made.

     

    (e) Binding
      Obligation.
      This
      Agreement constitutes a legal, valid and binding obligation of the Purchaser,
      enforceable against the Purchaser in accordance with its terms, subject, as
      to
      enforceability, to applicable bankruptcy, insolvency, reorganization,
      conservatorship, receivership, liquidation or other similar laws affecting
      the
      enforcement of creditors’ rights generally and general principles of
      equity.

     

    (f) No
      Violation.
      The
      execution, delivery and performance by the Purchaser of this Agreement, the
      consummation of the transactions contemplated by this Agreement, the RLSA and
      the other Transaction Documents to which it is a party and the fulfillment
      of
      the terms of this Agreement, the RLSA and the other Transaction Documents to
      which it is a party do not and will not conflict with, result in any breach
      of
      any of the terms and provisions of, or constitute (with or without notice or
      lapse of time) a default under, the organizational documents of the Purchaser,
      or conflict with or breach any of the terms or provisions of, or constitute
      (with or without notice or lapse of time) a default under, any indenture,
      agreement, mortgage, deed of trust or other instrument to which the Purchaser
      is
      a party or by which the Purchaser is bound or to which any of its properties
      are
      subject, or result in the creation or imposition of any lien upon any of its
      properties pursuant to the terms of any such indenture, agreement, mortgage,
      deed of trust or other instrument (other than liens created hereunder or under
      the RLSA), or violate any law or any order, rule or regulation, applicable
      to
      the Purchaser or its properties, of any federal or state regulatory body, any
      court, administrative agency, or other governmental instrumentality having
      jurisdiction over the Purchaser or any of its properties.

     

    (g) No
      Proceedings.
      There
      are no proceedings or investigations pending, or, to the best of the Purchaser’s
      knowledge, threatened against the Purchaser before any court, regulatory body,
      administrative agency, or other tribunal or governmental instrumentality having
      jurisdiction over the Purchaser or its properties: (i) asserting the invalidity
      of this Agreement, the RLSA or any of the Transaction Documents, (ii) seeking
      to
      prevent the consummation of any of the transactions contemplated by this
      Agreement, the RLSA or any of the Transaction Documents, (iii) seeking any
      determination or ruling that could have an adverse effect (other than an
      inconsequential adverse effect) on the performance by the Purchaser of its
      obligations under, or the validity or enforceability of, this Agreement, the
      RLSA or any of the Transaction Documents, (iv) that would be reasonably likely
      to have an adverse effect (other than an inconsequential adverse effect) on
      the
      federal or state income tax attributes of, or seek to impose any excise,
      franchise, transfer or similar tax upon, the transfer and acquisition of the
      Receivables and the Related Security and the Other Conveyed Property related
      thereto Conveyed hereunder or (v) that could have an adverse effect (other
      than
      an inconsequential adverse effect) on the Receivables and Other Conveyed
      Property related thereto Conveyed to the Purchaser hereunder.

     

    (h) Consideration.
      The
      Purchaser has given fair consideration and reasonably equivalent value in
      exchange for the Conveyance of the Receivables and the Other Conveyed Property
      related thereto Conveyed hereunder.

     

    SECTION
      4.3 Indemnification.

    
      
        
        

      

      
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    (a) LEAF
      shall defend, indemnify and hold harmless each of the Purchaser, the Custodian,
      the Backup Servicer, the Lender’s Bank and the Lender and each of their
      respective Affiliates (each an “Indemnified Person”) from and against any and
      all costs, expenses, losses, damages, claims, and liabilities, suffered or
      sustained by any Indemnified Person arising out of or resulting from any breach
      of LEAF’s representations, warranties, agreements and covenants contained
      herein, except for any such amounts resulting solely from (A) any gross
      negligence, bad faith or willful misconduct of any Indemnified Person claiming
      indemnification hereunder, (B) taxes (including interest and penalties imposed
      thereon) imposed by the jurisdiction in which such Indemnified Person’s
      principal executive office is located, on or measured by the overall net income
      of such Indemnified Person; (C) Indemnified Amounts to the extent that they
      are
      or result from lost profits (other than principal, Yield and Fees with respect
      to the Loans); and (D) Indemnified Amounts to the extent the same includes
      losses in respect of Receivables that are uncollectible on account of the
      insolvency, bankruptcy or lack of creditworthiness of the related Obligor or,
      except as otherwise specifically provided in this Agreement, would constitute
      recourse to LEAF for losses in respect of such uncollectible Receivables (the
      “Excluded Amounts”).

     

    (b) LEAF
      shall defend, indemnify and hold harmless each Indemnified Person from and
      against any and all costs, expenses, losses, damages, claims, and liabilities,
      other than Excluded Amounts, arising out of, resulting from or otherwise related
      to any Person’s use, ownership, leasing or operation of any Obligor Collateral
      or Underlying Collateral to the extent that such use, ownership, leasing or
      operation took place prior to the date the related Receivable is Conveyed
      hereunder.

     

    (c) LEAF
      will
      defend and indemnify and hold harmless each Indemnified Person against any
      and
      all costs, expenses, losses, damages, claims and liabilities, other than
      Excluded Amounts, arising out of or resulting from any action taken by LEAF,
      other than in accordance with this Agreement, in respect of any portion of
      the
      Receivables or the Related Security and the Other Conveyed Property related
      thereto which are Conveyed hereunder.

     

    (d) LEAF
      agrees to pay, and shall defend, indemnify and hold harmless each Indemnified
      Person from and against, any taxes (other than taxes (including interest and
      penalties imposed thereon) imposed by the jurisdiction in which such Indemnified
      Person’s principal executive office is located, on or measured by the overall
      net income of such Indemnified Person and taxes that would constitute Excluded
      Amounts) that may at any time be asserted against any Indemnified Person with
      respect to the transactions contemplated in this Agreement, including, without
      limitation, any sales, gross receipts, general corporation, tangible or
      intangible personal property, privilege, or license taxes and costs and expenses
      in defending against the same, arising by reason of the acts to be performed
      by
      LEAF under this Agreement and imposed against such Person. Without limiting
      the
      foregoing, in the event that the Purchaser, the Custodian, the Backup Servicer
      or the Lender receives actual notice of any Transfer Taxes arising out of the
      Conveyance of any Receivable, the Related Security with respect thereto, the
      related Obligor Collateral and/or any other related Other Conveyed Property
      from
      LEAF to the Purchaser under this Agreement, on written demand by such party,
      or
      upon LEAF otherwise being given notice thereof, LEAF shall pay, and otherwise
      indemnify and hold the Purchaser, 

     

    
      
        
        

      

      
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    the
      Custodian, the Backup Servicer, the Lender’s Bank and the Lender harmless, on an
      after-tax basis, from and against any and all such Transfer Taxes (it being
      understood that the Purchaser, the Custodian, the Backup Servicer, the Lender’s
      Bank and the Lender shall have no contractual obligation to pay such Transfer
      Taxes). Notwithstanding the foregoing, LEAF agrees to pay, and shall defend,
      indemnify and hold harmless the Purchaser from and against any state taxes
      (including income and franchise taxes) as to which Purchaser may become liable
      solely because of its inclusion in a consolidated group, combined group, or
      other similar group.

     

    (e) LEAF
      shall defend, indemnify, and hold harmless each Indemnified Person from and
      against any and all costs, expenses, losses, claims, damages, and liabilities,
      other than Excluded Amounts, to the extent that such cost, expense, loss, claim,
      damage, or liability arose out of, or was imposed upon such Indemnified Person
      through the negligence, willful misfeasance, or bad faith of LEAF in the
      performance of its duties under this Agreement or by reason of reckless
      disregard of LEAF’s obligations and duties under this Agreement.

     

    (f) LEAF
      shall indemnify, defend and hold harmless each Indemnified Person from and
      against any loss, liability or expense, other than Excluded Amounts, imposed
      upon, or incurred by, any such Indemnified Person as a result of the failure
      of
      any Receivable or the Related Security or the Other Conveyed Property related
      thereto which are Conveyed hereunder, to comply with all requirements of
      applicable law as of its Conveyance Date.

     

    (g) LEAF
      shall indemnify, defend and hold harmless each Indemnified Person from and
      against any loss, liability or expense, other than Excluded Amounts, imposed
      upon, or incurred by, any such Indemnified Person as a result of the failure
      by
      LEAF to comply with all requirements of Section
      6.1
      hereof.

     

    Indemnification
      under this Section
      4.3
      shall
      include reasonable fees and expenses of counsel and expenses of litigation.
      The
      indemnity obligations hereunder shall be in addition to any obligation that
      LEAF
      may otherwise have under applicable law or any other Transaction
      Document.

     

    ARTICLE
      V

     

    COVENANTS
      OF LEAF

     

    SECTION
      5.1 Protection
      of Title of the Purchaser.

     

    (a) On
      or
      prior to the date hereof, LEAF shall have filed or caused to be filed UCC-1
      financing statements, executed by LEAF as seller or debtor, naming the Purchaser
      as purchaser or secured party, naming the Collateral Agent as assignee and
      describing the Receivables, Related Security and the Other Conveyed Property
      being Conveyed by it to the Purchaser as collateral, with the office of the
      Secretary of State of the State of Delaware and in such other locations as
      the
      Purchaser or the Collateral Agent shall have required. Without limiting the
      foregoing, LEAF hereby authorizes the Purchaser and /or any assignee thereof
      to
      prepare and file any such UCC-1 financing statements. From time to time
      thereafter, LEAF shall authorize, execute (as applicable) and file such
      financing statements and cause to be executed (if applicable) and filed such
      continuation statements, all in such manner and in such places as may be
      required by law (or deemed desirable by the Purchaser or any assignee thereof)
      to fully perfect, preserve, maintain and protect the interest of the Purchaser
      under this Agreement, and 

    
      
        
        

      

      
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    the
      security interest of the Collateral Agent under the RLSA, in the Receivables,
      Related Security and the Other Conveyed Property related thereto which are
      Conveyed hereunder, as the case may be, and in the proceeds thereof. LEAF shall
      deliver (or cause to be delivered) to the Purchaser, the Custodian, the Backup
      Servicer and the Collateral Agent file-stamped copies of, or filing receipts
      for, any document filed as provided above, as soon as available following such
      filing. In the event that LEAF fails to perform its obligations under this
      subsection, the Purchaser or the Lender may perform such obligations, at the
      expense of LEAF, and LEAF hereby authorizes the Purchaser or the Lender and
      grants to the Purchaser and the Lender an irrevocable power of attorney to
      take
      any and all steps in order to perform such obligations in LEAF’s or in its own
      name, as applicable, and on behalf of LEAF, as are necessary or desirable,
      in
      the determination of the Purchaser or Lender or any assignee
      thereof.

