Document:

exv10w1

Exhibit 10.1

OFFICE LEASE

BREA FINANCIAL COMMONS

MAGUIRE PROPERTIES – 130 S. STATE COLLEGE, LLC,

a Delaware limited liability company,

as Landlord,

and

CAPITALSOURCE BANK,

a California corporation,

as Tenant

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 
	 	Page
	 
	ARTICLE 1 PREMISES
	 	 	3	 
	 
	ARTICLE 2 TERM
	 	 	3	 
	 
	ARTICLE 3 RENT; LATE CHARGES
	 	 	4	 
	 
	ARTICLE 4 ADDITIONAL RENTAL
	 	 	5	 
	 
	ARTICLE 5 ADDITIONAL TAXES
	 	 	10	 
	 
	ARTICLE 6 SECURITY
	 	 	10	 
	 
	ARTICLE 7 USE OF PREMISES
	 	 	11	 
	 
	ARTICLE 8 UTILITIES AND SERVICES
	 	 	13	 
	 
	ARTICLE 9 MAINTENANCE AND REPAIRS
	 	 	16	 
	 
	ARTICLE 10 ALTERATIONS, ADDITIONS AND IMPROVEMENTS
	 	 	18	 
	 
	ARTICLE 11 INDEMNIFICATION AND INSURANCE
	 	 	19	 
	 
	ARTICLE 12 DAMAGE OR DESTRUCTION
	 	 	21	 
	 
	ARTICLE 13 CONDEMNATION
	 	 	22	 
	 
	ARTICLE 14 INTENTIONALLY DELETED
	 	 	22	 
	 
	ARTICLE 15 ASSIGNMENT AND SUBLETTING
	 	 	22	 
	 
	ARTICLE 16 DEFAULT AND REMEDIES
	 	 	24	 
	 
	ARTICLE 17 ATTORNEYS FEES; COSTS OF SUIT
	 	 	26	 
	 
	ARTICLE 18 SUBORDINATION AND ATTORNMENT
	 	 	26	 
	 
	ARTICLE 19 QUIET ENJOYMENT
	 	 	26	 
	 
	ARTICLE 20 PARKING
	 	 	27	 
	 
	ARTICLE 21 RULES AND REGULATIONS
	 	 	27	 
	 
	ARTICLE 22 ESTOPPEL CERTIFICATES
	 	 	27	 
	 
	ARTICLE 23 ENTRY BY LANDLORD
	 	 	27	 
	 
	ARTICLE 24 LANDLORD’S LEASE UNDERTAKINGS-EXCULPATION FROM
PERSONAL LIABILITY TRANSFER OF LANDLORD’S INTEREST
	 	 	28	 
	 
	ARTICLE 25 HOLDOVER TENANCY
	 	 	28	 
	 
	ARTICLE 26 NOTICES
	 	 	29	 
	 
	ARTICLE 27 BROKERS
	 	 	29	 
	 
	ARTICLE 28 SIGNAGE RIGHTS
	 	 	29	 
	 
	ARTICLE 29 INTENTIONALLY OMITTED
	 	 	30	 
	 
	ARTICLE 30 MISCELLANEOUS
	 	 	31	 

(i)

 

INDEX

	 	 	 	 	 
	 	 	Page(s)
	Abated Rent Amount
	 	 	5	 
	ADA
	 	 	12	 
	Additional Rent
	 	 	15	 
	Affiliate
	 	 	22	 
	Affiliated Assignee
	 	 	21	 
	Alterations
	 	 	17	 
	Back Up Power
	 	 	14	 
	Base Building
	 	 	12	 
	Base Rent
	 	 	4	 
	Base Year
	 	 	5	 
	BOMA
	 	 	3	 
	Broker(s)
	 	 	2	 
	Building
	 	 	1	 
	Building Structure
	 	 	12	 
	Building Systems
	 	 	12	 
	Building Top Sign
	 	 	29	 
	Building Top Sign Occupancy Requirement
	 	 	29	 
	Business Name
	 	 	29	 
	Capital Items
	 	 	6	 
	Casualty
	 	 	21	 
	CC&Rs
	 	 	13	 
	Change Order
	 	Exhibit C	 
	Claims, Damages and Costs
	 	 	18	 
	Commencement Date
	 	 	1	 
	Common Areas
	 	 	3	 
	Comparison Year
	 	 	9	 
	Control
	 	 	20	 
	Controlling
	 	 	20	 
	Current CC&Rs
	 	 	13	 
	Damage Notice
	 	 	21	 
	Effective Date
	 	 	1	 
	Environmental Damages
	 	 	12	 
	Environmental Laws
	 	 	12	 
	Event of Default
	 	 	24	 
	Excess Electrical Requirements
	 	 	13	 
	Expense Year
	 	 	5	 
	Fair Market Rental Rate
	 	 	4	 
	Final Space Plan
	 	Exhibit C	 
	Force Majeure
	 	 	31	 
	Future CC&Rs
	 	 	13	 
	Future Security Document
	 	 	26	 
	Handle
	 	 	12	 
	Handled
	 	 	12	 
	Handling
	 	 	12	 
	Hazardous Materials
	 	 	12	 
	Holder
	 	 	26	 
	HVAC
	 	 	12	 
	Initial Term
	 	 	1	 
	Institutional Owner Practices
	 	 	9	 
	Interest Rate
	 	 	5	 
	Landlord
	 	 	1	 
	Landlord Parties
	 	 	28	 
	Landlord’s Lease Undertakings
	 	 	28	 
	Landlord’s Statement
	 	 	9	 
	Landlord’s Work
	 	Exhibit C	 
	Late Charge
	 	 	5	 
	Laws
	 	 	12	 
	Lease
	 	Exhibit F	 
	Lease Documents
	 	 	28	 
	Lease Expiration Date
	 	 	1	 
	Leasehold Improvements
	 	 	19	 
	Monument Sign
	 	 	30	 
	Objectionable Name
	 	 	29	 
	OFAC
	 	 	32	 
	Operating Expenses
	 	 	6	 
	Options to extend the Term
	 	 	1	 
	Original Tenant
	 	 	1	 
	Other Improvements
	 	 	32	 
	Parking Facilities
	 	 	3	 
	Parking Rules
	 	Exhibit D	 
	Parking Spaces
	 	 	26	 
	Partial Lease Month Rent
	 	 	5	 
	Partial Month
	 	 	1	 
	Permitted Transfer
	 	 	21	 
	Permitted Use
	 	 	2	 
	Premises
	 	 	1	 
	Project
	 	 	1	 
	Property Taxes
	 	 	5	 
	Reimbursements
	 	 	8	 
	Renewal Notice
	 	 	4	 

(i)

 

	 	 	 	 	 
	 	 	Page(s)
	Renewal Option
	 	 	4	 
	Renewal Term
	 	 	4	 
	Renewal Term Commencement Date
	 	 	4	 
	Renovation Work
	 	 	32	 
	Rent
	 	 	5	 
	Rentable Area
	 	 	1	 
	rentable square feet
	 	 	3	 
	Restoration
	 	 	21	 
	Restoration Estimate
	 	 	21	 
	Rules and Regulations
	 	 	27	 
	Security Documents
	 	 	26	 
	SNDAA
	 	 	26	 
	Standard Lease Provisions
	 	 	2	 
	Substantial Completion
	 	Exhibit C	 
	Successor
	 	 	22	 
	Successor Landlord
	 	 	26	 
	Taking
	 	 	21	 
	Target Term Commencement Date
	 	 	1	 
	Tenant Improvement Allowance
	 	Exhibit C	 
	Tenant Improvement Costs
	 	Exhibit C	 
	Tenant Improvements
	 	Exhibit C	 
	Tenant Parties
	 	 	26	 
	Tenant Party
	 	 	12	 
	Tenant’s Property
	 	 	19	 
	Tenant’s Security System
	 	 	14	 
	Tenant’s Authorized Representative
	 	Exhibit C	 
	Tenant’s Percentage Share
	 	 	9	 
	Term
	 	 	1	 
	Transfer
	 	 	22	 
	Transfer Notice
	 	 	21	 
	Transfer Profits
	 	 	21	 
	Transferee
	 	 	22	 
	Usable Area
	 	 	3	 
	usable square feet
	 	 	3	 
	Work Letter
	 	Exhibit C	 
	worth at the time of award
	 	 	24	 

(ii)

 

OFFICE LEASE

     THIS OFFICE LEASE (“Lease”) is made and entered into by and between MAGUIRE PROPERTIES — 130 S.
STATE COLLEGE, LLC, a Delaware limited liability company (“Landlord”) and the Tenant described in
Item 1 of the Basic Lease Provisions as of November 5, 2008 (the “Effective Date”).

BASIC LEASE PROVISIONS

	1.	 	Tenant: CAPITALSOURCE BANK, a California corporation (“Original Tenant”)
	 
	2.	 	Description of Premises/Building/Project:

	 	2.1	 	Premises: All of the Rentable Area contained in the Building (defined below), including Suites
100 and 200. The outline of the Premises is shown on Exhibit “A”.
	 
	 	2.2	 	Rentable Area: Approximately 42,884 square feet (Section 1.3)
	 
	 	2.3	 	Building: The building located at 130 South State College Boulevard, Brea, California
	 
	 	2.4	 	Project: That certain project with all common areas, commonly known as Brea Financial Commons.

	3.	 	Term:

	 	3.1	 	Initial Term: Subject to Section 2.2 of the Standard Lease Provisions, sixty-six (66)
months commencing on the Commencement Date.
	 
	 	3.2	 	Option to extend the Term: One (1) option to extend for five (5) years.
	 
	 	3.3	 	Commencement Date: The earlier to occur of (a) the date that is the later of (i) April 1,
2009 (the “Projected Commencement Date”) and (ii) one hundred twenty (120) days after the Delivery
Date (as defined in Section 1.2), or (b) the date that Tenant occupies any portion of the Premises
for the conduct of business and not just tenant work or inspections. The Commencement Date is
subject to postponement pursuant to Section 7 of Exhibit “C” attached hereto.
	 
	 	3.4	 	Lease Expiration Date: The last day of the calendar month which is sixty-six (66) months after
the Commencement Date, which is anticipated to be September 30, 2014.

	4.	 	Base Rent (Article 3)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Monthly Base	 	 	 	 
	 	 	Rent Rate	 	Monthly Base Rent	 	Annual Base Rent
	Months	 	(S/RSF/mo.)	 	($/mo.)	 	($/vr.)
	        1
	 	$	2.15	 	 	$	92,200.60	 	 	 	N/A	 
	       2-7
	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 
	      8-12*
	 	$	2.15	 	 	$	92,200.60	 	 	 	N/A	 
	     13-24
	 	$	2.21	 	 	$	94,773.64	 	 	$	1,137,283.68	 
	     25-36
	 	$	2.28	 	 	$	97,775.52	 	 	$	1,173,306.24	 
	     37-48
	 	$	2.35	 	 	$	100,777.40	 	 	$	1,209,328.80	 
	     49-60
	 	$	2.42	 	 	$	103,779.28	 	 	$	1,245,351.36	 
	     61-66
	 	$	2.49	 	 	$	106,781.16	 	 	 	N/A	 

 

			
	*	 	If the Commencement Date occurs on any day other than the first day of a calendar month, months 1 – 12 shall
include the partial month (“Partial Month”) in which the Commencement Date occurs (and the monthly
Base Rent payable with respect to such Partial Month shall be prorated in accordance with Section
3.1.2, below) and the twelve calendar months immediately following such Partial Month.

	5.	 	Additional Rent (Article 4)

	 	5.1	 	Base Year: The calendar year 2009
	 
	 	5.2	 	Tenant’s Percentage Share: 100% (Section 4.2)

	6.	 	Security: See Article 6
	 
	7.	 	Parking Spaces: See Article 20
	 
	8.	 	Brokers: Grubb & Ellis Company representing Tenant, and Maguire Properties, L.P. representing
Landlord (Article 27)

-1- 

 

	9.	 	Permitted Use: (i) General office and administrative use, (ii) a gym for use by Tenant’s
employees (to be constructed in accordance with the Final Plans (as defined in Section 2.2 of
Exhibit “C” attached hereto)), but not the general public, and (iii) any other lawful use which is
allowed within the zoning classification in which the Premises are located and which is consistent
with the existing first-class office character of the Building apart from Tenant’s use. (Section
7.1)
	 
	10.	 	Addresses for Notices (Article 26):

To:       Tenant

Prior to and after the Commencement Date:

CapitalSource Bank

4445 Willard Avenue, 12th Floor

Chevy Chase, Maryland 20815

Attn: Chief Legal Officer

	 	 	 
	To:       Landlord

	 	With a copy to:
	 
	c/o Maguire Properties, Inc.

	 	Gilchrist & Rutter Professional Corporation
	355 South Grand Avenue, 33rd Floor

	 	1299 Ocean Avenue, Suite 900
	Los Angeles, California 90071

	 	Santa Monica, California 90401
	Attn: Senior Vice President Leasing

	 	Attention: Jonathan S. Gross, Esq.

	11.	 	Address for Payments: All payments payable to Landlord under this Lease shall be sent to the
following address or to such other address as Landlord may designate.

