Document:

Exhibit 10.2
    

    
    	
          
             
          

        
	
           
        
	
          SALE AND SERVICING AGREEMENT
        
	
           
        
	
          Among
        
	
           
        
	
          HERCULES FUNDING II LLC,
        
	
           
        
	
          as Borrower
        
	
           
        
	
          And
        
	
           
        
	
          HERCULES TECHNOLOGY GROWTH CAPITAL, INC.,
        
	
           
        
	
          as Originator and Servicer
        
	
           
        
	
          And
        
	
          LYON FINANCIAL SERVICES, INC.,

          
            d/b/a U.S. Bank Portfolio Services,
          

        
	
          as Backup Servicer
        
	
           
        
	
          And
        
	
           
        
	
          WELLS FARGO FOOTHILL, LLC,
        
	
           
        
	
          as Agent
        
	
           
        

    

    
      Dated as of August 25, 2008
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      TABLE OF CONTENTS
    

    
    	

        	

        	

        	
          
            Page
          

        
	

        	

        	

        	
           
        
	
          
            ARTICLE I
          

        	
          
             
          

        	
          
            DEFINITIONS
          

        	
          
            1
          

        
	

        	
          
            Section 1.01
          

        	
          
            Definitions
          

        	
          1
        
	

        	
          
            Section 1.02
          

        	
          Other Definitional Provisions
        	
          16
        
	

        	

        	

        	
           
        
	
          
            ARTICLE II
          

        	
          
             
          

        	
          CONVEYANCE OF THE PURCHASED ASSETS; BORROWINGS UNDER LOAN AGREEMENT
        	
          16
        
	

        	
          
            Section 2.01
          

        	
          Conveyance of the Purchased Assets; Borrowings
        	
          16
        
	

        	
          
            Section 2.02
          

        	
          Ownership and Possession of Loan Files
        	
          17
        
	

        	
          
            Section 2.03
          

        	
          Books and Records; Intention of the Parties
        	
          18
        
	

        	
          
            Section 2.04
          

        	
          Delivery of Loan Files
        	
          18
        
	

        	
          
            Section 2.05
          

        	
          Acceptance by the Agent of the Loan Files; Certification by the
          Collateral Custodian
        	
          18
        
	

        	
          
            Section 2.06
          

        	
          Conditions Precedent to Closing
        	
          20
        
	

        	
          
            Section 2.07
          

        	
          Conditions to Borrowings
        	
          20
        
	

        	
          
            Section 2.08
          

        	
          Conditions to Transfers of Loans
        	
          21
        
	

        	

        	

        	
           
        
	
          
            ARTICLE III
          

        	
          
             
          

        	
          REPRESENTATIONS AND WARRANTIES
        	
          22
        
	

        	
          
            Section 3.01
          

        	
          Representations and Warranties of the Borrower
        	
          22
        
	

        	
          
            Section 3.02
          

        	
          Representations and Warranties of the Originator
        	
          24
        
	

        	
          
            Section 3.03
          

        	
          Representations and Warranties Regarding the Loans
        	
          26
        
	

        	
          
            Section 3.04
          

        	
          Notice of Breach of Representations and Warranties
        	
          28
        
	

        	
          
            Section 3.05
          

        	
          Repurchase of Ineligible Loans
        	
          29
        
	

        	

        	

        	
           
        
	
          
            ARTICLE IV
          

        	
          
             
          

        	
          ADMINISTRATION AND SERVICING OF LOANS
        	
          30
        
	

        	
          
            Section 4.01
          

        	
          Appointment of the Servicer
        	
          30
        
	

        	
          
            Section 4.02
          

        	
          Duties and Responsibilities of the Servicer
        	
          30
        
	

        	
          
            Section 4.03
          

        	
          Authorization of the Servicer
        	
          32
        
	

        	
          
            Section 4.04
          

        	
          Collection of Payments
        	
          33
        
	

        	
          
            Section 4.05
          

        	
          [Intentionally Omitted]
        	
          34
        
	

        	
          
            Section 4.06
          

        	
          Realization Upon Defaulted Loans or Charged-Off Loans
        	
          34
        
	

        	
          
            Section 4.07
          

        	
          Maintenance of Insurance Policies
        	
          34
        
	

        	
          
            Section 4.08
          

        	
          Representations and Warranties of the Servicer
        	
          34
        
	

        	
          
            Section 4.09
          

        	
          Covenants of the Servicer
        	
          36
        
	

        	
          
            Section 4.10
          

        	
          The Collateral Custodian; The Agent
        	
          38
        
	

        	
          
            Section 4.11
          

        	
          [Intentionally Omitted]
        	
          40
        
	

        	
          
            Section 4.12
          

        	
          [Intentionally Omitted]
        	
          40
        
	

        	
          
            Section 4.13
          

        	
          The Backup Servicer
        	
          40
        
	

        	
          
            Section 4.14
          

        	
          Representations and Warranties of the Backup Servicer
        	
          43
        
	

        	
          
            Section 4.15
          

        	
          Covenants of the Backup Servicer
        	
          44
        
	

        	
          
            Section 4.16
          

        	
          Payment of Certain Expenses by the Servicer and the Borrower
        	
          44
        
	

        	
          
            Section 4.17
          

        	
          Reports
        	
          44
        
	

        	
          
            Section 4.18
          

        	
          Annual Statement as to Compliance
        	
          45
        
	

        	
          
            Section 4.19
          

        	
          [Intentionally Omitted]
        	
          45
        
	

        	
          
            Section 4.20
          

        	
          Limitation on Liability
        	
          45
        

    

    

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
    	
          
            TABLE OF CONTENTS
          

        
	
          
            (continued)
          

        
	

        	

        	

        	
          
            Page
          

        
	

        	

        	

        	
           
        
	

        	
          
            Section 4.21
          

        	
          The Servicer and the Backup Servicer Not to Resign
        	
          46
        
	

        	
          
            Section 4.22
          

        	
          Access to Certain Documentation and Information Regarding the
          Transferred Loans
        	
          46
        
	

        	
          
            Section 4.23
          

        	
          Identification of Records
        	
          47
        
	

        	

        	

        	
           
        
	
          
            ARTICLE V
          

        	
          
             
          

        	
          ESTABLISHMENT OF CASH MANAGEMENT ACCOUNT
        	
          47
        
	

        	
          
            Section 5.01
          

        	
          Cash Management Account
        	
          47
        
	

        	

        	

        	
           
        
	
          
            ARTICLE VI
          

        	
          
             
          

        	
          [RESERVED]
        	
          47
        
	

        	

        	

        	
           
        
	
          
            ARTICLE VII
          

        	
          
             
          

        	
          COVENANTS
        	
          47
        
	

        	
          
            Section 7.01
          

        	
          Financial and Serviced Portfolio Covenants of Hercules
        	
          47
        
	

        	
          
            Section 7.02
          

        	
          Covenants Regarding Purchased Assets
        	
          48
        
	

        	

        	

        	
           
        
	
          
            ARTICLE VIII
          

        	
          
             
          

        	
          THE SERVICER AND THE COLLATERAL CUSTODIAN
        	
          49
        
	

        	
          
            Section 8.01
          

        	
          Indemnification; Third Party Claims
        	
          49
        
	

        	
          
            Section 8.02
          

        	
          Relationship of Servicer to the Borrower and the Agent
        	
          51
        
	

        	
          
            Section 8.03
          

        	
          Servicer May Be a Lender
        	
          51
        
	

        	
          
            Section 8.04
          

        	
          Indemnification of the Agent and other Persons Under the Loan
          Agreement
        	
          52
        
	

        	

        	

        	
           
        
	
          
            ARTICLE IX
          

        	
          
             
          

        	
          SERVICER DEFAULT
        	
          52
        
	

        	
          
            Section 9.01
          

        	
          Servicer Default
        	
          52
        
	

        	
          
            Section 9.02
          

        	
          Appointment of Successor
        	
          54
        
	

        	
          
            Section 9.03
          

        	
          Waiver of Defaults
        	
          57
        
	

        	
          
            Section 9.04
          

        	
          Accounting Upon Termination of Servicer
        	
          57
        
	

        	

        	

        	
           
        
	
          
            ARTICLE X
          

        	
          
             
          

        	
          TERMINATION
        	
          58
        
	

        	
          
            Section 10.01
          

        	
          Termination
        	
          58
        
	

        	

        	

        	
           
        
	
          
            ARTICLE XI
          

        	
          
             
          

        	
          MISCELLANEOUS PROVISIONS
        	
          58
        
	

        	
          
            Section 11.01
          

        	
          Amendment
        	
          58
        
	

        	
          
            Section 11.02
          

        	
          Duration of Agreement
        	
          58
        
	

        	
          
            Section 11.03
          

        	
          GOVERNING LAW; JURISDICTION
        	
          58
        
	

        	
          
            Section 11.04
          

        	
          Notices
        	
          59
        
	

        	
          
            Section 11.05
          

        	
          Severability of Provisions
        	
          60
        
	

        	
          
            Section 11.06
          

        	
          No Partnership
        	
          60
        
	

        	
          
            Section 11.07
          

        	
          Counterparts
        	
          60
        
	

        	
          
            Section 11.08
          

        	
          Successors and Assigns
        	
          60
        
	

        	
          
            Section 11.09
          

        	
          Headings
        	
          60
        
	

        	
          
            Section 11.10
          

        	
          Non-Petition Agreement
        	
          60
        
	

        	
          
            Section 11.11
          

        	
          Due Diligence
        	
          60
        
	

        	
          
            Section 11.12
          

        	
          
            No Reliance
          

        	
          
            61
          

        

    

    

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
    	
          
            TABLE OF CONTENTS
          

        
	
          
            (continued)
          

        
	
           
        	

        	

        	
          
            Page
          

        
	

        	

        	

        	
           
        
	

        	
          
            Section 11.13
          

        	
          Conflicts
        	
          61
        
	

        	
          
            Section 11.14
          

        	
          No Agency
        	
          62
        

    

    

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
    	
          EXHIBIT A
        	
           
        	
          Form of Servicer Report
        
	
          EXHIBIT B
        	

        	
          Form of S&SA Assignment
        
	
          EXHIBIT C
        	

        	
          Form of Loan Schedule
        
	
          EXHIBIT D-1
        	

        	
          Form of Initial Collateral Certification
        
	
          EXHIBIT D-2
        	

        	
          Form of Final Collateral Certification
        
	
          EXHIBIT E
        	

        	
          Form of Assignment of Mortgage
        
	
          EXHIBIT F
        	

        	
          Form of Request for Release of Documents and Receipt
        
	
          EXHIBIT G
        	

        	
          Form of Servicer’s Certificate
        
	
          EXHIBIT H
        	

        	
          Credit and Collection Policy
        

    

    
      i
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      SALE AND SERVICING AGREEMENT
    

    
      This Sale and Servicing Agreement is entered into as of August 25, 2008,
      among Hercules Funding II LLC, a Delaware limited liability company, as
      Borrower (in such capacity, the “Borrower”), Hercules
      Technology Growth Capital, Inc., a Maryland corporation (“Hercules”),
      as Originator (in such capacity, the “Originator”) and as
      Servicer (in such capacity, the “Servicer”), Wells Fargo
      Foothill, LLC, a Delaware limited liability company, as Agent for
      Lenders under the Loan Agreement (as hereinafter defined) (in such
      capacity, the “Agent”), and Lyon Financial Services, Inc.,
      a Minnesota corporation, doing business as U.S. Bank Portfolio Services,
      as Backup Servicer (in such capacity, the “Backup Servicer”).
    

    
      W I T N E S S E T H:
    

    
      In consideration of the mutual agreements herein contained, the parties
      hereto hereby agree as follows for the benefit of each of them and for
      the benefit of the Agent and Lenders:
    

    
      ARTICLE I  

DEFINITIONS
    

    
      Section 1.01.  Definitions.
    

    
      Whenever used in this Agreement, the following words and phrases, unless
      the context otherwise requires, shall have the meanings specified in
      this Article.  Unless otherwise specified, all calculations of interest
      with respect to the Notes described herein shall be made on the basis of
      a 360-day year and the actual number of days elapsed in each Accrual
      Period.
    

    
      “1940 Act”:  The Investment Company Act of 1940, as
      amended, and the rules and regulations promulgated thereunder.
    

    
      “Accepted Servicing Practices”: The servicing practices and
      collection procedures of the Servicer that are in accordance with the
      applicable Obligor Loan Documents and Applicable Law and which are
      consistent with the higher standard of (i) customary servicing practices
      of prudent institutions which service loans or other financial assets
      similar to the Transferred Loans for their own account or for the
      account of others and (ii) the same care, skill, prudence and diligence
      with which the Servicer services and administers loans or other
      financial assets which are similar to the Transferred Loans serviced or
      administered pursuant to this Agreement, for its own account or for the
      account of others; provided that, with respect to the Backup
      Servicer acting as Servicer, the servicing standard applicable to the
      Backup Servicer shall be the same care, skill and diligence with which
      the Backup Servicer services and administers loans for its own accounts
      or for the accounts of others.
    

    
      “Accreted Interest”:  The accrued interest on a PIK Loan
      that is added to the principal amount of such PIK Loan instead of being
      paid as it accrues.
    

    
      “Advance Rate:  On any date a percentage equal to 50%.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Advances Outstanding:  As of any date of determination,
      the aggregate principal amount of Borrowings outstanding on such date,
      after giving effect to all repayments of Borrowings and makings of new
      Borrowings on such date.
    

    
      “Affiliate”:  With respect to any specified Person, any
      other Person controlling or controlled by or under common control with
      such specified Person. For the purposes of this definition, “control”
      when used with respect to any specified Person means the power to direct
      the management and policies of such Person, directly or indirectly,
      whether through the ownership of voting securities, by contract or
      otherwise, and the terms “controlling” and “controlled” have meanings
      correlative to the foregoing; provided, that in the case of the
      Servicer or any Subsidiary, “Affiliate” shall not include any Person
      that is a Portfolio Investment.
    

    
      “Agent”: Wells Fargo Foothill, LLC, a Delaware limited
      liability company, as Agent for the Lenders under the Loan Agreement, or
      any successor Agent under the Loan Agreement.
    

    
      “Agent’s Account”:  Has the meaning set forth in the
      Loan Agreement.
    

    
      “Aggregate Outstanding Loan Balance”:  As of any date of
      determination, the sum of the Outstanding Loan Balances of all Eligible
      Loans included as part of the Collateral on such date minus the
      Outstanding Loan Balance of all Charged-Off Loans included as part of
      the Collateral (and specifically excluding all Ineligible Loans) on such
      date.
    

    
      “Aggregate Unpaids”:  At any time, an amount equal to the
      sum of all unpaid Advances Outstanding, Interest Payment Amounts and
      Interest Carry-Forward Amounts, and all other amounts owed to the Agent
      and the Lender Group, the Servicer, the Backup Servicer, and the
      Originator hereunder and under the Loan Agreement (including, without
      limitation, all amounts in respect of indemnities hereunder or under the
      Loan Agreement, other amounts payable under Section 8.01, Section
      8.04, and amounts required to be paid by the Borrower or any other
      Person under the Fee Letter or any other fee letter delivered in
      connection with the transactions contemplated by this Agreement or the
      Loan Agreement, in each case whether due or accrued.
    

    
      “Agreement”:  This Sale and Servicing Agreement, as it may
      be amended and supplemented from time to time.
    

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

    
      “Assignment of Mortgage”:  As to each Loan secured by an
      interest in real property, one or more collateral assignments, notices
      of transfer or equivalent instruments, each in recordable form and
      sufficient under the laws of the relevant jurisdiction to reflect the
      transfer as collateral of the related mortgage, deed of trust, security
      deed, immovable hypothec, deed of hypothec or similar security
      instrument and all other documents related to such Loan to the Borrower
      and to grant a perfected Lien thereon by the Borrower in favor of the
      Agent, on behalf of the Lender Group, each such Assignment of Mortgage
      to be substantially in the form of Exhibit E hereto.
    

    
      2
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Availability”:  Has the meaning set forth in the Loan
      Agreement.
    

    
      “Backup Servicer”:  Lyon Financial Services, Inc., a
      Minnesota corporation, doing business as U.S. Bank Portfolio Services,
      as Backup Servicer under this Agreement, or any successor backup
      servicer under this Agreement.
    

    
      “Backup Servicer Expenses”:  The reasonable out-of-pocket
      expenses to be paid to the Backup Servicer under and in accordance with
      the Backup Servicer Fee Letter.
    

    
      “Backup Servicer Fee”:  The fee to be paid to the Backup
      Servicer under the terms of the Backup Servicer Fee Letter.
    

    
      “Backup Servicer Fee Letter”:  Means the fee letter, dated
      as of the date hereof, among the Originator and the Backup Servicer.
    

    
      “Bankruptcy Code”: Title 11 of the United States Code.
    

    
      “Bankruptcy Event”:  With respect to a Person, shall be
      deemed to have occurred if either:
    

    
             (a)  a case or other proceeding shall be commenced, without the
      application or consent of such Person, in any court seeking the
      liquidation, reorganization, debt arrangement, dissolution, winding up,
      or composition or readjustment of debts of such Person, the appointment
      of a trustee, receiver, custodian, liquidator, assignee, sequestrator or
      the like for such Person or for all or substantially all of its assets,
      or any similar action with respect to such Person under any law relating
      to bankruptcy, insolvency, reorganization, winding up or composition or
      adjustment of debts, and such case or proceeding shall continue
      undismissed or unstayed, and in effect, for a period of 60 consecutive
      days; or an order for relief in respect of such Person shall be entered
      in an involuntary case or proceeding under any such law now or hereafter
      in effect; or
    

    
             (b)  such Person shall commence a voluntary case or other
      proceeding under any applicable bankruptcy, insolvency, reorganization,
      debt arrangement, dissolution or other similar law now or hereafter in
      effect, or shall consent to the appointment of or taking possession by a
      receiver, liquidator, assignee, trustee, custodian, sequestrator (or
      other similar official) for such Person or for any substantial part of
      its assets, or shall make any general assignment for the benefit of
      creditors, or shall fail to, or admit in writing its inability to, pay
      its debts generally as they become due, or, if a corporation or similar
      entity, its board of directors shall vote to implement any of the
      foregoing.
    

    
      “Bankruptcy Laws”:  The Bankruptcy Code and all other
      applicable liquidation, conservatorship, bankruptcy, moratorium,
      rearrangement, receivership, insolvency, reorganization, suspension of
      payments, composition or adjustment of debts or similar debtor relief
      laws from time to time in effect affecting the rights of creditors
      generally.
    

    
      3
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Bankruptcy Proceeding”:  Any case, action or proceeding
      before any Governmental Authority relating to a Bankruptcy Event.
    

    
      “Borrower”: Hercules Funding II LLC, a Delaware limited
      liability company.
    

    
      “Borrowing”: Has the meaning set forth in Section
      2.01(b) hereof.
    

    
      “Borrowing Base”:  Has the meaning set forth in the Loan
      Agreement.
    

    
      “Borrowing Base Certificate”: Has the meaning set forth in
      the Loan Agreement.
    

    
      “Business Day”:  Any day other than (i) a Saturday or
      Sunday or (ii) a day on which banking institutions in New York City,
      Palo Alto, California, Madison, Minnesota, or Dallas, Texas, or in the
      city in which the Servicer’s servicing operations are located, are
      authorized or obligated by law or executive order to be closed.
    

    
      “Cash Management Account”:  Has the meaning set forth in
      the Loan Agreement.
    

    
      “Charged-Off Loan”:  Any Transferred Loan (i) that is 180
      days or more past due with respect to any interest or principal payment,
      (ii) as to which a Bankruptcy Event has occurred with respect to the
      related Obligor, (iii) as to which the related Obligor has suffered any
      Material Adverse Change, (iv) that is or should be written off as
      uncollectible by the Servicer in accordance with the Credit and
      Collection Policy, (v) that has been placed on non-accrual status by the
      Servicer in accordance with the Credit and Collection Policy, (vi) all
      or any portion of which has been converted into or exchanged for an
      Equity Security or (vii) has been sold for less than its Outstanding
      Loan Balance upon foreclosure or upon exercise of remedies, provided,
      that only the portion of the Transferred Loan not recouped in such sale
      shall be deemed to be “charged-off” for purposes of clause (vii).
    

    
      “Closing Date”: August 25, 2008.
    

    
      “Code”:  The Internal Revenue Code of 1986, as amended from
      time to time, and the regulations promulgated by the United States
      Treasury thereunder.
    

    
      “Collateral”: Has the meaning provided in the Loan
      Agreement.
    

    
      “Collateral Custodian”: Means a Person acceptable to both
      Borrower and Agent that is appointed pursuant to a Collateral Custodian
      Agreement acceptable to such Person, Borrower and Agent to hold the
      original Obligor Loan Documents to be delivered under this Agreement or
      the Loan Agreement for Agent’s benefit.  As of the Closing Date, there
      is no Collateral Custodian, and the original Obligor Loan Documents
      required to be delivered under this Agreement or the Loan Agreement will
      be delivered directly to and held by Agent.  Borrower and Agent shall
      notify Originator, Servicer and Backup Servicer of the appointment of
      any Collateral Custodian.
    

    
      “Collateral Custodian Agreement” means a written agreement
      pursuant to which Borrower and Agent appoint a Collateral Custodian with
      respect to this Agreement and the Loan Agreement and specify the duties
      and compensation of such Collateral Custodian.
    

    
      4
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Collateral Custodian Fee”:  Means any fees payable to a
      Collateral Custodian in accordance with its Collateral Custodian
      Agreement.
    

    
      “Collection Period”:  With respect to any Payment Date, the
      period from and including the day following the Record Date for the
      preceding Payment Date (or, in the case of the initial Payment Date,
      from and including the Closing Date) to and including the Record Date
      with respect to the current Payment Date.
    

    
      “Collections”:  (a) All cash collections or other cash
      proceeds received by the Borrower or by the Servicer or the Originator
      on behalf of the Borrower from any source in payment of any amounts owed
      in respect of a Transferred Loan, including, without limitation,
      Interest Collections, Principal Collections, Insurance Proceeds, and all
      Recoveries, (b) all amounts received by the Borrower in connection with
      the removal of a Transferred Loan from the Collateral pursuant to Section
      3.05 and (c) any other funds received by or on behalf of the
      Borrower with respect to any Transferred Loan or Related Property, but
      excluding, in the case of (a), (b) or (c), as applicable, amounts in
      respect of any Retained Interest and Excluded Amounts.
    

    
      “Commission”:  The Securities and Exchange Commission.
    

    
      “Continued Errors”: Has the meaning set forth in Section
      9.02(d) hereof.
    

    
      “Credit and Collection Policy”:  Means, with respect to the
      initial Servicer, the written credit and collection policies and
      procedures of the Originator and Servicer in effect for any Loans to be
      transferred to Borrower as of the Closing Date and attached hereto as Exhibit
      H, as such policies and procedures may be amended or supplemented
      from time to time in compliance with Section 4.09(f) and with
      respect to a Successor Servicer, the customary written credit and
      collection policies and procedures of such Successor Servicer.
    

    
      “Debt to Worth Ratio” means, with respect to any Person as
      of any date of determination, a ratio of (a) the sum of (i) the
      outstanding amount of all Indebtedness of such Person as of such date, minus
      (ii) the outstanding amount of the Subordinated Debt of such Person as
      of such date, to (b) the sum of (i) Tangible Net Worth of such Person as
      of such date, plus (ii) the outstanding amount of the
      Subordinated Debt of such Person as of such date.
    

    
      “Default”:  Any occurrence that is, or with notice or the
      lapse of time or both would become, an Event of Default.
    

    
      “Defaulted Loan”:  Has the meaning provided in the Loan
      Agreement.
    

    
      “Delinquent Loan”:  Has the meaning provided in the Loan
      Agreement.
    

    
      “Distribution Account”:  The account established and
      maintained pursuant to Section 5.01(a)(2) hereof.
    

    
      5
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Dollars” or “$” refers to lawful money
      of the United States of America.
    

    
      “Eligible Loan”: On any date of determination, any
      Transferred Loan which both (a) complies with the representations and
      warranties set forth in Section 3.03 and (b) is an Eligible Note
      Receivable under the Loan Agreement.
    