     

    (b) On
      or
      prior to each Conveyance Date hereunder, LEAF shall take all steps necessary
      under applicable law in order to transfer and assign to the Purchaser the
      Receivables, Related Security and the Other Conveyed Property related thereto
      being Conveyed on such Conveyance Date to the Purchaser so that, upon the
      Conveyance of such Receivables and the Other Conveyed Property related thereto
      from LEAF to the Purchaser pursuant to the terms hereof on such Conveyance
      Date,
      the Purchaser will have acquired good and marketable title to and a valid and
      perfected ownership interest in such Receivables and Other Conveyed Property
      related thereto, free and clear of any Adverse Claim or restrictions on
      transferability (other than Permitted Liens). On or prior to each Conveyance
      Date hereunder, LEAF shall take all steps required under applicable law in
      order
      for the Purchaser to grant to the Collateral Agent a first priority perfected
      security interest in the Receivables, Related Security and the Other Conveyed
      Property related thereto being Conveyed to the Purchaser on such Conveyance
      Date
      (other than with respect to Equipment which has an original value of less than
      $25,000 and is leased under a Dollar Purchase Option Contract or $50,000 and
      is
      leased under a FMV Contract) and, from time to time thereafter, LEAF shall
      take
      all such actions as may be required by applicable law (or deemed desirable
      by
      the Collateral Agent) to fully preserve, maintain and protect the Purchaser’s
      ownership interest in, and the Collateral Agent’s first priority perfected
      security interest in, the Receivables, the Related Security and the Other
      Conveyed Property related thereto (other than with respect to Equipment which
      has a value of less than $25,000 and is leased under a Dollar Purchase Option
      Contract or $50,000 and is leased under a FMV Contract) which have been Conveyed
      to the Purchaser hereunder.

     

    (c) With
      respect to each Receivable Conveyed hereunder, LEAF shall, prior to or on the
      Conveyance Date of such Receivable, (i) take or cause to be taken all steps
      necessary under all applicable law in order to cause a valid, subsisting and
      enforceable perfected, first priority security interest to exist in LEAF’s favor
      in the Obligor Collateral securing such Receivable (other than with respect
      to
      Equipment which has an original value of less than $25,000 and is leased under
      a
      Dollar Purchase Option Contract or $50,000 and is leased under a FMV Contract),
      (ii) have assigned the perfected, first priority security interest in the
      Obligor Collateral referred to in clause (i) above to the Purchaser by means
      of
      a Conveyance hereunder and (iii) take or cause to be taken all steps necessary
      under all applicable law in order to allow the Purchaser to assign the
      perfected, first priority security interest in the Obligor Collateral referred
      to in clause (i) above to the Collateral Agent pursuant to Section
      2.11
      of the
      RLSA.

     

    
      
        
        

      

      
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    (d) With
      respect to each Receivable Conveyed hereunder, LEAF shall, prior to or on the
      Conveyance Date of such Receivable, if the Obligor Collateral related to such
      Receivable (other than a Vehicle Sublimit Pledged Receivable) is a Vehicle,
      (X)
      deliver to the Purchaser a Certificate of Title for such Vehicle naming the
      Purchaser as the owner of such Vehicle and containing a notation of the lien
      on
      such Vehicle of the Collateral Agent or (Y) if such Certificate of Title has
      not
      yet been received, deliver to the Purchaser a copy of the duly completed and
      executed application for such a Certificate of Title which shall have been
      delivered to the appropriate Registrar of Titles;

     

    (e) LEAF
      shall not change its name, identity, or corporate structure in any manner that
      would or could make any financing statement or continuation statement filed
      by
      LEAF (or by the Purchaser on behalf of LEAF) in accordance with paragraph (a)
      above seriously misleading within the meaning of § 9-506 of the UCC (or any
      similar provision of the UCC), unless LEAF shall have given the Purchaser,
      the
      Custodian, the Backup Servicer and the Lender at least 30 days prior written
      notice thereof, and shall promptly file and hereby authorize the Purchaser
      or
      the Lender to file appropriate new financing statements or amendments to all
      previously filed financing statements and continuation statements.

     

    (f) LEAF
      shall give the Purchaser, the Custodian, the Backup Servicer and the Lender
      at
      least 30 days prior written notice of any change in its jurisdiction of
      incorporation, if, as a result of such change, the applicable provisions of
      the
      UCC would require the filing of any amendment of any previously filed financing
      or continuation statement or of any new financing statement. LEAF shall at
      all
      times maintain its jurisdiction of incorporation, each office from which it
      services Receivables and its principal executive office within the United States
      of America.

     

    (g) LEAF
      shall maintain its computer systems so that, from and after the time of
      Conveyance under this Agreement of Receivables (and the Other Conveyed Property
      related thereto) to the Purchaser and the grant of a security interest in such
      Receivables (and the Related Security and the Other Conveyed Property related
      thereto) by the Purchaser to the Collateral Agent, LEAF’s master computer
      records (including archives) that shall refer to such a Receivable (and the
      Related Security and the Other Conveyed Property related thereto) indicate
      clearly that such Receivable (and the Related Security and the Other Conveyed
      Property related thereto) has been Conveyed to the Purchaser hereunder and
      Pledged by the Purchaser under the RLSA. Indication of the Collateral Agent’s
      security interest in a Receivable (and the Related Security and the Other
      Conveyed Property related thereto) Conveyed hereunder shall be deleted from
      or
      modified on LEAF’s computer systems when, and only when, such Conveyed
      Receivable shall be (i) paid off by the related Obligor, (ii) liquidated by
      the
      Servicer, (iii) purchased by LEAF in accordance with Section
      6.1
      or
6.2
      hereof
      or (iv) released by the Collateral Agent pursuant to Section
      2.13
      of the
      RLSA.

     

    (h) If
      at any
      time LEAF shall propose to sell, grant a security interest in, or otherwise
      transfer any interest in any loan, installment sale contract or lease
      receivables to any prospective purchaser, lender or other transferee, LEAF
      shall
      give to such prospective purchaser, lender, or other transferee computer tapes,
      records, or print-outs (including any restored from archives) that, if they
      shall refer in any manner whatsoever to any Receivable (and/or the Related
      Security and the Other Conveyed Property related thereto) Conveyed hereunder,
      shall indicate

     

    
      
        
        

      

      
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    clearly
      that such Receivable (and the Related Security and the Other Conveyed Property
      related thereto) has been so Conveyed to the Purchaser and is subject to a
      security interest in favor of the Collateral Agent.

     

    SECTION
      5.2 Other
      Liens or Interests.
      Except
      for the Conveyances hereunder, LEAF will not sell, pledge, assign, transfer
      or
      otherwise convey to any other Person, or grant, create, incur, assume or suffer
      to exist any Adverse Claim on the Receivables or the Related Security and the
      Other Related Property related thereto Conveyed hereunder or any interest
      therein, and LEAF shall defend the right, title, and interest of the Purchaser
      and the Collateral Agent in and to such Receivables and the Related Security
      and
      the Other Conveyed Property related thereto against all Adverse Claims of third
      parties claiming through or under LEAF. To the extent that any Contract contains
      a provision stating that the Equipment which is the subject of such Contract
      shall at any time secure any debt of the related Obligor or Underlying Obligor
      to LEAF other than under such Contract, LEAF agrees that any security interest
      in its favor arising from such a provision shall be subordinate to the security
      interest (and, in the event of enforcement of such security interest by the
      Purchaser, the ownership interest) of the Purchaser in such
      Equipment.

     

    SECTION
      5.3 Costs
      and Expenses.
      LEAF
      shall pay all reasonable, documented costs and disbursements in connection
      with
      the performance of its obligations hereunder and the Transaction Documents
      to
      which it is a party.

     

    ARTICLE
      VI

     

    PURCHASES
      BY LEAF

     

    SECTION
      6.1 Purchases
      by LEAF.

     

    (a) In
      the
      event of the occurrence of a LEAF Purchase Event, LEAF shall, unless such LEAF
      Purchase Event shall have been cured in all respects, purchase each Receivable
      Conveyed hereunder which is affected by or related to such LEAF Purchase Event
      from the Purchaser within five Business Days of the discovery by or notice
      (from
      any Person) to LEAF of such LEAF Purchase Event, and LEAF shall pay to the
      Purchaser (by means of a transfer to the Collection Account) the Repurchase
      Price of such Receivable determined as of the date of the purchase thereof
      from
      the Purchaser. Notwithstanding any other provision of this Agreement or the
      RLSA
      to the contrary, the obligation of LEAF under this Section shall be performed
      in
      accordance with the terms hereof notwithstanding the failure of the Servicer
      or
      the Purchaser to perform any of their respective obligations with respect to
      such Receivable under the RLSA. It is understood and agreed that the obligation
      of LEAF to cure a LEAF Purchase Event or purchase the Receivables Conveyed
      hereunder which are affected by or related to such LEAF Purchase Event shall
      (i)
      constitute the sole remedy against LEAF with respect to such LEAF Purchase
      Event
      available to the Purchaser or the Lender or any assignee of any of the foregoing
      (except for indemnities, if applicable, provided for under Section 4.3(a) hereof
      or under the RLSA) and (ii) is not intended to, and shall not, constitute a
      guaranty of the collectibility or payment of any Receivable which is not
      collected, not paid or uncollectible on account of the insolvency, bankruptcy,
      or financial inability to pay of the related Obligor.

     

    
      
        
        

      

      
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    (b) LEAF
      shall have the right to repurchase Receivables Conveyed hereunder upon not
      less
      than three Business Days’ prior written notice to the Purchaser; provided,
      however,
      that
      the aggregate Discounted Balance of all Receivables repurchased pursuant to
      this
      Section 6.1(b) may not exceed 5% of the aggregate Discounted Balance of all
      Receivables Conveyed by LEAF pursuant to this Agreement, determined for each
      Receivable as of the time of the Sale of such Receivable pursuant to
Section
      2.1
      hereof.
      Such notice shall specify the date that LEAF desires that such repurchase occur
      (such date, the “Repurchase
      Date”)
      and
      shall identify the Receivables to be included in such repurchase. LEAF agrees
      that it will not utilize any selection procedure in selecting the Receivables
      to
      be so repurchased which is adverse to the interests of the Purchaser or its
      assigns or would reasonably be expected to result in the repurchased Receivables
      containing a lower percentage of Defaulted Receivables or Delinquent Receivables
      than the percentage of Defaulted Receivables or Delinquent Receivables, as
      applicable, in the Receivables retained by the Purchaser. On the Repurchase
      Date, LEAF shall pay to the Purchaser (by means of a transfer to the Collection
      Account) an amount equal to the aggregate Discounted Balance of the Receivables
      included in such repurchase as of the date of such repurchase. Notwithstanding
      the foregoing, in no event shall LEAF be entitled to repurchase any Conveyed
      Receivable unless, after giving effect to any such repurchase and the
      application of the proceeds thereof in accordance with the terms hereof and
      Section
      2.04
      of the
      RLSA, there shall not be a Borrowing Base Deficiency, Program Termination Event,
      Pool A Termination Event or a Pool B Termination Event (and such Pool B
      Termination Event is related to such Pledged Receivable), or an event that
      but
      for notice or lapse of time or both would constitute any of the foregoing
      events.