Maguire Properties-130 S. State College, LLC

PO Box 60577

Los Angeles, CA 90060-0577

Wire Transfer Instructions Information:

Bank of the West

ABA #121-100-781

Account #737-010314

Maguire Properties-130 S. State College, LLC

	12.	 	Guarantor: None

     This Lease shall consist of the foregoing Basic Lease Provisions, and the provisions of the
Standard Lease Provisions (the “Standard Lease Provisions”) (consisting of Articles 1 through 30
which follow) and Exhibits “A” through “G”, inclusive, all of which are incorporated herein
by this reference as of the Effective Date. In the event of any conflict between the provisions of
the Basic Lease Provisions and the provisions of the Standard Lease Provisions, the Standard Lease
Provisions shall control. Any initially capitalized terms used herein and not otherwise defined
shall have the meanings set forth in the Standard Lease Provisions.

-2-

 

STANDARD LEASE PROVISIONS

ARTICLE 1

PREMISES

     1.1 Lease of Premises. Landlord hereby leases the Premises (as defined in Item 2.1 of the
Basic Lease Provisions) to Tenant (defined below), and Tenant hereby leases the Premises from Landlord, upon
all of the terms, covenants and conditions contained in this Lease. Pursuant to the terms of this
Lease, Tenant shall have access to the Premises 24 hours per day, seven days per week. As used in
this Lease, “Tenant” means Original Tenant, and any person or entity to whom or to which all of
Original Tenant’s interest in this Lease is assigned (or otherwise transferred) in accordance with
the provisions of Article 15 of this Lease.

     1.2 Delivery and Acceptance of Premises. Subject to Landlord’s express representations,
warranties and covenants in this Lease (collectively, “Landlord’s Warranties”), Landlord shall deliver the
Premises to Tenant in its As-Is condition for Tenant’s installation of Tenant Improvements therein
in accordance with the provisions of Exhibit “C” attached hereto within one (1) business day after
the mutual execution and delivery of this Lease (the actual date of delivery of the Premises to
Tenant, the “Delivery Date”), and Tenant shall accept the Premises in its As-Is condition for
Tenant’s use and occupancy and improvement thereof in accordance with this Lease, subject to
Landlord’s Warranties, including Landlord’s obligation to perform the Landlord’s Work (as defined
in Section 1.1 of Exhibit “C” attached hereto). The parties anticipate that the Delivery Date will
occur on or before December 1, 2008. Except as otherwise expressly provided in this Lease, Landlord
shall have no obligation to repair, restore, renovate or improve the Premises. If there are latent
defects in the Premises or any part thereof, Tenant shall be deemed to have accepted same unless
Tenant notifies Landlord thereof within six (6) months after Tenant obtains actual knowledge of
such defect(s). Landlord shall have no responsibility to correct or liability with respect to any
latent defects in any portion of the Tenant Improvements or Alterations (as defined in Section 10.2
below) installed by a contractor of Tenant, but shall be responsible for repair of or liable for
latent defects in the core and shell of the Building, subject to all applicable statutes of
limitation. Except as otherwise expressly provided in this Lease, Tenant acknowledges that
neither Landlord nor any agent of Landlord has made any representation or warranty with respect to
the Premises, the Building or any other portion of the Project, including without limitation, any
representation or warranty with respect to the suitability or fitness of the Premises, the Building
or any other portion of the Project for the conduct of Tenant’s business. Nothing in this Section
1.2 shall modify, diminish or otherwise affect the repair and maintenance obligations of Landlord
and Tenant set forth in Sections 9.1 and 9.2 below.

     1.3 Measurement of the Rentable Area of Premises and the Building.

          1.3.1 For purposes of this Lease, the parties hereby stipulate that the number of rentable square
feet contained within the Premises is as set forth in Item 2.2 of the Basic Lease Provisions.

          1.3.2 The “Rentable Area” or “rentable square feet” and “Usable Area” or “usable square feet” of any
portion of the Premises shall be calculated by Landlord in accordance with the Standard Method for
Measuring Floor Area in Office Buildings, ANSI Z65.1 - 1996 (“BOMA”).

     1.4
Common Areas. “Common Areas” shall mean the plaza and sidewalk areas, accessways and
Project parking facilities, including surface parking (collectively the “Parking Facilities”), and
the area on individual floors in the other buildings of the Project, devoted to corridors, fire
vestibules, elevators, foyers, lobbies, electric and telephone closets, restrooms, mechanical
rooms, janitor’s closets, and other similar facilities for the benefit of all tenants and invitees
and shall also mean those areas of the other buildings of the Project devoted to mechanical and
service rooms servicing the Building, or the other buildings of the Project, as applicable. The
Common Areas shall be subject to the exclusive management and control of Landlord. Landlord shall
have the right from time to time to designate, relocate and limit the use of particular areas or
portions of the Common Areas so long as such relocation or limitation does not prevent Tenant from
accessing the Premises or Parking Facilities or materially interfere with Tenant’s use of the
Premises for the conduct of its business (Landlord shall use commercially reasonable efforts to
give Tenant advance notice of such actions if Tenant would be affected thereby). Landlord shall
also have the right to temporarily close all or any portion of the Common Areas as may, in the
reasonable discretion of Landlord, be necessary to prevent a dedication thereof or the accrual of
any rights in any person so long as such action does not prevent Tenant from accessing the Premises
or Parking Facilities or materially interfere with Tenant’s use of the Premises for the conduct of
its business (Landlord shall use commercially reasonable efforts to give Tenant advance notice of
such temporary closures if Tenant would be affected thereby).

ARTICLE 2

TERM

     2.1 Term. Unless earlier terminated or extended in accordance with the express provisions
hereof, the initial term of this Lease shall be the period shown in Item 3.1 of the Basic Lease
Provisions (the “Term”). Promptly following the Commencement Date, Landlord and Tenant shall
confirm the Commencement Date and the Lease Expiration Date by executing and delivering a notice
substantially in the form attached hereto as Exhibit “B”, which Tenant shall execute and
return to Landlord within thirty (30) days of receipt thereof.

     2.2 Commencement. The Term shall commence on the Commencement Date as defined in Item 3.3
of the Basic Lease Provisions; provided, however, that in the event the Term shall commence on a
day other than the first day of any calendar month, for purposes of calculating the Lease
Expiration Date and the timing of all scheduled increases in Base Rent during the Term, the
Commencement Date shall be deemed to be the first day of the calendar month following the
Commencement Date. This Lease shall be a binding contractual obligation effective upon execution
hereof by Landlord and Tenant notwithstanding the later commencement of the Term of this Lease.
Notwithstanding anything to the contrary set forth in this Lease, if the Commencement Date has not
occurred by August 31, 2009 due to Landlord Delay (as defined in Paragraph 7.1(a) of Exhibit “C”)
or Landlord’s Work Delay (as defined in Section 7.3 of Exhibit “C”), then Landlord shall reimburse
Tenant for the excess amount of the monthly rent paid by Tenant for its existing office space in
Brea, California or for any other office space Tenant occupies because the landlord of its existing
office space refuses to allow Tenant to remain in its existing office space (collectively,
“Existing Space”) over the amount of monthly rent that is owed by Tenant under its existing lease
for such Existing Space prior to the expiration of the term thereof, for the period from September
1, 2009 until the Commencement

-3-

 

Date occurs (but not beyond February 28, 2010) (“Excess Rent”); provided further that if Tenant is
unable to remain in its Existing Space after the termination of its existing lease and relocates to
a temporary location, then Landlord shall, in addition to reimbursing Tenant for the Excess Rent,
reimburse Tenant for all expenses incurred in packing, moving, and unpacking to a temporary
location, including the costs of rewiring telephone, computer and other equipment, new stationary,
cards, announcements and all other costs that would not have been incurred but for the “double
move.” Tenant will not consent to any increase in the holdover rent payable by Tenant, or other
terms regarding Tenant’s obligations with respect to holding over in the Existing Space that could
increase Landlord’s obligation hereunder, if not required by Tenant’s existing landlord or the fee
owner of the property where the Existing Space is located as determined by Tenant in good faith,
without Landlord’s prior written consent. If the Commencement Date has not occurred by October
1, 2009 due to Landlord Delay or Landlord’s Work Delay, Tenant shall have the right, upon fifteen
(15) days’ notice to Landlord (which notice shall be ineffective if the Commencement Date has
occurred by the end of such fifteen (15) day period) to terminate this Lease, and in the event of
such termination Landlord shall refund to Tenant the amount of actual out-of-pocket costs Incurred
by Tenant, in excess of the Tenant Improvement Allowance, to design and construct the Tenant
Improvements, within ten (10) days of receipt of reasonable evidence of such costs. Without
limiting all other remedies and rights of Tenant under this Lease (including recovery of Excess
Rent), if the Commencement Date has not occurred by September 1, 2009 due to Landlord Delay or
Landlord’s Work Delay and this Lease has not been terminated pursuant to the preceding sentence,
then following the Commencement Date, Tenant shall receive a rent credit equal to three (3) days of
Base Rent for each day after September 1, 2009 that the Commencement Date fails to occur due to
Landlord Delay or Landlord’s Work Delay. By way of example, if the Commencement Date does not occur
until September 15, 2009 due to Landlord Delay, then Tenant shall receive a Base Rent credit equal
to forty-five (45) days of Base Rent.

     2.3 Renewal Term.

          2.3.1 Provided that a monetary Event of Default is not in existence as of the date of exercise of
the Renewal Option, Tenant shall have one (1) option to renew this Lease (“Renewal Option”) for the
entire Premises for a period of five (5) years (the “Renewal Term”) commencing on the first day
after the Lease Expiration Date (“Renewal Term Commencement Date”). The Renewal Option shall be
exercisable by Tenant giving written notice (“Renewal Notice”) to Landlord of its exercise of the
Renewal Option at least nine (9) months, but not more than fifteen (15) months, prior to the
expiration of the initial Term of the Lease.

          2.3.2 The Base Rent payable hereunder for the Premises during the Renewal Term shall be adjusted to
the Fair Market Rental Rate (as defined in Section 2.4 below) as of the Renewal Term Commencement
Date. In order to determine the Fair Market Rental Rate for the Renewal Term, Landlord and Tenant
ten (10) days after the date on which the Renewal Notice is given by Tenant (but not earlier than
twelve (12) months prior to the Renewal Term Commencement Date), shall commence discussions to
endeavor to agree upon the applicable Fair Market Rental Rate. In the event Landlord and Tenant do
not agree upon such rate within twenty (20) days after the expiration of said ten (10) day period,
on the twenty-fifth (25th) day after the expiration of said ten (10) day period, Landlord and Tenant
shall each simultaneously submit to the other in writing its good faith estimate of the Fair Market
Rental Rate. If the higher of said estimates is not more than one hundred and five percent (105%)
of the lower of such estimates, the Fair Market Rental Rate in question shall be deemed to be the
average of the submitted rates. If otherwise, then the rate shall be set by arbitration to be held
in Irvine, California in accordance with the Real Estate Valuation Arbitration Rules of the
American Arbitration Association, except that the arbitration shall be conducted by a single
arbitrator mutually acceptable to the parties and otherwise appointed in accordance with the rules
of the American Arbitration Association and shall be on the basis that the arbitrator shall pick
one of the two rates submitted, being the rate which is closer to the Fair Market Rental Rate as
determined by the arbitrator using the definition set forth in Section 2.4 below. The parties agree
to be bound by the decision of the arbitrator, which shall be final and non-appealable, and shall
share equally the costs of arbitration, and judgment upon the award rendered by the arbitrator may
be entered in any court having jurisdiction thereof.

          2.3.3 During the Renewal Term, Tenant shall pay Additional Rent in accordance with the provisions
of Article 4, but with a Base Year determined in connection with the determination of the Fair
Market Rental Rate.

          2.3.4 The Renewal Option set forth in this Section 2.3 is personal to Tenant and may not be
assigned, transferred or conveyed to any party, except in connection with an assignment of the
Lease in its entirety to an Affiliate or Successor of Tenant (as defined in Section 15.1).

     2.4 Fair Market Rental Rate. The phrase “Fair Market Rental Rate” shall mean the fair
market value annual rental rate which Landlord and other landlords leasing space of comparable
type, size, level of improvement, quality and floor height in first class office buildings comparably located would obtain, at or
about the time of the determination of the Fair Market Rental Rate, from any prospective tenant for
general office use of such space. Fair Market Rental Rate shall take into account the value of any
rent or equivalent economic concessions then usually and customarily given in connection with the
leasing of such comparable space for a comparable lease term including such items as the amount and
quality of existing or new tenant improvements provided by the landlord, tenant improvement
allowances (taking into account the level of existing tenant improvements which, in determining the
Fair Market Rental Rate for the Renewal Term, shall be deemed suitable for Tenant, but Tenant shall
be entitled to repair and refurbishment of such existing tenant improvements to the extent such
repair or refurbishment is available in comparable transactions and the Premises require the same),
free rent and the level of any escalation base or “stop” for such comparable space, but excluding
brokerage commission obligations. Solely as an example to illustrate the operation of this Section
2.4, if comparable space leases in the Project (or in comparable buildings for similar space) give
a tenant space for $40.00 per square foot of Rentable Area, with a $6.00 per square foot tax and
operating expense base amount, give four (4) months free rent, and an allowance of $40.00 per
square foot of Usable Area for tenant improvements in unimproved space, and if the space has not
been improved previously for occupancy, the Fair Market Rental Rate shall not be $40.00 per square
foot of Rentable Area only, but, after taking into account any of such concessions to which Tenant
is entitled under this Lease, shall also account for the value of the $6.00 per square foot tax and
operating expense base amount, four (4) months free rent and $40.00 per square foot of Usable Area
tenant improvement allowance.