    
      “Eligible Note Receivable”: Has the meaning set forth in
      the Loan Agreement.
    

    
      “Eligible Servicer”:  (x) Hercules or (y) any other Person
      to which the Agent may consent in writing.
    

    
      “Equity Security”:  Any equity security or other obligation
      or security that does not entitle the holder thereof to receive periodic
      payments of interest and one or more installments of principal.
    

    
      “Errors”: Has the meaning set forth in Section
      9.02(d) hereof.
    

    
      “Event of Default”:  Either a Servicer Default or an “Event
      of Default” under the Loan Agreement.
    

    
      “Exchange Act”:  The Securities Exchange Act of 1934, as
      amended, and the rules and regulations promulgated thereunder.
    

    
      “Excluded Amounts”:  Any Collections received with respect
      to Loans which have been removed from the Collateral pursuant to Section
      3.05 to the extent such Collections are attributable to a time after
      the effective date of the applicable substitution, repurchase or release.
    

    
      “Fair Market Value”:  With respect to a Transferred Loan
      included in the Collateral if such Transferred Loan has been reduced in
      value on such date of determination below the original principal amount
      (other than as a result of the allocation of a portion of the original
      principal amount to warrants or other equity entitlements), the fair
      market value of such Transferred Loan as required by, and in accordance
      with, the 1940 Act and any orders of the Commission issued to the
      Originator, to be determined by the Board of Directors of the Originator
      and reviewed by its auditors and communicated to the Servicer.
    

    
      “Fee Letter”:  Has the meaning provided in the Loan
      Agreement.
    

    
      “Final Collateral Certification”:  The certification in the
      form of Exhibit D-2 hereto prepared by the Agent or, if a
      Collateral Custodian has been appointed, the Collateral Custodian.
    

    
      “GAAP”:  Generally Accepted Accounting Principles as in
      effect in the United States.
    

    
      “Governmental Authority”: With respect to any Person, any
      national, government, state, province or other political division
      thereof, any central bank (or similar monetary or regulatory authority)
      thereof, any entity exercising executive, legislative, judicial,
      regulatory or administrative functions of or pertaining to any
      government, and any court or arbitrator having jurisdiction over such
      Person.
    

    
      6
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Indemnified Parties”: Has the meaning set forth in Section
      8.01(c) hereof.
    

    
      “Independent”: When used with respect to any specified
      Person, such Person (i) is in fact independent of the Originator, the
      Servicer, the Borrower or any of their respective Affiliates, (ii) does
      not have any direct financial interest in, or any material indirect
      financial interest in, the Originator, the Servicer, the Borrower or any
      of their respective Affiliates and (iii) is not connected with the
      Originator, the Borrower, the Servicer or any of their respective
      Affiliates, as an officer, employee, promoter, underwriter, trustee,
      partner, director or Person performing similar functions; provided,
      however, that a Person shall not fail to be Independent of the
      Originator, the Borrower, the Servicer or any of their respective
      Affiliates merely because such Person is the beneficial owner of 1% or
      less of any class of securities issued by the Originator, the Borrower,
      the Servicer or any of their respective Affiliates, as the case may be.
    

    
      “Ineligible Loan”:  Shall have the meaning given such term
      in Section 3.05(b)(i).
    

    
      “Initial Collateral Certification”:  The certification in
      the form of Exhibit D-1 hereto prepared by Agent or, if a
      Collateral Custodian has been appointed, the Collateral Custodian.
    

    
      “Insurance Policy”:  With respect to any Transferred Loan
      included in the Collateral, an insurance policy covering physical damage
      to or loss to any assets or Related Property of the Obligor securing
      such Transferred Loan.
    

    
      “Insurance Proceeds”:  Any amounts payable or any payments
      made to the Borrower or to the Servicer on its behalf under any
      Insurance Policy.
    

    
      “Intangible Assets”:  With respect to any Person, that
      portion of the book value of all of such Person’s assets that would be
      treated as intangibles under GAAP.
    

    
      “Interest Collections”:  Any and all amounts received with
      respect to a Transferred Loan from or on behalf of the related Obligor
      that are deposited into the Cash Management Account, or received by the
      Borrower or by the Servicer or Originator on behalf of the Borrower in
      respect of Transferred Loans, not constituting Principal Collections,
      and, solely for the purposes of calculating the Portfolio Yield, any and
      all amounts accrued in respect of any fees (but only to the extent such
      fees are not part of the Retained Interest or were not received during
      such Collection Period) owed by any Obligor in respect of any
      Transferred Loan.
    

    
      “Interest Coverage Ratio” means, with respect to any Person
      for any period, the ratio of (i) Net Investment Income for such period,
      to (ii) total interest expense (including unused line fees) to the
      extent paid or required to be paid during such period, in each case
      determined for such Person.
    

    
      “Lender”:  Has the meaning set forth in the Loan Agreement.
    

    
      7
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Lien”:  With respect to any asset, (a) any mortgage, lien,
      pledge, charge, security interest, hypothecation, option or encumbrance
      of any kind in respect of such asset or (b) the interest of a vendor or
      lessor under any conditional sale agreement, financing lease or other
      title retention agreement relating to such asset.
    

    
      “Loan”: Any senior loan arising from the extension of
      credit to an Obligor in the ordinary course of the Originator’s business
      including, without limitation, all Revolving Loans and PIK Loans, and
      including monies due and owing and all Interest Collections, Principal
      Collections and other amounts received from time to time with respect to
      such loan or note receivable and all Proceeds thereof.
    

    
      “Loan Agreement”:  The Loan and Security Agreement among
      the Agent, the Lenders, and the Borrower, dated as of August 25, 2008,
      as it may be amended or supplemented from time to time.
    

    
      “Loan Documents”:  This Agreement, the Loan Agreement, each
      S&SA Assignment, the Fee Letter, the Backup Servicer Fee Letter, any UCC
      financing statements filed pursuant to the terms of this Agreement or
      the Loan Agreement, and any additional document, letter, fee letter,
      certificate, opinion, agreement or writing the execution of which is
      necessary or incidental to carrying out the terms of the foregoing
      documents.
    

    
      “Loan Checklist” means the list delivered to the Agent and,
      if a Collateral Custodian has been appointed, the Collateral Custodian,
      pursuant to Section 2.04 that identifies the documents contained
      in the related Loan File.
    

    
      “Loan File”:  With respect to any Loan, each of the Obligor
      Loan Documents related thereto as reflected on the Loan Checklist
      accompanying such File..
    

    
      “Loan Rate”:  For each Transferred Loan in a Collection
      Period, the current cash pay interest rate for such Transferred Loan in
      such period, as specified in the related Obligor Loan Documents.
    

    
      “Loan Schedule”:  The schedule of Loans conveyed to the
      Borrower on each Transfer Date and delivered to the Agent and Backup
      Servicer (and, if a Collateral Custodian has been appointed, with a copy
      to the Collateral Custodian) in connection with each Borrowing or as new
      Loans are contributed to the Borrower, initially as set forth in Exhibit
      C hereto.
    

    
      “Loan Tape”:  Has the meaning set forth in the Section
      4.13(b)(ii).
    

    
      “Lyon Financial”: Lyon Financial Services, Inc., a
      Minnesota company, d/b/a U.S. Bank Portfolio Services.
    

    
      “Material Adverse Change”:  With respect to any Person, any
      material adverse change in the business, condition (financial or
      otherwise), operations, performance, properties or prospects of such
      Person.
    

    
      “Material Adverse Effect”:  With respect to any event or
      circumstance, means a material adverse effect on, as applicable, (a) the
      business, condition (financial or otherwise), operations, performance,
      properties or prospects of the Servicer, the Borrower, the Backup
      Servicer or, if a Collateral Custodian has been appointed, the
      Collateral Custodian, (b) the validity, enforceability or collectibility
      of this Agreement, any other Loan Document or the Purchased Assets, (c)
      the rights and remedies of the Agent or any member of the Lender Group
      under this Agreement or any Loan Document or (d) the ability of any of
      the Servicer, the Borrower, the Backup Servicer or, if a Collateral
      Custodian has been appointed, the Collateral Custodian, to perform its
      obligations under this Agreement or any other Loan Document, or (e) the
      status, existence, perfection, priority, or enforceability of the
      interest of the Borrower in the Purchased Assets or of the Agent on
      behalf of the Lender Group in the Collateral.
    

    
      8
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Maturity Date”:  Has the meaning set forth in the Loan
      Agreement.
    

    
      “Obligations”:  Has the meaning set forth in the Loan
      Agreement.
    

    
      “Obligor”:  With respect to any Loan, the Person or Persons
      obligated to make payments pursuant to such Loan, including any
      guarantor thereof.
    

    
      “Obligor Loan Documents”: With respect to any Loan, each
      related promissory note and any related loan agreement, security
      agreement, mortgage, moveable or immoveable hypothec, deed of hypothec,
      assignments, guarantees, note purchase agreement, intercreditor and/or
      subordination agreement, and UCC financing statements and continuation
      statements (including amendments or modifications thereof) executed by
      the Obligor thereof or by another Person on the Obligor’s behalf in
      respect of such Loan and each related promissory note, including,
      without limitation, general or limited guaranties and, for each Loan
      secured by real property an Assignment of Mortgage, and for each
      promissory note, an assignment (which may be by allonge), in blank,
      signed by an officer of the Originator.
    

    
      “Officer’s Certificate”:  A certificate signed by a
      Responsible Officer of the Person delivering such certificate, in each
      case as required by this Agreement.
    

    
      “Opinion of Counsel”:  A written opinion of counsel who may
      be employed by the Servicer, the Borrower, the Originator or any of
      their respective Affiliates, in form and substance satisfactory to the
      Agent.
    

    
      “Originator”: Hercules and its permitted successors and
      assigns.
    

    
      “Originator Indemnified Party”: Has the meaning set forth
      in Section 8.01(c) hereof.
    

    
      “Outstanding Loan Balance”:  With respect to any Loan, as
      of any date of determination, the lesser of (i) the Fair Market Value of
      such Loan and (ii) the total remaining amounts of principal payable by
      the Obligor thereof, excluding principal payments in respect of Accreted
      Interest.
    

    
      “Payment Date”: The 15th day of each
      calendar month, or if any such day is not a Business Day, the first
      Business Day following such day, commencing on September 15, 2005.
    

    
      9
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Permitted Liens”:  (a) With respect to the Transferred
      Loans, Liens in favor of the Borrower created pursuant to this Agreement
      and Liens in favor of the Agent, on behalf of the Lender Group, created
      pursuant to the Loan Agreement; and
    

    
      (b) with respect to the Borrower’s interest in the Related Property, any
      of the following as to which no enforcement, collection, execution,
      levy, foreclosure or realization proceedings shall have been commenced:
    

    
      (i) Liens for taxes, fees, assessments or other governmental charges or
      levies, either not delinquent or being contested in good faith by
      appropriate proceedings; provided, that such Liens do not have
      priority over any of the Originator’s Liens and the related Obligor
      maintains adequate reserves therefor in accordance with GAAP;
    

    
      (ii) Liens securing claims or demands of materialmen, artisans,
      mechanics, carriers, warehousemen, landlords and other like Persons
      arising in the ordinary course of the related Obligor’s business and
      imposed without action of such parties; provided, that the payment
      thereof is not yet required;
    

    
      (iii) Liens arising from judgments, decrees or attachments in
      circumstances which do not constitute an “event of default” under the
      related Obligor Loan Documents;
    

    
      (iv) the following deposits, to the extent made in the ordinary course
      of business:  deposits under worker's compensation, unemployment
      insurance, social security and other similar laws, or to secure the
      performance of bids, tenders or contracts (other than for the repayment
      of borrowed money) or to secure indemnity, performance or other similar
      bonds for the performance of bids, tenders or contracts (other than for
      the repayment of borrowed money) or to secure statutory obligations
      (other than liens arising under ERISA or environmental liens) or surety
      or appeal bonds, or to secure indemnity, performance or other similar
      bonds;
    

    
      (v) purchase money liens on equipment (to the extent permitted under the
      related Obligor Loan Documents) which has been acquired or held by the
      related Obligor and such Liens are incurred for financing the
      acquisition of the equipment, if, the Liens are confined to the
      equipment and proceeds of the equipment; and
    

    
      (vi) Liens incurred in connection with the extension, renewal or
      refinancing of the indebtedness secured by Liens of the type described
      in clauses (i) through (iv) above; provided, that any extension, renewal
      or replacement Lien shall be limited to the property encumbered by the
      existing Lien and the principal amount of the indebtedness being
      extended, renewed or refinanced (as may have been reduced by any payment
      thereon) does not increase.
    

    
      10
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Person”:  Any individual, corporation, partnership, joint
      venture, limited liability company, association, joint-stock company,
      trust, national banking association, unincorporated organization or
      government or any agency or political subdivision thereof.
    

    
      “PIK Loan”:  A Loan which provides for a portion of the
      interest that accrues thereon to be added to the principal amount of
      such Loan for some period of time prior to such Loan requiring the
      current cash payment of such interest on a monthly or quarterly basis,
      which cash payment shall be treated as Interest Collections at the time
      it is received.
    

    
      “Portfolio Investment”:  Any investment made by the
      Originator in the ordinary course of business in a Person that is
      accounted for under GAAP as a portfolio investment of the Originator.
    

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

    
      “Predecessor Servicer Work Product”: Has the meaning set
      forth in Section 9.02(d) hereof.
    

    
      “Proceeding”:  Any suit in equity, action at law or other
      judicial or administrative proceeding.
    

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

    
      “Purchased Assets”:  All right, title and interest, whether
      now owned or hereafter received, acquired or arising, and wherever
      located, of the Originator in and to the property described in clauses
      (i) through (ix) below and all accounts, cash and currency, chattel
      paper, tangible chattel paper, electronic chattel paper, copyrights,
      copyright licenses, other intellectual property rights, equipment,
      fixtures, contract rights, general intangibles, instruments,
      certificates of deposit, certificated securities, uncertificated
      securities, financial assets, securities entitlements, commercial tort
      claims, deposit accounts, inventory, investment property,
      letter-of-credit rights, software, supporting obligations, accessions,
      and other property consisting of, arising out of, or related to any of
      the following (in each case excluding the Retained Interest and the
      Excluded Amounts):
    

    
      (i)  the Transferred Loans, and all monies due or to become due in
      payment of such Transferred Loans on and after the related Transfer
      Date, including but not limited to all Collections and all obligations
      owed to the Originator in connection with the Transferred Loans;
    

    
      (ii)  any Related Property securing or purporting to secure the
      Transferred Loans (to the extent the Originator has been granted a Lien
      thereon) including the related security interest granted by the Obligor
      under the Transferred Loans, all proceeds from any sale or other
      disposition of such Related Property;
    

    
      11
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (iii)  all security interests, Liens, guaranties, warranties, letters of
      credit, accounts, bank accounts, mortgages or other encumbrances and
      property subject thereto from time to time purporting to secure payment
      of any Transferred Loan, together with all UCC financing statements or
      similar filings relating thereto;
    

    
      (iv)  all claims (including “claims” as defined in Bankruptcy Code §
      101(5)), suits, causes of action, and any other right of the Originator,
      whether known or unknown, against the related Obligors, if any, or any
      of their respective Affiliates, agents, representatives, contractors,
      advisors, or any other Person that in any way is based upon, arises out
      of or is related to any of the foregoing, including, to the extent
      permitted to be assigned under applicable law, all claims (including
      contract claims, tort claims, malpractice claims, and claims under any
      law governing the purchase and sale of, or indentures for, securities),
      suits, causes of action, and any other right of the Originator against
      any attorney, accountant, financial advisor, or other Person arising
      under or in connection with the related Obligor Loan Documents;
    

    
      (v)  all cash, securities, or other property, and all setoffs and
      recoupments, received or effected by or for the account of the
      Originator under such Transferred Loans (whether for principal,
      interest, fees, reimbursement obligations, or otherwise) after the
      related Transfer Date, including all distributions obtained by or
      through redemption, consummation of a plan of reorganization,
      restructuring, liquidation, or otherwise of any related Obligor or the
      related Obligor Loan Documents, and all cash, securities, interest,
      dividends, and other property that may be exchanged for, or distributed
      or collected with respect to, any of the foregoing;
    

    
      (vi)  all Insurance Policies;
    

    
      (vii)  the Obligor Loan Documents with respect to such Transferred Loans;
    

    
      (viii)  all Warrant Assets with respect to Transferred Loans; and
    

    
      (ix)  the proceeds of each of the foregoing.
    

    
      “Record Date”:  With respect to each Payment Date, the 10th
      day of each calendar month occurring during the calendar month of such
      Payment Date, or if any such day is not a Business Day, the first
      Business Day following such day, commencing September 10, 2008.
    

    
      “Recoveries”:  With respect to any Defaulted Loan or
      Charged-Off Loan, proceeds of the sale of any Related Property, proceeds
      of any related Insurance Policy, and any other recoveries with respect
      to such Transferred Loan and Related Property, and amounts representing
      late fees and penalties, net of Liquidation Expenses and amounts, if
      any, received that are required to be refunded to the Obligor on such
      Transferred Loan.
    

    
      “Related Property”:  With respect to any Loan, any property
      or other assets of the Obligor thereunder pledged or purported to be
      pledged as collateral or in which a Lien has been granted or purported
      to be granted to secure the repayment of such Loan and including,
      without limitation, intellectual property rights.
    

    
      12
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Released Amounts”:  With respect to any payment or
      Collection received with respect to any Transferred Loan on any Business
      Day (whether such payment or Collection is received by the Servicer, the
      Originator or the Borrower), an amount equal to that portion of such
      payment or collection constituting Excluded Amounts or Retained
      Interest.
    

    
      “Replaced Loan”:  Defined in Section
      3.05(a).
    

    
      “Responsible Officer”:  When used with respect to:
    

    
      (a)  the Collateral Custodian (if one has been appointed), any officer
      within the Corporate Trust Office of such Person, including any Vice
      President, Assistant Vice President, Secretary, Assistant Secretary or
      any other officer of such Person customarily performing functions
      similar to those performed by any of the above designated officers and
      also, with respect to a particular matter, any other officer to whom
      such matter is referred because of such officer’s knowledge of and
      familiarity with the particular subject;
    

    
      (b)  the Agent, or any Affiliate of the Agent, any Vice President of
      such Person; and
    

    
      (c)  the Borrower, the Servicer, the Originator or any Affiliate of any
      of them, the Controller, the President, any Vice President or the
      Treasurer of such Person.
    

    
      “Retained Interest”:  With respect to each Transferred
      Loan, any origination or underwriting fee paid to the Originator in
      connection with the origination or acquisition of such Transferred Loan
      under the associated Obligor Loan Documents, which are being retained by
      the Originator.
    

    
      “Retransfer Price”:  Defined in Section
      3.05(b).
    

    
      “Review Criteria”:  Defined in Section
      2.05(b)(ii).
    

    
      “Revolving Loan”:  Any Loan that is a line of credit or
      other similar extension of credit by the Originator where the
      Originator’s commitment under such Loan is not fully funded and/or the
      proceeds of such Loan may be repaid and reborrowed.
    

    
      “S&SA Assignment”:  An assignment of Purchased Assets
      from the Originator to the Borrower pursuant to this Agreement, in the
      form of Exhibit B hereto.
    

    
      “Sales Price”: With respect to any Transferred Loan and all
      Related Property and other Collateral constituting part of the Purchased
      Assets with respect to such Transferred Loan, an amount determined by
      multiplying the Advance Rate times the Outstanding Loan Balance
      of such Transferred Loan.
    

    
      “Scheduled Payment”:  On any Record Date, with respect to
      any Transferred Loan, each monthly or quarterly payment (whether
      principal, interest or principal and interest) scheduled to be made by
      the related Obligor after such Record Date under the terms of such
      Transferred Loan.
    

    
      13
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Securities Act”: The Securities Act of 1933, as amended,
      and the rules and regulations promulgated thereunder.
    

    
      “Servicer”: Hercules, in its capacity as the servicer
      hereunder, or any successor appointed as herein provided.
    

    
      “Servicer Default”:  Has the meaning set forth in Section
      9.01 hereof.
    

    
      “Servicer Indemnified Party”: Has the meaning set forth in Section
      8.01(a) hereof.
    

    
      “Servicer Report”: A report substantially in the form of Exhibit
      A hereto, to be delivered as contemplated by Section 4.17(a).
    

    
      “Servicing Fee”:  For each Payment Date, an amount equal to
      the sum of the products, for each day during the related Collection
      Period, of (a) a fraction, the numerator of which is the sum of (i) the
      Aggregate Outstanding Loan Balance as of the first day of such
      Collection Period plus (ii) the Aggregate Outstanding Loan
      Balance as of the last day of such Collection Period, and the
      denominator of which is two, (b) the Servicing Fee Rate, and (c) a
      fraction, the numerator of which is 1 and the denominator of which is
      360.
    

    
      “Servicing Fee Rate”:  A rate equal to 1.0% per
      annum.
    

    
      “Servicing Records”:  All documents, books, records and
      other information (including, without limitation, computer programs,
      tapes, disks, data processing software and related property rights)
      prepared and maintained by the Servicer with respect to the Loans, any
      item of Related Property and the related Obligors, other than the
      Obligor Loan Documents.
    

    
      “Servicing Officer”:  Any officer of the Servicer involved
      in, or responsible for, the administration and servicing of the Loans
      whose name and specimen signature appears on a list of servicing
      officers annexed to an Officer’s Certificate furnished by the Servicer
      on the date hereof to the Borrower and the Agent, on behalf of the
      Lender Group, as such list may from time to time be amended.
    

    
      “Solvent”:  As to any Person at any time, having a state of
      affairs such that all of the following conditions are met: (a) the fair
      value of the property owned by such Person is greater than the amount of
      such Person’s liabilities (including disputed, contingent and
      unliquidated liabilities) as such value is established and liabilities
      evaluated for purposes of Section 101(32) of the Bankruptcy Code; (b)
      the present fair salable value of the property owned by such Person in
      an orderly liquidation of such Person is not less than the amount that
      will be required to pay the probable liability of such Person on its
      debts as they become absolute and matured; (c) such Person is able to
      realize upon its property and pay its debts and other liabilities
      (including disputed, contingent and unliquidated liabilities) as they
      mature in the normal course of business; (d) such Person does not intend
      to, and does not believe that it will, incur debts or liabilities beyond
      such Person’s ability to pay as such debts and liabilities
      mature; and (e) such Person is not engaged in business or a
      transaction, and is not about to engage in a business or a transaction,
      for which such Person’s property would constitute unreasonably small
      capital.
    

    
      14
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “State”:  Any one of the states of the United States of
      America or the District of Columbia.
    

    
      “Subordinated Debt” means any unsecured Indebtedness
      specifically subordinated to the prior payment in full in cash of the
      Obligations and which shall otherwise be on terms and conditions
      reasonably satisfactory to Agent and subject to a Subordination
      Agreement.
    

    
      “Subordination Agreement” means a subordination agreement
      executed and delivered by Borrower and each of the holders of
      Subordinated Debt and Agent, the form and substance of which is
      satisfactory to Agent.
    

    
      “Subsidiary”:  With respect to any Person, any corporation,
      partnership or other entity of which at least a majority of the
      securities or other ownership interests having by the terms thereof
      ordinary voting power to elect a majority of the board of directors or
      other persons performing similar functions of such corporation,
      partnership or other entity (irrespective of whether or not at the time
      securities or other ownership interests of any other class or classes of
      such corporation, partnership or other entity shall have or might have
      voting power by reason of the happening of any contingency) is at the
      time directly or indirectly owned or controlled by such Person or one or
      more Subsidiaries of such Person or by such Person and one or more
      Subsidiaries of such Person.
    

    
      “Successor Engagement Fee”:  The “One-Time Successor
      Engagement Fee,” as defined in the Backup Servicer Fee Letter.
    

    
      “Successor Servicer”:  Defined in Section
      9.02(a).
    