     

    SECTION
      6.2 Reassignment
      of Purchased Receivables.
      Upon
      deposit in the Collection Account of the price paid to the Purchaser for any
      Receivable purchased by LEAF under Section
      6.1,
      the
      Purchaser shall (and shall request the Collateral Agent to) take such steps
      as
      may be reasonably requested by LEAF in order to assign to LEAF all of the
      Purchaser’s and the Collateral Agent’s right, title and interest in and to such
      Receivable and all security and documents and all Related Security and Other
      Conveyed Property Conveyed to the Purchaser and the Collateral Agent directly
      relating thereto, without recourse, representation or warranty of any kind,
      except as to the absence of liens, charges or encumbrances created by or arising
      solely as a result of actions of the Purchaser or the Collateral Agent. Such
      assignment shall be a sale and assignment outright, and not for security. If,
      following the reassignment of a Receivable, in any enforcement suit or legal
      proceeding, it is held that LEAF may not enforce any such Receivable on the
      ground that it shall not be a party in interest or a holder entitled to enforce
      such Receivable, the Purchaser shall, at the expense of LEAF, take such steps
      as
      LEAF deems reasonably necessary to enforce such Receivable, including bringing
      suit in the Purchaser’s name.

     

    SECTION
      6.3 Waivers.
      No
      failure or delay on the part of the Purchaser or any assignee thereof, in
      exercising any power, right or remedy under this Agreement shall operate as
      a
      waiver thereof, nor shall any single or partial exercise of any such power,
      right or remedy preclude any other or future exercise thereof or the exercise
      of
      any other power, right or remedy.

     

    
      
        
        

      

      
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    ARTICLE
      VII

     

    MISCELLANEOUS

     

    SECTION
      7.1 Liability
      of LEAF.
      LEAF
      shall be liable in accordance herewith only to the extent of the obligations
      in
      this Agreement specifically undertaken by LEAF and with respect to its
      representations and warranties hereunder.

     

    SECTION
      7.2 Limitation
      on Liability of LEAF and Others.
      LEAF
      and any manager, employee or agent of LEAF may rely in good faith on the advice
      of counsel respecting any matters arising under this Agreement. LEAF shall
      not
      be under any obligation to appear in, prosecute or defend any legal action
      that
      is not incidental to its obligations under this Agreement, the RLSA or the
      Transaction Documents to which it is a party.

     

    SECTION
      7.3 Amendment.
      This
      Agreement may be amended by LEAF and the Purchaser only with the prior written
      consent of the Lender. No termination or waiver of any provision of this
      Agreement or consent to any departure therefrom shall be effective without
      the
      prior written consent of the Lender. Any waiver or consent shall be effective
      only in the specific instance and for the specific purpose for which
      given.

     

    SECTION
      7.4 Notices.
      All
      demands, notices and communications to LEAF or the Purchaser hereunder shall
      be
      in writing, personally delivered, or sent by telecopier (subsequently confirmed
      in writing), reputable overnight courier or mailed by certified mail, return
      receipt requested, and shall be deemed to have been given upon receipt (a)
      in
      the case of LEAF at the following address: c/o LEAF Financial Corporation,
      1818
      Market Street, Philadelphia, PA 19061, Attention: Miles Herman, Facsimile No.:
      215-561-0834 or such other address as shall be designated by LEAF in a written
      notice delivered to the Purchaser and (b) in the case of the Purchaser at the
      following address: c/o Resource Capital Corp., 1845 Walnut Street, 10th Floor,
      Philadelphia, PA 19103, Attention: Thomas C. Elliott, Facsimile No.:
      215-546-4785 or such other address as shall be designated by a party in a
      written notice delivered to the other party.

     

    SECTION
      7.5 Merger
      and Integration.
      Except
      as specifically stated otherwise herein, this Agreement, the RLSA and the
      Transaction Documents set forth the entire understanding of the parties relating
      to the subject matter hereof, and all prior understandings, written or oral,
      are
      superseded by this Agreement, the RLSA and the Transaction Documents. This
      Agreement may not be modified, amended, waived or supplemented except as
      provided herein.

     

    SECTION
      7.6 Severability
      of Provisions.
      If any
      one or more of the covenants, provisions or terms of this Agreement shall be
      for
      any reason whatsoever held invalid, then such covenants, provisions or terms
      shall be deemed severable from the remaining covenants, provisions or terms
      of
      this Agreement and shall in no way affect the validity or enforceability of
      the
      other provisions of this Agreement.

     

    SECTION
      7.7 GOVERNING
      LAW; JURY WAIVER; CONSENT TO JURISDICTION.
      i)
      THIS
      AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-

     

    
      
        
        

      

      
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    1401
      OF
      THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS
      OF
      THE STATE OF NEW YORK, WITHOUT REGARD TO ANY CONFLICTS OF LAW PRINCIPLES THEREOF
      THAT WOULD CALL FOR THE APPLICATION OF THE
      LAWS OF
      ANY OTHER JURISDICTION, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION
      OF
      THE INTERESTS OF THE PURCHASER IN THE CONVEYED RECEIVABLES, RELATED SECURITY
      OR
      OTHER CONVEYED PROPERTY, OR REMEDIES HEREUNDER, IN RESPECT THEREOF, ARE GOVERNED
      BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. 

     

    (b) EACH
      OF
      THE PARTIES HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT
      IT
      MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING DIRECTLY OR
      INDIRECTLY OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE
      TRANSACTIONS CONTEMPLATED HEREUNDER.

     

    (c) ANY
      LEGAL
      ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE
      COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN
      DISTRICT OF NEW YORK; AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH
      OF
      THE PARTIES HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO
      THE
      NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE PARTIES HERETO
      IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION,
      INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM
      NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY
      ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY
      DOCUMENT RELATED HERETO. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE
      OF
      ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH SERVICE MAY BE MADE BY ANY
      OTHER MEANS PERMITTED BY NEW YORK LAW.

     

    SECTION
      7.8 Counterparts.
      For the
      purpose of facilitating the execution of this Agreement and for other purposes,
      this Agreement may be executed simultaneously in any number of counterparts,
      each of which counterparts shall be deemed to be an original, and all of which
      counterparts shall constitute but one and the same instrument. Delivery of
      an
      executed counterpart of a signature page to this Agreement by facsimile shall
      be
      effective as delivery of a manually executed counterpart of this
      Agreement.

     

    SECTION
      7.9 Non-petition
      Covenant.
      Until
      one year and one day after the latest maturing “Obligation” of the Purchaser
      under (and as defined in) the RLSA shall be paid in full, LEAF shall not
      petition or otherwise invoke the process of any court or government authority
      for the purpose of commencing or sustaining a case against the Purchaser under
      any federal or state bankruptcy, insolvency or similar law or appointing a
      receiver, liquidator, assignee, trustee, custodian, sequestrator or other
      similar official of the Purchaser or any substantial part of its property,
      or
      ordering the winding up or liquidation of the affairs of the Purchaser. LEAF
      agrees that damages will not be an adequate remedy for a breach of
      this

     

    
      
        
        

      

      
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    covenant
      and that this covenant may be specifically enforced by the Purchaser or any
      assignee thereof.

     

    SECTION
      7.10 Binding
      Effect; Assignability.

     

    (a) This
      Agreement shall be binding upon and inure to the benefit of LEAF, the Purchaser
      and their respective successors and assigns; provided,
      however,
      that
      LEAF may not assign its rights or obligations hereunder or any interest herein
      without the prior written consent of the Purchaser and any assignee thereof.
      The
      Purchaser may assign or collaterally assign its rights hereunder to an assignee,
      and such assignee shall have all rights of the Purchaser under this Agreement
      (as if such assignee were the Purchaser hereunder).

     

    (b) This
      Agreement shall create and constitute the continuing obligation of the parties
      hereto in accordance with its terms, and shall remain in full force and effect
      until such time, after the Collection Date, when all of the Receivables Conveyed
      hereunder are collected in full; provided,
      however,
      that
      rights and remedies with respect to any breach of any representation and
      warranty made by LEAF pursuant to Article IV hereof and the provisions of
      Article V and Section 7.9 shall be continuing and shall survive any termination
      of this Agreement.

     

    SECTION
      7.11 Third
      Party Beneficiary.
      Each of
      the parties hereto hereby acknowledges that the Purchaser intends to
      collaterally assign all of its rights under this Agreement to the Collateral
      Agent and LEAF hereby consents to such assignment. The Collateral Agent shall
      be
      a third party beneficiary of, and shall be entitled to enforce the Purchaser’s
      rights and remedies under, this Agreement to the same extent as if it were
      a
      party hereto.

     

    SECTION
      7.12 Term.
      This
      Agreement shall commence as of the date of execution and delivery hereof and
      shall continue in full force and effect until the later of (a) the payment
      in
      full with respect to each Receivable Conveyed hereunder and (b) the Collection
      Date under the RLSA.

     

    
      
        
           

        

        
        

      

      
        23

        
          

        

      

      
        
        

        
        

      

    

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

     

    LEAF
      FUNDING, INC. 

     

    By:      _______________________________

                                        Name:

                                        Title:

     

    RESOURCE
      CAPITAL FUNDING II, LLC

    
       

      By:      _______________________________

                                          Name:

                                          Title:

    

    

    
      
        
          Signature
            Page to Purchase and Sale Agreement

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      A

     

    FORM
      OF
      ASSIGNMENT

     

    ASSIGNMENT,
      dated as of ____________, 20___ between LEAF Funding, Inc. (“LEAF”) and Resource
      Capital Funding II, LLC (the “Purchaser”).

     

    l. We
      refer
      to the Purchase and Sale Agreement (the “Purchase and Sale Agreement”) dated as
      of October 31, 2006 between LEAF and the Purchaser. All provisions of the
      Purchase and Sale Agreement are incorporated herein by reference. All
      capitalized terms used herein and not defined herein shall have the meanings
      set
      forth in the Purchase and Sale Agreement.

     

    2. LEAF
      does
      hereby Convey, to the Purchaser, without recourse (except to the extent
      specifically provided in the Purchase and Sale Agreement), and the Purchaser
      hereby acquires, all right, title and interest of LEAF in, to and under the
      Receivables identified as such on Annex A hereto and the Related Security and
      the Other Conveyed Property related thereto (including, without limitation,
      all
      right, title and interest of LEAF in and to the Obligor Collateral related
      to
      each such Receivable) pursuant to the Purchase and Sale Agreement.

     

    3. All
      of
      the representations and warranties set forth on the Schedule of Representations
      are true and correct with respect to all of the Contracts, and, as applicable,
      Underlying Contracts and Underlying Originators, related to the Receivables
      identified in Annex A hereto as of the date of this Assignment.

     

    4. LEAF
      does
      hereby remake the representations and warranties set forth in Section 4.1 of
      the
      Purchase and Sale Agreement with full force and effect as if the same were
      fully
      set forth herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    

     

    LEAF
      FUNDING, INC.

    
      
         

        By:      _______________________________

                                            Name:

                                            Title:

      

    

     

    RESOURCE
      CAPITAL FUNDING II, LLC

     

    
      
        By:      _______________________________

                                            Name:

                                            Title:

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      A

     

    (TO
      ASSIGNMENT)

     

    [See
      attached.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    REPRESENTATIONS
      AND WARRANTIES OF LEAF WITH RESPECT TO 

    RECEIVABLES
      REFERRED TO IN ANY ASSIGNMENT

     

    PART
      1

     

    Representations
      and Warranties of LEAF with Respect to Contracts Related to Pool A Receivables
      Referred to in Any Assignment

     

    The
      following representations and warranties are made by LEAF as of the date of
      any
      Assignment delivered by LEAF to the Purchaser with respect to the Contracts
      related to the Pool A Receivables which are referred to in such Assignment
      (or
      any schedule thereto).