ARTICLE 3

RENT; LATE CHARGES

     3.1 Base Rent; Rent.

          3.1.1 Tenant agrees to pay during the Term of this Lease as Base Rent (“Base Rent”) for the
Premises the sums shown for such periods in Item 4 of the Basic Lease Provisions.

-4-

 

          3.1.2 Except as expressly provided to the contrary herein, Base Rent shall be payable in equal
consecutive monthly installments, in advance, without abatement, deduction or offset (except as
expressly provided herein), commencing on the Commencement Date and continuing on the first day of
each calendar month thereafter, or, in the event the first day of a calendar month is not a
business day, then the next business day, except that the amount of Ninety-Two Thousand Two Hundred
and 60/100 Dollars ($92,200.60) shall be paid to Landlord upon Tenant’s execution hereof and shall
be applied by Landlord to the first payment of Base Rent due hereunder. If the Commencement Date is
a day other than the first day of a calendar month, then the Base Rent for the Partial Lease Month
(the “Partial Lease Month Rent”) shall be calculated on a per diem basis determined by dividing
the initial Monthly Base Rent shown in Item 4 of the Basic Lease Provisions by the actual number of
days in such Partial Lease Month and by multiplying such amount by the number of remaining days of
such month from and including the Commencement Date. Base Rent, all forms of Additional Rent
(defined below) payable hereunder by Tenant and all other amounts, fees, payments or charges
payable hereunder by Tenant shall (i) each constitute rent payable hereunder (and shall sometimes
collectively be referred to herein as “Rent”), (ii) be payable to Landlord when due without any
prior notice or demand therefor (except as otherwise expressly required under this Lease) in lawful
money of the United States and without any abatement, offset or deduction whatsoever (except as
expressly provided herein) and (iii) be payable to Landlord at the address of Landlord described in
Item 11 of the Basic Lease Provisions or to such other person or to such other place as Landlord
may from time to time designate in writing to Tenant.

          3.1.3 Notwithstanding anything to the contrary in this Lease, all of Tenant’s obligations to pay
Base Rent (as set forth in Section 4 of the Basic Lease Provisions) and Additional Rent under
Article 4 of this Lease shall be fully abated for each of the second (2nd), third
(3rd), fourth (4th), fifth (5th), sixth (6th) and seventh (7th) months of the
Initial Term (the aggregate amount of Rent so abated is referred to
herein as the “Abated Rent Amount”).

          3.1.4 No payment by Tenant or receipt by Landlord of a lesser amount than the correct Rent due
hereunder shall be deemed to be other than a payment on account; nor shall any endorsement or
statement on any check or any letter accompanying any check or payment be deemed to effect or
evidence an accord and satisfaction; and Landlord may accept such check or payment without
prejudice to Landlord’s right to recover the balance or pursue any other remedy in this Lease or at
law or in equity provided.

     3.2 Late Charge; Interest. Tenant acknowledges that the late payment of Base Rent,
Additional Rent or any other amounts payable by Tenant to Landlord hereunder will cause Landlord to
incur administrative costs and other damages, the exact amount of which would be impracticable or
extremely difficult to ascertain. Landlord and Tenant agree that if Landlord does not receive any such payment on or before the date
that is seven (7) days after the date the payment is due, Tenant shall pay to Landlord, as
Additional Rent, (i) a late charge (“Late Charge”) equal to three percent (3%) of the overdue
amount to cover such additional administrative costs, and (ii) interest on all delinquent amounts
at the lesser of (l) the Interest Rate (as hereinafter defined) or (2) the maximum amount allowed
by law, from the date due until the date paid. Notwithstanding the foregoing, Tenant shall not be
obligated to pay the Late Charge for the first two (2) late payments in any consecutive twelve (12)
month period, provided each such payment is not outstanding more than five (5) business days after
notice thereof from Landlord to Tenant stating that payment was not made or received when due. For
purposes of this Lease, the “Interest Rate” shall mean the floating commercial loan rate announced
from time to time by such national recognized money-center bank as Landlord shall in good faith
select, as its prime or reference rate, plus 2% per annum.

     3.3
Additional Rent. For purposes of this Lease, all amounts (other than Base Rent)
payable by Tenant to Landlord pursuant to this Lease, whether or not denominated as such, shall
constitute additional rent (“Additional Rent”) hereunder.

ARTICLE 4

ADDITIONAL RENTAL

     4.1
Payment of Excess Operating Expenses and Property Taxes. Subject to the provisions of
this Lease, in addition to paying Base Rent pursuant to Article 3 of this Lease, with respect to
each Expense Year (defined below), Tenant shall also pay as Additional Rent Tenant’s Percentage
Share of the positive excess, if any, of the Operating Expenses (defined below) allocable hereunder
to such Expense Year over Operating Expenses allocable hereunder to the Base Year. Subject to the
provisions of this Lease, in addition to paying Base Rent pursuant to Article 3 of this Lease, with
respect to each Expense Year Tenant shall also pay as Additional Rent Tenant’s Percentage Share of
the positive excess, if any, of Property Taxes (defined below) allocable hereunder to such Expense
Year over the Property Taxes allocable hereunder to the Base Year. Subject to the provisions of
this Lease, in addition to paying Base Rent pursuant to Article 3 of this Lease, with respect to
each Expense Year Tenant shall also pay as Additional Rent the Utility Excess (as defined in
Section 8.2 below), if any.

     4.2 Definitions.

          4.2.1
“Base Year” shall mean the calendar year specified in Item 5.1 of the Basic Lease
Provisions. However, the Base Year applicable during the Renewal Term shall be determined as
specified in Section 2.3.3 above. “Expense Year” shall mean each calendar year in which any portion
of the Term of this Lease falls, through and including the calendar year in which the Term of this
Lease expires.

          4.2.2 “Property Taxes” shall mean all real property taxes, assessments, fees, charges, or
impositions and other similar governmental or quasi-governmental ad valorem or other charges levied
on or attributable to the Building or its ownership, operation or transfer of any and every type,
kind, category or nature, whether direct or indirect, general or special, ordinary or extraordinary
and all taxes, assessments, fees, charges or similar impositions imposed in lieu or substitution
(partially or totally) of the same including, without limitation (i) all taxes, assessments,
levies, charges or impositions on any interest of Landlord in the Building, the Premises or in this
Lease, or on the occupancy or use of space in the Building or the Premises; (ii) any transit taxes
or charges, business or license fees or taxes, annual or periodic license or use fees, park and/or
school fees, arts charges, parks charges, housing fund charges; (iii) all taxes, assessments,
levies, charges or impositions imposed for street, refuse, police, sidewalks, fire protection
and/or similar services and/or maintenance, whether previously provided without charge or for a
different charge, whether provided by governmental agencies or private parties, and whether charged
directly or indirectly through a funding mechanism designed to enhance or augment benefits and/or
services provided by governmental or quasi-governmental agencies; (iv) any possessory taxes charged
or levied in lieu of real estate taxes; and (v) any costs or expenses incurred or expended by
Landlord in investigating, calculating, protesting, appealing or otherwise attempting to reduce or
minimize Property Taxes. Notwithstanding any provision hereof to the contrary, there shall be
excluded from Property taxes (i) all income taxes, capital stock, inheritance, estate, gift, or any
other taxes imposed upon or measured by Landlord’s gross income or profits unless the same shall be
imposed in lieu of real estate taxes or other ad valorem taxes and (ii) all documentary

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transfer, mortgage or stamp taxes arising from any direct or indirect transfer of Landlord’s
interest in any part of the Project or the Lease.

          4.2.3 “Operating Expenses” shall mean, subject to Section 4.2.4, below, all costs, fees, amounts,
disbursements and expenses paid or incurred by or on behalf of Landlord with respect to any Expense
Year in connection with the operation, ownership, maintenance, insurance, restoration, management,
replacement or repair of the Building, or any portion thereof, and to the extent equitably
allocated to the Building in accordance with Section 4.3.2, below, the Project, or any portion
thereof, in a first class manner at least equal to the quality of the Project as of the Delivery
Date, including, without limitation, amounts paid or incurred with respect to:

               (i) Premiums for property, casualty, liability, rent interruption, flood, earthquake, terrorism or
other types of insurance (if Landlord elects to provide such coverages, and with no obligation to
do so except as otherwise expressly required by this Lease) carried by Landlord from time to time,
and any commercially standard and reasonable deductibles thereunder actually paid by Landlord with
respect to the Building, excluding the amount of any deductible in excess of Twenty-Five Thousand
Dollars ($25,000.00).

               (ii) Salaries, wages and other amounts paid or payable for personnel (including, without
limitation, the Project manager, Building manager, superintendent, operation and maintenance staff,
the Parking Facilities (defined below) manager, concierge (if any) and other employees of Landlord
not above the level of general manager), but only to the extent they are involved in the
maintenance and operation of the Building, including contributions and premiums towards fringe
benefits, unemployment taxes and insurance, social security taxes, disability and worker’s
compensation insurance, pension plan contributions and similar premiums and contributions which may
be levied on such salaries, wages, compensation and benefits and the total charges of any
independent contractors or property managers engaged in the operation, repair, care, maintenance
and cleaning of any portion of the Building.

               (iii) Cleaning expenses, janitorial services, window cleaning, and garbage and refuse
removal.

               (iv) Subject
to the limitation on Capital Items in Section 4.2.3(x), landscaping and
hardscape expenses, irrigating, trimming, mowing, fertilizing, seeding, and replacing plants, trees
and hardscape.

               (v) The cost of providing fuel, gas, electricity, water, sewer, telephone, steam and other utility
services to the Common Areas.

               (vi) Subject to the limitations on Capital Items in Section 4.2.3(x), the cost of maintaining,
operating, restoring, renovating, managing, repairing and replacing components of equipment or
machinery, including, without limitation, heating, refrigeration, ventilation, electrical,
plumbing, mechanical, elevator, escalator, sprinklers, fire/life safety, security and energy
management systems, including service contracts, maintenance contracts, supplies and parts with
respect thereto.

               (vii) The costs of security for, and supervision of, the Building.

               (viii) Rental, supplies and other costs with respect to the operation of the management
office for the Building.

               (ix) All
cost and fees for licenses, certificates, permits and inspections, and the cost
incurred in connection with the implementation of a transportation system management program or
similar program in which participation is required by any applicable Laws.

               (x) The cost of replacement, repair, acquisition, installation and modification of
(A) carpeting and wallcoverings, ceiling systems and fixtures in the Common Areas, and other
furnishings in the Common Areas, (B) materials, tools, supplies and equipment purchased by Landlord,
but only to the extent they are used in the maintenance, operation and repair of the Building, and
(C) any other form of improvements, additions, repairs, or replacements to the Building, the Common
Areas of the Project or the systems, equipment or machinery operated or used in connection with the
Building; provided, however, that with respect to those items described above which constitute a
capital item, addition, repair or improvement (collectively “Capital Items”) in accordance with
generally accepted accounting and management practices, in each case the cost of each such Capital
Item shall be amortized (including interest on the unamortized cost) over the shorter of (A) the
useful life, or (B) the cost recovery period (i.e., the anticipated period to recover the full cost
of such capital item from cost savings achieved by such capital item), of the relevant capital item
as reasonably determined by Landlord in accordance with generally accepted accounting and
management practices; provided further, however, that Capital Items shall be included in Operating Expenses only if the implementation of such items is
reasonably anticipated to achieve economies in the operation, maintenance or repair of the Project
or portion thereof (provided such reasonably anticipated economies are reasonably evident before
the capital cost is incurred in a comparison of the savings reasonably anticipated to be achieved
from the capital item to the amortization of the expected cost of such capital items as set forth
hereinabove), or is required under any Law becoming effective after the date of this Lease (or as
enforced after the date of this Lease). Nothing set forth in this Section 4.2.3(x) shall limit,
curtail or otherwise affect Landlord’s obligations under Section 7.2.3 below.

               (xi) Attorneys’, accountants’ and consultants’ fees and expenses reasonably related to the
management, operation, administration, maintenance and repair of the Building, including, but not
limited to, such expenses that relate to seeking or obtaining reductions in or refunds of Property
Taxes, or components thereof, or the costs of contesting the validity of applicability of any
governmental enactments which may reduce Operating Expenses.

               (xii) Property management fee in an amount not to exceed three percent (3%) of the gross
revenues of the Project.

               (xiii) Sales, use and excise taxes on goods and services purchased by Landlord for the management,
maintenance, administration or operation of the Building.

               (xiv) Payments required under any covenants, conditions and restrictions pertaining to the
Building or any easement, license, parking or operating agreement or similar instrument which
affects the Building.