    
      “Tangible Net Worth”:  With respect to any Person, as of
      any date of determination, determined on a consolidated basis and
      in accordance with GAAP, the result of (a) such Person’s total members’
      or shareholder’s equity, minus (b) all Intangible Assets of
      such Person, minus (c) all of such Person’s prepaid expenses, minus
      (d) all amounts due to such Person from Affiliates of such Person.
    

    
      “Termination Date”: The earliest of (i) the date designated
      as such by the Agent in its sole discretion by written notice to the
      Servicer following the occurrence of an Event of Default, (ii) the date
      upon which this Agreement terminates pursuant to Section 10.01 or
      (iii) the date of the occurrence of a Bankruptcy Event with respect to
      the Servicer or the Borrower.
    

    
      “Third Party Claim”: Has the meaning set forth in Section
      8.01(d) hereof.
    

    
      “Transfer”: Has the meaning set forth in Section
      2.08 hereof.
    

    
      “Transfer Date”:  With respect to each Transferred Loan,
      the date specified as the “Transfer Date” in the related S&SA
      Assignment, on and after which Collections on such Transferred Loan
      shall be included as part of the Collateral.
    

    
      “Transferred Loans”:  Each Loan that is sold or contributed
      to the Borrower hereunder; provided, that the term Transferred
      Loan shall not include any Retained Interests.
    

    
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      “Transition Costs”:  Has the meaning set forth in Section
      9.02(a) hereof.
    

    
      “UCC”:  The Uniform Commercial Code as in effect in the
      State of New York.
    

    
      “UCC Assignment”:  A financing statement meeting the
      requirements of the UCC of the relevant jurisdiction to reflect an
      assignment of a secured party’s interest in collateral.
    

    
      “UCC Financing Statement”:  A financing statement meeting
      the requirements of the UCC of the relevant jurisdiction.
    

    
      “Underlying Note”:  Each promissory note of an Obligor
      evidencing a Loan.
    

    
      “Warrant Asset”:  Means any equity purchase warrants or
      similar rights convertible into or exchangeable or exercisable for any
      equity interests received by Hercules as an “equity kicker” from the
      Obligor in connection with such Transferred Loan; provided that
      the term Warrant shall in no event include the right of  Hercules to
      participate as an investor in future equity financings by an Obligor.
    

    
      Section 1.02.  Other Definitional Provisions.
    

    
             (a)  Any agreement, instrument or statute defined or referred to
      herein or in any instrument or certificate delivered in connection
      herewith means such agreement, instrument or statute as from time to
      time amended, modified or supplemented and includes (in the case of
      agreements or instruments) references to all attachments thereto and
      instruments incorporated therein; references to a Person are also to its
      permitted successors and assigns.
    

    
             (b)  All terms defined in this Agreement shall have the defined
      meanings when used in any certificate or other document made or
      delivered pursuant hereto unless otherwise defined therein.
    

    
             (c)  As used in this Agreement and in any certificate or other
      document made or delivered pursuant hereto or thereto, accounting terms
      not defined in this Agreement or in any such certificate or other
      document, and accounting terms partly defined in this Agreement or in
      any such certificate or other document to the extent not defined, shall
      have the respective meanings given to them under GAAP.  To the extent
      that the definitions of accounting terms in this Agreement or in any
      such certificate or other document are inconsistent with the meanings of
      such terms under GAAP, the definitions contained in this Agreement or in
      any such certificate or other document shall control.
    

    
             (d)  The words “hereof,” “herein,” “hereunder” and words of
      similar import when used in this Agreement shall refer to this Agreement
      as a whole and not to any particular provision of this Agreement;
      Article, Section, Schedule and Exhibit references contained in this
      Agreement are references to Articles, Sections, Schedules and Exhibits
      in or to this Agreement unless otherwise specified; and the term
      “including” shall mean “including without limitation.”
    

    
             (e)  The definitions contained in this Agreement are applicable
      to the singular as well as the plural forms of such terms and to the
      masculine as well as to the feminine and neuter genders of such terms.
    

    
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      ARTICLE II  

CONVEYANCE OF THE PURCHASED ASSETS;
BORROWINGS
      UNDER LOAN AGREEMENT
    

    
      Section 2.01.  Conveyance of the Purchased Assets;
      Borrowings.
    

    
      (a)  Conveyance of the Purchased Assets.  (i)  On each
      Transfer Date, in consideration of the payment of the Sales Price
      therefor and subject to the satisfaction of the conditions to each
      Transfer set forth in Section 2.08 hereof, the Originator hereby
      sells and assigns to the Borrower, without recourse, but subject to the
      other terms and provisions of this Agreement, all of the right, title
      and interest of the Originator in and to the Purchased Assets identified
      in the applicable S&SA Assignment and the related Loan Schedule, and all
      proceeds of the foregoing.  
    

    
                (ii)  On each Transfer Date, the Borrower hereby purchases,
      and acknowledges the conveyance to it, of the Purchased Assets
      identified in the applicable S&SA Assignment and the related Loan
      Schedule, receipt of which is hereby acknowledged by the
      Borrower.  Concurrently with such delivery, as of the applicable
      Transfer Date, the Borrower automatically grants a security interest in
      the Purchased Assets identified in the applicable S&SA Assignment and
      the related Loan Schedule (a copy of which has or will concurrently
      therewith be delivered to the Agent) to the Agent pursuant to the Loan
      Agreement as security for the Borrower’s Obligations under the Loan
      Agreement and the other Loan Documents.
    

    
               (iii)  Notwithstanding anything to the contrary herein, in no
      event shall the Borrower be required to purchase the Purchased Assets
      identified in any S&SA Assignment and the related Loan Schedule on any
      Transfer Date if the conditions precedent to the applicable Transfer set
      forth in Section 2.08 have not been fulfilled.
    

    
                (iv)  The Servicer shall, at its own expense, within one
      Business Day following each Transfer Date, indicate in its computer
      files that the Purchased Assets identified in the applicable S&SA
      Assignment and the related Loan Schedule have been sold to the Borrower
      pursuant to this Agreement.
    

    
                 (v)  The parties hereto intend that the conveyances
      contemplated hereby be sales from the Originator to the Borrower of the
      Purchased Assets identified in each S&SA Assignment and related Loan
      Schedule.  In the event the transactions with respect to the Purchased
      Assets set forth herein are deemed not to be a sale, the Originator
      hereby grants to the Borrower a security interest in all of the
      Originator’s right, title and interest in, to and under such Purchased
      Assets, to secure all of the Originator’s obligations hereunder, and
      this Agreement shall constitute a security agreement under Applicable
      Law.
    

    
             (b)  Borrowings.  (i)
      Pursuant to the Loan Agreement, the Borrower may, at its sole option,
      from time to time request that the Agent or the Lenders make advance of
      funds to the Borrower under the Loan Agreement (each, a “Borrowing”).  Notwithstanding
      anything to the contrary herein, in no event shall the Agent or Lenders
      be required to advance Borrowings if the conditions precedent to the
      making of Borrowings set forth Section 2.07 hereof and in Section
      3.01, 3.02, and 3.03 of the Loan Agreement have not been fulfilled.
    

    
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      Section 2.02.  Ownership and Possession of Loan Files.
    

    
      With respect to each Loan, as of the related Transfer Date, the
      ownership of the related Obligor Loan Documents shall be vested in the
      Borrower as part of the Collateral to secure the Obligations, and a
      security interest in the related Obligor Loan Documents shall be granted
      and pledged to the Agent pursuant to the loan Agreement, and the Agent
      or, if a Collateral Custodian has been appointed, the Collateral
      Custodian, shall take possession of the Loan Files as contemplated in Section
      2.04 hereof.
    

    
      Section 2.03.  Books and Records; Intention of the Parties.
    

    
      On or prior to the Closing Date, the Originator shall, at such party’s
      sole expense, cause to be filed UCC Financing Statements naming the
      Borrower as “secured party” and describing the Purchased Assets being
      sold by the Originator to the Borrower with the office of the Secretary
      of State of the state in which the Originator is “located” for purpose
      of the applicable UCC and in any other jurisdictions as shall be
      necessary to perfect a security interest in the Purchased Assets.
    

    
      Section 2.04.  Delivery of Loan Files.
    

    
             (a)  The Originator shall, with respect to each Loan subject to a
      Transfer, as of the related Transfer Date, (i) no later than 12:00 p.m.
      New York City time on the related Transfer Date, deliver or cause to be
      delivered to the Agent or, if a Collateral Custodian has been appointed,
      the Collateral Custodian, as the designated agent of the Agent, by
      facsimile transmission or in an electronic format mutually agreed to by
      the Originator and the Agent, the Loan Schedule and a copy of each
      executed Underlying Note endorsed in blank and (ii) within two Business
      Days after such Transfer Date, deliver (or caused to be delivered) to
      the Agent or, if a Collateral Custodian has been appointed, the
      Collateral Custodian, each original and duly executed Underlying Note
      and Assignment of Mortgage (if any), in each case endorsed in blank, any
      security agreement related to each such Loan, and all other Obligor Loan
      Documents for each such Loan, including a Loan Checklist for such Loan
      being transferred (on which List the Agent or, if a Collateral Custodian
      has been appointed, the Collateral Custodian, shall rely).
    

    
             (b)  The Agent or, if a Collateral Custodian has been appointed,
      the Collateral Custodian, shall take and maintain continuous physical
      possession of the Loan Files delivered to it by the Originator and, in
      connection therewith, shall act solely as Agent or, in the case of the
      Collateral Custodian, as the agent for the Agent, on behalf of the
      Lender Group in accordance with the terms hereof and not as agent for
      the Originator, the Servicer or any other party.
    

    
      Section 2.05.  Acceptance by the Agent of the Loan Files;
      Certification by the Collateral Custodian.
    

    
             (a)  Based on the Final Collateral Certification prepared by the
      Agent or, if a Collateral Custodian has been appointed, the Final
      Collateral Certification received by the Agent from the Collateral
      Custodian and as of the date of delivery thereof, the Agent will
      acknowledge receipt of the Loan Files delivered to the Agent or, if a
      Collateral Custodian has been appointed, the Collateral Custodian on
      behalf of the Agent, pursuant to Section 2.04 and declares
      that it holds and will continue to hold directly the Obligor Loan
      Documents and any amendments, replacements or supplements thereto and
      all other assets constituting the Collateral delivered to it for the use
      and benefit of the Lender Group.
    

    
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             (b)  (i)          On or before 3:00 p.m. New York City time on
      the related Transfer Date, the Agent will prepare and provide a copy to
      the Backup Servicer, the Collateral Custodian (if one has been
      appointed) and the Originator, or, if a Collateral Custodian has been
      appointed, the Collateral Custodian will deliver to the Agent, with a
      copy to the Backup Servicer, the Collateral Custodian and the
      Originator, an Initial Collateral Certification, confirming whether or
      not it has received a copy of each executed Underlying Note endorsed in
      blank, for each Loan identified on the Loan Schedule to the S&SA
      Assignment with respect to such Transfer Date.
    

    
                (ii)  Within five Business Days after its receipt of the
      remaining Obligor Loan Documents for each such Transferred Loan, the
      Agent or, if a Collateral Custodian has been appointed, the Collateral
      Custodian, shall review the related Obligor Loan Documents to confirm
      that: (A) each related Underlying Note has been properly executed and
      has no missing or mutilated pages, (B) UCC Financing Statements and
      other filings required by the related Obligor Loan Documents have been
      made, (C) other than in the case of a Transferred Loan secured by
      receivables only (as identified on the Loan Checklist), an Insurance
      Policy is contained in such Obligor Loan Documents with respect to any
      real or personal property constituting the Related Property for such
      Transferred Loan, (D) the related Outstanding Loan Balance, and Obligor
      name with respect to such Transferred Loan is accurately reflected on
      the related Loan Schedule and (E) based on the Obligor Loan Documents
      received, such Transferred Loan is not already included in the
      Collateral (collectively, the “Review Criteria”).  Upon
      completion of such review, the Agent will prepare and provide a copy to
      the Backup Servicer, the Collateral Custodian and the Originator or, if
      a Collateral Custodian has been appointed, the Collateral Custodian will
      deliver a Final Collateral Certification to the Agent, with a copy to
      the Backup Servicer, the Collateral Custodian and the Originator,
      confirming its receipt of the Obligor Loan Documents.  Such
      certification will also contain an exception report attached as
      Attachment A thereto which will identify any Transferred Loans for which
      (i) the Agent or, if a Collateral Custodian has been appointed, the
      Collateral Custodian, has not received a Obligor Loan Document or (ii)
      any Review Criteria is not satisfied.
    

    
               (iii)  The Originator shall have five Business Days to deliver
      any missing Obligor Loan Documents or correct any non-compliance with
      any Review Criteria.  If after the conclusion of such time period the
      Originator has not delivered such missing Obligor Loan Document or cured
      any non-compliance by a Transferred Loan with any Review Criteria and
      such failure has a material adverse effect on the value or
      enforceability of any Transferred Loan or the interests of the Lender
      Group in any Transferred Loan, such Transferred Loan shall be deemed to
      be an Ineligible Loan and the Originator shall repurchase such
      Transferred Loan pursuant to Section 3.05(b) within one Business
      Day after notice thereof at the Retransfer Price thereof by depositing
      such Retransfer Price directly in the Agent’s Account or the Cash
      Management Account; provided that the Originator shall not be
      required to pay the Retransfer Price with respect to any such
      Transferred Loan to the extent that, after giving effect to the removal
      of such Loan from the Collateral, the Availability shall exceed $0.  On
      or prior to the date of such repurchase, the Originator shall deliver to
      the Agent, with a copy to the Backup Servicer and the Collateral
      Custodian (if one has been appointed), a certification of a Responsible
      Officer indicating that the Originator intends to repurchase such
      Transferred Loan.
    

    
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                (iv)  It is understood and agreed that the obligation of the
      Originator to repurchase any such Transferred Loan pursuant to this Section
      2.05(b) and Section 3.05 shall constitute the sole remedy
      with respect to such failure to comply with the foregoing delivery
      requirements.
    

    
             (c)  In performing its reviews of the Obligor Loan Documents,
      neither the Agent nor, if a Collateral Custodian has been appointed, the
      Collateral Custodian, shall have any responsibility to determine the
      genuineness of any document contained therein and any signature
      thereon.  Neither the Agent nor, if a Collateral Custodian has been
      appointed, the Collateral Custodian, shall have any responsibility for
      determining whether any document is valid and binding, whether the text
      of any assignment or endorsement is in proper or recordable form,
      whether any document has been recorded in accordance with the
      requirements of any applicable jurisdiction or whether a blanket
      assignment is permitted in any applicable jurisdiction.
    

    
      Section 2.06.  Conditions Precedent to Closing.  The
      effectiveness of this Agreement shall be subject to the satisfaction of
      the following conditions precedent as of the Closing Date:
    

    
             (a)  all conditions precedent to closing under Section 3.01 of
      the Loan Agreement shall have been fulfilled;
    

    
             (b)  the Originator shall have delivered to the Agent evidence of
      a UCC-1 filing filed with the Maryland Department of Assessments and
      Taxation naming Originator as seller and Borrower as buyer, to evidence
      the transfer of the Transferred Loans and other Purchased Assets
      pursuant to this Agreement, in form and substance reasonably
      satisfactory to the Agent; and
    

    
             (c)  the Originator shall have taken any action reasonably
      requested by the Agent or the Borrower required to maintain or evidence
      the ownership interest of the Borrower in the Purchased Assets and the
      security interest of the Agent in the Collateral.
    

    
      Section 2.07.  Conditions to Borrowings.  On the
      Closing Date and on any Business Day prior to the Maturity Date, the
      Borrower may request a Borrowing from the Lender Group in accordance
      with the Loan Agreement.  Any Borrowing (including any Borrowing made on
      the Closing Date) shall be subject to the following conditions:
    

    
             (a)  the Servicer shall have delivered to the Agent (with a copy
      to the Collateral Custodian, if one has been appointed, and to the
      Backup Servicer) on behalf of the Borrower a Borrowing Base Certificate;
    

    
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             (b)  all applicable conditions precedent to the Lender Group’s
      advance of the Borrowing under Sections 3.01, 3.02, and 3.03 of the Loan
      Agreement shall have been fulfilled as of such Borrowing Date.
    

    
             (c)  as of such date, neither the Originator nor the Borrower
      shall have reason to believe that its insolvency is imminent;
    

    
             (d)  on and as of such date, after giving effect to such
      Borrowing, the Availability shall exceed zero;
    

    
             (e)  the Originator shall have taken any action reasonably
      requested by the Agent or the Borrower required to maintain or evidence
      the ownership interest of the Borrower in the Purchased Assets and the
      security interest of the Agent in the Collateral.;
    

    
             (f)  the Originator shall have deposited, or caused to be
      deposited, in the Cash Management Account all Collections received with
      respect to each of the Loans Transferred on and after its applicable
      Transfer Date;
    

    
             (g)  each of the representations and warranties made by the
      Originator contained in Section 3.03 with respect to the Loans on
      the Closing Date shall be true and correct as of the applicable
      Borrowing Date (in the case of a Borrowing other than on the Closing
      Date, with the same effect as if then made) and each of the Borrower and
      the Originator shall have performed all obligations to be performed by
      it under the Loan Documents on or prior to such Borrowing Date; and
    

    
             (h)  it shall be a condition to the initial Borrowing that the
      Servicer shall have delivered the form of Servicer Report, to be
      attached hereto as Exhibit A, to the Backup Servicer and the
      Agent.
    

    
      Section 2.08.  Conditions to Transfers of Loans.  On
      the Closing Date and on any Business Day prior to the Maturity Date, the
      Originator may convey Loans to the Borrower (each such conveyance, a “Transfer”).  Any
      Transfer (including any Transfer made on the Closing Date) shall be
      subject to the following conditions:  
    

    
             (a)  At least two Business Days prior to the proposed Transfer
      Date, the Servicer shall give notice to the Agent (with a copy to the
      Collateral Custodian, if one has been appointed, and to the Backup
      Servicer) of such proposed Transfer Date and provide an estimate of the
      number of Loans and aggregate Outstanding Loan Balance of such Loans
      proposed to be conveyed to the Borrower on such Transfer Date.
    

    
             (b)  On the Business Day prior to the proposed Transfer Date, the
      Borrower shall deliver to the Agent (with a copy to the Collateral
      Custodian, if one has been appointed, and to the Backup Servicer) a
      final Loan Schedule setting forth the Loans proposed to be transferred
      on such Transfer Date.
    

    
             (c)  On the applicable Transfer Date, the Borrower shall deliver
      to the Agent (with a copy to the Collateral Custodian, if one has been
      appointed, and to the Backup Servicer) a fully-executed S&SA Assignment
      and a final Loan Schedule setting forth the Loans Transferred on such
      Transfer Date.
    

    
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             (d)  If the Borrower will consummate a Borrowing on such Transfer
      Date in connection with the applicable Transfer, the conditions
      precedent to such Borrowing set forth in Section 2.07 hereof and
      Sections 3.01, 3.02, and 3.03 of the Loan Agreement shall be satisfied.
    

    
             (e)  As of the applicable Transfer Date, neither the Originator
      nor the Borrower shall have reason to believe that its insolvency is
      imminent.
    

    
             (f)  The Originator shall have taken any action reasonably
      requested by the Agent or the Borrower required to maintain or evidence
      the ownership interest of the Borrower in the Purchased Assets and the
      security interest of the Agent in the Collateral.
    

    
             (g)  Each of the representations and warranties made by the
      Originator contained in Section 3.03 with respect to the Loans
      made on the Closing Date shall be true and correct as of the applicable
      Transfer Date, with the same effect as if then made, and each of the
      Borrower and the Originator shall have performed all obligations to be
      performed by it under the Loan Documents on or prior to such Transfer
      Date; provided that, if any representation or warranty made by
      the Originator pursuant to Section 3.03 shall be incorrect as of
      any Transfer Date with respect to any Loan to be purchased on such date,
      the Borrower shall only be relieved of its obligation to purchase such
      Loan affected by such breach and, assuming satisfaction or waiver of the
      other conditions set forth in this clause (g), the Borrower shall
      nonetheless be obligated to purchase all Loans to be purchased on such
      date that are unaffected by such breach.
    

    
      ARTICLE III  

REPRESENTATIONS AND WARRANTIES
    

    
      Section 3.01.  Representations and Warranties of the
      Borrower.
    

    
      The Borrower hereby represents, warrants and covenants to the other
      parties hereto and the Lenders that as of each Transfer Date:
    

    
             (a)  The Borrower is a limited liability company duly organized,
      validly existing and in good standing under the laws of the jurisdiction
      of its organization and has, and had at all relevant times, full power
      to own its property, to carry on its business as currently conducted and
      to enter into and perform its obligations under each Loan Document to
      which it is a party;
    

    
             (b)  The execution and delivery by the Borrower of each Loan
      Document to which the Borrower is a party and its performance of and
      compliance with all of the terms thereof will not violate the Borrower’s
      organizational documents or constitute a default (or an event which,
      with notice or lapse of time, or both, would constitute a default)
      under, or result in the breach or acceleration of, any material
      contract, agreement or other instrument to which the Borrower is a party
      or which are applicable to the Borrower or any of its assets;
    

    
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             (c)  The Borrower has the full power and authority to enter into
      and consummate the transactions contemplated by each Loan Document to
      which the Borrower is a party, has duly authorized the execution,
      delivery and performance of each Loan Document to which it is a party
      and has duly executed and delivered each Loan Document to which it is a
      party; each Loan Document to which it is a party, assuming due
      authorization, execution and delivery by the other party or parties
      thereto, constitutes a valid, legal and binding obligation of the
      Borrower, enforceable against it in accordance with the terms thereof,
      except as such enforcement may be limited by bankruptcy, insolvency,
      reorganization, receivership, moratorium or other similar laws relating
      to or affecting the rights of creditors generally, and by general equity
      principles (regardless of whether such enforcement is considered in a
      proceeding in equity or at law);
    

    
             (d)  The Borrower is not in violation of, and the execution and
      delivery by the Borrower of each Loan Document to which the Borrower is
      a party and its performance and compliance with the terms of each Loan
      Document to which the Borrower is a party will not constitute a
      violation with respect to any order or decree of any court or any order
      or regulation of any federal, state, municipal or governmental agency
      having jurisdiction over it or its business, which violation would
      materially and adversely affect the financial condition or operations of
      the Borrower or any of its properties or materially and adversely affect
      the performance of any of its duties hereunder;
    

    
             (e)  There are no actions or proceedings against, or
      investigations of, the Borrower currently pending with regard to which
      the Borrower has received service of process, and no action or
      proceeding against, or investigation of, the Borrower is, to the
      knowledge of the Borrower, threatened or otherwise pending before any
      court, administrative agency or other tribunal that (A) would prohibit
      its entering into any of the Loan Documents to which it is a party or
      render its obligations thereunder invalid, (B) seeks to prevent the
      consummation of any of the transactions contemplated by any of the Loan
      Documents to which it is a party or (C) would prohibit or materially and
      adversely affect the performance by the Borrower of its obligations
      under, or the validity or enforceability of, any of the Loan Documents
      to which it is a party;
    

    
             (f)  No consent, approval, authorization or order of any court or
      governmental agency or body is required for the execution, delivery and
      performance by the Borrower of, or compliance by the Borrower with, any
      of the Loan Documents to which the Borrower is a party, or for the
      consummation of the transactions contemplated by any of the Loan
      Documents to which the Borrower is a party, except for such consents,
      approvals, authorizations and orders, if any, that have been obtained
      prior to such date;
    

    
             (g)  The Borrower is solvent, is able to pay its debts as they
      become due and has capital sufficient to carry on its business and its
      obligations hereunder; it will not be rendered insolvent by the
      execution and delivery of any of the Loan Documents to which it is a
      party or the assumption of any of its obligations thereunder; no
      petition of bankruptcy (or similar Bankruptcy Proceeding) has been filed
      by or against the Borrower;
    

    
             (h)  The Borrower will be the sole owner of, each item in the
      Purchased Assets transferred by the Originator, free and clear of any
      Lien other than Permitted Liens, and, subject to the Loan Agreement, the
      Agent will have a first priority perfected security interest in each
      item of Collateral, in each case free and clear of any Lien other than
      Permitted Liens;
    

    
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             (i)  The Borrower acquired title to the Purchased Assets in good
      faith, without notice of any adverse claim;
    

    
             (j)  None of the Loan Documents to which the Borrower is a party,
      nor any Officer’s Certificate, statement, report or other document
      prepared by the Borrower and furnished or to be furnished by it pursuant
      to any of the Loan Documents to which it is a party or in connection
      with the transactions contemplated thereby contains any untrue statement
      of material fact or omits to state a material fact necessary to make the
      statements contained herein or therein not misleading;
    

    
             (k)  The Borrower is not required to be registered as an
      “investment company,” under the 1940 Act;
    

    
             (l)  The Borrower’s principal place of business and chief
      executive offices are located at 400 Hamilton Avenue, Suite 310, Palo
      Alto, California 94301, or at such other address as shall be designated
      by such party in a written notice to the other parties hereto; and
    

    
             (m)  The Borrower covenants that during the continuance of this
      Agreement it will comply in all respects with the provisions of its
      organizational documents in effect from time to time.
    