     

    l. Each
      such
      Contract represents the genuine, legal, valid, binding and full recourse payment
      obligation of the Obligor thereunder, enforceable by LEAF in accordance with
      its
      terms and the Obligor, with respect to such Contract (and any guarantor of
      the
      Obligor’s obligations thereunder), had full legal capacity to execute and
      deliver such Contract and any other documents related thereto.

     

    2. [Intentionally
      omitted.]

     

    3. To
      the
      extent that such Contract consists of a “Term Note (Level Payments)” or “Term
      Note (Step Payments)” or similar promissory note, together with the “Master Loan
      and Security Agreement” or similar agreement related thereto and incorporated by
      reference therein, each other “Term Note (Level Payments)” or “Term Note (Step
      Payments)” or similar promissory note related to the same “Master Loan and
      Security Agreement” or similar agreement is also a Contract related to a
      Conveyed Receivable. To the extent that such Contract consists of a “Master
      Lease Schedule” or similar agreement together with a “Master Lease Agreement” or
      similar agreement which is related to, and incorporated by reference therein,
      each other “Master Lease Schedule” or similar agreement related to the same
“Master Lease Agreement” or similar agreement is also a Contract related to a
      Conveyed Receivable.

     

    4. Each
      such
      Contract, at the time of origination and at all times thereafter to the date
      of
      any Assignment delivered by LEAF to the Purchaser, conformed to all requirements
      of the Credit and Collection Policy applicable to such Contract and, in any
      case, no such Contract would be required to be written off pursuant to the
      Credit and Collection Policy.

     

    5. Each
      such
      Contract (i) was (a) originated by Originator in the ordinary course of
      Originator’s business and Originator had all necessary licenses and permits to
      originate Contracts in the State where the related Obligor and the related
      Obligor Collateral were located or (b) purchased by Originator, in a transaction
      that would constitute a “true sale” for bankruptcy purposes, from a Person (a
“Seller”)
      who
      originated such Contract in the ordinary course of Seller’s business and who had
      all necessary licenses and permits to originate Contracts in the State where
      the
      related Obligor and the related Obligor Collateral were located, (ii) was sold
      by LEAF to the Purchaser under this Agreement and LEAF has all necessary
      licenses and permits to own Receivables and enter into Contracts in the state
      where the related Obligor and the related Obligor Collateral are located, (iii)
      contains customary and enforceable provisions, such as to

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    render
      the rights and remedies of LEAF (and any assignee thereof) adequate for
      realization against the collateral security related thereto and (iv) provides
      for level Scheduled Payments during the term of such Contract or such Contract
      is a Non-Level Payment Contract.

     

    6. Each
      such
      Contract was originated by Originator or the Seller without any fraud or
      material misrepresentation on the part of the related Obligor or Originator
      or
      the Seller. Each such Contract was sold by LEAF to the Purchaser without any
      fraud or material misrepresentation on the part of LEAF.

     

    7. No
      such
      Contract is the subject of any litigation, nor is it subject to any right of
      rescission, setoff, counterclaim or defense on the part of the Obligor
      thereunder.

     

    8. Each
      such
      Contract has had no provision thereof waived, amended, altered or modified
      in
      any respect since its origination except in conformity with the Credit and
      Collection Policy.

     

    9. The
      Obligor, with respect to each such Contract, has a billing address in the United
      States and, except as otherwise permitted in writing by the Lender from time
      to
      time, the Equipment which is the subject of each such Contract and all other
      Obligor Collateral with respect thereto is located in the United
      States.

     

    10. Each
      such
      Contract (i) is calculated at a fixed yield, (ii) is fully amortizing in
      periodic installments over its remaining term (which may include a Balloon
      Payment or Put Payment not in excess of 45% of the Discounted Balance of such
      Contract at the time of origination), (iii) has a remaining term of 180 months
      or less and does not permit renewal or extension, (iv) provides for acceleration
      of the Scheduled Payments thereunder if the related Obligor is in default under
      or has otherwise violated or breached any material provision of such Contract,
      (v) prohibits the related Obligor from applying any part of the Security Deposit
      or cash collateral paid under such Contract to the Scheduled Payments due under
      such Contract (and neither the Servicer, LEAF or any other Person has applied
      any part of the Security Deposit or cash collateral paid under such Contract
      to
      any of the Scheduled Payments due under such Contract) and (vi) has not been
      assigned by the related Obligor nor has there been any sub-lease of the Obligor
      Collateral.

     

    11. [Intentionally
      omitted.]

     

    12. Each
      such
      Contract (i) is payable by a single Obligor, that is a corporate Person, or,
      if
      the collateral is Equipment used in a business, an individual and (ii) provides
      for the financing or lease of Obligor Collateral to be used in the business
      of
      the related Obligor.

     

    13. Each
      such
      Contract was originated in the United States and is denominated and payable
      solely in United States Dollars.

     

    14. Each
      such
      Contract (i) if a Lease Contract, contains “hell or high water” provisions, (ii)
      requires the related Obligor to assume all risk of loss or malfunction of the
      related Obligor Collateral; (iii) requires the related Obligor to pay all
      maintenance, repair, insurance and taxes, together with all other ancillary
      costs and expenses, with respect to the related Obligor

     

    
      
        
        

      

      
        Sch.
          A-2

        
          

        

      

      
        
        

      

    

     

    Collateral;
      and (iv) requires the related Obligor to pay, in full, when due, all Scheduled
      Payments notwithstanding any casualty, loss or other damage to the related
      Obligor Collateral.

     

    15. Each
      such
      Contract is by its terms an absolute and unconditional obligation of the related
      Obligor and is non-cancelable (in the case of a Lease Contract) and
      non-cancelable and non-prepayable without the payment in full of principal
      and
      accrued interest and finance charges prior to the expiration of the term of
      such
      Contract; such Contract does not provide for the substitution, exchange or
      addition of any other items of Obligor Collateral related to such Contract
      if
      the effect thereof would be to reduce or extend the Scheduled Payments related
      thereto; and the rights with respect to such Contract are assignable by
      Originator (and its successors and assigns, including the Purchaser) without
      the
      consent of or notice to any Person.

     

    16. Each
      such
      Contract is in the form of one of the form contracts attached to the RLSA as
      Exhibit
      D-1,
      Exhibit
      D-2
      or
Exhibit
      D-3
      or in a
      form otherwise approved by the Servicer in compliance with the Credit and
      Collection Policy.

     

    17. [Intentionally
      omitted.]

     

    18. All
      material requirements of applicable federal, state and local laws, and
      regulations thereunder in respect of each such Contract, the origination
      thereof, and the Obligor Collateral related thereto, have been complied with
      in
      all respects.

     

    19. The
      applicable Obligor (other than a lessee under a Lease Contract that is a “true
      lease”) has good and marketable title to the Equipment which is the subject of
      each such Contract and such Equipment is free and clear of all Adverse
      Claims.

     

    20. Each
      such
      Contract constitutes either an “Instrument” or “Chattel Paper” or a “Payment
      Intangible” within the meaning of the UCC.

     

    21. Each
      such
      Contract contains language by which the related Obligor grants a security
      interest to Originator in the Obligor Collateral which is the subject of each
      such Contract.

     

    22. (A)
      The
      Originator shall have taken or caused to be taken all steps necessary under
      all
      applicable law (including the filing of an Obligor Financing Statement with
      respect to each such Contract) in order to cause a valid, subsisting and
      enforceable perfected, first priority security interest to exist in Originator’s
      favor in the Obligor Collateral securing each such Contract (other than with
      respect to Equipment which has a value of less than $25,000 if such Equipment
      is
      leased under Dollar Purchase Option Contracts or $50,000 if such Equipment
      is
      leased under FMV Contracts) and, (B) LEAF shall have assigned the perfected,
      first priority security interest in the Obligor Collateral referred to in clause
      (A) above to the Purchaser pursuant to this Agreement.

     

    23. LEAF
      has
      taken all steps necessary under all applicable law in order to Convey to the
      Purchaser (i) LEAF’s interest in the Obligor Collateral related to each such
      Contract (other than Equipment which has a value of less than $25,000 if such
      Equipment is leased under Dollar Purchase Option Contracts or $50,000 if such
      Equipment is leased under FMV Contracts) and (ii) each such Contract and the
      Receivable, Related Security and Other 

     

    
      
        
        

      

      
        Sch.
          A-3

        
          

        

      

      
        
        

      

    

     

    Conveyed
      Property related thereto (and the proceeds thereof), and the Purchaser will
      have
      acquired good and marketable title to and a valid and perfected ownership
      interest in (i) LEAF’s interest in such Obligor Collateral and (ii) such
      Contract and the Receivable, Related Security and Other Conveyed Property
      related thereto (and the proceeds thereof) and such ownership interest is free
      and clear of any Adverse Claim or restrictions on transferability.

     

    24. If
      the
      Obligor Collateral related to such Contract (other than a Contract related
      to a
      Vehicle Sublimit Pledged Receivable) includes a Vehicle, LEAF or the Servicer
      shall have delivered to the applicable Registrar of Titles an application for
      a
      Certificate of Title for such Vehicle which such Certificate of Title shall
      indicate the Purchaser as the owner of the related Vehicle and indicate “Morgan
      Stanley Bank” as the sole lienholder with respect to such Vehicle.

     

    25. No
      such
      Contract is a Defaulted Receivable or a Delinquent Receivable.

     

    26. Each
      such
      Contract is payable by an Obligor which is not subject to any bankruptcy,
      insolvency, reorganization or similar proceeding.

     

    27. The
      information pertaining to each such Contract set forth in the Schedule of
      Contracts and the related Assignment is true and correct in all
      respects.

     

    28. With
      respect to each such Contract, by the Conveyance Date on which such Contract
      is
      Conveyed hereunder, Originator will have caused its master computer records
      relating to such Contract to be clearly and unambiguously marked to show that
      such Contract has been Conveyed under this Agreement.

     

    29. With
      respect to each such Contract there exists a Receivable File and such Receivable
      File contains each item listed in the definition of Receivable File with respect
      to such Contract and such Receivable File has been delivered to the
      Custodian.

     

    30. No
      such
      Contract has been repaid, prepaid, satisfied, subordinated or rescinded, and
      the
      Obligor Collateral securing such Contract has not been released from the lien
      of
      the Purchaser, in whole or in part (except for releases of Equipment from a
      Contract prior to the date of the Conveyance thereof and which releases have
      been noted in the Collateral Receipt related to such document).

     

    31. No
      such
      Contract was originated in, or is subject to the laws of, any jurisdiction
      the
      laws of which would make unlawful, void or voidable the sale, transfer, pledge
      and/or assignment of such Contract under this Agreement or the RLSA, and LEAF
      has not entered into any agreement with any Obligor that prohibits, restricts
      or
      conditions the sale, transfer, pledge and/or assignment of such
      Contract.

     

    32. [Intentionally
      omitted.]