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               (xv) The costs (except for any Capital Items which shall be treated in accordance with
Section 4.2.3(x) above) of repairing, restoring and maintaining the Parking Facilities for the Building,
including, without limitation, the resurfacing, restriping and cleaning of such facilities.

               (xvi) Costs of any cost-sharing arrangements with adjacent properties to the extent such
cost-sharing arrangement results in an aggregate reduction in Operating Expenses.

          4.2.4 Notwithstanding any provision to the contrary in this Lease, the following costs
and expenses shall be excluded from Operating Expenses for purposes of this Lease:

               (i) expenses relating to leasing space in the Building or Project (including tenant
improvements, leasing and brokerage commissions and advertising expenses);

               (ii) legal fees and disbursements incurred for collection of tenant accounts or
negotiation of leases, or relating to disputes between Landlord and other tenants and occupants of
the Building or Project;

               (iii) any costs for any Capital Items unless specifically permitted by Section 4.2.3,
parts (i) through (xvi), inclusive;

               (iv) Property Taxes;

               (v) costs of any items to the extent Landlord receives insurance proceeds or reimbursement
from third parties to cover such costs;

               (vi) except to the extent specifically provided in Section 4.2.3, parts (i) through (xvii), inclusive, depreciation or payments of principal and interest on any mortgages upon the
Building;

               (vii) payments of ground rent pursuant to any ground lease covering
the Building;

               (viii) subject to Section 4.3.1, the costs of gas, steam or other fuel; operation of
elevators and security systems; heating, cooling, air conditioning and ventilating; chilled water, hot and cold
domestic water, sewer and other utilities or any other service work or facility or benefit, or level or amount thereof, provided to any other tenant or occupant in the Building or Project
which either (a) is not required to be supplied or furnished by Landlord to Tenant under the provisions of this Lease or (b) is supplied or furnished to Tenant pursuant to the terms of this
Lease with separate or additional charge;

               (ix) the cost of any Tenant Improvements and any Landlord’s Work (as such terms are defined in the Work Letter), and the cost of correcting any latent defects in me Landlord’s Work;

               (x) any costs for which Landlord is reimbursed by any tenant or occupant of the Building or the Project or by insurance carried by Landlord, Tenant or any other party, or self-insurance, or
covered by any warranty to the extent such amounts are actually received by Landlord;

               (xi) except to the extent specifically provided otherwise in this Lease, and except as to the
management fees payable to Landlord or its subdivisions or affiliates, the overhead and profit increments paid to Landlord, or to any subdivision or affiliate of Landlord, for goods and/or
services in the Building, to the extent such overhead and profit increments exceed the costs of comparable, first-class, high quality goods and/or services, delivered or rendered by unaffiliated
third parties of comparable reputation, stature, experience and quality to Landlord, on a competitive basis;

               (xii) costs incurred in developing and leasing the Building and the Project, including,
without limitation, architectural fees, engineering fees, space planning fees, broker’s commissions, advertising, promotional or marketing costs and attorney and other professional fees;

               (xiii) except as specifically set forth in Section 4.2.3 above, depreciation, amortization,
interest, principal and other payments on mortgages and any other form of monetary encumbrance or any form of financing of Landlord relating to the Project, and any other cost or expense relating or
required pursuant to or on account of any such mortgage, encumbrance or financing, if any;

               (xiv) any reserves for bad debts or rent loss, or similar losses, or capital reserves
for ownership of the Project;

               (xv) Landlord’s general corporate overhead and general administrative expenses not related to the operation of the Building and all compensation to executives, officers or partners of Landlord
or to persons who are executives or officers of partners of Landlord or to any other person at or above the level of building manager, other than the Project manager;

               (xvi) interest, fines or penalties assessed as a result of Landlord’s failure to make
payments in a timely manner, including without limitation, Property Taxes;

               (xvii) any expenses of any employee who does not devote substantially all of his or her employed time to the management, operation or maintenance of the Project unless such wages,
benefits and expenses are reasonably and equitably prorated to
reflect time spent on operating and managing the Project vis-à-vis time spent on matters unrelated to operating and managing the
Project;

               (xviii) any cost or expense related to the removal, abatement, cleanup, containment or remediation of any Hazardous Materials (as hereinafter defined), including without limitation,
hazardous substances in the ground water or soil, unless the Hazardous Materials were in or on the Building or the Project as a result of the negligence or willful misconduct of Tenant or its agents
or employees (provided, however, that unless caused by the negligence or willful misconduct of Landlord, its agents or employees or in violation of Landlord’s obligations under this Lease,
Operating Expenses shall include costs incurred in connection with the clean-up, remediation, monitoring, management and administration of Hazardous Materials used in accordance with all
applicable Laws by Landlord after the Commencement Date and reasonably

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required for the operation, repair and maintenance of the Project to perform Landlord’s
obligations under this Lease (such as, without limitation, fuel oil for generators, cleaning
solvents, and lubricants) and which are customarily found or required in first-class office buildings);

               (xix) costs, including permit, license and inspection costs and any allowances or other tenant
improvement concessions, incurred or provided with respect to the design, construction and/or
installation of other tenants’ or occupants’ improvements made for tenants or other occupants in
the Project or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants or other occupants in the Project;

               (xx) except for making repairs or keeping permanent systems in operation while repairs are being made, rentals and other related expenses incurred in leasing air conditioning systems,
elevators or other equipment ordinarily considered to be of a capital nature, except equipment not affixed to the Building or Project which is used in providing janitorial or similar services;

               (xxi) to the extent applicable, electric power costs or other utility costs for which any
tenant directly contracts with the local public service company (but Landlord shall have the right to “gross up” as if the floor was vacant);

               (xxii) costs arising from Landlord’s charitable or political
contributions;

               (xxiii) costs arising from Landlord’s warranties to bring the Building Property (as defined in Section 7.2.2 below) into compliance with Laws and to correct certain water intrusion defects (if
any) pursuant to Sections 7.2.2, 7.2.3 and 9.1 of this Lease;

               (xxiv) costs arising from any breach of this Lease by Landlord;

               (xxv) costs incurred in bringing the Project into compliance with the Current CC&Rs in
effect on the Commencement Date;

               (xxvi) costs of repairs and replacements of the Building Structure and/or Building Systems, except (A) as expressly permitted under Section 4.2.3(x) in the case of Capital Items, and (B)
minor repairs and replacements which do not constitute Capital Items and are not required due to defects in existence on the Commencement Date;

               (xxvii) any cost or expense related to the removal, abatement, cleanup, containment or remediation of any mold, unless the presence of such mold in the Building or Project resulted from
the negligence or willful misconduct of Tenant or its agents or employees; and

               (xxviii) any other costs or expenses customarily excluded from operating expenses under Institutional Owner Practices.

          4.2.5 “Tenant’s Percentage Share” shall mean the percentage set forth in Item
5.2 of the Basic Lease Provisions; provided, however, that Landlord shall as appropriate during the Term of this Lease recalculate Tenant’s Percentage Share (based solely on the increase or decrease of
tenantable space or re-measurement of space in the Project), in which case Tenant’s Percentage Share shall be calculated by dividing the number of square feet of Rentable Area in the Premises
by the number of square feet of Rentable Area in the Building and expressing such quotient in the form of a percentage.

     4.3 Calculation Methods and Adjustments.

          4.3.1 Operating Expenses shall be adjusted to reflect one hundred percent (100%) occupancy of
the Building during any period in which the Building is not one hundred percent (100%) occupied.

          4.3.2 As of the date of this Lease, the Project includes the buildings located at 100, 120, 130
and 140 South State College Boulevard and the Operating Expenses incurred for the common areas
shared by the Building and buildings 100, 120 and 140 shall be equitably allocated to the Building
in accordance with generally accepted accounting and management practices. Landlord shall have the
right, from time to time, to add or remove buildings to (i) the Project and/or (ii) the calculation
of Operating Expenses and then equitably allocate some or all of the Operating Expenses and/or
Property Taxes among different buildings (including any additional buildings) of the Project in
accordance with generally accepted accounting and management practices. In such event, Landlord
shall reasonably determine a method of allocating such Operating Expenses and/or Property Taxes
attributable to such other buildings of the Project to the Building and Tenant shall be responsible
for paying Tenant’s Percentage Share of such expenses; provided, however, no such allocation shall
result in Tenant’s monetary obligations under this Lease being increased.

          4.3.3 Subject to the provisions of this Section 4.3.3, all calculations, determinations,
allocations and decisions to be made hereunder with respect to Operating Expenses or Property Taxes
shall be made in accordance with generally accepted accounting and management practices. Landlord
shall have the right to equitably allocate some or all of Operating Expenses among particular
classes or groups of tenants in the Project (for example, retail tenants) to reflect Landlord’s
reasonable determination that measurably different amounts or types of services, work or benefits
associated with Operating Expenses are being provided to or conferred upon such classes or groups.
Subject to the provisions of this Section 4.3.3, from time to time Landlord shall have the right to
expand or contract the amount, scope, level or types of services, work, items or benefits, the cost
of which is included within Operating Expenses, so long as Landlord’s treatment of the same for
purposes of the calculation of Operating Expenses is generally consistent with generally accepted
accounting and management practices. Whenever services, benefits or work are provided to the
Building and to additional projects (where allocation of the cost thereof among such projects is
required for calculation of Operating Expenses hereunder), in allocating the overall cost thereof
(for all such projects) to Operating Expenses hereunder, there shall be excluded from Operating
Expenses Landlord’s reasonable determination of the additional overall cost comparison allocable to
the provision of such services, benefits or work to the additional projects. All discounts,
reimbursements, rebates, refunds, or credits (collectively, “Reimbursements”) attributable to
Operating Expenses or Property Taxes received by Landlord in a particular year shall be deducted
from Operating Expenses or Property Taxes in the year the same are received. Landlord shall have
the right to exclude from Base Year Operating Expenses the cost of items of service, work or
benefits (i) not provided following the Base Year, and (ii) amortized costs relating to capital
improvements the amortized cost of which are included in Operating Expenses during the Base Year
and are not included in any subsequent Expense Year (because the cost thereof has been fully
amortized). All assessments and premiums of Operating

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Expenses or Property Taxes which can be paid by Landlord in periodic installments shall be paid by
Landlord in the maximum number of periodic installments permitted by Law.

          4.3.4 Subject to applicable Laws and Section 8.2 below, Landlord shall solely determine in
its reasonable discretion all decisions with respect to the method and manner by which all
utility services shall be billed and provided in the Building, which determinations shall be
reasonably made by Landlord on a basis consistent with the practice of the majority of the
institutional owners of institutional grade first-class office projects in Orange County,
California (“Institutional Owner Practices”).

          4.3.5 In the event and to the extent Landlord incurs costs or expenses associated with or
relating to separate items or categories or subcategories of Operating Expenses which were not
part of Operating Expenses during the entire Base Year, Operating Expenses for the Base Year
shall be deemed increased by the amounts Landlord would have incurred during the Base Year with
respect to such costs and expenses had such separate items or categories or subcategories of
Operating Expenses been included in Operating Expenses during the entire Base Year. For example,
any new or additional annual premium resulting from any new forms or increased amounts of
insurance, including earthquake insurance, any increase in insurance limits or coverage including
conversion of coverage from a single-building policy to a blanket policy, or vice versa , or any
decrease in deductibles in any year after the Base Year, shall be deemed to be included in
Operating Expenses for the Base Year.

     4.4 Payment Procedure; Estimates. During each Expense Year following the Base Year
(a “Comparison Year”), Landlord shall give Tenant at least ten (10) days prior written notice of
its estimate of any increased amounts payable under Section 4.1
for the Comparison Year: Subject
to such notice requirement on or before the first day of each calendar month during such
Comparison Year, Tenant shall pay to Landlord one-twelfth (1/12th) of such estimated amounts;
provided, however, that, not more often than semi-annually, Landlord may, by written notice to
Tenant, revise its estimate for such Comparison Year, and all subsequent payments due at least
thirty (30) days after Tenant’s receipt of such notice under this Section 4.4 by Tenant for such
Comparison Year shall be based upon such revised estimate. Landlord shall deliver to; Tenant
within one hundred fifty (150) days after the close of each Comparison Year, a statement of that
Comparison Year’s Property Taxes and Operating Expenses, and Tenant’s Percentage Share of actual
excess Property Taxes and actual Operating Expenses payable for such Comparison Year pursuant to
Section 4.1, as reasonably determined by Landlord (the
“Landlord’s Statement”) and such Landlord’s
Statement shall be binding upon Landlord and Tenant, except as
provided in Section 4.5. If the
amount of Tenant’s Percentage Share of actual excess Property Taxes and Operating Expenses for any
Comparison Year is more than the estimated payments with respect thereto made by Tenant, Tenant
shall pay the deficiency to Landlord within thirty (30) days of Tenant’s receipt of Landlord’s
Statement. If the amount of Tenant’s Percentage Share of actual excess Property Taxes and Operating
Expenses for any Comparison Year is less than the estimated payments for such Comparison Year made
by Tenant, such excess payments shall be credited against Rent next payable by Tenant under this
Lease or, if the Term of this Lease has expired, such excess shall be paid to Tenant within thirty
(30) days of the delivery by Landlord of Landlord’s
Statement. No delay in providing any Landlord’s
Statement described in this Section 4.4 shall act as a waiver of Landlord’s right to receive
payment from Tenant under Section 4.1 above with respect to Tenant’s Percentage Share of Property
Taxes and/or Operating Expenses for the period covered thereby. Notwithstanding the immediately
preceding sentence, Tenant shall not be responsible for payment of any Property Taxes or Operating
Expenses attributable to any Comparison Year which are first billed to Tenant more than one (1)
year after the expiration of the applicable Comparison Year (such one (1) year period shall be
shortened to six (6) months with respect to any billings after the Lease Expiration Date),
provided that in any event Tenant shall be responsible for Tenant’s Percentage Share of actual
excess Property Taxes and Operating Expenses which were in dispute or which were undeterminable,
or which are levied by any governmental authority or by any public utility companies at any time
following the Lease Expiration Date which are attributable to any Comparison Year (provided that
Landlord delivers Tenant a bill for such amounts within six (6) months following Landlord’s
receipt of the bill therefor). If this Lease shall terminate on a day other than the end of a
calendar year, the amount of Tenant’s Percentage Share of actual Property Taxes and actual
Operating Expenses payable under Section 4.1 that is applicable to the calendar year in which such
termination occurs shall be prorated on the basis that the number of days from January 1 of such
calendar year to the termination date bears to 365. The expiration or early termination of this
Lease shall not affect the obligations of Landlord and Tenant pursuant to this Section 4.4 to be
performed after such expiration or early termination.