    
      Section 3.02.  Representations and Warranties of the
      Originator.
    

    
      The Originator hereby represents and warrants to the other parties
      hereto and the Lenders that as of the Closing Date and as of each
      Transfer Date:
    

    
             (a)  The Originator is a corporation duly organized, validly
      existing and in good standing under the laws of the jurisdiction of its
      organization, is duly qualified, in good standing and licensed to carry
      on its business in each state where the conduct of its business requires
      it to be so qualified and licensed and has full corporate power and
      authority to own its property, to carry on its business as currently
      conducted and to enter into and perform its obligations under each Loan
      Document to which it is a party;
    

    
             (b)  The execution and delivery by the Originator of each Loan
      Document to which it is a party and its performance of and compliance
      with the terms thereof will not violate the Originator’s organizational
      documents or constitute a default (or an event which, with notice or
      lapse of time, or both, would constitute a default) under, or result in
      the breach or acceleration of, any material contract, agreement or other
      instrument to which the Originator is a party or which may be applicable
      to the Originator or any of its assets in each case that is likely to
      affect materially and adversely its ability to carry out the
      transactions contemplated hereby;
    

    
             (c)  The Originator has the full power and authority to enter
      into and consummate all transactions contemplated by the Loan Documents
      to be consummated by it, has duly authorized the execution, delivery and
      performance of each Loan Document to which it is a party and has duly
      executed and delivered each Loan Document to which it is a party; each
      Loan Document to which it is a party, assuming due authorization,
      execution and delivery by each of the other parties thereto, constitutes
      a valid, legal and binding obligation of the Originator, enforceable
      against it in accordance with the terms hereof, except as such
      enforcement may be limited by bankruptcy, insolvency, reorganization,
      receivership, moratorium or other similar laws relating to or affecting
      the rights of creditors generally, and by general equity principles
      (regardless of whether such enforcement is considered in a proceeding in
      equity or at law);
    

    
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             (d)  The Originator is not in violation of, and the execution and
      delivery of each Loan Document to which it is a party by the Originator
      and its performance and compliance with the terms of each Loan Document
      to which it is a party will not constitute a violation with respect to,
      any order or decree of any court or any order or regulation of any
      federal, state, municipal or governmental agency having jurisdiction
      over it or its business, which violation would materially and adversely
      affect the financial condition, business or operations of the Originator
      or its properties or materially and adversely affect the performance of
      its duties under any Loan Document to which it is a party;
    

    
             (e)  There are no actions or proceedings against, or
      investigations of, the Originator currently pending with regard to which
      the Originator has received service of process, and no action or
      proceeding against, or investigation of, the Originator is, to the
      Originator’s knowledge, threatened or otherwise pending before any
      court, administrative agency or other tribunal that (A) would prohibit
      its entering into any Loan Document to which it is a party or render its
      obligations thereunder invalid, (B) seeks to prevent the consummation of
      any of the transactions contemplated by any Loan Document to which it is
      a party or (C) would prohibit or materially and adversely affect the
      sale and contribution of the Purchased Assets to the Borrower, the
      performance by the Originator of its obligations under, or the validity
      or enforceability of, any Loan Document to which it is a party;
    

    
             (f)  No consent, approval, authorization or order of any court or
      governmental agency or body is required for:  (1) the execution,
      delivery and performance by the Originator of, or compliance by the
      Originator with, any Loan Document to which it is a party, (2) the sale
      and contribution of the Purchased Assets to the Borrower, or (3) the
      consummation of the transactions required of it by any Loan Document to
      which it is a party, except such as shall have been obtained before such
      date, other than:  (A) the filing or recording of financing statements,
      instruments of assignment and other similar documents necessary in
      connection with the sale of the Purchased Assets to the Borrower, (B)
      such consents, approvals, authorizations, qualifications, registrations,
      filings or notices as have been obtained or made and (C) where the lack
      of such consent, approval, authorization, qualification, registration,
      filing or notice is unlikely to have a material adverse effect on its
      performance hereunder;
    

    
             (g)  Immediately prior to the sale of the Purchased Assets to the
      Borrower, the Originator had good and valid title to the Purchased
      Assets sold by it on such date free and clear of all Liens other than
      Permitted Liens;
    

    
             (h)  The Originator is solvent, is able to pay its debts as they
      become due and has capital sufficient to carry on its business and its
      obligations under each Loan Document to which it is a party; it will not
      be rendered insolvent by the execution and delivery of this Agreement or
      by the performance of its obligations under each Loan Document to which
      it is a party; no petition of bankruptcy (or similar Bankruptcy
      Proceeding) has been filed by or against the Originator prior to the
      date hereof;
    

    
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             (i)  The Originator has transferred the Purchased Assets
      transferred by it on each Transfer Date without any intent to hinder,
      delay or defraud any of its creditors;
    

    
             (j)  The Originator has received fair consideration and
      reasonably equivalent value in exchange for the Purchased Assets sold
      and contributed by it on each Transfer Date to the Borrower;
    

    
             (k)  The Originator has not dealt with any broker or agent or
      other Person who might be entitled to a fee, commission or compensation
      in connection with the transaction contemplated by this Agreement;
    

    
             (l)  The Originator’s principal place of business and chief
      executive offices are located at 400 Hamilton Avenue, Suite 310, Palo
      Alto, California 94301 or at such other address as shall be designated
      by such party in a written notice to the other parties hereto;
    

    
             (m)  The Originator and the Servicer acknowledge and agree that
      the Servicing Fee represents reasonable compensation for the performance
      of the servicing duties hereunder and that the entire Servicing Fee
      shall be treated by the Servicer and the Originator, for accounting
      purposes, as compensation for the servicing and administration of the
      Transferred Loans pursuant to this Agreement; and
    

    
             (n)  The Originator is in compliance with the financial covenants
      set forth in Section 7.01.
    

    
      It is understood and agreed that the representations and warranties set
      forth in this Section 3.02 shall survive delivery of the
      respective Loan Files to Agent or, if a Collateral Custodian has been
      appointed, the Collateral Custodian as the agent of the Agent, and shall
      inure to the benefit of the Agent, the Lenders, the Servicer, and the
      Borrower.  Upon discovery by the Originator, the Servicer, the Borrower,
      or the Agent of a breach of any of the foregoing representations and
      warranties that materially and adversely affects the value of any item
      of Collateral or the interests of the Lender Group in any item of
      Collateral, the party discovering such breach shall give prompt written
      notice to the other parties.  The fact that Agent or any Lender has
      conducted or has failed to conduct any partial or complete due diligence
      investigation of the Loan Files shall not affect any rights of the
      Lender Group under this Agreement.
    

    
      Section 3.03.  Representations and Warranties Regarding the
      Loans.
    

    
      The Originator hereby represents and warrants, to the Agent, for the
      benefit of the Lender Group, that as of the Closing Date with respect to
      each Loan sold or contributed to the Borrower on the Closing Date, if
      any, and as of each Transfer Date with respect to each Loan sold or
      contributed to the Borrower on each Transfer Date:
    

    
             (a)  the Loan is evidenced by a promissory note that has been
      duly authorized and that, together with the related Obligor Loan
      Documents, is in full force and effect and constitutes the legal, valid
      and binding obligation of the Obligor of such Loan to pay the stated
      amount of the Loan and interest thereon, and the related Obligor Loan
      Documents are enforceable against such Obligor in accordance with their
      respective terms;
    

    
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             (b)  the Loan was originated in accordance with the terms of the
      Credit and Collection Policy and arose in the ordinary course of the
      Originator’s business from the lending of money to the related Obligor;
    

    
             (c)  the Loan is not a Defaulted Loan
      or a Charged-Off Loan, and no payment or portion thereof is more
      than 30 days delinquent;
    

    
             (d)  the Obligor of such Loan has executed all appropriate
      documentation required by the Originator, as required by, and in
      accordance with, the Credit and Collection Policy;
    

    
             (e)  the Loan, together with the Obligor Loan Documents related
      thereto, is a “general intangible,” an “instrument,” a “payment
      intangible,” an “account,” or “chattel paper” within the meaning of the
      UCC of all jurisdictions that govern the perfection of the security
      interest granted therein;
    

    
             (f)  all material consents, licenses, approvals or authorizations
      of, or registrations or declarations with, any Governmental Authority
      required to be obtained, effected or given in connection with the making
      of such Loan have been duly obtained, effected or given and are in full
      force and effect;
    

    
             (g)  any applicable taxes in connection with the transfer of such
      Loan have been paid and the Obligor has been given any assurances
      (including with respect to the payment of transfer taxes and compliance
      with securities laws) required by the Obligor Loan Documents in
      connection with the transfer of the Loan;
    

    
             (h)  the Loan is denominated and payable only in Dollars in the
      United States;
    

    
             (i)  the Loan bears some current cash interest, which is due and
      payable monthly or quarterly;
    

    
             (j)  the Loan, together with the related Obligor Loan Documents,
      was originated in accordance with, and does not contravene in any
      material respect any Applicable Laws (including, without limitation,
      laws, rules and regulations relating to usury, predatory lending, truth
      in lending, fair credit billing, fair credit reporting, equal credit
      opportunity, fair debt collection practices and privacy);
    

    
             (k)  the Loan, together with the related Obligor Loan Documents,
      is fully assignable without consent of the applicable Obligor or any
      agent with respect to the Loan (except for such consents which have been
      obtained prior to the related Transfer Date), (and, if such Loan is
      secured by an interest in real property, an Assignment of Mortgage, in a
      form reasonably approved by the Agent and attached hereto as Exhibit E
      prior to the first Borrowing pursuant to which a Loan secured by an
      interest in real property shall become part of the Collateral, has been
      delivered to the Agent or, if a Collateral Custodian has been appointed,
      the Collateral Custodian);
    

    
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             (l)  the Loan was documented and closed in accordance with the
      Credit and Collection Policy, and there is only one current original of
      each promissory note representing all or a portion of the Outstanding
      Loan Balance of any Loan that is included in the Collateral, and each
      such note has been delivered to the Agent or, if a Collateral Custodian
      has been appointed, the Collateral Custodian on behalf of the Agent,
      duly endorsed as Collateral;
    

    
             (m)  the Loan and the Borrower’s interest in all related
      Collateral and Related Property are free of any Liens, except for
      Permitted Liens, and all filings and other actions required to perfect
      the security interest of the Agent, on behalf of the Lender Group, in
      the Collateral have been made or taken;
    

    
             (n)  the Loan has an original term to maturity of no more than 60
      months, and is either fully amortizing in installments (which
      installments need not be in identical amounts) over such term or the
      principal amount thereof is due in a single installment at the end of
      such term;
    

    
             (o)  no right of rescission, set off, counterclaim, defense or
      other material dispute has been asserted with respect to such Loan;
    

    
             (p)  any Related Property with respect to such Loan is insured to
      the extent consistent with the Credit and Collection Policy;
    

    
             (q)  the Obligor Loan Documents with respect to such Loan are
      complete in accordance with the Credit and Collection Policy;
    

    
             (r)  the Obligor with respect to such Loan is not a Person who
      would cause such Loan to not be an Eligible Note Receivable under the
      Loan Agreement;
    

    
             (s)  such Loan does not contain any confidentiality provision
      which would purport to restrict disclosure of data or other information
      related to such Loan or the related Obligor if such disclosure is
      subject to confidentiality restrictions that reasonably protect against
      the disclosure of such data or other information;
    

    
             (t)  the Loan does not by its terms permit the payment obligation
      of the Obligor thereunder to be converted into or exchanged for equity
      capital of such Obligor;
    

    
             (u)  the Obligor of such Loan has waived all rights of set-off
      and/or counterclaim against the Originator of the Loan and all assignees
      thereof; and
    

    
             (v)  all information on the Loan Schedule delivered to the Agent
      or, if a Collateral Custodian has been appointed, the Collateral
      Custodian on behalf of the Agent with respect to such Loan is true and
      correct.
    

    
      It is understood and agreed that the representations and warranties set
      forth herein shall survive delivery of the respective Loan Files to the
      Borrower and/or the Agent or, if a Collateral Custodian has been
      appointed, the Collateral Custodian, and shall inure to the benefit of
      the Borrower, Agent and Lender Group, as applicable, and their
      successors and assigns, notwithstanding any restrictive or qualified
      endorsement or assignment.
    

    
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      Section 3.04.  Notice of Breach of Representations and
      Warranties.  It is understood and agreed that the representations
      and warranties set forth in Section 3.03 shall survive the
      conveyance of the Purchased Assets to the Borrower and the grant by the
      Borrower of a security interest in the Collateral to the Agent, as
      applicable.  Upon discovery by the Servicer, the Originator, the
      Collateral Custodian (if one has been appointed), the Borrower, or the
      Agent of a breach of any of such representations and warranties or the
      representations and warranties of the Originator set forth in Section
      3.02 or 3.03, which breach materially and adversely affects
      the value or enforceability of all or any portion of the Purchased
      Assets or the interests of the Lender Group in all or any portion of the
      Collateral, any party discovering such breach shall give prompt written
      notice to the others.  
    

    
      Section 3.05.  Repurchase of Ineligible Loans.
    

    
             (a)  [Intentionally
      Omitted].
    

    
             (b)  Repurchase
      of Ineligible Loans.
    

    
                 (i)  Subject to Section
      3.05(b)(ii), in the event of a breach of (A) any representation or
      warranty set forth in Section 3.03 with respect to a Transferred
      Loan (or the Related Property and other related collateral constituting
      part of the Purchased Assets related to such Transferred Loan) (each
      such Transferred Loan, an “Ineligible Loan”), no later than
      30 days after the earlier of (x) knowledge of such breach on the part of
      the Originator or the Servicer and (y) receipt by the Originator or the
      Servicer of written notice thereof given by the Borrower or the Agent,
      or (B) the applicable Transferred Loan is identified for repurchase
      pursuant to Section 2.05(b)(ii), the Borrower shall repay
      Advances Outstanding in an amount equal to the aggregate Retransfer
      Price of such Ineligible Loan(s) to which such breach relates on the
      terms and conditions set forth below; provided, that no such
      repayment shall be required to be made with respect to any Ineligible
      Loan (and such Transferred Loan shall cease to be an Ineligible Loan)
      if, on or before the expiration of such 30 day period, the
      representations and warranties in Section 3.03 with respect to
      such Ineligible Loan shall be made true and correct in all material
      respects with respect to such Ineligible Loan as if such Ineligible Loan
      had become part of the Collateral on such day.  If the Borrower is
      required to repay Advances Outstanding pursuant to this Section
      3.05(b)(i), the Originator shall make a contemporaneous deposit to
      the Cash Management Account of the related Retransfer Price, as
      contemplated by Section 3.05(b)(iii).
    

    
                (ii)  Notwithstanding anything contained in this Section
      3.05(b) to the contrary, in the event that a Transferred Loan is
      determined to be an Ineligible Loan by reason of a breach of any
      representation and warranty set forth in Section 3.03 with
      respect to each Transferred Loan, the Related Property and other related
      collateral constituting part of the Purchased Assets related to such
      Transferred Loan having been (A) conveyed to the Borrower or granted as
      Collateral to the Agent, on behalf of the Lenders, free and clear of any
      Lien of any Person claiming through or under the Originator or its
      Affiliates and (B) in compliance, in all material respects, with all
      Applicable Law, immediately upon the earlier to occur of the discovery
      of such breach by the Borrower or receipt by the Borrower of written
      notice of such breach given by the Agent, the Originator shall make a
      contemporaneous deposit to the Cash Management Account as contemplated
      by Section 3.05(b)(iii) to enable the Borrower to repay, and the
      Borrower shall repay, Advances Outstanding in an amount equal to the sum
      of (I) the aggregate Outstanding Loan Balance of such Ineligible
      Loan(s), and (II) any accrued and unpaid interest thereon (collectively,
      the “Retransfer Price”), and the Agent shall release to the
      Borrower (for release to the Originator) any such Ineligible Loan(s) and
      relinquish any Lien created thereon pursuant to the Loan Agreement or
      otherwise.  On and after the date of payment of the Retransfer Price,
      the applicable Ineligible Loan and the Related Property and other
      related collateral constituting part of the Purchased Assets with
      respect to such Ineligible Loan shall not be included in the
      Collateral.  
    

    
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               (iii)  In consideration of any such release by the Borrower
      (and by the Agent on behalf of the Lenders), the Originator shall, on
      the date of such repayment, deposit to the Cash Management Account, in
      immediately available funds, an amount equal to the Retransfer Price
      therefor.  Upon each such repayment, the Agent, on behalf of the
      Lenders, shall automatically and without further action be deemed to
      release to the Borrower (which shall release to the Originator) all the
      right, title and interest of the Agent on behalf of the Lenders (and all
      right, title and interest of the Borrower) in, to and under such
      Ineligible Loan(s) and all monies due or to become due with respect
      thereto, all proceeds thereof and all rights to security for any such
      Ineligible Loan, and all proceeds and products of the foregoing.  The
      Borrower and the Agent shall, at the sole expense of the Borrower,
      execute such documents and instruments of transfer as may be prepared by
      the Borrower and the Originator (or the Servicer on their behalf) and
      take such other actions as shall reasonably be requested by the Borrower
      to effect the transfer of such Ineligible Loan pursuant to this Section
      3.05.
    

    
                (iv)  The Borrower hereby
      agrees that if any real property collateral securing any Transferred
      Loan becomes the subject of any claims, proceedings, Liens or
      encumbrances with respect to any material violation or claimed material
      violation of any Environmental Law, such Transferred Loan shall for all
      purposes hereunder be deemed an Ineligible Loan at and following the
      time of discovery of such fact by the Servicer, the Borrower, any
      Lender, the Agent, or the Collateral Custodian (if one has been
      appointed), and the Originator shall deposit to the Cash Management
      Account an amount equal to the Retransfer Price of such Ineligible
      Loan.  Such Ineligible Loan shall otherwise be treated in accordance
      with this Section 3.05.
    

    
      ARTICLE IV  

ADMINISTRATION AND SERVICING OF LOANS
    

    
      Section 4.01.  Appointment of the Servicer.
    

    
      The Borrower hereby appoints Hercules Technology Growth Capital, Inc. as
      the Servicer hereunder to service the Transferred Loans and enforce its
      respective rights and interests in and under each Transferred Loan in
      accordance with the terms and conditions of this Article IV and
      to serve in such capacity until the termination of its responsibilities
      pursuant to Section 9.01.  Hercules Technology Growth Capital,
      Inc. hereby accepts such appointment and agrees to perform the duties
      and obligations with respect thereto set forth herein.  The Servicer and
      the Borrower hereby acknowledge that the Agent and the Lender Group are
      third party beneficiaries of the obligations undertaken by the Servicer
      hereunder.
    

    
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      Section 4.02.  Duties and Responsibilities of the Servicer.
    

    
             (a)  The Servicer shall conduct the servicing, administration and
      collection of the Transferred Loans and shall take, or cause to be
      taken, all such actions as may be necessary or advisable to service,
      administer and collect Transferred Loans from time to time on behalf of
      the Borrower and as the Borrower’s agent.  The Servicer will service,
      administer and make collections on the Transferred Loans with reasonable
      care, using that degree of skill and attention that the Servicer
      exercises with respect to all comparable loans that it services for
      itself or others and in accordance with the Accepted Servicing Practices.
    

    
             (b)  The duties of the Servicer, as the Borrower’s agent, shall
      include, without limitation:
    

    
                 (i)  preparing and submitting of claims to, and post-billing
      liaison with, Obligors on Transferred Loans;
    

    
                (ii)  maintaining all necessary Servicing Records with respect
      to the Transferred Loans and providing such reports to the Borrower, the
      Agent and the Lender Group in respect of the servicing of the
      Transferred Loans (including information relating to its performance
      under this Agreement) as may be required hereunder, under the Loan
      Agreement, or as the Borrower or the Agent may reasonably request;
    

    
               (iii)  maintaining and implementing administrative and
      operating procedures (including, without limitation, an ability to
      re-create Servicing Records evidencing the Transferred Loans in the
      event of the destruction of the originals thereof) and keeping and
      maintaining all documents, books, records and other information
      reasonably necessary or advisable for the collection of the Transferred
      Loans (including, without limitation, records adequate to permit the
      identification of each new Transferred Loan and all Collections of and
      adjustments to each existing Transferred Loan); provided, that
      any successor Servicer shall only be required to re-create the Servicing
      Records of each prior Servicer to the extent such records have been
      delivered to it in a format reasonably acceptable to such successor
      Servicer;
    

    
                (iv)  promptly delivering to the Borrower, the Agent, the
      Lender Group and the Collateral Custodian (if one has been appointed),
      from time to time, such information and Servicing Records (including
      information relating to its performance under this Agreement) as the
      Borrower, the Agent, or the Collateral Custodian (if one has been
      appointed) may from time to time reasonably request;
    

    
                 (v)  identifying each Transferred Loan clearly and
      unambiguously in its Servicing Records to reflect that such Transferred
      Loan is owned by the Borrower and pledged to the Agent, for the benefit
      of the Lender Group;
    

    
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                (vi)  complying in all material respects with the Credit and
      Collection Policy in regard to each Transferred Loan;
    

    
               (vii)  complying in all material respects with all Applicable
      Laws with respect to it, its business and properties and all Transferred
      Loans and Collections with respect thereto;
    

    
              (viii)  preserving and maintaining its existence, rights,
      licenses, franchises and privileges as a corporation in the jurisdiction
      of its organization, and qualifying and remaining qualified in good
      standing as a foreign corporation and qualifying to and remaining
      authorized and licensed to perform obligations as Servicer (including
      enforcement of collection of Transferred Loans on behalf of the Borrower
      and the Agent,) in each jurisdiction where the failure to preserve and
      maintain such existence, rights, franchises, privileges and
      qualification would materially adversely affect (A) the rights or
      interests of the Borrower, the Agent, and the Lender Group in the
      Transferred Loans, (B) the collectibility of any Transferred Loan, or
      (C) the ability of the Servicer to perform its obligations hereunder;
    

    
                (ix)  notifying the Borrower and the Agent of any material
      action, suit, proceeding, dispute, offset deduction, defense or
      counterclaim that (1) is or is threatened to be asserted by an Obligor
      with respect to any Transferred Loan; or (2) would reasonably be
      expected to have a Material Adverse Effect; and
    

    
             (c)  The Borrower and Servicer hereby acknowledge that none of
      the Agent or the Lender Group, nor the Collateral Custodian (if one has
      been appointed), shall have any obligation or liability with respect to
      any Transferred Loans, nor shall any of them be obligated to perform any
      of the obligations of the Servicer hereunder.
    

    
      Section 4.03.  Authorization of the Servicer.
    