     

    33. No
      such
      Contract has been sold, transferred, assigned or pledged by LEAF to any Person
      other than the Purchaser. LEAF has not taken any action to convey any right
      to
      any Person that would result in such Person having a right to payments due
      under
      any such Contract or payments received under the related Insurance Policy or
      otherwise to impair the 

     

    
      
        
        

      

      
        Sch.
          A-4

        
          

        

      

      
        
        

      

    

     

    rights
      of
      LEAF, the Purchaser or the Lender in such Contract, the related Insurance Policy
      or any proceeds thereof. There is an Insurance Policy in full force and effect
      with respect to the Equipment related to such Contract if such Equipment had
      an
      original cost over $100,000.

     

    34. No
      such
      Contract is assumable by another Person in a manner which would release the
      Obligor thereof from such Obligor’s obligations to LEAF or the
      Purchaser.

     

    35. There
      has
      been no default, breach, violation or event permitting acceleration under the
      terms of any such Contract, and no condition exists or event has occurred and
      is
      continuing that with notice, the lapse of time or both would constitute a
      default, breach, violation or event permitting acceleration under the terms
      of
      any such Contract, and there has been no waiver of any of the
      foregoing.

     

    36. No
      selection procedures adverse to the Purchaser or the Lender have been utilized
      in selecting any such Contract from all other similar Contracts originated
      or
      purchased by Originator.

     

    37. The
      Obligor Collateral related to any such Contract is not subject to any tax or
      mechanic’s lien or any other Adverse Claim.

     

    38. [Intentionally
      omitted.]

     

    39. LEAF
      has
      delivered to the Custodian the sole original counterpart of each such Contract
      (or a true and correct copy thereof) and such document constitutes the entire
      agreement between the parties thereto in respect of the related Obligor
      Collateral.

     

    40. Each
      such
      Contract is in full force and effect in accordance with its terms and neither
      LEAF nor the Obligor has or will have suspended or reduced any payments or
      obligations due or to become due thereunder by reason of a default by any other
      party to such Contract; there are no proceedings pending or threatened asserting
      insolvency of such Obligor; there are no proceedings pending or threatened
      wherein such Obligor, any other obligated party or any governmental agency
      has
      alleged that such Contract is illegal or unenforceable.

     

    41. The
      origination and collection practices used by the Servicer with respect to each
      such Contract have been in all respects customary in the equipment financing
      and
      servicing business. 

     

    42. The
      Obligor Collateral related to each such Contract was properly delivered to
      the
      Obligor in good repair and is in proper working order. Each Obligor has accepted
      the related Equipment. The related Obligor is the end user of the Equipment
      that
      is the subject of any such Contract and no Obligor has sublet the Equipment
      to
      any other party.

     

    43. The
      Obligor with respect to any such Contract is not a merchant with respect to
      the
      Equipment related to such Contract.

     

    44. Except
      with respect to a breach of an Obligor’s right of quiet enjoyment of the related
      Equipment, neither the operation of any of the terms of any such Contract nor
      the exercise by LEAF (or any assignee thereof), the Servicer or the Obligor
      of
      any right under any 

     

    
      
        
        

      

      
        Sch.
          A-5

        
          

        

      

      
        
        

      

    

     

    such
      Contract will render such Contract unenforceable in whole or in part nor subject
      to any right of rescission, setoff, claim, counterclaim or defense, and no
      such
      right of rescission, set-off, claim, counterclaim or defense, including a
      defense arising out of a breach of the Obligor’s right of quiet enjoyment of the
      Equipment, has been asserted with respect thereto.

     

    45. LEAF
      and
      the Servicer have duly fulfilled all obligations on their part to be fulfilled
      under or in connection with the origination, acquisition and assignment of
      such
      Contract, and have done nothing to impair the rights of the Purchaser or the
      Collateral Agent in such Contract or payments with respect thereto. LEAF and
      the
      Servicer have duly fulfilled all continuing obligations on their part to be
      fulfilled under or in connection with such Contract.

     

    46. [Intentionally
      omitted.]

     

    47. The
      conveyance from LEAF to the Purchaser of each such Contract and the Other
      Conveyed Property and Related Security related thereto does not violate the
      terms or provisions of any agreement to which LEAF is a party or by which it
      is
      bound.

     

    48. The
      transfer, assignment and conveyance of the Contract and the related Related
      Security and Other Conveyed Property from LEAF to the Purchaser pursuant to
      this
      Agreement is not subject to or will not result in any tax, fee or governmental
      charge payable by LEAF or any other Person to any federal, state or local
      government.

     

    49. No
      such
      Contract (other than a “true lease”) is (i) an executory contract or (ii) in any
      event, deemed to be an executory contract or unexpired lease subject to
      rejection by an Obligor under Section 365 of the Bankruptcy Code in the event
      that a Bankruptcy Event has occurred with respect to such Obligor.

     

    50. Each
      such
      Contract contains enforceability provisions (i) permitting the acceleration of
      the payments thereunder if the Obligor is in default under such Contract and
      (ii) sufficient to enable the LEAF (or its assignees) to repossess or foreclose
      upon the Obligor Collateral related thereto.

     

    51. Each
      such
      Contract generally contains provisions requiring the payment of both interest
      and principal (or, in the case of a Lease Contract, lease payments) in each
      calendar month or quarter during the term of such Contract.

     

    52. The
      promissory note, if any, related to each such Contract was payable to LEAF
      immediately prior to its transfer to the Purchaser under this Agreement and
      has
      not been endorsed by LEAF to any Person other than the Purchaser.

     

    53. The
      final
      Scheduled Payment required by each such Contract is less than or equal to the
      Discounted Balance of such Contract at the time of origination.

     

    54. The
      Obligor Collateral related to such Contract is not one or more Vehicles
      regularly engaged in the long-haul transportation of goods.

     

    
      
        
        

      

      
        Sch.
          A-6

        
          

        

      

      
        
        

      

    

    55. The
      Obligor with respect to any such Contract which is a lease of, or is secured
      by,
      Equipment related to the practice of dentistry, medicine or veterinary medicine
      is a dentist, doctor or veterinarian.

     

    56.The
      vendor of the Equipment relating to such Receivable has received payment in
      full
      from the Obligor prior to the Pledge of such Receivable hereunder and has no
      remaining obligations with respect to such Equipment except for any applicable
      warranty.

     

    
      
        
        

      

      
        Sch.
          A-7

        
          

        

      

      
        
        

      

    

    PART
      2

     

    Representations
      and Warranties of LEAF with Respect to Contracts Related to Pool B

    Receivables
      Referred to in Any Assignment

     

    The
      following representations and warranties are made by LEAF as of the date of
      any
      Assignment delivered by LEAF to the Purchaser with respect to the Contracts
      related to the Pool B Receivables which are referred to in such Assignment
      (or
      any schedule thereto).

     

    1. Each
      such
      Contract represents the genuine, legal, valid, binding and full recourse payment
      obligation of the Obligor thereunder, enforceable by LEAF in accordance with
      its
      terms and the Obligor, with respect to such Contract (and any guarantor of
      the
      Obligor’s obligations thereunder), had full legal capacity to execute and
      deliver such Contract and any other documents related thereto.

     

    2. [Intentionally
      omitted.]

     

    3. The
      Obligor under such Contract has been continuously originating lease or loan
      agreements related to equipment with an original cost of less than $100,000
      for
      at least three (3) complete calendar years unless such Obligor is Pentech
      Financial Services, Inc.

     

    4. Each
      such
      Contract, at the time of origination and at all times thereafter to the date
      of
      any Assignment delivered by LEAF to the Purchaser, conformed to all requirements
      of the Credit and Collection Policy applicable to such Contract and, in any
      case, no such Contract would be required to be written off pursuant to the
      Credit and Collection Policy.

     

    5. Each
      such
      Contract (i) was originated by Originator in the ordinary course of Originator’s
      business and Originator had all necessary licenses and permits to originate
      Contracts in the State where the related Obligor and the related Obligor
      Collateral were located, (ii) was sold by LEAF to the Purchaser under this
      Agreement and LEAF has all necessary licenses and permits to own Receivables
      and
      enter into Contracts in the state where the related Obligor and the related
      Obligor Collateral are located, (iii) contains customary and enforceable
      provisions, such as to render the rights and remedies of LEAF (and any assignee
      thereof) adequate for realization against the collateral security related
      thereto and (iv) provides for level Scheduled Payments during the term of such
      Contract or such Contract is a Non-Level Payment Contract.

     

    6. Each
      such
      Contract was originated by Originator without any fraud or material
      misrepresentation on the part of the related Obligor or Originator. Each such
      Contract was sold by LEAF to the Purchaser without any fraud or material
      misrepresentation on the part of LEAF.

     

    7. No
      such
      Contract is the subject of any litigation, nor is it subject to any right of
      rescission, setoff, counterclaim or defense on the part of the Obligor
      thereunder.

     

    8. Each
      such
      Contract has had no provision thereof waived, amended, altered or modified
      in
      any respect since its origination except in conformity with the Credit and
      Collection Policy.

     

    
      
        
        

      

      
        Sch.
          A-8

        
          

        

      

      
        
        

      

    

    9. The
      Obligor with respect to each such Contract has a billing address in the United
      States and, except as otherwise permitted in writing by the Lender from time
      to
      time, all Obligor Collateral with respect thereto is located in the United
      States.

     

    10. Each
      such
      Contract (i) is calculated at a fixed yield, (ii) is fully amortizing in
      periodic installments over its remaining term (which amortization may include
      a
      Balloon Payment or Put Payment not in excess of 10% of the aggregate original
      cost of the related Underlying Equipment), (iii) has a remaining term of 120
      months or less and does not permit renewal or extension, (iv) provides for
      acceleration of the Scheduled Payments thereunder if the related Obligor is
      in
      default under or has otherwise violated or breached any material provision
      of
      such Contract, (v) prohibits the related Obligor from applying any part of
      the
      Cash Reserve (if any) paid under such Contract to the Scheduled Payments due
      under such Contract (and neither the Servicer, LEAF or any other Person has
      applied any part of the Cash Reserve paid under such Contract to any of the
      Scheduled Payments due under such Contract) and (vi) has not been assigned
      by
      the related Obligor nor has there been any sub-lease of the Obligor
      Collateral.

     

    11. The
      obligations of the Obligor under each such Contract are secured by Underlying
      Originator Loan Collateral which includes Eligible Pool B Underlying Lease
      Contracts and Eligible Pool B Underlying Loan Contracts with aggregate
      Discounted Balances equal to or greater than the Discounted Balance of such
      Contract.

     

    12. Each
      such
      Contract (i) is payable by a single Obligor, that is a corporate Person or,
      if
      the collateral is Equipment used in a business, an individual and (ii) provides
      for the financing or lease of Obligor Collateral to be used in the business
      of
      the related Obligor.

     

    13. Each
      such
      Contract was originated in the United States and is denominated and payable
      solely in United States Dollars.

     

    14. [Intentionally
      omitted.]