     4.5 Records; Audit. Landlord shall maintain in a safe and orderly manner all of its
records pertaining to the Additional Rent payable pursuant to this Article 4 for a period of
three (3) years after the completion of each calendar year. Landlord shall maintain such records on a current basis and in sufficient detail to permit
adequate review thereof and, at all reasonable times, copies of such records shall be
available to Tenant’s accounting personnel (but not other representatives except as set forth
in this Section 4.5) for such purposes at the management office
of the Project. In connection
with such inspection, Tenant and Tenant’s agents must agree in advance to follow Landlord’s
reasonable rules and regulations regarding inspections of Landlord’s records, and shall
execute a commercially reasonable confidentiality agreement regarding such inspection. If
Tenant disputes the Landlord’s Statement provided under Section 4.4 above, provided a monetary
Event of Default does not exist, Tenant may, by written notice to Landlord within one hundred
twenty (120) days after receipt of Landlord’s Statement for a particular Comparison Year,
cause an audit to be commenced of the Operating Expenses and Property Taxes for such
Comparison Year by a nationally or regionally recognized firm of certified public accountants
on a non-contingency fee basis, at Tenant’s sole expense, to verify if Landlord’s Statement
was accurate, and for the avoidance of doubt such audit may include review of whether any
expense was properly allocated or charged to Tenant in accordance with this Lease. If such
audit reveals an overpayment of Operating Expenses and/or Property Taxes for the year covered
by such Landlord’s Statement, then, provided Landlord does not dispute the result of such
audit, Landlord shall refund the overpayment within thirty (30) days. If such audit reveals an
underpayment of Operating Expenses and/or Property Taxes for the year covered by such
Landlord’s Statement then Tenant shall pay the same within thirty (30) days, or if the Term
has expired, within thirty (30) days after receipt of the audit results. Tenant’s failure to
dispute a Landlord’s Statement and commence an audit of Operating Expenses and Property Taxes
within ninety (90) days after receipt of Landlord’s Statement for a particular Comparison
Year shall constitute Tenant’s acknowledgment of the accuracy of
such Landlord’s Statement.
Tenant agrees to keep the results of any audit hereunder confidential, except as required by
law and/or to enforce Tenant’s rights hereunder. Tenant agrees to pay the cost of any audit
hereunder by Tenant; provided that if it is finally determined with respect to any Comparison
Year, that Landlord has billed Tenant for Tenant’s Percentage Share of Operating Expenses and
Property Taxes more than three percent (3%) in excess of the Operating Expenses and Property
Taxes that Tenant should pay for such Comparison Year pursuant to the
terms of the Lease, then
Landlord shall pay the reasonable cost of such audit.

     4.6 Limitation on Expenses. Operating Expenses payable by Tenant under this Lease
shall be calculated after giving effect to the limitation set forth in this Section 4.6.
Notwithstanding any provision to the contrary in this Lease, Controllable Expenses (hereinafter
defined) shall not increase after the Base Year by more than five percent (5%) per Expense Year
on a compounding and cumulative basis over the course of the Initial Term. In other words,
Controllable Expenses for the first Expense Year after the Base Year shall not exceed 105% of the
Controllable Expenses for the Base Year, Controllable

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Expenses for the second Expense Year after the Base Year shall not exceed 105% of the limit on Controllable Expenses for the first
Expense Year after the Base Year; Controllable Expenses for the third Expense Year after the Base
Year shall not exceed 105% of the limit on Controllable Expenses for the second Expense Year after
the Base Year, etc. Landlord shall be solely responsible (as between Landlord and Tenant) and
Tenant shall have no obligation to reimburse Landlord for any increase in Controllable Expenses
above the limits permitted by this Section 4.6. By way of illustration, if Controllable Expenses
were $10.00 per rentable square foot for the Base Year, then Controllable Expenses for the first
Expense Year following the Base Year shall not exceed $10.50 per rentable square foot,
Controllable Expenses for the second Expense Year following the Base Year shall not exceed S11.025
per rentable square foot, and Controllable Expenses for the third Expense Year following the Base
Year shall not exceed $11.57625 per rentable square foot, etc. As used herein, “Controllable
Expenses” shall mean all Operating Expenses allocable to the Common Areas other than the
following: Property Taxes and all other taxes, assessments and governmental charges; janitorial,
cleaning and access control services; utilities; insurance maintained by Landlord as of the
Effective Date or otherwise required by Law or the terms of this Lease; Landlord’s management fee
(which is based on the gross revenues of the Project); and union wages.

     4.7 Tax Challenge Right. So long as Tenant is leasing all of the Rentable Area of the
Building, Tenant shall have the right to provide Landlord with a written request to challenge
Property Taxes (a “Tax Challenge Notice”). In the event Tenant delivers such a Tax Challenge
Notice, at Landlord’s option, either (i) Landlord shall diligently pursue claims for reductions in
Property Taxes, in which event Landlord shall provide Tenant with detailed information as to how
Landlord will pursue such claims, or (ii) Tenant may pursue such claims with Landlord’s
concurrence, in the name of Landlord. If Tenant pursues such claims with Landlord’s concurrence,
then the costs of such proceedings shall be paid by Tenant. If Landlord agrees to pursue such
claims, the costs of such proceedings shall be paid by Landlord and included in Property Taxes in
the calendar year such costs are paid. Tenant may give a Tax Challenge Notice prior to the
issuance of the actual tax bill by the taxing authority. Tenant’s entry into one or more subleases
of the Premises hereunder as permitted by Article 15 below shall not limit or otherwise affect
Tenant’s rights under this Section 4.7. Notwithstanding anything to the contrary set forth herein,
Tenant shall not have the right to pursue a tax challenge if doing so would violate the CC&Rs (as
defined in Section 7.4 below).

ARTICLE 5

ADDITIONAL TAXES

     In addition to the Base Rent and all other forms of Additional Rent payable by Tenant
hereunder, Tenant shall reimburse Landlord upon demand as Additional Rent for any and all taxes,
impositions or similar fees or charges (other than any of the same actually included by Landlord
in Property Taxes with respect to the Expense Year in question) payable by or imposed or assessed
upon Landlord upon or with respect to (or measured by or otherwise attributable to the cost or
value of): (i) any fixtures, equipment or other personal property owned or leased by Tenant
located in or about the Premises; (ii) any leasehold improvements made in or to the Premises by or
for Tenant (without regard to ownership of such improvements) if and to the extent the original
cost, replacement cost or value thereof exceeds the cost of Landlord’s then effective “Building
Standard” tenant improvements, as reasonably determined by Landlord; (iii) the Rent payable
hereunder, including, without limitation, any gross receipts tax, license fee or excise tax levied
by any governmental authority other than income tax or substitutes in lieu thereof; (iv) the
possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy of
any portion of the Premises; or (v) this transaction.

ARTICLE 6

SECURITY

     6.1 Letter of Credit. Concurrent with Tenant’s execution and delivery of this
Lease, Tenant shall deliver to Landlord an unconditional, irrevocable letter of credit (“LC”) in the original amount of Seven
Hundred Fifty Thousand Dollars ($750,000) (the “LC Stated Amount”). The LC shall be issued by a
national money center bank or governmental agency reasonably acceptable to Landlord, and shall be
substantially in the form attached hereto as Exhibit “F”. Landlord hereby approves of
Federal Home Loan Bank of San Francisco as the issuer of the LC. Tenant shall pay all expenses,
points and/or fees incurred in obtaining and renewing the LC. The LC shall be effective from the
date of delivery thereof through the date which is thirty (30) days after the Lease Expiration
Date (the “LC Expiration Date”). The LC may be re-issued, renewed or replaced for annual periods,
provided that the LC Stated Amount is not reduced except as expressly provided below. Each
reissue, renewal or replacement LC shall be substantially in the form attached hereto as
Exhibit “F”, and shall be subject to Landlord’s prior written approval. Subject to the
provisions of Subparagraphs (1) and (2) immediately below, the LC Stated Amount may be reduced to
the following amounts on the following yearly anniversaries of the Commencement Date (each a
“Reduction Date”):

	 	 	 	 	 
	1st anniversary of the Commencement Date
	 	$	600,000.00	 
	2nd anniversary of the Commencement Date
	 	$	450,000.00	 
	3rd anniversary of the Commencement Date
	 	$	300,000.00	 
	4th anniversary of the Commencement Date
	 	$	150,000.00	 

     (1) Notwithstanding any contrary provision hereof, if a monetary Event of
Default has occurred and is continuing on a Reduction Date, or if a monetary Event of Default would exist and
be continuing on a Reduction Date but Landlord is barred by applicable law from sending a notice of
default to Tenant with respect thereto, or if Tenant is in monetary default under this Lease and
Tenant has received notice thereof as required by this Lease, but failed to cure such monetary
default within the time period permitted under this Lease or such lesser time as may remain before
a Reduction Date, then the LC Stated Amount shall not be reduced on such Reduction Date (but shall
be reduced upon the curing of such monetary default, subject, however, to Landlord’s draw on the LC
as permitted hereunder in connection with an Event of Default).

     (2) Notwithstanding any contrary provision hereof, but subject to
Subparagraph (1) above, if Tenant provides to Landlord, not less than thirty (30) days or more than forty-five (45) days prior
to a Reduction Date, evidence that Tenant has maintained a “total risk-based capital ratio” (as
defined in, and calculated pursuant to, Section 206.5 of Regulation F (12 C.F.R. Part 206)) at
least equal to the greater of (i) the minimum total risk-based capital ratio required to qualify as
“Well-capitalized” under Regulation F, or (ii) thirteen percent (13%), on average during the entire
two (2) year period prior to the applicable Reduction Date, then in lieu of the reduction set forth
above, the LC Stated Amount shall be reduced on the later of (i) such Reduction Date or (ii)
fifteen (15) days after Landlord receives such evidence, as follows:

	 	 	 	 	 
	1st anniversary of the Commencement Date
	 	$	500,000.00	 
	2nd anniversary of the Commencement Date
	 	$	250,000.00	 
	3rd anniversary of the Commencement Date
	 	$	175,000.00	 
	4th anniversary of the Commencement Date
	 	$	100,000.00	 

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For purposes of the foregoing, the evidence provided by Tenant to Landlord shall be in the form of certified copies of the reports provided by Tenant to its regulators for purposes of
Regulation F compliance.

     6.2 Failure to Reissue, Renew or Replace. If the bank that issues the LC fails to
extend the expiration date thereof through the LC Expiration Date, and/or if Landlord receives a
notice of non-renewal from such bank (as described in the LC), then Tenant shall provide
Landlord with a substitute LC. If Tenant fails to provide Landlord with a substitute LC in a
form reasonably acceptable to Landlord at least fifteen (15) days prior to the expiration of the
then existing LC, then (i) such failure shall be deemed an Event of Default hereunder, and (ii)
Landlord shall be entitled to draw down the full amount of the LC then available and apply, use
and retain the proceeds thereof in accordance with Section 6.3.