    
             (a)  Each of the Borrower and the Agent, on behalf of the Lender
      Group, hereby authorizes the Servicer (including any successor thereto)
      to take any and all reasonable steps in its name and on its behalf
      necessary or desirable and not inconsistent with the pledge of the
      Transferred Loans pursuant to the Loan Agreement, in the determination
      of the Servicer, to collect all amounts due under any and all
      Transferred Loans, including, without limitation, endorsing any of their
      names on checks and other instruments representing Collections,
      executing and delivering any and all instruments of satisfaction or
      cancellation, or of partial or full release or discharge, and all other
      comparable instruments, with respect to the Transferred Loans and, after
      the delinquency of any Transferred Loan and to the extent permitted
      under and in compliance with Applicable Law, to commence proceedings
      with respect to enforcing payment thereof, to the same extent as the
      Originator could have done if it had continued to own such Loan.  The
      Borrower shall furnish the Servicer (and any successors thereto) with
      any powers of attorney and other documents necessary or appropriate to
      enable the Servicer to carry out its servicing and administrative duties
      hereunder, and shall cooperate with the Servicer to the fullest extent
      in order to ensure the collectibility of the Transferred Loans.  In no
      event shall the Servicer be entitled to make the Borrower, the
      Collateral Custodian (if one has been appointed), the Agent or any
      member of the Lender Group a party to any litigation without such
      party’s express prior written consent, or to make the Borrower a party
      to any litigation (other than any routine foreclosure or similar
      collection procedure) without the Agent’s consent.
    

    
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             (b)  After an Event of Default has occurred and is continuing, at
      the Agent’s direction, the Servicer shall take such action as the Agent
      may deem necessary or advisable to enforce collection of the Transferred
      Loans; provided, that the Agent may, at any time after an Event
      of Default has occurred and is continuing, notify any Obligor with
      respect to any Transferred Loans of the pledge of such Transferred Loans
      to the Agent and direct that payments of all amounts due or to become
      due to the Borrower thereunder be made directly to the Agent or any
      servicer, collection agent or lock-box or other account designated by
      the Agent and, upon such notification and at the expense of the
      Borrower, the Agent may enforce collection of any such Transferred Loans
      and adjust, settle or compromise the amount or payment thereof.  The
      Agent shall give written notice to any successor Servicer of the Agent’s
      actions or directions pursuant to this Section 4.3(b).
    

    
      Section 4.04.  Collection of Payments.
    

    
             (a)  Collection
      Efforts, Modification of Loans.  The Servicer will make reasonable
      efforts to collect all payments called for under the terms and
      provisions of the Transferred Loans as and when the same become due, and
      will follow those collection procedures as are consistent with Accepted
      Servicing Practices.  The Servicer may not waive, modify or otherwise
      vary any provision of a Transferred Loan, except as may be in accordance
      with the Credit and Collection Policy.  Notwithstanding anything to the
      contrary contained herein, the Servicer will not take any action with
      respect to any Transferred Loans that is prohibited under the Loan
      Agreement.
    

    
             (b)  Taxes and
      other Amounts.  To the extent provided for in any Transferred Loan,
      the Servicer will use its best efforts to collect all payments with
      respect to amounts due for taxes, assessments and insurance premiums
      relating to such Transferred Loans or the Related Property and remit
      such amounts to the appropriate Governmental Authority or insurer on or
      prior to the date such payments are due.
    

    
             (c)  Payments to
      Cash Management Account.  On or before the Transfer Date with
      respect to each Transferred Loan, the Servicer shall have instructed all
      Obligors to make all payments in respect of all Transferred Loans
      included in the Collateral directly to a Cash Management Account
      established pursuant to the Loan Agreement.  Servicer shall also be
      responsible for compliance with the all other requirements of the cash
      management provisions in Section 2.6 of the Loan Agreement.
    

    
             (d)  Adjustments.  If
      (i) the Servicer makes a deposit into the Cash Management Account in
      respect of a Collection of a Transferred Loan included in the Collateral
      and such Collection was received by the Servicer in the form of a check
      that is not honored for any reason or (ii) the Servicer makes a mistake
      with respect to the amount of any Collection and deposits an amount that
      is less than or more than the actual amount of such Collection, the
      Servicer shall appropriately adjust the amount subsequently deposited
      into the Cash Management Account to reflect such dishonored check or
      mistake.  Any Scheduled Payment in respect of which a dishonored check
      is received shall be deemed not to have been paid.
    

    
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             (e)  Released
      Amounts.  The Agent hereby agrees that it shall release to the
      Borrower from the Collateral, and the Borrower hereby agrees to release
      to the Originator, an amount equal to the Released Amounts promptly upon
      receipt of an Officer’s Certificate of the initial Servicer (or the
      Originator if the initial Servicer is no longer the Servicer) setting
      forth the calculation thereof, which release shall be automatic and
      shall require no further act by the Agent; provided, that, the
      Agent and the Borrower, as applicable, shall execute and deliver such
      instruments of release and assignment, or otherwise confirm the
      foregoing release, as may reasonably be requested by the Servicer on
      behalf of the Borrower or the Originator, as applicable, in
      writing.  Upon such release, such Released Amounts shall not constitute
      and shall not be included in the Collateral.  Immediately upon the
      release to the Borrower by the Agent of the Released Amounts, the
      Borrower hereby irrevocably agrees to release to the Originator such
      Released Amounts, which release shall be automatic and shall require no
      further act by the Borrower; provided, that the Borrower shall execute
      and deliver such instruments of release and assignment, or otherwise
      confirming the foregoing release of any Released Amounts, as may be
      reasonably requested by the Originator.
    

    
      Section 4.05.  [Intentionally Omitted].
    

    
      Section 4.06.  Realization Upon Defaulted Loans or
      Charged-Off Loans.
    

    
      The Servicer will use its reasonable efforts to repossess or otherwise
      comparably convert the ownership of any Related Property with respect to
      a Defaulted Loan or Charged-Off Loan and will act as sales and
      processing agent for Related Property that it repossesses.  The Servicer
      will follow the practices and procedures set forth in the Credit and
      Collection Policy in order to realize upon such Related
      Property.  Without limiting the foregoing, the Servicer may sell any
      such Related Property with respect to any Defaulted Loan or Charged-Off
      Loan to the Servicer or its Affiliates for a purchase price equal to the
      then fair market value thereof (including, if applicable, the fair
      market value of any Warrant Assets included in such sale) ; any such
      sale to be evidenced by a certificate of a Responsible Officer of the
      Servicer delivered to the Agent identifying the Defaulted Loan or
      Charged-Off Loan and the Related Property, setting forth the sale price
      of the Related Property and certifying that such sale price is the fair
      market value of such Related Property; provided, that if
      after giving effect to such sale (a) the Availability would not be
      greater than or equal to zero or (b) a Default or an Event of Default
      would exist, then the Servicer prior to selling any Related Property
      with respect to a Defaulted Loan or Charged-Off Loan shall obtain the
      prior written consent of the Agent.  In any case in which any such
      Related Property has suffered damage, the Servicer will not expend funds
      in connection with any repair or toward the repossession of such Related
      Property unless it reasonably determines that such repair and/or
      repossession will increase the Recoveries by an amount greater than the
      amount of such expenses.  The Servicer will remit to the Cash Management
      Account the Recoveries received in connection with the sale or
      disposition of Related Property with respect to a Defaulted Loan or
      Charged-Off Loan.
    

    
      Section 4.07.  Maintenance of Insurance Policies.
    

    
      The Servicer will require that each Obligor with respect to a
      Transferred Loan maintain an Insurance Policy with respect to each
      Transferred Loan and the Related Property, to the extent consistent with
      the Credit and Collection Policy.  In connection with its activities as
      Servicer, the Servicer agrees to present, on behalf of the Borrower and
      the Agent, on behalf of the Lender Group, with respect to the respective
      interests, claims to the insurer under each Insurance Policy and any
      such liability policy, and to settle, adjust and compromise such claims,
      in each case, consistent with the terms of each related Transferred Loan.
    

    
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      Section 4.08.  Representations and Warranties of the
      Servicer.
    

    
      The Servicer hereby represents and warrants as follows:
    

    
             (a)  Organization
      and Good Standing; Power and Authority.  The Servicer is a
      corporation duly organized, validly existing and in good standing under
      the laws of the jurisdiction of its incorporation with all requisite
      corporate power and authority to own its properties and to conduct its
      business as presently conducted and to enter into and perform its
      obligations pursuant to this Agreement and each other Loan Document to
      which it is a party.
    

    
             (b)  Due
      Qualification.  The Servicer is qualified to do business as a
      corporation, is in good standing, and has obtained all licenses and
      approvals as required under the laws of all jurisdictions in which the
      ownership or lease of its property and or the conduct of its business
      (other than the performance of its obligations hereunder) requires such
      qualification, standing, license or approval, except to the extent that
      the failure to so qualify, maintain such standing or be so licensed or
      approved would not have an adverse effect on the interests of the
      Borrower or of the Lender Group.  The initial Servicer is qualified to
      do business as a corporation, is in good standing, and has obtained all
      licenses and approvals as required under the laws of all states in which
      the performance of its obligations pursuant to this Agreement requires
      such qualification, standing, license or approval, except where the
      failure to qualify or obtain such license or approval would not
      reasonably be expected to have a Material Adverse Effect on its ability
      to perform hereunder.
    

    
             (c)  Due
      Authorization.  The Servicer has duly authorized the execution,
      delivery and performance of this Agreement by all requisite corporate
      action.
    

    
             (d)  No Violation.  The
      consummation of the transactions contemplated by, and the fulfillment of
      the terms of, this Agreement by the Servicer (with or without notice or
      lapse of time) will not (i) conflict with, result in any breach of any
      of the terms or provisions of, or constitute a default under, the
      articles of incorporation or by-laws of the Servicer, or any material
      contractual obligation to which the Servicer is a party or by which it
      or any of its property is bound, (ii) result in the creation or
      imposition of any Lien upon any of its properties pursuant to the terms
      of any such contractual obligation (other than this Agreement), or
      (iii) violate in any material respect any Applicable Law.
    

    
             (e)  No Consent.  No
      consent, approval, authorization, order, registration, filing,
      qualification, license or permit of or with any Governmental Authority
      having jurisdiction over the Servicer or any of its properties is
      required to be obtained by or with respect to the Servicer in order for
      the Servicer to enter into this Agreement or perform its obligations
      hereunder.
    

    
             (f)  Binding
      Obligation.  This Agreement constitutes a legal, valid and binding
      obligation of the Servicer, enforceable against the Servicer in
      accordance with its terms, except as such enforceability may be limited
      by (i) applicable Bankruptcy Laws and (ii) general principles of equity
      (whether considered in a suit at law or in equity).
    

    
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             (g)  No
      Proceedings.  Except as previously disclosed to the Agent and Lender
      Group in writing, there are no proceedings or investigations (formal or
      informal) pending or threatened against the Servicer, before any
      Governmental Authority (i) asserting the invalidity of this Agreement,
      (ii) seeking to prevent the consummation of any of the transactions
      contemplated by this Agreement or (iii) seeking any determination or
      ruling that would (in the reasonable judgment of the Servicer) be
      expected to have a Material Adverse Effect.
    

    
             (h)  Reports
      Accurate.  All Servicer Certificates, information, exhibits,
      financial statements, documents, books, Servicing Records or reports
      furnished or to be furnished by the Servicer to the Agent, any member of
      the Lender Group or any other party in connection with this Agreement
      are and will be accurate, true and correct in all material respects.
    

    
             (i)  No Servicer
      Default.  No event has occurred and is continuing and no condition
      exists, or would result from a Borrowing or from the application of the
      proceeds therefrom, which constitutes or may reasonably be expected to
      constitute a Servicer Default.
    

    
             (j)  Material
      Adverse Change.  Since December 31, 2007, there has been no Material
      Adverse Change with respect to the initial Servicer.
    

    
             (k)  Credit and
      Collection Policy.  It has at all times, since the adoption of the
      Credit and Collection Policy, complied with the Credit and Collection
      Policy with respect to each Transferred Loan.
    

    
      Section 4.09.  Covenants of the Servicer.
    

    
      The Servicer hereby covenants that:
    

    
             (a)  Compliance
      with Law.  The Servicer will comply in all material respects with
      all Applicable Laws, including those with respect to the Transferred
      Loans, the Related Property and Obligor Loan Documents or any part
      thereof.
    

    
             (b)  Preservation
      of Corporate Existence.  The Servicer will preserve and maintain its
      corporate existence, rights, franchises and privileges in the
      jurisdiction of its formation, and qualify and remain qualified in good
      standing as a foreign corporation in each jurisdiction where the failure
      to maintain such existence, rights, franchises, privileges and
      qualification could reasonably be expected to have, a Material Adverse
      Effect.
    

    
             (c)  Obligations
      with Respect to Transferred Loans.  The Servicer will duly fulfill
      and comply with all obligations on the part of the Borrower to be
      fulfilled or complied with under or in connection with each Transferred
      Loan under this Agreement, the Loan Agreement or any other Loan Document
      and will do nothing to impair the rights of the Borrower or the Agent,
      on behalf of Lender Group, in, to and under the Collateral.
    

    
             (d)  Preservation
      of Security Interest.  The Borrower or the initial Servicer on
      behalf of the Borrower will execute and file (or cause the execution and
      filing of) such financing and continuation statements and any other
      documents and take such other actions that may be required by any law or
      regulation of any Governmental Authority to preserve and protect fully
      the interest of the Agent, on behalf of Lender Group, in, to and under
      the Collateral.
    

    
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             (e)  Change of
      Name or Location; Records.  The initial Servicer (i) shall not
      change its name, move the location of its principal executive office or
      change its jurisdiction of incorporation, without 30 days’ prior written
      notice to the Borrower and the Agent, and (ii) shall not move, or, if a
      Collateral Custodian has been appointed, consent to the Collateral
      Custodian moving the Obligor Loan Documents, without 45 days’ prior
      written notice to the Borrower and the Agent, and (iii) will promptly
      take all actions required of each relevant jurisdiction in order to
      continue the first priority perfected security interest of the Agent, on
      behalf of Lender Group, in all Collateral, including delivery of an
      Opinion of Counsel.
    

    
             (f)  Credit and
      Collection Policy.  The initial Servicer will (i) comply in all
      material respects with the Credit and Collection Policy in regard to
      each Transferred Loan and the Related Property included in the
      Collateral, including, without limitation, performing the loan grading
      and asset valuation functions specified in the Credit and Collection
      Policy on a quarterly basis, and (ii) furnish to the Agent, at least ten
      Business Days prior to its proposed effective date, notice of any
      proposed change in the Credit and Collection Policy.  The initial
      Servicer will not agree or otherwise permit any change in the Credit and
      Collection Policy without the prior written consent of the Agent (which
      consent shall not unreasonably be withheld), and Agent shall be deemed
      to have consented to any such proposed change unless Agent has notified
      Servicer to the contrary no later than ten Business Days after Agent’s
      receipt of such notice from Servicer.
    

    
             (g)  Notice of
      Certain Events.  The Servicer will furnish to the Agent, as soon as
      possible and in any event within one Business Day after the Servicer
      shall have knowledge of the occurrence of any Default or Event of
      Default, a written statement setting forth the details of such event and
      the action that the Servicer proposes to take with respect thereto.
    

    
             (h)  Extension or
      Amendment of Transferred Loans.  The Servicer will not, except as
      otherwise permitted in Section 4.04(a), extend, amend or
      otherwise modify the terms of any Transferred Loan.
    

    
             (i)  Other.  The
      Servicer will furnish to the Agent and the Lender Group such other
      information, documents records or reports respecting the Transferred
      Loans or the condition or operations, financial or otherwise of the
      Servicer as the Borrower, the Agent or the Lender Group may from time to
      time reasonably request in order to protect the respective interests of
      the Borrower, the Agent or the Lender Group under or as contemplated by
      this Agreement, the Loan Agreement or any other Loan Document.
    

    
             (j)  [Intentionally
      Omitted].  
    

    
             (k)  Inspection
      of Records.  The Servicer will, at any time and from time to time
      during regular business hours, as requested by the Agent (in the case of
      a Successor Servicer, with at least with five Business Days notice),
      permit the Agent and the Lender Group, or their respective agents or
      representatives, (i) to examine and make copies of and take abstracts
      from all books, records and documents (including computer tapes and
      disks) relating to the Transferred Loans and the related Obligor Loan
      Documents and (ii) to visit the offices and properties of the Borrower,
      the Originator or the Servicer, as applicable, for the purpose of
      examining such materials described in clause (i), and to discuss matters
      relating to the Transferred Loans or the Borrower’s, the Originator’s or
      the Servicer’s performance hereunder, under the Obligor Loan Documents
      and under the other Loan Documents to which such Person is a party with
      such officers, directors, employees or independent public accountants of
      the Borrower, the Originator or the Servicer, as applicable, as might
      reasonably be determined to have knowledge of such matters.  Prior to
      the occurrence of an Event of Default or a Trigger Event, the Servicer
      (or, if a Successor Servicer has been appointed, the Borrower) shall
      bear the expense of up to three such inspections in any 12-month
      period.  Upon and after the occurrence of an Event of Default, the
      initial Servicer shall be required to bear the expense of all such
      inspections.
    

    
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             (l)  Keeping of
      Records.  The Servicer will maintain and implement administrative
      and operating procedures (including, in the case of the initial
      Servicer,  an ability to recreate records evidencing Transferred Loans
      and the related Obligor Loan Documents in the event of the destruction
      of the originals thereof), and keep and maintain, all documents, books,
      computer tapes, disks, records and other information reasonably
      necessary or advisable for the collection of all Transferred Loans
      (including records adequate to permit the daily identification of each
      new Transferred Loan and all Collections of and adjustments to each
      existing Transferred Loan).  The Servicer shall give the Agent and
      Backup Servicer (with a copy to the Collateral Custodian, if one has
      been appointed) prompt notice of any material change in its
      administrative and operating procedures referred to in the previous
      sentence.
    

    
             (m)  Compliance
      with Transferred Loans.  The Servicer will (i) at its own expense,
      timely and fully perform and comply with all material provisions,
      covenants and other promises required to be observed by it under the
      Transferred Loans and the related Obligor Loan Documents; and (ii)
      timely and fully comply in all material respects with the Credit and
      Collection Policy with respect to each Transferred Loan and the related
      Obligor Loan Documents.
    

    
             (n)  Consolidation
      or Merger of the Servicer.  The initial Servicer shall not
      consolidate or merge with or into, or sell, lease or transfer all or
      substantially all of its assets to, any other Person, unless, in the
      case of any such action (i) no Event of Default or Material Adverse
      Effect would occur or be reasonably likely to occur as a result of such
      transaction, (ii) Agent provides its prior written consent to such
      transaction and (iii) such Person executes and delivers to the Agent an
      agreement by which such Person assumes the obligations of the Servicer
      hereunder and under the other Loan Documents to which it is a party, or
      confirms that such obligations remain enforceable against it, together
      with such certificates and opinions of counsel as the Agent may
      reasonably request.
    

    
      Section 4.10.  The Collateral Custodian; The Agent.
    

    
             (a)  Appointment;
      Custodial Duties.  The appointment, duties and compensation of the
      Collateral Custodian, if one is appointed, shall be provided for in its
      Collateral Custodian Agreement.
    

    
             (b)  Concerning
      the Agent.
    

    
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                 (i)  Except for its willful misconduct, gross negligence or
      bad faith, the Agent may conclusively rely on and shall be fully
      protected in acting upon any certificate, instrument, opinion, notice,
      letter, telegram or other document delivered to it and that in good
      faith it reasonably believes to be genuine and that has been signed by
      the proper party or parties.  In no event shall the Agent be liable for
      special, indirect or consequential loss or damage of any kind whatsoever
      (including but not limited to lost profits).
    

    
                (ii)  The Agent may consult counsel satisfactory to it and the
      advice or opinion of such counsel shall be full and complete
      authorization and protection in respect of any action taken, suffered or
      omitted by it hereunder in good faith and in accordance with the advice
      or opinion of such counsel.
    

    
               (iii)  The Agent shall not be liable for any error of judgment,
      or for any act done or step taken or omitted by it, in good faith, or
      for any mistakes of fact or law, or for anything that it may do or
      refrain from doing in connection herewith except in the case of its
      willful misconduct, gross negligence or bad faith.
    

    
                (iv)  The Agent makes no warranty or representation and shall
      have no responsibility (except as expressly set forth in this Agreement)
      as to the content, enforceability, completeness, validity, sufficiency,
      value, genuineness, ownership or transferability of the Loans or the
      Obligor Loan Documents, and will not be required to and will not make
      any representations as to the validity or value of any of the
      Loans.  The Agent shall not be obligated to take any legal action
      hereunder that might in its judgment involve any expense or liability
      unless it has been furnished with an indemnity reasonably satisfactory
      to it.
    

    
                 (v)  The Agent shall have no duties or responsibilities under
      this Agreement except such duties and responsibilities as are
      specifically set forth in this Agreement and no covenants or obligations
      shall be implied in this Agreement against the Agent.
    

    
                (vi)  The Agent shall not be required to expend or risk its
      own funds in the performance of its duties hereunder.
    

    
               (vii)  It is expressly agreed and acknowledged that the Agent
      is not guaranteeing performance of or assuming any liability for the
      obligations of the other parties hereto or any parties to the
      Transferred Loans.
    

    
             (c)  Release for
      Servicing.  From time to time and as appropriate for the enforcement
      or servicing of any of the Transferred Loans, the Agent is hereby
      authorized, upon receipt from the Servicer on behalf of the Borrower, of
      a written request for release of documents and receipt in the form
      annexed hereto as Exhibit F to release to the Servicer the
      related Loan File or the documents set forth in such request and receipt
      to the Servicer.  All documents so released to the Servicer on behalf of
      the Borrower shall be held by the Servicer in trust for the benefit of
      the Borrower, the Agent and the Lender Group, with respect to their
      respective interests, in accordance with the terms of this
      Agreement.  The Servicer, on behalf of the Borrower, shall return to the
      Agent the Loan File or other such documents when the Servicer’s need
      therefor in connection with such foreclosure or servicing no longer
      exists, unless the Transferred Loan shall be liquidated, in which case,
      upon receipt of an additional request for release of documents and
      receipt certifying such liquidation from the Servicer to the Agent in
      the form annexed hereto as Exhibit F, the Servicer’s request and
      receipt submitted pursuant to the first sentence of this Section
      4.10(c) shall be released by the Agent to the
      Servicer.  Notwithstanding anything in this Section 4.10(c)
      to the contrary, in no event shall the Agent be required to release any
      Loan File or part thereof to the Servicer.
    

    
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             (d)  Release for
      Payment.  Upon receipt by the Agent of the Servicer’s request for
      release of documents and receipt in the form annexed hereto as Exhibit
      F (which certification shall include a statement to the effect that
      all amounts received in connection with such payment or repurchase have
      been credited to the Cash Management Account as provided in this
      Agreement and the Loan Agreement), the Agent shall promptly release the
      related Loan File to the Servicer, on behalf of the Borrower.
    

    
      Section 4.11.  [Intentionally Omitted].
    

    
      Section 4.12.  [Intentionally Omitted].
    

    
      Section 4.13.  The Backup Servicer.
    

    
             (a)  Appointment.  The
      Borrower and the Agent hereby appoint Lyon Financial to act as Backup
      Servicer for the benefit of the Borrower, the Agent and the Lender Group
      in accordance with the terms of this Agreement.  Lyon Financial hereby
      accepts such appointment and agrees to perform the duties and
      responsibilities with respect thereto set forth herein.
    

    
             (b)  Duties.  On
      or before the initial Borrowing Date, and until the receipt by the
      Servicer of a notice of termination pursuant to Section 9.01
      hereof, the Backup Servicer shall perform, on behalf of the Borrower and
      the Agent, for the benefit of the Lender Group, the following duties and
      obligations:
    

    
                 (i)  On or before the Closing Date, the Backup Servicer shall
      accept from the Servicer delivery of the information required to be set
      forth in the Servicer Reports in hard copy and in an agreed upon
      electronic format.
    

    
                (ii)  Not later than 12:00 noon (New York City time) on each
      Record Date (or with respect to the initial Payment Date, the fourth
      Business Day preceding the Payment Date), the Servicer shall provide to
      the Backup Servicer and the Backup Servicer shall accept delivery of
      tape in an agreed upon electronic format (the “Loan Tape”)
      from the Servicer, which shall include but not be limited to the
      following information:  (x) for each Transferred Loan, the name and
      number of the related Obligor, the collection status, the loan status,
      the date of each Scheduled Payment and the Outstanding Loan Balance and
      (y) the Aggregate Outstanding Loan Balance.
    