     

    15. Each
      such
      Contract is by its terms an absolute and unconditional obligation of the related
      Obligor and is non-cancelable and non-prepayable without the payment in full
      of
      principal and accrued interest and finance charges prior to the expiration
      of
      the term of such Contract; such Contract does not provide for the substitution,
      exchange or addition of any other items of Underlying Originator Loan Collateral
      related to such Contract if the effect thereof would be to reduce or extend
      the
      Scheduled Payments related thereto; and the rights with respect to such Contract
      are assignable by Originator (and its successors and assigns, including the
      Purchaser) without the consent of or notice to any Person.

     

    16. Each
      such
      Contract conforms with the criteria set forth in Exhibit D-4 to the RLSA.

     

    17. [Intentionally
      omitted.]

     

    18. All
      material requirements of applicable federal, state and local laws, and
      regulations thereunder in respect of each such Contract, the origination
      thereof, and the Obligor Collateral related thereto, have been complied with
      in
      all respects.

     

    
      
        
        

      

      
        Sch.
          A-9

        
          

        

      

      
        
        

      

    

    19. The
      applicable Underlying Obligor (other than a lessee under an Underlying Lease
      Contract that is a “true lease”) has good and marketable title to Underlying
      Originator Loan Collateral related to such Contract and such Underlying
      Originator Loan Collateral is free and clear of all Adverse Claims.

     

    20. Each
      such
      Contract constitutes either an “Instrument” or “Chattel Paper” or a “Payment
      Intangible” within the meaning of the UCC.

     

    21. Each
      such
      Contract contains language by which the related Obligor grants a security
      interest to Originator in the Obligor Collateral which is the subject of each
      such Contract.

     

    22. (A)
      The
      Originator shall have taken or caused to be taken all steps necessary under
      all
      applicable law (including the filing of an Obligor Financing Statement with
      respect to each such Contract) in order to cause a valid, subsisting and
      enforceable perfected, first priority security interest to exist in Originator’s
      favor in the Obligor Collateral securing each such Contract (other than with
      respect to Underlying Equipment relating to such Contract which has an original
      value of less than $25,000 if such Underlying Equipment is leased under Dollar
      Purchase Option Contracts or $50,000 if such Underlying Equipment is leased
      under FMV Contracts) and (B) LEAF shall have assigned the perfected, first
      priority security interest in the Obligor Collateral referred to in clause
      (A)
      above to the Purchaser pursuant to this Agreement.

     

    23. LEAF
      has
      taken all steps necessary under all applicable law in order to Convey to the
      Purchaser (i) LEAF’s interest in the Obligor Collateral related to each such
      Contract (other than with respect to Underlying Equipment relating to such
      Contract which has an original value of less than $25,000 if such Underlying
      Equipment is leased under Dollar Purchase Option Contracts or $50,000 if such
      Underlying Equipment is leased under FMV Contracts) and (ii) each such Contract
      and the Receivable, Related Security and Other Conveyed Property related thereto
      (and the proceeds thereof), and the Purchaser will have acquired good and
      marketable title to and a valid and perfected ownership interest in (i) LEAF’s
      interest in such Obligor Collateral and (ii) such Contract and the Receivable,
      Related Security and Other Conveyed Property related thereto (and the proceeds
      thereof) and such ownership interest is free and clear of any Adverse Claim
      or
      restrictions on transferability. 

     

    24. [Intentionally
      omitted.]

     

    25. No
      such
      Contract is a Defaulted Receivable or, at the time of its Pledge hereunder,
      a
      Delinquent Receivable.

     

    26. Each
      such
      Contract is payable by an Obligor which is not subject to any bankruptcy,
      insolvency, reorganization or similar proceeding.

     

    27. The
      information pertaining to each such Contract set forth in the Schedule of
      Contracts and the related Assignment is true and correct in all
      respects.

     

    28. With
      respect to each such Contract, by the Conveyance Date on which such Contract
      is
      Conveyed hereunder, Originator will have caused its master computer
      records

     

    
      
        
        

      

      
        Sch.
          A-10

        
          

        

      

      
        
        

      

    

     

    relating
      to such Contract to be clearly and unambiguously marked to show that such
      Contract has been Conveyed under this Agreement.

     

    29. With
      respect to each such Contract there exists a Receivable File and such Receivable
      File contains each item listed in the definition of Receivable File with respect
      to such Contract and such Receivable File is in the possession of the
      Custodian.

     

    30. No
      such
      Contract has been repaid, prepaid, satisfied, subordinated or rescinded, and
      the
      Obligor Collateral securing such Contract has not been released from the lien
      of
      the Collateral Agent, in whole or in part.

     

    31. No
      such
      Contract was originated in, or is subject to the laws of, any jurisdiction
      the
      laws of which would make unlawful, void or voidable the sale, transfer, pledge
      and/or assignment of such Contract under this Agreement or the RLSA, and LEAF
      has not entered into any agreement with any Obligor that prohibits, restricts
      or
      conditions the sale, transfer, pledge and/or assignment of such
      Contract.

     

    32. [Intentionally
      omitted.]

     

    33. No
      such
      Contract has been sold, transferred, assigned or pledged by LEAF to any Person
      other than the Purchaser. LEAF has not taken any action to convey any right
      to
      any Person that would result in such Person having a right to payments due
      under
      any such Contract or payments received under the related Insurance Policy or
      otherwise to impair the rights of the Purchaser or the Collateral Agent in
      such
      Contract, the related Insurance Policy or any proceeds thereof.

     

    34. No
      such
      Contract is assumable by another Person in a manner which would release the
      Obligor thereof from such Obligor’s obligations to LEAF or the
      Purchaser.

     

    35. There
      has
      been no default, breach, violation or event permitting acceleration under the
      terms of any such Contract, and no condition exists or event has occurred and
      is
      continuing that with notice, the lapse of time or both would constitute a
      default, breach, violation or event permitting acceleration under the terms
      of
      any such Contract, and there has been no waiver of any of the
      foregoing.

     

    36. No
      selection procedures adverse to the Purchaser or the Lender have been utilized
      in selecting any such Contract from all other similar Contracts originated
      or
      purchased by Originator.

     

    37. The
      Obligor Collateral related to any such Contract is not subject to any Adverse
      Claim.

     

    38. [Intentionally
      omitted.]

     

    39. LEAF
      has
      delivered to the Custodian the sole original counterpart (or a true and correct
      copy) of each such Contract and such document constitutes the entire agreement
      between the parties thereto in respect of the related Obligor
      Collateral.

     

    
      
        
        

      

      
        Sch.
          A-11

        
          

        

      

      
        
        

      

    

    40. Each
      such
      Contract is in full force and effect in accordance with its terms and neither
      LEAF nor the Obligor has or will have suspended or reduced any payments or
      obligations due or to become due thereunder by reason of a default by any other
      party to such Contract; there are no proceedings pending or threatened asserting
      insolvency of such Obligor; there are no proceedings pending or threatened
      wherein such Obligor, any other obligated party or any governmental agency
      has
      alleged that such Contract is illegal or unenforceable.

     

    41. The
      origination and collection practices used by LEAF and the Servicer with respect
      to each such Contract have been in all respects customary in the equipment
      financing and servicing business.

     

    42. [Intentionally
      omitted.]

     

    43. [Intentionally
      omitted.]

     

    44. Neither
      the operation of any of the terms of any such Contract nor the exercise by
      LEAF,
      the Servicer or the Obligor of any right under any such Contract will have
      rendered such Contract unenforceable in whole or in part nor subject to any
      right of rescission, setoff, claim, counterclaim or defense, and no such right
      of rescission, set-off, claim, counterclaim or defense has been asserted with
      respect thereto.

     

    45. LEAF
      and
      the Servicer have duly fulfilled all obligations on their part to be fulfilled
      under or in connection with the origination, acquisition and assignment of
      the
      Contract, and have done nothing to impair the rights of the Purchaser or the
      Collateral Agent in the Contract or payments with respect thereto. LEAF and
      the
      Servicer have duly fulfilled all continuing obligations on their part to be
      fulfilled under or in connection with such Contract.

     

    46. [Intentionally
      omitted.]

     

    47. The
      Conveyance from LEAF to the Purchaser of each such Contract and the Other
      Conveyed Property and Related Security related thereto does not violate the
      terms or provisions of any agreement to which LEAF is a party or by which it
      is
      bound.

     

    48. The
      transfer, assignment and conveyance of the Contract and the related Related
      Security and Other Conveyed Property from LEAF to the Purchaser pursuant to
      this
      Agreement is not subject to or will not result in any tax, fee or governmental
      charge payable by the Purchaser or any other Person to any federal, state or
      local government.

     

    49. No
      such
      Contract may be (i) an executory contract or (ii) in any event, deemed to be
      an
      executory contract or unexpired lease subject to rejection by an Obligor under
      Section 365 of the Bankruptcy Code in the event that a Bankruptcy Event has
      occurred with respect to such Obligor. 

     

    50. Each
      such
      Contract contains enforceability provisions (i) permitting the acceleration
      of
      the payments thereunder if the Obligor is in default under such Contract and
      (ii) sufficient to enable the LEAF (or its assignees) to repossess or foreclose
      upon the Obligor Collateral related thereto.

     

    
      
        
        

      

      
        Sch.
          A-12

        
          

        

      

      
        
        

      

    

    51. Each
      such
      Contract generally contains provisions requiring the payment of both interest
      and principal (or, in the case of a Lease Contract, lease payments) in each
      calendar month or quarter during the term of such Contract.

     

    52. The
      promissory note, if any, related to each such Contract (i) was payable to
      Originator immediately prior to its transfer to LEAF under each Originator
      Sale
      Agreement and (ii) was payable to LEAF immediately prior to its transfer to
      the
      Purchaser under this Agreement and has not been endorsed by LEAF to any Person
      other than the Purchaser.

     

    53. The
      final
      Scheduled Payment required by each such Contract is less than or equal to the
      Discounted Balance of such Contract at the time of origination.

     

    54.Such
      Contract contains “Seller Events of Default” or similar events of default which
      (i) would occur if a Pool B Termination Event with respect to the related
      Underlying Originator occurred, (ii) would entitle the Purchaser, as assignee
      of
      the Originator’s rights under the Contract, to deliver, or cause the delivery
      of, a redirection notice which would require all Underlying Obligors to make
      all
      payments under Underlying Contracts sold or pledged to the Originator under
      such
      Contract to Lockbox Account or an account designated by the Purchaser or the
      Servicer and (iii) would entitle the Purchaser, as assignee of the Originator’s
      rights under the Contract, to receive 100% of all payments under the Underlying
      Contracts sold or pledged to the Originator under such Contract.

     

    
      
        
        

      

      
        Sch.
          A-13

        
          

        

      

      
        
        

      

    

    PART
      3

     

    Representations
      and Warranties of LEAF with Respect to Underlying Contracts Related to Pool
      B

    Receivables
      Referred to in Any Assignment

     

    The
      following representations and warranties are made by LEAF as of the date of
      any
      Assignment delivered by LEAF to the Purchaser with respect to the Underlying
      Contracts related to the Pool B Receivables which are referred to in such
      Assignment (or any schedule thereto).

     

    1. Each
      such
      Underlying Contract represents the genuine, legal, valid, binding and full
      recourse payment obligation of the Underlying Obligor thereunder, enforceable
      by
      the Underlying Originator in accordance with its terms and the Underlying
      Obligor, with respect to such Underlying Contract (and any guarantor of the
      Underlying Obligor’s obligations thereunder), had full legal capacity to execute
      and deliver such Underlying Contract and any other documents related
      thereto.