     6.3 Application of LC and LC Account. Any amount of the LC which is drawn upon by
Landlord, but not used or applied by Landlord shall be held by Landlord in an account (the “LC
Account”) as security for the full and faithful performance of each of the terms hereof by
Tenant, subject to use and application as set forth below. If an Event of Default shall occur and
be continuing with respect to any provision of this Lease, including, but not limited to, the
provisions relating to the payment of rent, or an Event of Default would exist under the Lease but
Landlord is barred by applicable law from sending a notice of default to Tenant with respect
thereto, or in the event the LC is not renewed or reissued at least fifteen (15) days prior to the
expiration of the then existing LC, Landlord may, but shall not be required to, draw upon all or
any part of the LC and/or LC Account or use, retain or apply all or any part of the proceeds
thereof for the payment of any sum in default (including past due rent), to repair damages caused
by Tenant, to clean the Premises to the extent Tenant has failed to do so in accordance with this
Lease, or for the payment of any other amount which Landlord may be entitled to spend under this
Lease or become obligated to spend by reason of Tenant’s default or to compensate Landlord for
loss or damage which Landlord may suffer by reason of Tenant’s default, including without
limitation the amounts to which Landlord may become entitled pursuant to Article 16 below (whether
or not such amounts have been awarded) and any other loss, liability, expense and damages that may
accrue upon Tenant’s default or the act or omission of Tenant or any officer, employee, agent or
invitee of Tenant, and costs and attorneys’ fees incurred by Landlord to recover possession of the
Premises upon a default by Tenant hereunder. The use, application, retention or draw of the LC
and/or LC Account, or any portion thereof, by Landlord shall not (i) constitute the cure of any
default by Tenant or the waiver of such default except to the extent of the application, (ii)
prevent Landlord from exercising any other remedies provided for under this Lease or by law, it
being intended that Landlord shall not first be required to proceed against the LC and/or LC
Account, or (iii) operate as a limitation on the amount of any recovery to which Landlord may
otherwise be entitled. If any portion of the LC and/or LC Account is so drawn upon, or any part of
the proceeds thereof is used or applied in accordance with this Lease, Tenant shall, within five
(5) business days after written demand therefor, deposit cash with Landlord in an amount equal to
the draw upon the LC and/or the amount of the LC Account that was used or applied in accordance
with this Lease (so that the combined amount of the remaining sums
available to be drawn upon the
LC and the LC Account balance equals the LC Stated Amount), and Tenant’s failure to do so shall be
an Event of Default under this Lease. The LC Account may be commingled with other funds of
Landlord, shall be held in Landlord’s name, and Tenant shall not be entitled to any interest or
earnings thereon. Notwithstanding any contrary provision herein, in the event that the total
amount of the LC outstanding plus any amount remaining in the LC Account exceeds the LC Stated
Amount (“Excess Security”), then Landlord shall return the amount of the Excess Security to Tenant
upon Tenant’s request to the extent that such amount is
available in the LC Account.

     6.4
Waiver. Tenant hereby waives the provisions of Section 1950.7 of the California
Civil Code, and all similar or successor provisions of law, now or hereafter in force, and
Landlord and Tenant hereby acknowledge that their entire agreement with respect to the LC and
the LC Account is set forth herein.

     6.5 Expiration of LC. Unless an Event of Default has occurred and is continuing
under this Lease or an Event of Default would exist under the Lease but Landlord is barred by
applicable law from sending a notice of default to Tenant With respect thereto, within thirty
(30) days after the LC Expiration Date, Landlord shall return any LC previously delivered by
Tenant and any balance remaining in the LC Account after use and application in accordance with
this Article 6, to Tenant (or, at Landlord’s option, to the last assignee, if any, of Tenant’s
interest hereunder), and Tenant shall have no further obligation to provide the LC.

     6.6 Landlord’s Transfer. Tenant acknowledges that Landlord has the right to transfer
or mortgage its interest in the Building and in this Lease, and Tenant agrees that in the event
of any such transfer or mortgage, Landlord shall have the right to transfer or assign the LC
and/or the LC Account to the transferee or mortgagee. Upon such transfer or assignment of the LC
and/or LC Account, and provided such transferee or mortgagee expressly assumes all obligations
relating to such LC and/or the LC Account, Landlord shall be deemed released by Tenant from all
liability or obligation for the return of the LC and LC Account, as applicable, and Tenant shall
look solely to such transferee or mortgagee for the return thereof. Landlord will comply with the
transfer requirements set forth in the LC. Subject to the foregoing, if Landlord transfers or
assigns the LC and Tenant fails to cause the bank that issued the LC to accept such transfer or
assignment, or to issue a replacement LC which complies with the provisions of this Article 6,
such failure shall be an Event of Default hereunder.

     6.7 Bank Obligation. Tenant acknowledges and agrees that the LC is a separate and
independent obligation of the issuing bank to Landlord and that Tenant is not a third party
beneficiary of such obligation, and that Landlord’s right to draw upon the LC for the full amount
due and owing thereunder shall not be, in any way, restricted, impaired, altered or limited by
virtue of any provision of the United States Bankruptcy Code, including without limitation,
Section 502(b)(6) thereof.

ARTICLE 7

USE OF PREMISES

     7.1 Tenant’s Permitted Use. Tenant shall use the Premises only for Tenant’s
Permitted Use as set forth in Item 9 of the Basic Lease Provisions and shall not use or permit the Premises to be used for any
other purpose. Tenant shall, at its sole cost and expense, obtain and maintain in full force and
effect all governmental licenses, approvals and permits required to allow Tenant to conduct
Tenant’s Permitted Use. Landlord disclaims any warranty that the Premises are suitable for
Tenant’s use and Tenant acknowledges that it has had a full opportunity to make its own
determination in this regard. In no case shall Tenant use any portion of the Premises for (i)
offices of any health care professionals or for the provision of any health care services, (ii)
any schools or other training facility (except for in house training of employees of Tenant and
its Affiliates), (iii) any retail or restaurant uses, (iv) any residential use, or (v)
broadcasting radio stations and/or television stations.

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     7.2 Compliance With Laws and Other Requirements.

          7.2.1 Without limiting Landlord’s obligations under Sections 7.2.2, 7.2.3 and 9.1 of this
Lease, Tenant
shall not do anything in or about the Premises, the Building or the Project that will in any
way violate any applicable federal,
state and local statutes, laws, ordinances, building codes, rules, regulations, orders and
directives of any governmental authority
having jurisdiction (including without limitation any certificate of occupancy and the ADA)
now in force or which may hereafter
be enacted (collectively, “Laws”). Tenant shall, at its sole cost and expense, timely take
all action required to comply with all
Laws applicable to the Premises, the Building or the Project triggered by (a) Tenant’s
specific and unique use of the Premises that
is different than use for general office purposes or
(b) Tenant’s Alterations. Tenant shall
not use the Premises, or permit the
Premises to be used, in any manner, or do or suffer any act in or about the Premises which:
(i) violates or conflicts with any
applicable Law; (ii) except for minor damage which is promptly repaired and reasonably
necessary in connection with approved
Alterations, causes or is reasonably likely to cause damage to the Project, the Premises or
the Building systems, including,
without limitation, the life safety, electrical, heating, ventilation and air conditioning
(“HVAC”), plumbing or sprinkler systems
(collectively, the “Building Systems”) for the Building and/or the Project; (iii) violates a
requirement or condition of any policy
of insurance covering the Project and/or the Premises, or increases the cost of such policy;
(iv) constitutes or is reasonably likely
to constitute a nuisance; (v) materially interferes with, or is reasonably likely to
materially interfere with, the transmission or
reception of microwave, television, radio, telephone, or other communication signals by
antennae or other facilities located in the
Project; or (vi) violates the Rules and Regulations.

          7.2.2
Except as otherwise set forth in Section 7.2.1, above and
Section 7.2.3 below, Landlord
shall take
all timely actions to cause the Base Building, the Building and the portions of the Project,
Common Areas and Parking Facilities
owned by Landlord and Landlord’s Work (collectively referred to herein as the “Building
Property”) to be in compliance with
all Laws, including, without limitation, any Law requiring any form of improvement or
alteration to the Building Property or
Landlord’s Work. The “Base Building” shall include all of the structural portions of the
Building (the “Building Structure”)
and the Building Systems (defined below).

          7.2.3 Landlord represents and warrants that as of the Commencement Date, to the best
knowledge of
Landlord, the Building (other than the Tenant Improvements and subject to Tenant’s
obligations under the last sentence of this
Section 7.2.3) and Landlord’s Work, will comply with all Laws, including applicable building
codes and the requirements of the
Americans With Disabilities Act (“ADA”) in effect as of the Commencement Date. In the event
it is discovered that the
foregoing representation is not true at any time (including by enforcement after the
Commencement Date), then Landlord shall
promptly upgrade the Building and/or Premises at Landlord’s sole cost and expense so as to
bring the Building and/or Premises
into compliance with such Laws and ADA in effect as of the Commencement Date. Operating
Expenses shall not include any
cost incurred by Landlord in connection with upgrading the Building and/or Premises to comply
with the requirements of Law
and the ADA that are in effect as of the Commencement Date, including payment of all penalties
or damages incurred due to
such noncompliance. Notwithstanding the foregoing provisions of this Section 7.2.3, to the
extent that any modifications or
upgrades to the Building are required by Laws (including the ADA) due to Tenant’s particular
manner of use, occupancy, repair
or alteration of the Premises (as opposed to use, occupancy, repair or alteration for normal and
customary office purposes by
tenants generally) including, without limitation, due to Tenant’s construction of a gym in the
Premises, then Tenant, and not
Landlord, shall be responsible for the cost of such modifications and upgrades.

     7.3 Hazardous Materials.

          7.3.1 Definitions.

               (i) “Environmental
Laws” means and includes all now and hereafter existing statutes, laws,
ordinances, codes, regulations, rules, rulings, orders, decrees, directives, policies and
requirements by any federal, state or local
governmental authority regulating, relating to, or imposing liability or standards of conduct
concerning public health and safety
or the environment.

               (ii) “Hazardous
Materials” means: (a) any material or substance: (i) which is defined or
becomes defined as a “hazardous substance”, “hazardous waste,” “infectious waste,” “chemical
mixture or substance,” “Toxic
Substance” or “air pollutant” under Environmental Laws; (ii) containing petroleum, crude oil or
any fraction thereof; (iii)
containing polychlorinated biphenyls (PCB’s); (iv) which constitutes asbestos or
asbestos-containing material; (v) which is
radioactive; (vi) which is infectious; or (b) any other material or substance displaying toxic,
reactive, ignitable, explosive or
corrosive characteristics, as all such terms are used in their broadest sense.

               (iii) “Handle,”
“Handled,” or “Handling” means any installation, handling, generation,
storage, treatment, use, disposal, discharge, release, manufacture, refinement, emission,
abatement, removal, transportation or any
other activity of any other type in connection with or involving Hazardous Materials.

               (iv) “Environmental
Damages” means (a) all actual and proximate claims, judgments,
damages, penalties, fines, costs, liabilities, and losses (but excluding consequential, special or
punitive damages or “Stigma”
damages); (b) all sums paid for settlement of claims, reasonable attorneys’ fees, consultants’ fees
and experts’ fees; and (c) all
costs incurred in connection with investigation or remediation relating to the presence of any
Hazardous Materials in, on, under
or about the Premises or otherwise relating to the Handling of any Hazardous Materials.

          7.3.2 Tenant’s Obligations.

               (i) No Hazardous Materials shall be Handled upon, about, in, above or beneath the Premises
or any portion of the Project by or on behalf of Tenant, its subtenants or its assignees, or
their respective contractors, clients,
officers, directors, employees, agents, or invitees (collectively, a
“Tenant Party”).
Notwithstanding the foregoing, normal
quantities of those Hazardous Materials customarily used in the conduct of general administrative
and executive office activities
(e.g., copier fluids and cleaning supplies) may be used and stored at the Premises without
Landlord’s prior written consent, but
only in compliance with all applicable Environmental Laws (defined below).

               (ii) Tenant shall, at its sole cost and expense, promptly take all actions (or at Landlord’s
election, reimburse Landlord for taking all actions) required by any
Law (including any Environmental Laws) that arises in connection with the Handling by Tenant or any other Tenant
Party of any Hazardous Materials upon, about, above or beneath the Premises or any portion of
the Project. Tenant shall take all actions (or at Landlord’s election, reimburse Landlord for
taking all

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actions) necessary to restore the Premises or any portion of the Building to the condition
existing prior to the introduction of Tenant’s Hazardous Materials to the extent required under
any applicable Environmental Laws.

               (iii) Tenant shall indemnify, defend, protect and hold harmless Landlord and each of the
Landlord Parties from and against any and all Claims, Damages, Costs and Environmental Damages
incurred by Landlord and the Landlord Parties which arise out of any breach by Tenant of any of
its obligations under this Section 7.3.2 and/or any Handling by Tenant or any other Tenant Party
of any Hazardous Materials.

          7.3.3 Landlord’s Obligations.

               (i) Subject to Section 7.3.2, above, in the event that during the Term of this Lease, it is
determined that there exists in, on, under or about the Premises or Project any Hazardous
Materials (other than any Hazardous
Materials that became present in, on, under or about the Project as a result of the Handling by
Tenant or any other any Tenant
Party of Hazardous Materials in, on, under or about the Premises or Project), and if (a) a
governmental agency having jurisdiction
with respect to the presence of Hazardous Materials in, under, on or about the Premises or Project
requires remediation of such
Hazardous Materials, or (b) the presence of such Hazardous Materials in, on, under or about the
Premises or Project (i) creates a
health or safety hazard for Tenant’s employees, visitors, customers, agents or any Tenant Party or
(ii) interferes with Tenant’s use
of the Premises for the Permitted Use, then Landlord shall cause such Hazardous Materials to be
abated or remediated in
accordance with applicable Environmental Laws.