    
               (iii)            Prior to the related Payment Date, the Backup
      Servicer shall review the Servicer Report to ensure that it is complete
      on its face and that the following items in such Servicer Report have
      been accurately calculated, if applicable, and reported:  (A) the
      Availability, (B) the Aggregate Outstanding Loan Balance, (C) the Backup
      Servicer Fee, (D) the Delinquent Loans, (E) the Defaulted Loans, and (F)
      the Charged-Off Loans.  The Backup Servicer shall notify the Agent and
      the Servicer of any disagreements with the Servicer Report based on such
      review not later than the Business Day preceding such Payment Date.
    

    
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                (iv)  If the Borrower or the Servicer disagrees with the
      report provided under Section 4.13(b)(iii) by the Backup Servicer
      or if the Borrower or the Servicer or any subservicer has not reconciled
      such discrepancy, the Backup Servicer agrees to confer with the Borrower
      or the Servicer to resolve such disagreement on or prior to the next
      succeeding Record Date and shall settle such discrepancy with the
      Borrower or the Servicer if possible, and notify the Agent of the
      resolution thereof.  The Borrower or the Servicer hereby agree to
      cooperate at their own expense, with the Backup Servicer in reconciling
      any discrepancies herein.  If within 20 days after the delivery of the
      report provided under Section 3.13(b)(iii) by the Backup
      Servicer, such discrepancy is not resolved, the Backup Servicer shall
      promptly notify the Agent and the Servicer of the continued existence of
      such discrepancy.  Following receipt of such notice by the Servicer, the
      Servicer shall deliver to the Borrower, the Agent and the Backup
      Servicer no later than the related Payment Date a certificate describing
      the nature and amount of such discrepancies and the actions the Servicer
      proposes to take with respect thereto.
    

    
      With respect to the duties described in this Section 4.13(b), in
      the absence of bad faith or gross negligence, the Backup Servicer, in
      the performance of its duties and obligations hereunder, is entitled to
      rely conclusively, and shall be fully protected in so relying, on the
      contents of each Loan Tape, including, but not limited to, the
      completeness and accuracy thereof, provided by the Servicer.
    

    
             (c)  Transition
      to Servicer Role.  After the receipt by the Servicer of an effective
      notice of termination pursuant to Section 9.01, all authority,
      power, rights and responsibilities of the Servicer under this Agreement,
      whether with respect to the Transferred Loans or otherwise, shall pass
      to and be vested in the Backup Servicer, subject to and in accordance
      with the provisions of Section 4.21, as long as the Backup
      Servicer is not prohibited by Applicable Law from fulfilling the same,
      as evidenced by an Opinion of Counsel.
    

    
             (d)  Merger or
      Consolidation.  Any Person (i) into which the Backup Servicer may be
      merged or consolidated, (ii) that may result from any merger or
      consolidation to which the Backup Servicer shall be a party, or (iii)
      that may succeed to the properties and assets of the Backup Servicer
      substantially as a whole, which Person in any of the foregoing cases
      executes an agreement of assumption to perform every obligation of the
      Backup Servicer hereunder, shall be the successor to the Backup Servicer
      under this Agreement without further act on the part of any of the
      parties to this Agreement.
    

    
             (e)  Backup
      Servicing Compensation.  As compensation for its backup servicing
      activities hereunder, the Backup Servicer shall be entitled to receive
      the Backup Servicer Fee from the Servicer and such other amounts that
      are provided for in the Backup Servicer Fee Letter.  To the extent such
      Backup Servicer Fee is not paid by the Servicer, the Backup Servicer
      shall be entitled to receive the unpaid balance of its Backup Servicer
      Fee to the extent of funds available therefor pursuant to the provision
      of Section 2.3(b) of the Loan Agreement.  The Backup Servicer’s
      entitlement to receive the Backup Servicer Fee (other than due and
      unpaid Backup Servicer Fees owed through such date) shall cease on the
      earliest to occur of:  (i) it becoming the successor Servicer, (ii) its
      removal as Backup Servicer, or (iii) the Termination Date.
    

    
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             (f)  Backup
      Servicer Removal.  The Backup Servicer may be removed with or
      without cause by the Agent, or by the Borrower with the prior written
      approval of the Agent by notice given in writing to the Backup
      Servicer.  In the event of any such removal, a replacement Backup
      Servicer may be appointed by (i) the Borrower, acting with the written
      consent of the Agent or (ii) if no such replacement is appointed within
      30 days following such removal, by the Agent.
    

    
             (g)  Scope of
      Backup Servicing Duties.  The Backup Servicer undertakes to perform
      only such duties and obligations as are specifically set forth in this
      Agreement, it being expressly understood by all parties hereto that
      there are no implied duties or obligations of the Backup Servicer
      hereunder.  Without limiting the generality of the foregoing, the Backup
      Servicer, except as expressly set forth herein, shall have no obligation
      to supervise, verify, monitor or administer the performance of the
      Servicer.  The Backup Servicer may act through its agents, attorneys and
      custodians in performing any of its duties and obligations under this
      Agreement, it being understood by the parties hereto that the Backup
      Servicer will be responsible for any misconduct or negligence on the
      part of such agents, attorneys or custodians acting on the routine and
      ordinary day-to-day operations for and on behalf of the Backup
      Servicer.  Neither the Backup Servicer nor any of its officers,
      directors, employees or agents shall be liable, directly or indirectly,
      for any damages or expenses arising out of the services performed under
      this Agreement other than damages or expenses that result from the gross
      negligence or bad faith of it or them or the failure to perform
      materially in accordance with this Agreement.
    

    
             (h)  Limitation
      on Liability.  No provision of this Agreement shall be construed to
      relieve the Backup Servicer from its own gross negligence, willful
      misconduct or bad faith, except that:  (i) the Backup Servicer shall not
      be liable for any obligation of the Servicer contained in this Agreement
      or for any errors of the Servicer contained in any computer tape,
      certificate or other data or document delivered to the Backup Servicer
      hereunder or on which the Backup Servicer must rely in order to perform
      its obligations hereunder, and the Borrower, the Agent, the Collateral
      Custodian (if one is appointed), the Backup Servicer and the Lender
      Group each agree to look only to the Servicer to perform such
      obligations; (ii) the Backup Servicer shall have no responsibility and
      shall not be in default hereunder or incur any liability for any
      failure, error, malfunction or any delay in carrying out any of their
      respective duties under this Agreement if such failure or delay results
      from the Backup Servicer acting in accordance with information prepared
      or supplied by a Person other than the Backup Servicer or the failure of
      any such other Person to prepare or provide such information; and
      (iii) the Backup Servicer shall have no responsibility, shall not be in
      default and shall incur no liability for (A) any act or failure to act
      of any third party, including the Servicer (B) any inaccuracy or
      omission in a notice or communication received by the Backup Servicer
      from any third party, (C) the invalidity or unenforceability of any
      Transferred Loan or Obligor Loan Document under Applicable Law, (D) the
      breach or inaccuracy of any representation or warranty made with respect
      to any Transferred Loan, or (E) the acts or omissions of any successor
      Backup Servicer.  In no event will the Backup Servicer (including in its
      capacity as Successor Servicer) be liable for any indirect damages, lost
      profits, special, punitive, or consequential damages which arise out of
      or in connection with the services contemplated by this Agreement even
      if the Backup Servicer has been informed of the possibility of such
      damages.  The Backup Servicer undertakes to perform only such duties and
      obligations as are specifically set forth in this Agreement, it being
      expressly understood by all parties hereto that there are no implied
      duties or obligations of the Backup Servicer hereunder.  If the Backup
      Servicer (including in its capacity as successor Servicer) is prevented
      from fulfilling its obligations hereunder as a result of government
      actions, regulations, fires, strikes, accidents, acts of god or other
      causes beyond its control, its obligations shall be suspended for a
      reasonable time during which such conditions exist.
    

    
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      Section 4.14.  Representations and Warranties of the Backup
      Servicer.
    

    
      The Backup Servicer hereby represents and warrants as follows:
    

    
             (a)  Organization
      and Good Standing.  It is a Minnesota corporation duly organized,
      validly existing and in good standing under the laws of the United
      States with all requisite power and authority to own its properties and
      to conduct its business as presently conducted and to enter into and
      perform its obligations pursuant to this Agreement.
    

    
             (b)  Due
      Qualification.  The Backup Servicer is duly qualified to do business
      as a national banking association and is in good standing, and have
      obtained all necessary licenses and approvals in all jurisdictions in
      which the ownership or lease of its property and the conduct of its
      business requires such qualification, licenses or approvals except where
      the failure to so qualify or have such licenses or approvals has not
      had, and would not be reasonably expected to have, a Material Adverse
      Effect.
    

    
             (c)  Power and
      Authority.  It has the power and authority to execute and deliver
      this Agreement and to carry out its terms.  It has duly authorized the
      execution, delivery and performance of this Agreement by all requisite
      action.
    

    
             (d)  No Violation.  The
      consummation of the transactions contemplated by, and the fulfillment of
      the terms of, this Agreement by it will not (i) conflict with, result in
      any breach of any of the terms or provisions of, or constitute a default
      under, its articles of association or any contractual obligation by
      which it or any of its property is bound, (ii) result in the creation or
      imposition of any Lien upon any of its properties pursuant to the terms
      of any contractual obligation (other than the Agreement), or (iii)
      violate any Applicable Law.
    

    
             (e)  No Consents.  No
      Consents of or with any Governmental Authority having jurisdiction over
      it or any of its respective properties is required to be obtained in
      order for it to enter into this Agreement or perform its obligations
      hereunder.
    

    
             (f)  Binding
      Obligation.  This Agreement constitutes its legal, valid and binding
      obligation, enforceable in accordance with its terms, except as such
      enforceability may be limited by (i) applicable Bankruptcy Laws and (ii)
      general principles of equity (whether considered in a suit at law or in
      equity).
    

    
             (g)  No
      Proceedings.  There are no proceedings or investigations pending or,
      to the best of its knowledge, threatened, against it before any
      Governmental Authority (i) asserting the invalidity of this Agreement,
      (ii) seeking to prevent the consummation of any of the transactions
      contemplated by this Agreement or (iii) seeking any determination or
      ruling that might (in its reasonable judgment) have a Material Adverse
      Effect.
    

    
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      Section 4.15.  Covenants of the Backup Servicer.
    

    
      The Backup Servicer hereby covenants that:
    

    
             (a)  Compliance
      with Law.  The Backup Servicer will comply in all material respects
      with all Applicable Laws.
    

    
             (b)  Preservation
      of Existence.  The Backup Servicer will preserve and maintain its
      existence, rights, franchises and privileges as a national banking
      association in good standing under the laws of the United States.
    

    
             (c)  No
      Bankruptcy Petition.  Prior to the date that is one year and one day
      (or such longer preference period as shall then be in effect) after the
      Collection Date, the Backup Servicer will not institute against the
      Borrower, or join any other Person in instituting against the Borrower,
      any bankruptcy, reorganization, arrangement, insolvency or liquidation
      proceedings or other similar proceedings under the laws of the United
      States or any state of the United States.  This Section
      4.15(c) will survive the termination of this Agreement.
    

    
             (d)  No Changes
      in Backup Servicer Fee.  The Backup Servicer will not make any
      changes to Backup Servicer Fee set forth in the Backup Servicer Fee
      Letter without the prior written approval of the Agent.
    

    
      Section 4.16.  Payment of Certain Expenses by the Servicer
      and the Borrower.
    

    
             (a)  The Servicer will be required to pay all fees and expenses
      incurred by it in connection with the transactions and activities
      contemplated by this Agreement, including fees and disbursements of
      legal counsel and independent accountants, taxes imposed on the
      Servicer, expenses incurred in connection with payments and reports
      pursuant to this Agreement, and all other fees and expenses not
      expressly stated under this Agreement for the account of the
      Borrower.  In consideration for the payment by the Borrower of the
      Servicing Fee, the Servicer (so long as it is the Originator or an
      Affiliate thereof) will be required to pay all reasonable fees and
      expenses owing to any bank or trust company in connection with the
      maintenance of the Cash Management Accounts, and the Backup Servicer Fee
      pursuant to the Backup Servicer Fee Letter, and any Collateral Custodian
      Fee pursuant to any Collateral Custodian Agreement.  The Servicer shall
      be required to pay such expenses for its own account and shall not be
      entitled to any payment therefor other than the Servicing Fee.
    

    
             (b)  The Borrower will be required to pay all fees and expenses
      incurred by the Agent, Lender Group or any Successor Servicer in
      connection with the transactions and activities contemplated by this
      Agreement, including reasonable fees and disbursements of legal counsel
      and independent accountants.
    

    
      Section 4.17.  Reports.
    

    
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             (a)  Servicer
      Report.  With respect to each Record Date and the related Collection
      Period, the Servicer will provide to the Borrower, the Backup Servicer,
      and the Agent (and if so requested by Agent, with copies for each
      Lender), on the related Record Date, a monthly statement (a “Servicer
      Report”), signed by a Responsible Officer of the Servicer and
      substantially in the form of Exhibit A.  Except as otherwise set
      forth herein, the Backup Servicer shall have no obligation to review any
      information in the Servicer Report.
    

    
             (b)  Servicer’s
      Certificate.  Together with each Servicer Report, the Servicer shall
      submit to the Borrower, the Backup Servicer, and the Agent (and if so
      requested by Agent, with copies for each Lender) a certificate
      substantially in the form of Exhibit G (a “Servicer’s
      Certificate”), signed by a Responsible Officer of the Servicer,
      which shall include a certification by such Responsible Officer that no
      Default or Event of Default has occurred and is continuing.  Except as
      otherwise set forth herein, the Backup Servicer shall have no duty to
      review any information set forth in the Servicer’s Certificate.
    

    
             (c)  Financial
      Statements.  The initial Servicer will submit to the Borrower, the
      Backup Servicer, and the Agent (and if so requested by Agent, with
      copies for each Lender), within 45 days following the end of each of the
      Servicer’s fiscal quarters (other than the final fiscal quarter),
      commencing for the fiscal quarter ending on September 30, 2008,
      unaudited financial statements of the Servicer (including an analysis of
      delinquencies and losses for each fiscal quarter) as of the end of each
      such fiscal quarter.  The Servicer shall submit to the Borrower, the
      Backup Servicer, and the Agent (and if so requested by Agent, with
      copies for each Lender), within 90 days following the end of the
      Servicer’s fiscal year, commencing with the fiscal year ending on
      December 31, 2008, annual audited financial statements as of the end of
      such fiscal year.  Except as otherwise set forth herein, the Backup
      Servicer shall have no duty to review any of the financial information
      set forth in such financial statements.
    

    
      Section 4.18.  Annual Statement as to Compliance.
    

    
      The Servicer will provide to the Borrower, the Backup Servicer, Agent
      (and if so requested by Agent, with copies for each Lender), and the
      Collateral Custodian (if one has been appointed), within 90 days
      following the end of each fiscal year of the Servicer, commencing with
      the fiscal year ending on December 31, 2008, an annual report signed by
      a Responsible Officer of the Servicer certifying that (a) a review of
      the activities of the Servicer, and the Servicer’s performance pursuant
      to this Agreement, for the period ending on the last day of such fiscal
      year has been made under such Responsible Officer’s supervision and (b)
      the Servicer has performed or has caused to be performed in all material
      respects all of its obligations under this Agreement throughout such
      year and no Servicer Default has occurred and is continuing (or if a
      Servicer Default has occurred and is continuing, specifying each such
      event, the nature and status thereof and the steps necessary to remedy
      such event, and, if a Servicer Default occurred during such year and no
      notice thereof has been given to the Agent, specifying such Servicer
      Default and the steps taken to remedy such event).
    

    
      Section 4.19.  [Intentionally Omitted].
    

    
      Section 4.20.  Limitation on Liability.
    

    
      Except as provided herein, none of the directors or officers or
      employees or agents of the Servicer shall be under any liability to the
      Borrower, the Agent, the other members of the Lender Group or any other
      Person for any action taken or for refraining from the taking of any
      action as expressly provided for in this Agreement; provided,
      that this provision shall not protect any such Person against any
      liability that would otherwise be imposed by reason of its willful
      misfeasance, bad faith or negligence (except with regard to the Backup
      Servicer when acting as successor servicer, gross negligence and not
      negligence shall apply) in the performance of duties or by reason of its
      failure to perform materially in accordance with this Agreement.
    

    
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      The Servicer shall not be under any obligation to appear in, prosecute
      or defend any legal action that is not incidental to its duties to
      service the Transferred Loans in accordance with this Agreement that in
      its reasonable opinion may involve it in any expense or liability.  The
      Servicer may, in its sole discretion, undertake any legal action
      relating to the servicing, collection or administration of Transferred
      Loans and the Related Property that it may reasonably deem necessary or
      appropriate for the benefit of the Borrower and the Lender Group with
      respect to this Agreement and the rights and duties of the parties
      hereto and the respective interests of the Borrower and the Lender Group
      hereunder.
    

    
      Section 4.21.  The Servicer and the Backup Servicer Not to
      Resign.
    

    
      Neither the Servicer nor the Backup Servicer shall resign from the
      obligations and duties hereby imposed on such Person except upon such
      Person’s determination that (i) the performance of its duties hereunder
      is or becomes impermissible under Applicable Law and (ii) there is no
      reasonable action that such Person could take to make the performance of
      its duties hereunder permissible under Applicable Law.  Any such
      determination permitting the resignation of the Servicer or the Backup
      Servicer shall be evidenced as to clause (i) above by an Opinion
      of Counsel to such effect delivered to the Borrower and the Agent.  No
      such resignation shall become effective until a successor shall have
      assumed the responsibilities and obligations of such Person in
      accordance with the terms of this Agreement.  Notwithstanding the
      foregoing, the Backup Servicer reserves the right, in the exercise of
      its own discretion, to terminate this Agreement upon not less than one
      hundred eighty (180) days notice to the other party, with a copy to the
      Agent, Borrower and the Servicer.
    

    
      Section 4.22.  Access to Certain Documentation and Information
      Regarding the Transferred Loans.
    

    
      The Borrower, the Servicer or, the Collateral Custodian (if one has been
      appointed), as applicable, shall provide to the Backup Servicer, the
      Agent and the Lender Group access to the Obligor Loan Documents and all
      other documentation regarding the Transferred Loans included as part of
      the Collateral and the Related Property in such cases where the Agent is
      required in connection with the enforcement of the rights or interests
      of the Agent or the Lender Group, or by applicable statutes or
      regulations, to review such documentation, such access being afforded
      without charge but only (i) upon two Business Days’ prior written
      request, (ii) during normal business hours and (iii) subject to the
      Servicer’s and the Collateral Custodian’s normal security and
      confidentiality procedures.  From and after the Closing Date and
      periodically thereafter at the discretion of the Agent or the applicable
      member of the Lender Group, the Agent, such member of the Lender Group
      or its agents may review the Borrower’s and the Servicer’s collection
      and administration of the Transferred Loans in order to assess
      compliance by the Servicer with the Servicer’s written policies and
      procedures, as well as with this Agreement and may conduct an audit of
      the Transferred Loans, Obligor Loan Documents and Records in conjunction
      with such a review.  Such review shall be reasonable in scope and shall
      be completed in a reasonable period of time.  A Successor Servicer shall
      be entitled to at least five Business Days notice prior to such
      review.  The Borrower shall bear the cost of such audits.
    

    
      Section 4.23.  Identification of Records.
    

    
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      The Servicer shall clearly and unambiguously identify each Transferred
      Loan that is part of the Collateral and the Related Property in its
      computer or other records to reflect that the interest in such
      Transferred Loans and Related Property have been transferred to and are
      owned by the Borrower and that the Agent, on behalf of the Lender Group,
      has the security interest and Lien therein granted by Borrower pursuant
      to the Loan Agreement.
    

    
      ARTICLE V  

ESTABLISHMENT OF CASH MANAGEMENT ACCOUNT
    

    
      Section 5.01.  Cash Management Account.
    

    
             (a)  Establishment
      of Cash Management Account.  The Servicer, for the benefit of the
      Agent and the Lender Group, shall cause to be established and maintained
      a Cash Management Account in accordance with the requirements of Section
      2.6 of the Loan Agreement.
    

    
             (b)  Deposits to
      Cash Management Account.  The Servicer shall deposit or cause to be
      deposited all Collections on or in respect of each Transferred Loan
      collected on or after the related Transfer Date (to the extent received
      by the Servicer) within one Business Day after receipt thereof.  The
      Servicer agrees that it will cause the Originator or other appropriate
      Person paying such amounts, as the case may be, to remit directly to the
      Cash Management Account, within one Business Day after receipt thereof,
      all such amounts to the extent such amounts are received by such
      Person.  
    

    
      ARTICLE VI  

[RESERVED]
    

    
      ARTICLE VII  

COVENANTS
    

    
      Section 7.01.  Financial and Serviced Portfolio Covenants of Hercules.
    

    
             (a)  Minimum
      Tangible Net Worth.  Hercules, on a consolidated basis
      with its Subsidiaries, shall maintain as of the end of each of its
      fiscal quarters a sum of (i) Tangible Net Worth, plus
      (ii) Subordinated Debt, that is greater than or equal to the sum of
      (A) $360,000,000, plus (B) ninety percent (90%) of the
      cumulative amount of equity raised by Hercules from and after the
      Closing Date.
    

    
             (b)  Maximum Debt
      to Worth Ratio.  Hercules, on a consolidated basis
      with its Subsidiaries, shall maintain as of the end of each of its
      fiscal quarters a Debt to Worth Ratio that is less than or equal to 1.25
      to 1.00.
    

    
             (c)  Minimum
      Interest Coverage Ratio. Hercules, on a consolidated basis
      with its Subsidiaries, shall maintain, as measured on the last day of
      each of its fiscal quarters, an Interest Coverage Ratio for the three
      (3) fiscal month period then ended that is greater than or equal to 2.00
      to 1.00.
    

    
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             (d)  Minimum
      Portfolio Funding Liquidity Covenant.  Hercules, on a consolidated
      basis with its Subsidiaries, shall maintain, as measured on the last day
      of each of its fiscal months, an aggregate amount of unrestricted cash
      balances and borrowing availability under committed lines of credit that
      is greater than or equal to seventy-five percent (75%) of the aggregate
      amount of unfunded commitments of Borrower to Obligors under the
      Transferred Loans.
    

    
             (e)  Maximum
      Delinquent Notes Receivable Percentage of Hercules’ Serviced Portfolios.  Hercules
      shall not permit the aggregate unpaid principal balance of all loans
      that are serviced by Hercules for its Subsidiaries and Affiliates with
      respect to which any payment thereunder remains outstanding and unpaid,
      in whole or in part, for more than sixty (60) days past the date it
      became due and payable as of the last day of any fiscal month, to be in
      excess of ten percent (10%) of the aggregate unpaid principal balance of
      all such loans serviced by Hercules as of such day.
    

    
             (f)  Maximum
      Defaulted Notes Receivable Percentage of Hercules’ Serviced Portfolios.  Hercules
      shall not permit the aggregate unpaid principal balance of all loans
      that are serviced by Hercules for its Subsidiaries and Affiliates with
      respect to which (a) any payment thereunder remains outstanding and
      unpaid, in whole or in part, for more than ninety (90) days past the
      date it became due and payable according to the original face and tenor
      of such loan, (b) with respect to which foreclosure proceedings have
      been initiated against any property securing such loan, or (c) that
      Hercules deems to be non-collectible as of the last day of any fiscal
      month, to be in excess of ten percent (10%) of the aggregate
      unpaid principal balance of all such loans serviced by Hercules as of
      such day.
    

    
      Section 7.02.  Covenants Regarding Purchased Assets.
    

    
             (a)  Protect
      Collateral.  The Originator agrees that it shall not sell, assign,
      transfer, pledge or encumber in any other manner the Purchased Assets
      (except for the assignment and pledge to the Borrower hereunder and the
      Borrower’s grant of a security interest in the Collateral to the Agent
      under the Loan Agreement).  The Originator shall warrant and defend the
      right and title herein granted unto the Borrower in and to the Purchased
      Assets (and all right, title and interest represented by the Collateral)
      against the claims and demands of all Persons whomsoever.
    