     

    2. [Intentionally
      omitted.]

     

    3. [Intentionally
      omitted.]

     

    4. Each
      such
      Underlying Contract at the time of origination and at all times thereafter,
      conformed to all requirements of the credit and collection policy of the
      applicable Underlying Originator applicable to such Underlying Contract and,
      in
      any case, no such Underlying Contract would be required to be written off
      pursuant to such credit and collection policy.

     

    5. Each
      such
      Underlying Contract (i) was originated by an Eligible Underlying Originator
      in
      the ordinary course of its business and such Underlying Originator had all
      necessary licenses and permits to originate Underlying Contracts in the State
      where the related Underlying Obligor and the related Underlying Collateral
      were
      located, (ii) was pledged by such Underlying Originator to the Originator under
      the applicable Pool B Contract and (iii) contains customary and enforceable
      provisions, such as to render the rights and remedies of such Underlying
      Originator (and any assignee thereof, including, without limitation, LEAF)
      adequate for realization against the collateral security related
      thereto.

     

    6. Each
      such
      Underlying Contract was originated by the applicable Underlying Originator
      without any fraud or material misrepresentation on the part of the related
      Underlying Obligor or Underlying Originator. Each such Underlying Contract
      was
      pledged by such Underlying Originator to Originator without any fraud or
      material misrepresentation on the part of such Underlying Originator or
      Originator, as applicable.

     

    7. No
      such
      Underlying Contract is the subject of any litigation, nor is it subject to
      any
      right of rescission, setoff, counterclaim or defense on the part of the
      Underlying Obligor thereunder.

     

    8. Each
      such
      Underlying Contract has had no provision thereof waived, amended, altered or
      modified in any respect since its origination except in conformity with the
      credit and collection policy of the applicable Underlying
      Originator.

    
      
        
        

      

      
        Sch.
          A-14

        
          

        

      

      
        
        

      

    

    9. The
      Underlying Obligor, with respect to each such Underlying Contract, has a billing
      address in the United States and, except as otherwise permitted in writing
      by
      the Lender from time to time, the Underlying Equipment which is the subject
      of
      each such Underlying Contract and all other Obligor Collateral with respect
      thereto is located in the United States.

     

    10. Each
      such
      Underlying Contract (i) is calculated at a fixed yield, (ii) is fully amortizing
      in periodic installments over its remaining term (which may include a Balloon
      Payment or Put Payment not in excess of 10% of the original cost of the related
      Underlying Equipment), (iii) has an remaining term of 120 months or less and
      does not permit renewal or extension, (iv) provides for acceleration of the
      Underlying Scheduled Payments thereunder if the related Underlying Obligor
      is in
      default under or has otherwise violated or breached any material provision
      of
      such Underlying Contract, (v) prohibits the related Underlying Obligor from
      applying any part of the Underlying Security Deposit (if any) paid under such
      Underlying Contract to the Underlying Scheduled Payments due under such
      Underlying Contract (and neither the Underlying Originator, the Servicer, LEAF
      or any other Person has applied any part of the Underlying Security Deposit
      paid
      under such Underlying Contract to any of the Underlying Scheduled Payments
      due
      under such Underlying Contract) and (vi) has not been assigned by the related
      Underlying Obligor nor has there been any sub-lease of the Underlying Obligor
      Collateral.

     

    11. Such
      Underlying Contract has a Discounted Balance of not greater than
      $800,000.

     

    12. Each
      such
      Underlying Contract (i) is payable by a single Underlying Obligor, that is
      a
      corporate Person or, if the collateral is Equipment used in a business, an
      individual and (ii) provides for the financing or lease of Underlying Collateral
      to be used in the business of the related Underlying Obligor.

     

    13. Each
      such
      Underlying Contract was originated in the United States and is denominated
      and
      payable solely in United States Dollars.

     

    14. Each
      such
      Underlying Contract (i) if an Underlying Lease Contract, contains “hell or high
      water” provisions; (ii) requires the related Underlying Obligor to assume all
      risk of loss or malfunction of the related Underlying Collateral; (iii) requires
      the related Underlying Obligor to pay all maintenance, repair, insurance and
      taxes, together with all other ancillary costs and expenses, with respect to
      the
      related Underlying Collateral; and (iv) requires the related Underlying Obligor
      to pay, in full, when due, all Underlying Scheduled Payments notwithstanding
      any
      casualty, loss or other damage to the related Underlying
      Collateral.

     

    15. Each
      such
      Underlying Contract is by its terms an absolute and unconditional obligation
      of
      the related Underlying Obligor and is non-cancelable (in the case of an
      Underlying Lease Contract) and non-cancelable and non-prepayable without the
      payment in full of principal and accrued interest and finance charges prior
      to
      the expiration of the term of such Underlying Contract; such Underlying Contract
      does not provide for the substitution, exchange or addition of any other items
      of Underlying Collateral related to such Underlying Contract if the effect
      thereof would be to reduce or extend the Underlying Scheduled
      Payments

     

    
      
        
        

      

      
        Sch.
          A-15

        
          

        

      

      
        
        

      

    

     

    related
      thereto; and the rights with respect to such Underlying Contract are assignable
      by the applicable Underlying Originator (and its successors and assigns,
      including LEAF and the Purchaser) without the consent of or notice to any
      Person.

     

    16. [Intentionally
      omitted.]

     

    17. [Intentionally
      omitted.]

     

    18. All
      material requirements of applicable federal, state and local laws, and
      regulations thereunder in respect of each such Underlying Contract, the
      origination thereof, and the Underlying Collateral related thereto, have been
      complied with in all respects.

     

    19. The
      applicable Underlying Obligor (other than a lessee under an Underlying Lease
      Contract that is a “true lease”) has good and marketable title to the Underlying
      Equipment which is the subject of each such Underlying Contract and such
      Underlying Equipment is free and clear of all Adverse Claims.

     

    20. Each
      such
      Underlying Contract constitutes either an “Instrument” or “Chattel Paper” or a
“Payment Intangible” within the meaning of the UCC.

     

    21. Each
      such
      Underlying Contract contains language by which the related Underlying Obligor
      grants a security interest to the related Underlying Originator in the
      Underlying Collateral which is the subject of each such Underlying
      Contract.

     

    22. (A)
      The
      applicable Underlying Originator shall have taken or caused to be taken all
      steps necessary under all applicable law (including the filing of a sufficient
      UCC-1 Financing Statement with respect to each such Underlying Contract) in
      order to cause a valid, subsisting and enforceable perfected, first security
      interest to exist in such Underlying Contract’s favor in the Underlying
      Collateral securing each such Underlying Contract (other than with respect
      to
      Equipment which has a value of less than $25,000 and is leased under Dollar
      Purchase Option Contracts or $50,000 and is leased under FMV Contracts) and
      (B)
      such Underlying Originator shall have assigned the perfected, first priority
      security interest in the Underlying Collateral referred to in clause (A) above
      to Originator pursuant to the applicable Pool B Contract. Such security interest
      is and shall be prior to all other liens upon and security interests in (i)
      the
      Underlying Originator’s in such Underlying Collateral and (ii) such Underlying
      Contract (and the proceeds thereof) that now exist or may hereafter arise or
      be
      created.

     

    23. [Intentionally
      omitted.]

     

    24. If
      the
      Underlying Collateral related to such Underlying Contract (other than an
      Underlying Contract related to a Vehicle Sublimit Pledged Receivable) includes
      a
      Vehicle, LEAF or the Servicer shall have delivered to the applicable Registrar
      of Titles an application for a Certificate of Title for such Vehicle which
      such
      Certificate of Title shall indicate “Morgan Stanley Bank” as the sole lienholder
      with respect to such Vehicle.

     

    25. No
      such
      Underlying Contract meets any of the following criteria:

     

    
      
        
        

      

      
        Sch.
          A-16

        
          

        

      

      
        
        

      

    

    (i) any
      part
      of any Underlying Scheduled Payment (or other amount payable under the terms
      of
      the related Underlying Contract) remains unpaid for more than 120 days after
      the
      due date therefor set forth in such Underlying Contract;

     

    (ii) the
      first
      or second Underlying Scheduled Payment is not paid in full when due under the
      related Underlying Contract;

     

    (iii) any
      payment or other material terms of the related Underlying Contract have been
      modified due to credit related reasons after such Underlying Contract was
      acquired by the Originator pursuant to the applicable Pool B
      Contract;

     

    (iv) a
      Bankruptcy Event has occurred with respect to the related Underlying Obligor
      or
      such Underlying Contract has been or should otherwise be deemed uncollectible
      by
      the Underlying Originator in accordance with its credit and collection
      policy;

     

    (v) with
      respect to such Underlying Contract the Underlying Originator has repossessed
      the related Underlying Equipment;

     

    (vi) any
      Underlying Scheduled Payment (or other amount payable under the terms of such
      Underlying Contract) remains unpaid for more than 30 days but not more than
      120
      days after the due date therefor set forth in such Underlying
      Contract.

     

    26. Each
      such
      Underlying Contract is payable by an Underlying Obligor which is not subject
      to
      any bankruptcy, insolvency, reorganization or similar proceeding.

     

    27. The
      information pertaining to each such Underlying Contract set forth in the
      Schedule of Contracts and the related Assignment is true and correct in all
      respects.

     

    28. With
      respect to each such Underlying Contract, by the Conveyance Date on which the
      related Pool B Contract is Conveyed hereunder, the related Underlying Originator
      will have caused its master computer records relating to such Underlying
      Contract to be clearly and unambiguously marked to show that such Underlying
      Contract has been pledged to Originator.

     

    29. [Intentionally
      omitted.]

     

    30. No
      such
      Underlying Contract has been repaid, prepaid, satisfied, subordinated or
      rescinded, and the Underlying Collateral securing such Underlying Contract
      has
      not been released from the lien of the related Underlying Originator, in whole
      or in part.

     

    31. No
      such
      Underlying Contract was originated in, or is subject to the laws of, any
      jurisdiction the laws of which would make unlawful, void or voidable the sale,
      transfer, pledge and/or assignment of such Underlying Contract under this
      Agreement, the RLSA or the related Pool B Contract, and the related Underlying
      Originator has not entered into any agreement with any Underlying Obligor that
      prohibits, restricts or conditions the sale, transfer, pledge and/or assignment
      of such Underlying Contract.

     

    
      
        
        

      

      
        Sch.
          A-17

        
          

        

      

      
        
        

      

    

    32. No
      such
      Underlying Contract has been sold, transferred, assigned or pledged by the
      related Underlying Originator to any Person other than Originator. Such
      Underlying Originator has not taken any action to convey any right to any Person
      that would result in such Person having a right to payments due under any such
      Underlying Contract or payments received under any related Underlying Insurance
      Policy or otherwise to impair the rights of Originator in such Underlying
      Contract, any Underlying Insurance Policy or any proceeds thereof. There is
      an
      Underlying Insurance Policy in full force and effect with respect to the
      Equipment related to such Underlying Contract if such Equipment had an original
      cost over $100,000.