               (ii) Landlord shall indemnify, defend (with counsel reasonably approved by Tenant), protect
and hold harmless Tenant and each of the Tenant Parties, from and against any and all Claims,
Damages and Costs which arise from or are related in any way to any contamination of the
Premises, Building or the Project, except to the extent caused by Tenant or a Tenant Party.
Landlord’s obligation to defend, with counsel reasonably approved by Tenant, indemnify and hold
harmless Tenant and the Tenant Parties shall apply in every instance in which Claims, Damages and
Costs are asserted against Tenant and/or the Tenant Parties solely due to Tenant’s status as a
Tenant, occupant or operator of the Premises, Building or Project. The foregoing indemnification
and responsibilities of Landlord shall survive the termination or expiration of this Lease.

               (iii) Landlord covenants to Tenant that, to the best knowledge of Landlord, as of the
Effective
Date, the Project does not currently contain any Hazardous Materials in violation of any existing
applicable Environmental Laws.
For purposes of this Section, 7.3.3(iii), the phrase “the best knowledge of Landlord” shall mean
the present, actual knowledge of
Landlord’s managing agent for the Project.

     7.4 CC&Rs. Tenant shall not violate the Current CC&Rs (defined below). Landlord
represents that Tenant’s use of the Premises for general office use will not, in and of itself,
violate the Current CC&Rs. The “Current CC&Rs” means the Declaration of Protective Covenants,
Conditions and Restrictions for Brea Financial Commons recorded August 12, 1982 in the Orange
County Official Records as the same may be amended from time to time. A copy of the Current CC&Rs
has been provided by Landlord to Tenant prior to the Effective Date. Additionally, Tenant
acknowledges that the Project may be subject to any future covenants, conditions, and restrictions
and/or amendments to the Current CC&Rs (in any such event, the “Future CC&Rs”) which Landlord, in
Landlord’s discretion, deems reasonably necessary or desirable, and Tenant agrees that this Lease
shall be subject and subordinate to the Current CC&Rs and such Future CC&Rs (collectively, the
“CC&Rs”); provided, however, that (i) no Future CC&Rs shall materially and unreasonably interfere
with Tenant’s use of the Premises for general office use and reasonably incidental uses and (ii)
Landlord will not voluntarily enter into or agree to any Future CC&Rs that would increase
Tenant’s costs and obligations to comply with such Future CC&RS in comparison to the Current
CC&RS. Tenant shall not be responsible for, and as provided in Section 4.2.4(xxv) above Operating
Expenses shall not include, costs incurred in bringing the Project into compliance with the
Current CC&Rs in effect on the Commencement Date.

ARTICLE 8

UTILITIES AND SERVICES

     8.1 Building Services. Landlord agrees to furnish or cause to be furnished,
subject to the provisions of this
Lease, as part of Operating Expenses to the Premises, the following utilities and services, subject
to the conditions and standards set forth herein:

               8.1.1 Non-attended automatic elevator service.

               8.1.2 Subject to all governmental Laws, rules, regulations and guidelines applicable thereto,
HVAC to
the Premises, which in Landlord’s reasonable judgment is required for the comfortable use and
occupancy of the Premises and
meets Institutional Owner Practices for general office purposes, shall be furnished during the
periods from 8:00 a.m. to 6:00 p.m.,
Monday through Friday and, upon Tenant’s prior request, from 9:00 a.m. to 1:00 p.m. Saturday,
except New Year’s Eve Day,
New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day,
Christmas Eve Day,
Christmas Day (on the days such holidays are generally observed) and such other holidays as
are generally recognized and
observed by Institutional Owner Practices (such hours and days of operation are herein called
“Normal Working Hours”). The
HVAC for the Premises will be in working order when the Premises are delivered to Tenant.
Tenant shall be responsible for and
shall pay to Landlord any additional costs (including, without limitation, the costs of
installation of additional HVAC equipment)
reasonably incurred by Landlord because of the failure of the HVAC system to perform its
function due to arrangement of
partitioning in the Premises or changes or alterations thereto or from any use by Tenant of
heat-generating machinery or
equipment other than normal office equipment, including small photocopying machines and
personal computers not linked to a
central mainframe at the Premises.

               8.1.3 To the electrical power systems providing electricity to the Premises electric current
as reasonably
required for the Permitted Use; provided, however, that Landlord shall have no obligation
under this Section 8.1 to make any
modifications, additions, or alterations to the Base Building or to otherwise perform any
action required to increase the electrical
supply provided to the Premises after Landlord has complied with its obligations under the
Work Letter and so long as the power
specifications in the Work Letter are maintained. Tenant’s electrical usage shall be subject
to all applicable Laws, and without
Landlord’s prior written consent, Tenant shall not use in the Premises any equipment or
machines that would damage Building
Systems by virtue of their power requirements beyond the capacity required to be provided by
Landlord under this Lease
(“Excess Electrical Requirements”). If Tenant shall require or utilize Excess Electrical
Requirements, Tenant shall obtain
Landlord’s prior consent thereto, in Landlord’s reasonable discretion, and Landlord, at its
election may condition its consent upon
Tenant’s payment in advance of Landlord’s total out of pocket cost of designing, installing,
maintaining and providing any

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additional facilities, machinery and equipment required to satisfy such Excess Electrical
Requirements and/or required to restore
temperature levels in the Building to levels that would have existed but for Tenant’s use of
Excess Electrical Requirements. If
Tenant’s Excess Electrical Requirements materially affect the temperature level in the Premises or
in the Building, Landlord
may, following written notice to Tenant of such proposed installation and Tenant’s continued
demand for Excess Electrical
Requirements despite such notice, install, at Tenant’s sole cost and expense, any machinery or
equipment (including additional
HVAC equipment) necessary to restore the temperature level to that otherwise required to be
provided and Tenant shall, upon
demand, reimburse Landlord for all reasonable, actual costs incurred by Landlord in connection
with such additional equipment
or systems. Landlord shall have no responsibility for the provision of emergency, supplemental or
back-up power (“Back Up
Power”) to the Premises.

          8.1.4 City water for drinking and rest room purposes.

          8.1.5 Janitorial and cleaning services conforming to the Landlord’s Project standards in
effect from time
to time (which shall be consistent with Institutional Owner Practices), provided that the
Premises are used exclusively for office
purposes and are kept reasonably in order by Tenant. Landlord shall not be required to provide
janitorial services for portions of
the Premises used for preparing or consuming food or beverages, for storage, as a mailroom,
or for a lavatory (other than the
Common Area lavatory rooms) other than normal “light” janitorial services such as emptying of
waste containers, standard
vacuuming, mopping, toilet bowl cleaning and sweeping. Landlord shall not be responsible for
more extensive lunch room
cleaning such as the washing of dishware or cleaning any refrigerator located therein.

          Any amounts which Tenant is required to pay to Landlord pursuant to this Section 8.1 shall be
payable within
thirty (30) days of Landlord’s invoice to Tenant and shall constitute Additional Rent. From
time to time during the Term,
Landlord shall have the right, with Tenant’s consent not to be unreasonably withheld, to
modify the services provided to Tenant
hereunder; provided, however, such modified services (a) do not materially derogate from the
services provided on the
Commencement Date and (b) are consistent with Institutional Owner Practices, and (c) comply
with Tenant’s reasonable security
and other operational requirements. Notwithstanding the foregoing, Tenant’s consent shall not
be required with respect to any
modifications required by applicable Laws.

     8.2
Separately Metered Utilities. The Premises are separately metered for Utility
Services (as hereinafter
defined). Tenant shall bear the cost of any fixture unit charges, hook-up fees, use fees,
acreage fees, connection fees or other
similar charges or fees imposed or assessed in connection with any use of the Premises by
Tenant other than for general office
purposes. Tenant shall pay, as a separate monthly cost item and not as part of Operating
Expenses for the Premises, for the cost
of all fuel, electricity, gas, water and any other utilities for the Premises (collectively,
the “Utility Services”) used in or delivered
to the Premises during each Comparison Year in excess of the cost of Utility Services used in
or delivered to the Premises for the
Base Year (referred to herein as the “Utility Excess”), provided that if Tenant does not
occupy 100% of the Building during the
Base Year, the cost of Utility Services for the Base Year shall be adjusted to reflect one
hundred percent (100%) occupancy.

     8.3 Tenant Rights and Responsibilities Regarding Utilities and Services.

          8.3.1 Extraordinary Services. Freight and passenger elevator services, HVAC,
electricity, and access
to and use of the loading dock facilities will be available twenty-four (24) hours a day,
subject to the provisions of this Article 8.
Landlord may impose a reasonable direct charge and establish reasonable rules and regulations
for any of the following: (a) the
use of any HVAC by Tenant at any time other than during Normal Working Hours; (b) the usage
of any services provided to
Tenant (including without limitation, passenger or freight elevator service, or use of the
loading dock facilities by Tenant) at any
time other than during Normal Working Hours; (c) additional or unusual janitorial services
required because of any non-building
standard improvements in the Premises, the carelessness of Tenant, the nature of Tenant’s
business (including the operation of
Tenant’s business other than during Normal Working Hours); and (d) the removal of any refuse
and rubbish from the Premises
except for discarded material placed in wastepaper baskets and left for emptying as an
incident to Landlord’s normal cleaning of
the Premises. The cost of HVAC provided outside of Normal Working Hours shall be the “Actual
Cost,” which shall mean the
actual costs incurred by Landlord (including Landlord’s reasonable estimated related
administrative cost for the cost of services
not already included in Operating Expenses and if applicable, depreciation related to
increased utilization of HVAC related
equipment) in providing the HVAC outside of Normal Working Hours. The current Actual Cost is
$65.00 per hour. The
foregoing direct charges shall be payable by Tenant as Additional Rent on the next rent
payment date after submission of an
invoice therefor by Landlord.

          8.3.2 Security Service. Subject to Article 10, Tenant shall have the right to install
its own integrated
security system (“Tenant’s Security System”) in the Premises and in the doorways leading into
the Premises from the Common
Areas; provided, however, that Tenant shall coordinate the installation and operation of
Tenant’s Security System with Landlord.
Tenant shall be solely responsible, at Tenant’s sole cost and expense, for the monitoring,
operation, repair and removal of
Tenant’s Security System.

          8.3.3 Back-Up Power. Tenant shall be entitled, subject to the provisions of this
Section 8.3.3, at Tenant’s sole cost and expense, to install one (1) emergency backup generator
for the provision of electricity to the Premises in the event electricity is not otherwise
available to the Premises (the “Tenant Generator”). Tenant shall have the right to install such
fuel tanks, fuel lines, additional risers, conduits, feeders, switchboards, appurtenances and/or
additional electrical equipment in the Premises and/or the Building (“Tenant Electrical
Equipment”) as may be necessary for the use of the Tenant Generator for service to the Premises
and which complies and is consistent with the specifications for the Tenant Generator and the
Tenant Electrical Equipment approved by Landlord as provided herein. Landlord shall have the right
to approve plans and specifications for such Tenant Generator and the Tenant Electrical Equipment
(“Generator Plans”), which approval shall not be unreasonably withheld. Such Generator Plans shall
include reasonable screening devices and other appropriate reasonable improvements intended to
visually screen the Tenant Generator and Tenant Electrical Equipment from view by visitors and
tenants in the Project and to mitigate the penetration of noise or vibration from such Tenant
Generator and Tenant Electrical Equipment into the Common Areas. Landlord’s prior written approval
must be obtained by Tenant as to the location of the Tenant Generator and Tenant Electrical
Equipment in the Project as well as the aesthetic and security aspects of the Tenant Generator and
the Tenant Electrical Equipment to make sure they are consistent with the quality of the Building
and the Project, provided that any aesthetic or security aspects of the installation of the Tenant
Generator that are set forth on the Generator Plans approved by Landlord shall not require any
further approval by Landlord hereunder. The Tenant Generator and Tenant Electrical Equipment shall
not create any material adverse impact on the Building Systems or on the Project and must comply
with (i) the Generator Plans as approved by Landlord, and (ii) applicable insurance regulations
and applicable Laws. No work on the installation of the Tenant Generator shall be undertaken
unless and until Landlord has reviewed and approved the Generator Plans. After installation, at
Tenant’s sole expense, Tenant shall insure the Tenant Generator and Tenant Electrical Equipment as
part of Tenant’s property consistent with the provisions of Section 11.2 below, and Tenant,
through Tenant’s contractor reasonably approved by Landlord, shall maintain

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and repair the Tenant Generator and Tenant Electrical Equipment in accordance with the provisions
of Section 9.2 below. Upon expiration or any earlier termination of this Lease, at Landlord’s
request, Tenant shall, at Tenant’s sole expense, remove the Tenant Generator and Tenant Electrical
Equipment and repair all damage to the Project or any improvements therein caused by such removal,
including removal of the diesel fuel tank and related equipment and restoration of the portion of
the Common Areas used to house such equipment. All testing, inspection, repair and replacement of
the Tenant Generator and Tenant Electrical Equipment shall be conducted by Tenant at Tenant’s
expense upon reasonable prior notice to Landlord or on a schedule reasonably approved by Landlord,
and shall be conducted at such time(s) that will cause the least disruption to the operations of
other tenants in the Project as is reasonably practicable. Upon the expiration or earlier
termination of this Lease, Tenant shall provide Landlord with a report from a qualified
environmental consultant which confirms that there has been no leakage of diesel fuel outside of
the diesel fuel tank installed by Tenant in connection with the Tenant Generator, or if there has
been any such leakage, Tenant shall immediately remediate such leakage at Tenant’s sole cost and
expense and Tenant shall indemnify the Landlord Indemnified Parties in accordance with Section
11.1 with respect to such leakage.