    
             (b)  Further
      Assurances.  The Originator shall, at its own expense, promptly
      execute and deliver all further instruments (including financing
      statements, stock powers, other powers and other instruments of transfer
      or control) requested by the Agent to perfect and protect the transfer
      of the Purchased Assets to the Borrower or any security interest granted
      or purported to be granted hereby or under the Loan Agreement, or to
      enable the Borrower and/or the Agent, as applicable, to exercise and
      enforce its rights and remedies hereunder with respect to the Purchased
      Assets or under the Loan Agreement with respect to any Collateral,
      including the rights and remedies under Section 9 of the Loan
      Agreement.  In addition, the Originator shall, at its own expense,
      promptly take all further action that Agent may request in order to
      perfect and protect the transfer of the Purchased Assets to the Borrower
      or any security interest granted or purported to be granted hereby or
      under the Loan Agreement, or to enable the Borrower and/or the Agent, as
      applicable, to exercise and enforce its rights and remedies hereunder
      with respect to the Purchased Assets or under the Loan Agreement with
      respect to any Collateral, including the rights and remedies under
      Section 9 of the Loan Agreement.
    

    
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             (c)  Collections
      Held in Trust.  If the Originator receives any Collections, the
      Originator shall hold such Collections separate and apart from its other
      property in trust for the Borrower and shall, within two Business Days
      after receipt thereof, deposit such Collections to the Cash Management
      Account.
    

    
             (d)  Consents.  The
      Originator shall execute and deliver to the Borrower and/or the Agent,
      as applicable, upon request and at the time the Borrower and/or the
      Agent, as applicable, exercises its remedies, any document deemed
      necessary by the Borrower and/or the Agent, as applicable, in order to
      evidence the the Originator’s consent to the Borrower and/or the Agent
      exercising their respective remedies hereunder with respect to the
      Purchased Assets or under the Loan Agreement with respect to any
      Collateral, including the rights and remedies under Section 9 of the
      Loan Agreement.
    

    
      ARTICLE VIII  

THE SERVICER AND THE COLLATERAL CUSTODIAN
    

    
      Section 8.01.  Indemnification; Third Party Claims.
    

    
             (a)  The Servicer (so long as it is the Originator or an
      Affiliate thereof) shall indemnify the Originator, the Borrower, the
      Agent and each other member of the Lender Group, the Collateral
      Custodian (if one has been appointed), and the Backup Servicer (in its
      capacity os Backup Servicer and its capacity as Successor Servicer),
      their respective officers, directors, employees, agents and “control
      persons,” as such term is used under the Securities Act and under the
      Exchange Act (each a “Servicer Indemnified Party”) and hold
      harmless each of them against any and all claims, losses, damages,
      penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments, and other costs and expenses resulting from any claim,
      demand, defense or assertion based on or grounded upon, or resulting
      from, a breach of any of the Servicer’s representations and warranties
      and covenants contained in this Agreement or in any way relating to the
      failure of the Servicer to perform its duties and service the
      Transferred Loans in compliance with the terms of this Agreement except
      to the extent such loss arises out of such Servicer Indemnified Party’s
      fraud, gross negligence or willful misconduct; provided, however,
      that if the Servicer is not liable pursuant to the provisions of Section
      8.01(b) hereof for its failure to perform its duties and service the
      Transferred Loans in compliance with the terms of this Agreement, then
      the provisions of this Section 8.01 shall have no force and
      effect with respect to such failure; provided, further
      that (i) no successor Servicer shall be liable for the breaches of
      representations or warranties or covenants, or actions or omissions, of
      a predecessor Servicer; and (ii) the Servicer shall not be so required
      to indemnify a Servicer Indemnified Party or to otherwise be liable to
      an Servicer Indemnified Party for any losses in respect of the
      non-performance of the Transferred Loans, the creditworthiness of the
      Obligors with respect to the Transferred Loans, changes in the market
      value of the Transferred Loans or other similar investment risks
      associated with the Transferred Loans arising from a breach of any
      representation or warranty set forth in Section 3.03 hereto if
      the effect of such indemnity would be to provide credit recourse to the
      Originator for the performance of the Transferred Loans.
    

    
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             (b)  None of the Originator or the Servicer or any of their
      respective Affiliates, directors, officers, employees or agents shall be
      under any liability to the Borrower, the Agent or any member of the
      Lender Group for any action taken, or for refraining from the taking of
      any action, in good faith pursuant to this Agreement, or for errors in
      judgment; provided, however, that this provision shall not
      protect the Originator, the Servicer or any of their respective
      Affiliates, directors, officers, employees, agents against the remedies
      provided herein for the breach of any warranties, representations or
      covenants made herein, or against any expense or liability specifically
      required to be borne by such party without right of reimbursement
      pursuant to the terms hereof, or against any expense or liability which
      would otherwise be imposed by reason of misfeasance, bad faith or
      negligence in the performance of the respective duties of the Servicer
      or the Originator, as the case may be.  The Originator, the Servicer and
      any of their respective Affiliates, directors, officers, employees,
      agents may rely in good faith on any document of any kind which, prima
      facie, is properly executed and submitted by any Person respecting any
      matters arising hereunder.
    

    
             (c)  The Originator agrees to indemnify and hold harmless the
      Borrower, the Agent, the Backup Servicer (in such capacity and in its
      capacity as Successor Servicer), and the Lender Group, as the ultimate
      assignees from the Origiator (each an “Originator Indemnified
      Party,” together with the Servicer Indemnified Parties, the “Indemnified
      Parties”), from and against any loss, liability, expense, damage,
      claim or injury arising out of or based on (i) any breach of any
      representation, warranty or covenant of the Originator, the Servicer or
      their Affiliates, in any Loan Document, including, without limitation,
      by reason of any acts, omissions, or alleged acts or omissions arising
      out of activities of the Originator, the Servicer or their Affiliates,
      and (ii) any untrue statement by the Originator, the Servicer or its
      Affiliates of any material fact, including, without limitation, any
      Officer’s Certificate, statement, report or other document or
      information prepared by any such Person and furnished or to be furnished
      by it pursuant to or in connection with the transactions contemplated
      thereby and not corrected prior to completion of the relevant
      transaction including, without limitation, such written information as
      may have been and may be furnished in connection with any due diligence
      investigation with respect to the Transferred Loans or any such Person’s
      business, operations or financial condition, including reasonable
      attorneys’ fees and other costs or expenses incurred in connection with
      the defense of any actual or threatened action, proceeding or claim; provided
      that the Originator shall not indemnify an Originator Indemnified Party
      to the extent such loss, liability, expense, damage or injury is due to
      either an Originator Indemnified Party’s willful misfeasance, bad faith
      or gross negligence or by reason of an Originator Indemnified Party’s
      reckless disregard of its obligations hereunder; provided, further,
      that the Originator shall not be so required to indemnify an Originator
      Indemnified Party or to otherwise be liable to an Originator Indemnified
      Party for any losses in respect of the non-performance of the
      Transferred Loans, the creditworthiness of the Obligors with respect to
      the Transferred Loans, changes in the market value of the Transferred
      Loans or other similar investment risks associated with the Transferred
      Loans arising from a breach of any representation or warranty set forth
      in Section 3.03 hereto if the effect of such indemnity would be
      to provide credit recourse to the Originator for the performance of the
      Transferred Loans.  The provisions of this indemnity shall run directly
      to and be enforceable by an Originator Indemnified Party subject to the
      limitations hereof.
    

    
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             (d)  With respect to a claim subject to indemnity hereunder made
      by any Person against an Indemnified Party (a “Third Party Claim”),
      such Indemnified Party shall notify the related indemnifying parties
      (each an “Indemnifying Party”) in writing of the Third
      Party Claim within a reasonable time after receipt by such Indemnified
      Party of written notice of the Third Party Claim unless the Indemnifying
      Parties shall have previously obtained actual knowledge
      thereof.  Thereafter, the Indemnified Party shall deliver to the
      Indemnifying Parties, within a reasonable time after the Indemnified
      Party’s receipt thereof, copies of all notices and documents (including
      court papers) received by the Indemnified Party relating to the Third
      Party Claim.  No failure to give such notice or deliver such documents
      shall effect the rights to indemnity hereunder.  Each Indemnifying Party
      shall promptly notify the Agent and the Indemnified Party (if other than
      the Agent) of any claim of which it has been notified and shall promptly
      notify the Agent and the Indemnified Party (if applicable) of its
      intended course of action with respect to any claim.
    

    
             (e)  If a Third Party Claim is made against an Indemnified Party,
      while maintaining control over its own defense, the Indemnified Party
      shall cooperate and consult fully with the Indemnifying Party in
      preparing such defense, and the Indemnified Party may defend the same in
      such manner as it may deem appropriate, including settling such claim or
      litigation after giving notice to the Indemnifying Party of such terms
      and the Indemnifying Party will promptly reimburse the Indemnified Party
      upon written request; provided, however, that the Indemnified
      Party may not settle any claim or litigation without the consent of the
      Indemnifying Party; provided, further, that the
      Indemnifying Party shall have the right to reject the selection of
      counsel by the Indemnified Party if the Indemnifying Party reasonably
      determines that such counsel is inappropriate in light of the nature of
      the claim or litigation and shall have the right to assume the defense
      of such claim or litigation if the Indemnifying Party determines that
      the manner of defense of such claim or litigation is unreasonable.
    

    
      Section 8.02.  Relationship of Servicer to the Borrower and
      the Agent.
    

    
      The relationship of the Servicer (and of any successor to the Servicer
      as servicer under this Agreement) to the Borrower and the Agent under
      this Agreement is intended by the parties hereto to be that of an
      independent contractor and not of a joint venturer, agent or partner of
      the Borrower or the Agent.
    

    
      Section 8.03.  Servicer May Be a Lender.
    

    
      Each of the Servicer and any Affiliate of the Servicer may in its
      individual or any other capacity become a Lender under the Loan
      Agreement with the same rights as it would have if it were not the
      Servicer or an Affiliate thereof except as otherwise specifically
      provided herein; provided, however, that at any time that
      Hercules or any of its Affiliates is the Servicer, neither the Servicer
      nor any of its Affiliates (other than an Affiliate which is a
      corporation whose purpose is limited to holding securities and related
      activities and which cannot incur recourse debt) may be a Lender.  In
      its capacity as a Lender, the Servicer or such Affiliate shall have an
      equal and proportionate benefit under the provisions of this Agreement
      and the Loan Agreement, without preference, priority, or distinction as
      among all of the Lenders; provided, during the time that the
      Servicer or any Affiliate thereof is a Lender it shall be without voting
      rights as a Lender for any purpose set forth in this Agreement or the
      Loan Agreement unless the Servicer or such Affiliate is the only Lender
      at such time. The Servicer shall notify the Agent promptly after it or
      any of its Affiliates proposes to become a Lender.
    

    
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      Section 8.04.  Indemnification of the Agent and other
      Persons Under the Loan Agreement.
    

    
      Hercules agrees to indemnify each of the Agent and each member of the
      Lender Group, the Collateral Custodian (if one is appointed), the Backup
      Servicer (in such capacity and in its capacity as Successor
      Servicer), their respective employees, officers, directors and agents
      and each other Person indemnified by Borrower under Section 11.3 of the
      Loan Agreement, and to reimburse each such Person’s reasonable
      out-of-pocket expenses under Section 11.3 of the Loan Agreement, as if
      Hercules were a signatory thereto. This Section 8.04 shall survive the
      termination of this Agreement.
    

    
      ARTICLE IX  

SERVICER DEFAULT
    

    
      Section 9.01.  Servicer Default.
    

    
             (a)  The occurrence of any of the following events shall
      constitute a “Servicer Default”:
    

    
                                 (1)  any failure by the Servicer to make any
      payment, transfer or deposit or to give instructions or notice to the
      Borrower, the Agent or any member of the Lender Group as required by
      this Agreement, or to deliver any Servicer Report or other report
      required hereunder on or before the date such payment, transfer,
      deposit, instruction of notice or report is required to be made or
      given, as the case may be, under the terms of this Agreement;
    

    
                                 (2)  any failure on the part of the Servicer
      duly to observe or perform in any material respect any of the other
      covenants or agreements on the part of the Servicer contained in any
      Loan Document to which it is a party;
    

    
                                 (3)  any breach on the part of the Servicer
      of any representation or warranty contained in any Loan Document to
      which it is a party that has a material adverse affect on the interests
      of any of the parties hereto or thereto or any member of the Lender
      Group;
    

    
                                 (4)  a Bankruptcy Event shall occur with
      respect to the Servicer;
    

    
                                 (5)  so long as the Servicer or the
      Originator is an Affiliate of the Borrower, any “event of default” by
      the Servicer or the Originator occurs under any of the Loan Documents;
    

    
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                                 (6)  so long as Originator or any Affiliate
      is the Servicer, if Hercules fails to comply with any of the financial
      or portfolio covenants set forth in Section 7.01;
    

    
                                 (7)  the Servicer shall fail in any material
      respect to service the Transferred Loans in accordance with the Credit
      and Collection Policy;
    

    
                                 (8)  the Servicer agrees to or otherwise
      permits any change in the Credit and Collection Policy without the prior
      written consent of the Agent (which will not unreasonably be withheld);
    

    
                                 (9)  any financial or asset information
      reasonably requested by the Agent as provided herein is not provided as
      requested within five Business Days of the receipt by the Servicer of
      such request;
    

    
                                (10)  the rendering against the Servicer of a
      final judgment, decree or order for the payment of money in excess of
      $500,000 (individually or in the aggregate) and the continuance of such
      judgment, decree or order unsatisfied and in effect for any period of 61
      or more consecutive days without a stay of execution;
    

    
                                (11)  the failure of the Servicer to make any
      payment due with respect to aggregate recourse debt or other obligations
      with an aggregate principal amount exceeding $500,000 or the occurrence
      of any event or condition that would permit acceleration of such
      recourse debt or other obligations if such event or condition has not
      been waived;
    

    
                                (12)  so long as Originator or any Affiliate
      is the Servicer, if any Change of Control (as defined in the Loan
      Agreement) with respect to Servicer is made without the prior written
      consent of the Borrower and the Agent;
    

    
                                (13)  so long as Originator or any Affiliate
      is the Servicer, if the Servicer shall fail to maintain its status as a
      business development company or as a registered investment company under
      the 1940 Act; or
    

    
                                (14)  so long as Originator or any Affiliate
      is the Servicer, if any change in the management of the Servicer
      (whether by resignation, termination, disability, death or lack of day
      to day management) relating to any of the individuals that are the Chief
      Executive Officer, Chief Legal Officer, Chief Financial Officer,
      Technology Segment Head, Life Sciences Head, or Corporate Controller of
      Servicer as of the Closing Date, or any failure by any of the
      aforementioned Persons to provide active and material participation in
      the Servicer’s daily activities including, but not limited to, general
      management, underwriting, and the credit approval process and credit
      monitoring activities, which no later than 90 days after the occurrence
      of any event specified above is not (x) cured by the Servicer hiring a
      reputable, experienced individual satisfactory to the Agent to replace
      the Person who is no longer actively participating in the management of
      the Servicer or (y) waived in writing by the Agent.
    

    
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             (b)  Upon the occurrence of (i) an Event of Default, or (ii) any
      event, condition or circumstance shall occur or exist as shall have a
      Material Adverse Effect on the Servicer, the Agent, by notice in writing
      to the Servicer (with a copy to the Backup Servicer and the Collateral
      Custodian, if one has been appointed) may, in addition to whatever
      rights such Person may have at law or in equity to damages, including
      injunctive relief and specific performance, on thirty days’ notice,
      terminate all the rights and obligations of the Servicer under this
      Agreement and in and to the Transferred Loans and the proceeds thereof,
      as servicer under this Agreement.  Within a commercially reasonable time
      following receipt by the Servicer of such written notice, all authority
      and power of the Servicer under this Agreement, whether with respect to
      the Transferred Loans or otherwise, shall, subject to Section 9.02,
      pass to and be vested in a successor servicer, and the successor
      servicer is hereby authorized and empowered to execute and deliver, on
      behalf of the Servicer, as attorney-in-fact or otherwise, any and all
      documents and other instruments and do or cause to be done all other
      acts or things necessary or appropriate to effect the purposes of such
      notice of termination, including, but not limited to, the transfer and
      endorsement or assignment of the Transferred Loans and related
      documents.  The Servicer agrees to cooperate with the successor servicer
      in effecting the termination of the Servicer’s responsibilities and
      rights hereunder, including, without limitation, the transfer to the
      successor servicer for administration by it of all amounts which shall
      at the time have been or are thereafter received with respect to the
      Purchased Assets.
    

    
      Section 9.02.  Appointment of Successor.
    

    
             (a)  On and after the date the Servicer receives a notice of
      termination pursuant to Section 9.01 hereof, or the Agent
      receives the resignation of the Servicer evidenced by an Opinion of
      Counsel, then the Backup Servicer shall automatically succeed and assume
      all obligations of the Servicer hereunder, and all authority and power
      of the Servicer under this Agreement shall pass to and be vested in the
      Backup Servicer.  As compensation therefor, the Backup Servicer shall be
      entitled to the Servicing Fee and the Successor Engagement Fee in
      addition to reimbursement of expenses incurred by the Backup Servicer in
      connection with the transition of the servicing obligations (“Transition
      Costs”); provided, however, in no event shall such
      Transition Costs exceed $50,000.00 in the aggregate.  In the event that
      there is no Backup Servicer or the Backup Servicer is unable to assume
      such obligations on such date, the Agent shall submit to Hercules the
      name of a proposed successor servicer (the “Successor Servicer”).  Hercules
      shall have the right to reject one proposed Successor Servicer within
      two (2) Business Days of the Agent’s submission and, upon such rejection
      Hercules shall have no further consent rights with respect to the
      appointment of any Successor Servicer.  If Hercules shall not have
      rejected such proposed Successor Servicer within such two (2) Business
      Day period, the Agent shall, as promptly as possible, appoint such
      Successor Servicer as servicer hereunder so long as such proposed
      Successor Servicer is acceptable to the Lender Group.  The Successor
      Servicer shall accept its appointment by a written assumption in a form
      acceptable to the Agent.  In the event that a Successor Servicer has not
      accepted its appointment at the time when the Servicer ceases to act as
      Servicer, the Agent shall petition a court of competent jurisdiction to
      appoint any established financial institution, having a net worth of not
      less than United States $50,000,000 and whose regular business includes
      the servicing of assets similar to the Transferred Loans, as the
      Successor Servicer hereunder.
    

    
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             (b)  Upon its appointment, the Backup Servicer or the Successor
      Servicer, as applicable, shall be the successor in all respects to the
      Servicer with respect to servicing functions under this Agreement and
      shall be subject to all the responsibilities, duties and liabilities
      relating thereto placed on the Servicer by the terms and provisions
      hereof, and all references in this Agreement to the Servicer shall be
      deemed to refer to the Backup Servicer or the Successor Servicer, as
      applicable; provided, however, that the Backup Servicer or
      Successor Servicer, as applicable, shall have (i) no liability with
      respect to any action performed by the terminated Servicer prior to the
      date that the Backup Servicer or Successor Servicer, as applicable,
      becomes the successor to the Servicer or any claim of a third party
      based on any alleged action or inaction of the terminated Servicer, (ii)
      no obligation to perform any advancing obligations, if any, of the
      Servicer unless it elects to in its sole discretion, (iii) no obligation
      to pay any taxes required to be paid by the Servicer (provided
      that the Backup Servicer or Successor Servicer, as applicable, shall pay
      any income taxes for which it is liable), (iv) no obligation to pay any
      of the fees and expenses of any other party to the transactions
      contemplated hereby, and (v) no liability or obligation with respect to
      any indemnification obligations of any prior Servicer, including the
      original Servicer.  The indemnification obligations of the Backup
      Servicer or the Successor Servicer, as applicable, upon becoming a
      successor servicer, are expressly limited to those instances of
      negligence or willful misconduct of the Backup Servicer or Successor
      Servicer, as applicable.
    

    
             (c)  All authority and power granted to the Servicer under this
      Agreement shall automatically cease and terminate upon termination of
      this Agreement and shall pass to and be vested in the Borrower and,
      without limitation, the Borrower is hereby authorized and empowered to
      execute and deliver, on behalf of the Servicer, as attorney-in-fact or
      otherwise, all documents and other instruments, and to do and accomplish
      all other acts or things necessary or appropriate to effect the purposes
      of such transfer of servicing rights.  The Servicer agrees to cooperate
      with the Borrower in effecting the termination of the responsibilities
      and rights of the Servicer to conduct servicing of the Transferred Loans.
    

    
             (d)  Upon the Backup Servicer receiving notice that it is
      required to serve as the Servicer hereunder pursuant to the foregoing
      provisions of this Section 9.02, the Backup Servicer will
      promptly begin the transition to its role as Servicer.  Notwithstanding
      the foregoing, the Backup Servicer may, in its discretion, appoint, or
      petition a court of competent jurisdiction to appoint, any established
      servicing institution as the successor to the Servicer hereunder in the
      assumption of all or any part of the responsibilities, duties or
      liabilities of the Servicer hereunder.  As compensation, any Successor
      Servicer so appointed shall be entitled to receive the Servicing Fee,
      together with any other servicing compensation in the form of assumption
      fees, late payment charges or otherwise as provided herein that accrued
      prior thereto, as well as Transition Costs.  In the event the Backup
      Servicer is required to solicit bids as provided herein, the Backup
      Servicer shall solicit, by public announcement, bids from banks meeting
      the qualifications set forth in this Section 9.02.  Such public
      announcement shall specify that the Successor Servicer shall be entitled
      to the full amount of the Servicing Fee as servicing compensation,
      together with any other servicing compensation in the form of assumption
      fees, late payment charges or otherwise as provided herein that accrued
      prior thereto, in addition to Transition Costs.  Within 30 days after
      any such public announcement, the Backup Servicer shall negotiate and
      effect the sale, transfer and assignment of the servicing rights and
      responsibilities hereunder to the qualified party submitting the highest
      qualifying bid.  The Backup Servicer shall deduct from any sum received
      by the Backup Servicer from the successor to the Servicer in respect of
      such sale, transfer and assignment all costs and expenses of any public
      announcement and of any sale, transfer and assignment of the servicing
      rights and responsibilities hereunder.  After such deductions, the
      remainder of such sum shall be paid by the Backup Servicer to the
      Servicer at the time of such sale, transfer and assignment to the
      Servicer’s successor.  The Backup Servicer and such successor shall take
      such action, consistent with this Agreement, as shall be necessary to
      effectuate any such succession.  No appointment of a successor to the
      Servicer hereunder shall be effective until written notice of such
      proposed appointment shall have been provided by the Backup Servicer to
      the Agent and the Agent shall have consented thereto.  The Backup
      Servicer shall not resign as servicer until a Successor Servicer has
      been appointed and accepted such appointment.  Notwithstanding anything
      to the contrary contained herein, in no event shall Lyon Financial or
      the Agent, in any capacity, be liable for any Servicing Fee or for any
      differential in the amount of the Servicing Fee paid hereunder and the
      amount necessary to induce any Successor Servicer under this Agreement
      and the transactions set forth or provided for by this Agreement.
    

    
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      If Lyon Financial becomes the Successor Servicer, Lyon Financial shall
      be required to service the Transferred Loans in accordance with the
      Obligor Loan Documents and Accepted Servicing Practices.
    

    
      Notwithstanding anything contained in this Agreement to the contrary,
      Lyon Financial as successor Servicer, and any other successor servicer,
      is authorized to accept and rely on all of the accounting, records
      (including computer records) and work of the prior Servicer relating to
      the Transferred Loans (collectively, the “Predecessor Servicer
      Work Product”) without any audit or other examination thereof,
      except where, in the exercise of reasonable care, such audit or
      examination would be advisable, and Lyon Financial shall have no duty,
      responsibility, obligation or liability for the acts and omissions of
      the prior Servicer.  If any error, inaccuracy, omission or incorrect or
      non-standard practice or procedure (collectively, “Errors”)
      exist in any Predecessor Servicer Work Product and such Errors make it
      materially more difficult to service or should cause or materially
      contribute to Lyon Financial making or continuing any Errors
      (collectively, “Continued Errors”), Lyon Financial shall
      have no duty, responsibility, obligation or liability to perform
      servicing or for such Continued Errors; provided, however, that
      Lyon Financial agrees to use commercially reasonable efforts to prevent
      further Continued Errors.  In the event that Lyon Financial becomes
      aware of Errors or Continued Errors, Lyon Financial shall, with the
      prior consent of the Agent, use its best efforts to reconstruct and
      reconcile such data as is commercially reasonable to correct such Errors
      and Continued Errors and to prevent future Continued Errors.  Lyon
      Financial shall be entitled to recover its costs thereby expended to the
      extent of funds available therefor pursuant to the provision of Section
      2.3(b) of the Loan Agreement.  
    