     

    33. [Intentionally
      omitted.]

     

    34. No
      such
      Underlying Contract is assumable by another Person in a manner which would
      release the Underlying Obligor thereof from such Underlying Obligor’s
      obligations to the Underlying Originator.

     

    35. There
      has
      been no default, breach, violation or event permitting acceleration under the
      terms of any such Underlying Contract, and no condition exists or event has
      occurred and is continuing that with notice, the lapse of time or both would
      constitute a default, breach, violation or event permitting acceleration under
      the terms of any such Underlying Contract, and there has been no waiver of
      any
      of the foregoing.

     

    36. No
      selection procedures adverse to Originator have been utilized in selecting
      any
      such Underlying Contract from all other similar Underlying Contracts originated
      or purchased by the related Underlying Originator.

     

    37. The
      Underlying Collateral related to any such Underlying Contract is not subject
      to
      any Adverse Claim.

     

    38. [Intentionally
      omitted.]

     

    39. The
      related Underlying Originator has delivered to the Originator the sole original
      counterpart (or a true and correct copy) of each such Underlying Contract and
      such document constitutes the entire agreement of the parties thereto in respect
      of the related Underlying Collateral.

     

    40. Each
      such
      Underlying Contract is in full force and effect in accordance with its terms
      and
      neither the related Underlying Originator nor the Underlying Obligor has or
      will
      have suspended or reduced any payments or obligations due or to become due
      thereunder by reason of a default by any other party to such Underlying
      Contract; there are no proceedings pending or threatened asserting insolvency
      of
      such Underlying Obligor; there are no proceedings pending or threatened wherein
      such Underlying Obligor, any other obligated party or any governmental agency
      has alleged that such Underlying Contract is illegal or
      unenforceable.

     

    41. The
      origination and collection practices used by the related Underlying Originator
      with respect to each such Underlying Contract have been in all respects
      customary in the equipment financing and servicing business.

     

    
      
        
        

      

      
        Sch.
          A-18

        
          

        

      

      
        
        

      

    

    42. The
      Underlying Collateral related to each such Underlying Contract was properly
      delivered to the Underlying Obligor in good repair and is in proper working
      order. Each Underlying Obligor has accepted the related Underlying Equipment.
      The related Underlying Obligor is the end user of the Underlying Equipment
      that
      is the subject of any such Underlying Contract and no Underlying Obligor has
      sublet the Underlying Equipment to any other party. 

     

    43. The
      Underlying Obligor with respect to any such Underlying Contract is not a
      merchant with respect to the Underlying Equipment related to such Underlying
      Contract and is not a partner, member or Affiliate of the Underlying
      Originator.

     

    44. Except
      with respect to a breach of an Underlying Obligor’s right of quiet enjoyment of
      the related Underlying Equipment, neither the operation of any of the terms
      of
      any such Underlying Contract nor the exercise by the Underlying Originator,
      LEAF, the Servicer or the Obligor of any right under any such Underlying
      Contract will render such Underlying Contract unenforceable in whole or in
      part
      nor subject to any right of rescission, setoff, claim, counterclaim or defense,
      and no such right of rescission, set-off, claim, counterclaim or defense,
      including a defense arising out of a breach of the Underlying Obligor’s right of
      quiet enjoyment of the Underlying Equipment, has been asserted with respect
      thereto.

     

    45. The
      Underlying Originator has duly fulfilled all obligations on its part to be
      fulfilled under or in connection with the origination, acquisition and
      assignment of the Underlying Contract, including, without limitation, giving
      any
      notices and obtaining any consents necessary to effect, as applicable, the
      acquisition of the Underlying Contract by, or the pledge of the Underlying
      Contract to, the Originator, and has done nothing to impair the rights of
      Originator in the Underlying Contract or payments with respect thereto. The
      Underlying Originator, LEAF and the Servicer, as applicable, have duly fulfilled
      all continuing obligations on their part to be fulfilled under or in connection
      with such Underlying Contract. 

     

    46. [Intentionally
      omitted.]

     

    47. The
      sale
      from the related Underlying Originator to Originator of each such Underlying
      Contract does not violate the terms or provisions of any agreement to which
      either of them is a party or by which it is bound.

     

    48. [Intentionally
      omitted.]

     

    49. The
      pledge of the Underlying Contract from the related Underlying Originator to
      Originator pursuant to the related Pool B Contract is not subject to or will
      result in any tax, fee or governmental charge payable by Originator or any
      other
      Person to any federal, state or local government.

     

    50. No
      such
      Underlying Contract (other than a “true lease”) may be (i) an executory contract
      or (ii) in any event, deemed to be an executory contract or unexpired lease
      subject to rejection by an Underlying Obligor under Section 365 of the
      Bankruptcy Code in the event that a Bankruptcy Event has occurred with respect
      to such Underlying Obligor. 

     

    51. Each
      such
      Underlying Contract contains enforceability provisions (i) permitting the
      acceleration of the payments thereunder if the Underlying Obligor is in
      default

     

    
      
        
        

      

      
        Sch.
          A-19

        
          

        

      

      
        
        

      

    

     

    under
      such Underlying Contract and (ii) sufficient to enable the related Underlying
      Originator (or any assignee thereof) to repossess or foreclose upon the
      Underlying Collateral related thereto. 

     

    52. Each
      such
      Underlying Contract generally contains provisions requiring the payment of
      both
      interest and principal (or, in the case of an Underlying Lease Contract, lease
      payments) in each calendar month or quarter during the term of such Underlying
      Contract.

     

    53. The
      promissory note, if any, related to each such Underlying Contract (i) was
      payable to the related Underlying Originator immediately prior to its transfer
      to Originator pursuant to the related Pool B Contract and has not been endorsed
      by the related Underlying Originator to any Person other than
      Originator.

     

    54. The
      final
      Underlying Scheduled Payment required by each such Underlying Contract is less
      than or equal to the Discounted Balance of such Underlying Contract at the
      time
      of origination.

     

    55. The
      Underlying Collateral related to such Underlying Contract is not one or more
      Vehicles regularly engaged in the long-haul transportation of
      goods.

     

    56. The
      related Underlying Originator is not a guarantor under any Underlying
      Contract.

     

    57. The
      vendor of the Underlying Equipment relating to such Underlying Contract has
      received payment in full from the Underlying Obligor prior to the pledge of
      such
      Underlying Contract under the related Pool B Contract and has no remaining
      obligations with respect to such Underlying Equipment except for any applicable
      warranty.

     

    
      
        
        

      

      
        Sch.
          A-20

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      B 

     

    PRIOR
      NAMES, TRADE NAMES, FICTITIOUS NAMES

     

    AND
      “DOING BUSINESS AS” NAMES OF LEAF 

     

     

    [None.]

     

    

    
      
        
        

      

      
        Sch.
          B-1

        
          

        

      

      
        
        

      

    

    SCHEDULE
      C- I 

     

    SCHEDULE
      OF POOL A RECEIVABLES 

     

    None.

     

    

    
      
        
        

      

      
        Sch.
          C-1

        
          

        

      

      
        
        

      

    

    SCHEDULE
      C-2 

     

    SCHEDULE
      OF POOL B RECEIVABLES 

     

    None.

     

    
      
        
        

      

      
        Sch.
          C-2

        
          

        

      

      
        
        

      

    

    

     

    PURCHASE
      AND SALE AGREEMENT

     

    between
      

     

    LEAF
      FUNDING, INC. 

     

    and
      

     

    RESOURCE
      CAPITAL FUNDING II, LLC 

     

    Dated
      as
      of October 31, 2006

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

     

       
      
        	 	 	 	 Page
	 ARTICLE
                I      DEFINITIONS	 1
	 	 SECTION
                1.1	  General 	 1
	 	 SECTION
                1.2	 Specific
                Terms	 1
	 	 SECTION
                1.3	 Certain
                References	 2
	 ARTICLE
                II   CONVEYANCE OF THE RECEIVABLES AND THE OTHER CONVEYED
                PROPERTY	 4
	 	 SECTION
                2.1	 Conveyance
                of the Receivables and the Other Conveyed Property 	 4
	
                ARTICLE
                  III    CONDITIONS OF CONVEYANCE

              	 7
	 	 SECTION
                3.1	 Conditions
                Precedent to the Initial Conveyance	 7
	 	 SECTION
                3.2	 Conditions
                Precedent to All Conveyances	 8
	 ARTICLE
                IV    REPRESENTATIONS AND WARRANTIES 	 9
	 	 SECTION
                4.1	 Representations
                and Warranties of LEAF	 9
	 	 SECTION
                4.2 	 Representations
                and Warranties of the Purchaser	 14
	 	 SECTION
                4.3	 Indemnification	 16
	 ARTICLE
                V    COVENANTS OF LEAF	 18
	 	 SECTION
                5.1	 Protection
                of Title of the Purchaser	 18
	 	 SECTION
                5.2	 Other
                Liens or Interests	 20
	 	 SECTION
                5.3	 Costs
                and Expenses	 20
	 	 SECTION
                5.4	 Financial
                Covenants	 21
	 ARTICLE
                VI    PURCHASES BY LEAF   	 21
	 	 SECTION
                6.1	 
                Purchase of Receivables Upon Breach of Warranty	 21
	 	 SECTION
                6.2	 Reassignment
                of Purchased Receivables	 21
	 	 SECTION
                6.3	 Waivers	 22
	 	 	 	 

      
      

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
            	 	 	 Page
	 ARTICLE
              VII      MICELLANEOUS	 22
	 	 SECTION
              7.1 	 Liability
              of LEAF	 22
	 	 SECTION
              7.2 	 Limitation
              on Liability of LEAF and Others	 23
	 	 SECTION
              7.3     	 Amendment	 23
	 	 SECTION
              7.4     	 Notices	 23
	 	 SECTION
              7.5	 Merger
              and Integration	 23
	 	 SECTION
              7.6	 Severability
              of Provisions	 24
	 	 SECTION
              7.7	 Governing
              Law	 24
	 	 SECTION
              7.8	 Counterparts	 24
	 	 SECTION
              7.9	 Non-petition
              Covenant	 24
	 	 SECTION
              7.10	 Binding
              Effect; Assignability	 24
	 	 SECTION
              7.11	 Third
              Party Beneficiary	 25
	 	SECTION
              7.12	 Term	 25
	 	 	 	 
	 EXHIBIT
              A	 	 
              FORM OF ASSIGNMENT	 
	 	 	 	 
	 SCHEDULE
              A	 	 REPRESENTATIONS
              AND WARRANTIES OF LEAF WITH RESPECT TO RECEIVABLES REFERRED TO IN ANY
              ASSIGNMENT	 
	 	 	 	 
	 SCHEDULE
              B	 	 PRIOR NAMES, TRADENAMES, FICTITIOUS
              NAMES AND “DOING BUSINESS AS” NAMES OF LEAF	 
	 	 	 	 
	
              SCHEDULE
                C-1 

            	 	
              SCHEDULE
                OF POOL A RECEIVABLES

            	 
	 	 	 	 
	
              SCHEDULE
                C-2

            	 	
              SCHEDULE
                OF POOL B RECEIVABLES

            	 

    

     

    
      
        
        

      

      
        ii

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