    
      The Servicer agrees to cooperate and use its best efforts in effecting
      the transition of the responsibilities and rights of servicing of the
      Obligor Loan Documents, including, without limitation, the transfer to
      the Backup Servicer as successor Servicer for the administration by it
      of all cash amounts that shall at the time be held by Servicer for
      deposit, or have been deposited by the Servicer, or thereafter received
      with respect to the Obligor Loan Documents and the delivery to the
      Backup Servicer as successor Servicer in an orderly and timely fashion
      of all files and records with respect to the Obligor Loan Documents and
      a computer tape in readable form (consistent with the Loan Tape)
      containing all information necessary to enable the Backup Servicer as
      successor Servicer to service the Contracts.  In addition, the Servicer
      agrees to cooperate and use its best efforts in providing at the
      Servicer’s expense the Backup Servicer, as successor Servicer, with
      reasonable access (including at the premises of the Servicer) to
      Servicer’s employees, and any and all of the books, records (in
      electronic or other form) or other information reasonably requested by
      it to enable the Backup Servicer, as successor Servicer, to assume the
      servicing functions hereunder and to maintain a list of key servicing
      personnel and contact information.
    

    
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      Backup Servicer as successor Servicer is authorized and empowered to
      execute and deliver, on behalf of Servicer as Servicer, as
      attorney-in-fact or otherwise, any and all documents and other
      instruments, and to do so or accomplish all other acts or things
      necessary or appropriate to effect the purposes of such notice of
      termination or to perform the duties of the Servicer as
      Servicer.  Servicer will provide Backup Servicer, as successor Servicer,
      with a Power of Attorney stating such.
    

    
      Section 9.03.  Waiver of Defaults.
    

    
      The Agent may waive any events permitting removal of the Servicer as
      servicer pursuant to Section 9.01. Upon any waiver of a past
      default, such default shall cease to exist and any Servicer Default
      arising therefrom shall be deemed to have been remedied for every
      purpose of this Agreement. No such waiver shall extend to any subsequent
      or other default or impair any right consequent thereto except to the
      extent expressly so waived.
    

    
      Section 9.04.  Accounting Upon Termination of Servicer.
    

    
      Upon termination of the Servicer under this Article IX, the Servicer
      shall, at its own expense:
    

    
             (a)  deliver to its successor or, if none shall yet have been
      appointed, to the Agent, any Collections received and not yet deposited
      in the Cash Management Account;
    

    
             (b)  deliver to its successor or, if none shall yet have been
      appointed, to the Agent or, if a Collateral Custodian has been
      appointed, the Collateral Custodian, all Loan Files and related
      documents and statements held by it hereunder and a copy of the Loan
      Tape;
    

    
             (c)  deliver to its successor, the Agent, and the Borrower a full
      accounting of all funds, including a statement showing the Scheduled
      Payments with respect to the Transferred Loans collected by it and a
      statement of monies held in trust by it for payments or charges with
      respect to the Transferred Loans; and
    

    
             (d)  execute and deliver such instruments and perform all acts
      reasonably requested in order to effect the orderly and efficient
      transfer of servicing of the Transferred Loans to its successor and to
      more fully and definitively vest in such successor all rights, powers,
      duties, responsibilities, obligations and liabilities of the Servicer
      under this Agreement.
    

    
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      ARTICLE X  

TERMINATION
    

    
      Section 10.01.  Termination.  This Agreement shall
      terminate upon either:  (A) the later of (i) the termination of the Loan
      Agreement and the satisfaction and discharge of all Obligations due and
      owing in accordance with the provisions thereof, or (ii) the disposition
      of all funds with respect to the last Transferred Loan and the
      remittance of all funds due hereunder and the payment of all amounts due
      and payable, including, in both cases, without limitation,
      indemnification payments payable pursuant to any Loan Document to the
      Agent, the Lender Group, the Borrower, the Servicer, the Collateral
      Custodian (if one has been appointed) and the Backup Servicer, written
      notice of the occurrence of either of which shall be provided to the
      Agent by the Servicer; or (B) the mutual written consent of the
      Servicer, the Borrower and the Agent.
    

    
      ARTICLE XI  

MISCELLANEOUS PROVISIONS
    

    
      Section 11.01.  Amendment.
    

    
      This Agreement may be amended from time to time by the written agreement
      of the Servicer, the Originator, the Collateral Custodian (if one has
      been appointed), the Backup Servicer, the Agent and the Borrower.
    

    
      Section 11.02.  Duration of Agreement.
    

    
      This Agreement shall continue in existence and effect until terminated
      as herein provided.
    

    
      Section 11.03.  GOVERNING LAW; JURISDICTION.
    

    
      THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE OF NEW YORK.  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES
      TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
      DISTRICT OF NEW YORK AND ANY APPELLATE COURT HAVING JURISDICTION TO
      REVIEW THE JUDGMENTS THEREOF. EACH OF THE PARTIES HEREBY WAIVES ANY
      OBJECTION BASED ON FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF
      ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND
      CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
      APPROPRIATE BY SUCH COURT.
    

    
      Section 11.04.  Notices.
    

    
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      All demands, notices and communications hereunder shall be in writing
      and shall be deemed to have been duly given if (i) delivered personally,
      mailed by overnight mail, certified mail or registered mail, postage
      prepaid, or (ii) transmitted by telecopy, upon telephone confirmation of
      receipt thereof, as follows: (A) in the case of the Borrower, to
      Hercules Funding II LLC, 400 Hamilton Avenue, Suite 310, Palo Alto,
      California 94301, Attention: Chief Executive Officer and Chief Financial
      Officer, telecopy number 650-473-9194, with a copy to Hercules Funding
      II LLC, 400 Hamilton Avenue, Suite 310, Palo Alto, California 94301,
      Attention: Chief Legal Officer, telecopy number: 650-473-9194 or such
      other addresses or telecopy or telephone numbers as may hereafter be
      furnished to the Agent and the other parties hereto in writing by the
      Borrower; (B) in the case of the Originator, to Hercules Technology
      Growth Capital, Inc., 400 Hamilton Avenue, Suite 310, Palo Alto,
      California 94301, Attention: Chief Executive Officer and Chief Financial
      Officer, telecopy number 650-473-9194, with a copy to Hercules
      Technology Growth Capital, Inc., 400 Hamilton Avenue, Suite 310, Palo
      Alto, California 94301, Attention: Chief Legal Officer, telecopy number
      650-473-9194, or such other addresses or telecopy or telephone numbers
      as may hereafter be furnished to the Agent and the other parties hereto
      in writing by the Originator, (C) in the case of the Servicer, to
      Hercules Technology Growth Capital, Inc., 400 Hamilton Avenue, Suite
      310, Palo Alto, California 94301, Attention: Chief Executive Officer and
      Chief Financial Officer, telecopy number 650-473-9194, with a copy to
      Hercules Technology Growth Capital, Inc., 400 Hamilton Avenue, Suite
      310, Palo Alto, California 94301, Attention: Chief Legal Officer,
      telecopy number 650-473-9194, or such other addresses or telecopy or
      telephone numbers as may hereafter be furnished to the Agent and the
      other parties hereto in writing by the Servicer; (D) in the case of the
      Collateral Custodian (if one has been appointed), to such address as may
      be specified in its Collateral Custodian Agreement or such other
      addresses or telecopy or telephone numbers as may hereafter be furnished
      to the Agent and the other parties hereto in writing by the Collateral
      Custodian; (E) in the case of the Backup Servicer to Lyon Financial
      Services, Inc., d/b/a U.S. Bank Portfolio Services, 1310 Madrid, Suite
      103, Marshall MN 56258, Attention:  Joseph Andries, Ref:  Hercules
      Funding II LLC, phone: (507) 532-7129, fax: (507) 537-5201, or such
      other addresses or telecopy or telephone numbers as may hereafter be
      furnished to the Agent and the other parties hereto in writing by the
      Backup Servicer; (F) in the case of the Agent, to Wells Fargo Foothill,
      LLC, 14241 Dallas Parkway, Suite 1300, Dallas, Texas  75244, Attention:
      Loan Portfolio Manager – Hercules Technology, phone: (972) 851-9111,
      fax:  972-387-5775 (provided, that in the case of
      delivery of any Underlying Notes or other Obligor Loan Documents to
      Agent, copies shall be sent to such addressee and all originals shall be
      sent to Wells Fargo Foothill, LLC, 14241 Dallas Parkway, Suite 1300,
      Dallas, Texas  75244, Attention: Loan Documentation - Hercules
      Technology, phone: (972) 851-9111, fax:  972-387-5775), with a copy to
      McDermott Will & Emery LLP, 3150 Porter Drive, Palo Alto,
      California  94304, Attention: Dick M. Okada, Esq, phone: (650) 813-5175,
      fax: (650) 813-5100 or such other addresses or telecopy or telephone
      numbers as may hereafter be furnished to the other parties hereto in
      writing by the Agent; any such notices shall be deemed to be effective
      with respect to any party hereto upon the receipt of such notice or
      telephone confirmation thereof by such party.
    

    
      Section 11.05.  Severability of Provisions.
    

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

    
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      Section 11.06.  No Partnership.
    

    
      Nothing herein contained shall be deemed or construed to create any
      partnership or joint venture between the parties hereto.
    

    
      Section 11.07.  Counterparts.
    

    
      This Agreement may be executed in one or more counterparts and by the
      different parties hereto on separate counterparts (including by fax or
      other electronic means), each of which, when so executed, shall be
      deemed to be an original and such counterparts, together, shall
      constitute one and the same Agreement.
    

    
      Section 11.08.  Successors and Assigns.
    

    
      This Agreement shall inure to the benefit of and be binding upon the
      Servicer, the Originator, the Borrower, the Agent, the Borrower, and
      their respective successors and permitted assigns.
    

    
      Section 11.09.  Headings. 
    

    
      The headings of the various Sections of this Agreement have been
      inserted for convenience of reference only and shall not be deemed to be
      part of this Agreement.
    

    
      Section 11.10.  Non-Petition Agreement.
    

    
      Notwithstanding any prior termination of any Loan Document, the
      Originator, the Servicer, the Collateral Custodian (if one has been
      appointed), and the Backup Servicer each severally and not jointly
      covenants that it shall not, prior to the date which is one year and one
      day, or, if longer, the applicable preference period then in effect,
      after the termination of this Agreement pursuant to Section 10.01,
      acquiesce, petition or otherwise, directly or indirectly, invoke or
      cause the Borrower to invoke the process of any governmental authority
      for the purpose of commencing or sustaining a case against the Borrower
      under any Bankruptcy Law or appointing a receiver, liquidator, assignee,
      trustee, custodian, sequestrator or other similar official of the
      Borrower or any substantial part of their respective property or
      ordering the winding up or liquidation of the affairs of the Borrower.
    

    
      Section 11.11.  Due Diligence.
    

    
      The Originator acknowledges that the Agent and the Lender Group may
      advance Borrowings and may enter into transactions based solely upon the
      information provided by the Originator to the Agent and the Lender Group
      in the Loan Schedule and the representations, warranties and covenants
      contained herein, and that the Agent, at its option, has the right prior
      to such advance of any Borrowing therein to conduct a partial or
      complete due diligence review on some or all of the Transferred Loans
      securing such Borrowing, including, without limitation, re-generating
      the information used to originate each such Transferred Loan.  The Agent
      may underwrite such Transferred Loans itself or engage a mutually agreed
      upon third party underwriter to perform such underwriting.  The
      Originator agrees to cooperate with the Agent and any third party
      underwriter in connection with such underwriting, including, but not
      limited to, providing the Agent and any third party underwriter with
      access to any and all documents, records, agreements, instruments or
      information relating to such Transferred Loans in the possession, or
      under the control, of the Servicer.  The Originator also shall make
      available to the Agent a knowledgeable financial or accounting officer
      for the purpose of answering questions respecting the Loan Files and the
      Transferred Loans. The Agent agrees (on behalf of itself and its
      Affiliates, directors, officers, employees and representatives) to use
      reasonable precaution to keep confidential, in accordance with its
      customary procedures for handling confidential information and in
      accordance with safe and sound practices, and not to disclose to any
      third party, any non-public information supplied to it or otherwise
      obtained by it hereunder with respect to the Originator or any of its
      Affiliates; provided, however, that nothing herein shall prohibit
      the disclosure of any such information to the extent required by
      statute, rule, regulation or judicial process; provided, further
      that, unless specifically prohibited by applicable law or court order,
      the Agent shall, prior to disclosure thereof, notify the Originator of
      any request for disclosure of any such non-public information.  The
      Agent further agrees not to use any such non-public information for any
      purpose unrelated to this Agreement and that the Agent shall not
      disclose such non public information to any third party underwriter
      without obtaining a written agreement from such third party underwriter
      to comply with the confidentiality provisions of this Section 11.11.
    

    
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      Section 11.12.  No Reliance.
    

    
      Each of the Originator and the Borrower hereby acknowledges that it has
      not relied on the Agent or any member of the Lender Group or any of
      their officers, directors, employees, agents and “control persons” as
      such term is used under the Securities Act and under the Exchange Act,
      for any tax, accounting, legal or other professional advice in
      connection with the transactions contemplated by the Loan Documents,
      that each of the Originator and the Borrower has retained and been
      advised by such tax, accounting, legal and other professionals as it has
      deemed necessary in connection with the transactions contemplated by the
      Loan Documents and that neither the Agent nor any member of the Lender
      Group makes any representation or warranty, and that neither the Agent
      nor any member of the Lender Group shall have any liability with respect
      to, the tax, accounting or legal treatment or implications relating to
      the transactions contemplated by the Loan Documents.
    

    
      Section 11.13.  Conflicts.
    

    
      Notwithstanding anything contained in the Loan Documents to the
      contrary, (a) in the event of the conflict between the terms of this
      Agreement and the Loan Agreement, the terms of the Loan Agreement shall
      control, and (b) in the event of the conflict between the terms of this
      Agreement and any other Loan Document (other than the Loan Agreement),
      the terms of this Agreement shall control.
    

    
      Section 11.14.  No Agency.
    

    
      Nothing contained herein or in the Loan Documents shall be construed to
      create an agency or fiduciary relationship between the Agent, any member
      of the Lender Group or any of their Affiliates and the Borrower, the
      Originator or the Servicer.  None of the Agent, any
    

    
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      member of the Lender Group, or any of their Affiliates shall be liable
      for any acts or actions affected in connection with any sale of the
      Loans by the Borrower, the Originator or the Servicer.
    

    

    

    
      [Remainder of Page Intentionally Left Blank]
    

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

    

    

    
      HERCULES FUNDING II LLC, as Borrower

    

    
      By:                                             ___               
Name:                                                         
Title:                                                         
    

    

    

    
      HERCULES TECHNOLOGY GROWTH CAPITAL, INC., as Originator and
      Servicer

    

    
      By:                    ___                                        
Name:                                                          
Title:                                                         
    

    

    

    
      LYON FINANCIAL SERVICES, INC., d/b/a U.S. BANK PORTFOLIO
      SERVICES, as Backup Servicer

    

    
      By: __                                                                        
Name:                                                          
Title:                                                         
    

    

    

    
      WELLS FARGO FOOTHILL, LLC, as Agent

    

    
      By:                            __                                  
Name:                                                          
Title:6.25% Notes due 2008

 Exhibit 4.2.6 
 (face of security) 
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND,
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
 Unless this
certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to Issuer or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered
in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 
 CUSIP No.: 14149Y AD0 
 CARDINAL HEALTH, INC. 
 6.25% Note Due 2008 
  

	 No. 1 
	 $150,000,000 

 CARDINAL HEALTH, INC., an Ohio corporation (the “Issuer”), for value received, hereby promises to pay to Cede & Co. or registered assigns, at the office or agency of the Issuer in Columbus, Ohio, the principal sum of ONE
HUNDRED FIFTY MILLION DOLLARS ($150,000,000) on July 15, 2008, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest,
semiannually on January 15 and July 15 of each year, commencing January 15, 1999, on said principal sum at said office or agency, in like coin or currency, at the rate per annum specified in the title of this Note, from the
January 15 or the July 15, as the case may be, next preceding the date of this Note to which interest has been paid, unless the date hereof is a date to which interest has been paid, in which case from the date of this Note, or unless no
interest has been paid on these Notes, in which case from July 13, 1998, until payment of said principal sum has been made or duly provided for; provided, that payment of interest may be made at the option of the Issuer by check mailed to the
address of the person entitled thereto as such address shall appear on the Security register. Notwithstanding the foregoing, if the date hereof is after the 1st day of January or July, as the case may be, and before the following January 15 or
July 15, this Note shall bear interest from such January 15 or July 15; provided, that if the Issuer shall default in the payment of interest due on such January 15 or July 15, then this Note shall bear interest from the
next preceding January 15 or July 15 to which interest has been paid or, if no interest has been paid on these Notes, from July 13, 1998. The interest so payable on any January 15 or July 15, will, subject to certain
exceptions provided in the Indenture referred to on the reverse hereof, be paid to the person in whose name this Note is registered at the close of business on the January 1 or July 1, as the case may be, next preceding such
January 15 or July 15. 

 Reference is made to the further provisions of this Note set forth on the reverse hereof. Such further
provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Note shall not be valid or become
obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Trustee under the Indenture referred to on the reverse hereof. 
 IN WITNESS WHEREOF, CARDINAL HEALTH, INC. has caused this instrument to be signed by its duly authorized officers. 
 Dated:
July 13, 1998 
  

			
	CARDINAL HEALTH, INC.
		
	By:	 	/s/ Stephanie A. Wagoner
		 	 Vice President and Treasurer

  

			
		
	Attest:	 	/s/ George H. Bennett, Jr.
		 	 Secretary

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture. 
  

			
	BANK ONE, NA, as Trustee
		
	By:	 	/s/ David Knox
		 	 Authorized Officer

 (reverse of security) 
 CARDINAL HEALTH, INC. 
 6.25% NOTE DUE 2008 
 This Note is one of a duly authorized issue of debentures, notes, bonds or other evidences of indebtedness of the Issuer (hereinafter called the
“Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to an indenture dated as of April 18, 1997 (herein called the “Indenture”), duly executed and delivered by the Issuer to BANK
ONE, NA (formerly known as Bank One, Columbus, NA) as Trustee (herein called the “Trustee”), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Trustee, the Issuer and the Holders of the Securities. The Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature
at different times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), may be subject to different sinking, purchase or analogous funds (if any) and may otherwise vary as in the Indenture
provided. This Note is one of a series designated as the 6.25% Notes Due 2008 of the Issuer, limited in aggregate principal amount to $150,000,000. 
 The Notes will mature on July 15, 2008. The Notes will be redeemable, in whole or, from time to time, in part, at the option of the Issuer at any time at a redemption price equal to the greater of (i) 100% of the principal amount
of the Notes to be redeemed or (ii) as determined by a Quotation Agent (as defined herein), the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the date of
redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined herein) plus 15 basis points, plus, in each case, accrued and unpaid
interest on the principal amount being redeemed to the date of redemption. 
 “Adjusted Treasury Rate” means, with respect to any
redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date. 
 “Comparable Treasury Issue” means the United States Treasury security
selected by a Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate
debt securities of comparable maturity to the remaining terms of such Notes. 
 “Comparable Treasury Price” means, with respect to
any redemption date, (i) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than three
such Reference Treasury Dealer Quotations, the average of all such Quotations. 
 “Quotation Agent” means the Reference Treasury
Dealer appointed by the Issuer. 
 “Reference Treasury Dealer” means (i) Bear, Stearns & Co. Inc. and its respective
successors: provided, however, that if the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Issuer shall substitute therefor another Primary Treasury Dealer, and
(ii) any other Primary Treasury Dealer selected by the Issuer. 

 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Issuer, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference
Treasury Dealer at 5:00 p.m. on the third Business Day preceding such redemption date. 
 Notice to holders of Notes to be redeemed will be
delivered by first-class mail at least 30 and not more than 60 days prior to the date fixed for redemption. Unless the Issuer defaults in payment of the redemption price, on and after the redemption date interest will cease to accrue on the Notes or
portions thereof called for redemption. 
 In case an Event of Default with respect to the 6.25% Notes Due 2008, as defined in the Indenture,
shall have occurred and be continuing, the principal hereof may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture. 
 The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the
Holders of not less than 66 2/3% in aggregate principal amount of the Securities at the time Outstanding (as defined in the
Indenture) of all series to be affected (voting as one class), evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of
any supplemental indenture or modifying in any manner the rights of the Holders of the Securities of each such series; provided, however, that no such supplemental indenture shall (i) extend the final maturity of any Security, or reduce the
principal amount thereof or any premium thereon, or reduce the rate or extend the time of payment of any interest thereon, or reduce or impair or affect the rights of any Holder to institute suit for the payment thereof or any right of repayment at
the option of the Holder, without the consent of the Holder of each Security so affected, or (ii) reduce the aforesaid percentage of Securities, the Holders of which are required to consent to any such supplemental indenture, without the
consent of the Holder of each Security affected. It is also provided in the Indenture that, with respect to certain defaults or Events of Default regarding the Securities of any series, prior to any declaration accelerating the maturity of such
Securities, the Holders of a majority in aggregate principal amount Outstanding of the Securities of such series (or, in the case of certain defaults or Events of Default, all or certain series of the Securities) may on behalf of the Holders of all
the Securities of such series (or all or certain series of the Securities, as the case may be) waive any such past default or Event of Default and its consequences. The preceding sentence shall not, however, apply to a default in the payment of the
principal of or premium, if any, or interest on any of the Securities. Any such consent or waiver by the Holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders
and owners of this Note and any Notes which may be issued in exchange or substitution herefor, irrespective of whether or not any notation thereof is made upon this Note or such other Notes. 
 No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and any premium and interest on this Note in the manner, at the respective times, at the rate and in the coin or currency herein prescribed. 
 The Issuer, the Trustee and any authorized agent of the Issuer or the Trustee may deem and treat the registered Holder hereof as the absolute owner of
this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon) for the purpose of receiving payment of, or on account of, the principal hereof and premium, if any, and subject to the
provisions on the face hereof, interest hereon, and for all other purposes, and neither the Issuer nor the Trustee nor any authorized agent of the Issuer or the Trustee shall be affected by any notice to the contrary. 
 No recourse under or upon any obligation, covenant or agreement of the Issuer in the Indenture or any indenture supplemental thereto or in any Note, or
because of the creation of any indebtedness 

 
represented thereby, shall be had against any incorporator, as such or against any past, present or future stockholder, officer or director, as such, of the
Issuer or of any successor, either directly or through the Issuer or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and released by the acceptance hereof and as part of the consideration for the issue hereof. 
 This
Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of a depository or a nominee of a Depository. This Security is exchangeable for Securities registered in the name of a person
other than the Depository or its nominee only in the limited circumstances described in the Indenture and may not be transferred except as a whole by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository
or another nominee of the Depository. 
 Terms used herein which are defined in the Indenture shall have the respective meanings assigned
thereto in the Indenture. 
 ASSIGNMENT FORM 
 To assign this Note, fill in the form below: 
 I or we assign and transfer this Note to 
  
  
 (Insert assignee’s soc. sec. or tax ID no.) 
  
  
 (Print or type assignee’s
name, address and zip code) 
 and irrevocably appoint
                                        
agent to transfer this Note on the books of the Issuer. The Agent may substitute another to act for it. 
 Date:                                       
                  Signature:
                                         
                                        

                                        
                                        (sign
exactly as your name appears on the face of this Note)

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