          8.3.4 Risers. Tenant, at no additional cost to Tenant for occupying such spaces or for
the use of such, shall have the right to its proportionate share of the Building’s risers, shafts
and conduits for Tenant’s telecommunication and electrical systems cabling and/or wiring from the
point of entry of such telecommunications and electrical service into the Building to the Premises
and from any other point in or on the Building to the Premises, and for the distribution of such
wiring within the Premises (i.e., for its electrical wiring from the Tenant Generator, if installed
by Tenant, to the Premises). Tenant shall be provided reasonable access to such risers, shafts and
conduits for Tenant’s installations between the Delivery Date and the Commencement Date at no cost
or expense to Tenant. Tenant’s rights hereunder may not be transferred to or used by any Transferee
or other person or entity in the business of providing satellite, voice, data or other
telecommunications services to third parties, except to the extent such Transferee or other person
or entity will use the rights hereunder only to service its own satellite, voice, data and other
telecommunications requirements at the Premises.

          8.3.5 Rooftop Equipment.

               (i) As long as this Lease is in full force (a) Tenant shall have the right, at Tenant’s sole cost
and expense, to install, use, operate, maintain, repair and remove telecommunications, antennae,
microwave dish and/or other similar telecommunications equipment (“Telecommunications Equipment”)
and (b) Tenant shall have the right, at Tenant’s sole cost and expense, subject to obtaining
Landlord’s reasonable approval, to install, use, operate, maintain, repair and remove HVAC and
other rooftop equipment which is customary for the Permitted Use hereunder including by businesses
similar to Tenant (together with the Telecommunications Equipment, collectively, the “Rooftop
Equipment”), on an area on the roof of the Building (the “Rooftop Equipment Area”) mutually
acceptable to Landlord and Tenant. Landlord agrees to only install and maintain on the rooftop of
the Building such items as are necessary to operate the Building and Project in accordance with
Institutional Owner Practices. The use, installation, operation, maintenance, repair and removal
of the Rooftop Equipment and the Rooftop Equipment Area shall be subject to all of the terms and
conditions of this Lease (as if the Rooftop Equipment Area were a part of the Premises), and upon
the expiration or earlier termination of the Term of this Lease, the Rooftop Equipment shall be
treated as Tenant’s personal property under the provisions of Section 10.5.

               (ii) Tenant’s
rights under this Section 8.3.5 are personal to Original Tenant and any
Transferees consented to by Landlord, and notwithstanding the provisions of Article 15 of this
Lease, Tenant’s rights under this Section 8.3.5 are (a) except as expressly provided otherwise in
this Section 8.3.5(ii), not transferable by assignment, subletting or otherwise and (b) are
intended solely for (and may be used solely for) servicing the business conducted from the
Premises. Tenant acknowledges that Landlord expressly reserves the
right: (A) to use all portions
of the roof of the Building outside of the Rooftop Equipment Area (defined above) for any purpose
whatsoever, but which use will not materially interfere with Tenant’s Rooftop Equipment, and (B)
to install (or to require Tenant to install) screening around the Rooftop Equipment (at Tenant’s
sole cost and expense) to be constructed with materials and in a configuration, size and height
approved by Landlord. Tenant hereby assumes any and all costs, expenses, liabilities and risks
associated with the Rooftop Equipment. Tenant agrees that Landlord is under no obligation to
perform any work or provide any materials to repair any portion of the Building or roof for
construction and installation of the Rooftop Equipment, and that, in no event, shall Landlord have
any obligation in the event of a fire or other casualty to repair or restore the Rooftop
Equipment. Tenant agrees to pay for all utility hook-up charges necessary for the installation of
the Rooftop Equipment, and Tenant shall pay for all electrical power consumed or used by or
delivered to the Rooftop Equipment. Landlord shall have no liability (whether to Tenant or to any
third party) for any interruption of service and all associated costs resulting from any such
interruption of service shall be the sole responsibility of Tenant.

               (iii) Tenant shall cause the Rooftop Equipment to comply with, and shall comply with, all
Laws applicable to the installation, use, operation, maintenance, repair and removal of the
Rooftop Equipment. Tenant agrees to obtain, at its sole cost and expense, all governmental
approvals and permits required for the installation and operation of the Rooftop Equipment, to
submit same to Landlord prior to the installation of any Rooftop Equipment, and to maintain the
same in effect throughout the Term of this Lease. Tenant acknowledges that Landlord has made no
representations or warranties to Tenant concerning the appropriateness of the Rooftop Equipment
Area or Rooftop Equipment under applicable Laws, or any other representations or warranties
whatsoever with respect to the Rooftop Equipment Area or Rooftop Equipment. Tenant shall not
operate the Rooftop Equipment in such a manner as to cause (A) interference to any other tenant
or licensee who has previously acquired a right to install communications facilities on the roof
of the Project (but not the Building) or (B) interference with Landlord’s business operations
equipment including telephones, radios, televisions and other electrical equipment in the Building
and Project Upon receipt of notice from Landlord of any breach of its obligations under this
Section 8.3.5(iii), Tenant shall take all commercially reasonable steps necessary to correct and
eliminate interference.

               (iv) Tenant agrees, at its sole cost and expense, to maintain the Rooftop Equipment and the
Rooftop Equipment Area in a safe, clean, neat and sightly condition and in good order and repair at
all times during the Term of this Lease. Tenant agrees to reimburse Landlord for any expenses
incurred by Landlord for any damage to the roof or any equipment located thereon or any
improvements, fixtures and furnishings therein which results from any work by Tenant or any Tenant
Party. Additionally, Tenant agrees upon removal of the Rooftop Equipment to, at Tenant’s sole cost
and expense, repair and restore the Rooftop Equipment. Area to its original condition as existed
prior to the installation of the Rooftop Equipment, subject to ordinary wear and tear. The Rentable
Area of the Premises set forth in this Lease and used to calculate Base Rent does not and shall not
include any of the roof space to which Tenant is given access rights
under this Lease.

          8.3.6 UPS/Right to Access Basement. Tenant shall have the right to access and use the
currently existing uninterrupted power supply battery backup system (the “UPS”) servicing the
Premises, at Tenant’s sole risk and at Tenant’s sole cost and expense. Tenant accepts such UPS in
its as-is condition and acknowledges and agrees that Landlord has not made any representations or
warranties regarding the UPS.  Tenant’s use of the UPS shall comply with any applicable insurance
regulations and applicable Laws and shall not cause damage or injury to the Base Building or the
Premises. Tenant

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shall be responsible for all costs related to Tenant’s use of the UPS including without
limitation, costs of maintenance, modifications, repairs and insurance thereof. Upon the
expiration or earlier termination of the Lease Term, Tenant shall surrender the UPS to Landlord.
The UPS is located in the basement of the Building. Tenant shall have the right during the Term
(as the same may be extended) to access the basement of the Building in order to maintain,
inspect, repair and otherwise access the UPS and related equipment. Tenant agrees to reimburse
Landlord for any expenses incurred by Landlord for any damage to the basement or any Building
Systems or other improvements located therein which results from any work in the basement by
Tenant or any Tenant Party. The Rentable Area of the Premises set forth in this Lease and used to
calculate Base Rent does not and shall not include any of the basement space to which Tenant is
given access rights under this Lease.

     8.4 Interruption of Services.

          8.4.1 Landlord shall not be liable for any failure to furnish, stoppage of, or interruption in
furnishing any of the services or utilities described in Section 8.1 when such failure is caused by
accident, breakage, shortages, power outages, repairs, strikes, lockouts, labor disputes, labor
disturbances, governmental regulation, civil disturbances, acts of war, moratorium or other
governmental action, or any other cause beyond Landlord’s reasonable control, and, in such event,
except as expressly provided in Section 8.4.2, below, Tenant shall not be entitled to any damages
nor shall any failure or interruption abate or suspend Tenant’s obligation to pay Base Rent and
Additional Rent required under this Lease or constitute or be construed as a constructive or other
eviction of Tenant. In the event any governmental or quasi-governmental authority or public
utility promulgates or revises any Law or issues mandatory controls or voluntary controls relating
to the use or conservation of energy, water, gas, light or electricity, the reduction of automobile
or other emissions, or the provision of any other utility or service, Landlord may take any
reasonably appropriate action to comply with such Law, mandatory control or voluntary guideline
without affecting Tenant’s obligations hereunder except as expressly provided in Section 8.4.2.
Tenant recognizes that any security services provided by Landlord at the Project are for the
protection of Landlord’s property and under no circumstances shall Landlord be responsible for, and
Tenant waives any rights with respect to, providing security or other protection for Tenant or its
employees, invitees or property in or about the Premises or the Project. Landlord makes no
representation with respect to the adequacy or fitness of the Project’s HVAC system to maintain
temperatures as may be required for the operation of any
computer, data processing or other special equipment.

          8.4.2 Notwithstanding anything to the contrary set forth in Section 8.4.1, if the Premises or
any portion thereof are rendered untenantable and are not used by Tenant for a period of five (5)
consecutive business days or ten (10) business days in any twelve (12) month period (the
“Eligibility Period”) as a result of failure in the water, sewage, air conditioning, heating,
ventilating, vertical transportation or electrical systems of the Building, or as a result of
Landlord’s performance of Renovation Work (as defined in Section 30.24 below), Tenant’s Rent shall
be reduced and abated after the expiration of the Eligibility Period for such time as the Premises
or such portion thereof remain untenantable and are not used by Tenant, in the proportion that the
Rentable Area of the portion of the Premises rendered untenantable and not used by Tenant bears to
the total Rentable Area of the Premises, provided, however, there shall be no abatement of rent if
the failure of Building Systems is caused in whole or in part by the negligent or willful acts or
omissions of Tenant, its agents, employees, contractors, licensees or invitees. To the extent
rental loss insurance carried by Landlord, the premiums for which are included in Operating
Expenses, covers rent loss for any portion of the Eligibility Period, the Eligibility Period shall
be reduced to the extent of such coverage. Notwithstanding the foregoing, during any rent abatement
under this Lease, Tenant shall pay Landlord Additional Rent for all services and utilities provided
to and actually used by Tenant during the period of the rent abatement with respect to any portion
of the Premises for which Base Rent is not being abated or entitled to be abated pursuant to this
Section 8.4.2.

ARTICLE 9

MAINTENANCE AND REPAIRS

     9.1 Landlord’s Obligations. Landlord shall keep the Building and the Common Areas on
the Building Property in good working order and repair and in a safe, clean and neat condition.
Subject to Section 9.2, below, Landlord shall make all necessary repairs, within a reasonable
period following receipt of notice from Tenant (or in the case of emergency, after such oral or
written notice, if any, as may be practical under the circumstances), to the Building Structure
(including the exterior walls, exterior doors and windows of the Building), the Building Systems,
and the Common Areas. If, during the Term (as it may be renewed), Tenant experiences any damage
within the Premises due to any water seepage through the parapet wall at the raised planter,
subject to the provisions of Section 11.5, Landlord shall promptly, at Landlord’s sole cost,
repair, or replace if necessary, such damage and shall repair the Building Structure and/or
Building Systems to correct such water intrusion, and such costs shall not be reimbursable as
Operating Expenses or Additional Rent. Without limiting the generality of the foregoing, Landlord
covenants and agrees to enforce all of Landlord’s rights and remedies against Healthy Buildings
International, Inc., as issuer of the Mold Assessment Report and Clearance Document issued
September 9, 2008, for Tenant’s benefit, in the event of any inaccuracy in the subject report or
any water seepage, damage or other problem which arises during the Term and is covered by the
subject report. To the extent such maintenance and repair is required due to the act (other than
ordinary use as contemplated by this Lease), neglect, misuse, or fault of Tenant, its agents,
employees, contractors, licensees or invitees, Tenant shall pay to Landlord the cost of such
maintenance and repairs except to the extent Tenant has been relieved of such liability pursuant to
this Lease, including, without limitation, under Section 11.5. Landlord shall perform all repairs
to the Premises and the Building Property (including correction of latent defects and repairs of
the Leasehold Improvements (as defined in Section 11.2.1)) except as otherwise expressly agreed to
be performed by Tenant pursuant to Section 9.2 of this Lease. The cost of such repairs performed
by Landlord shall be included in Operating Expenses, unless such cost is subject to exclusion
pursuant to Section 4.2.4 above. With respect to Landlord’s repair of damage to Leasehold
Improvements which are required to be insured by Tenant pursuant to Section 11.2.1, Tenant shall
assign and make available such proceeds to Landlord as a condition precedent to Landlord’s
obligation to perform such repairs, and Tenant shall be responsible for any deductible under such
insurance or failure to provide the required insurance. As a material inducement to Landlord
entering into this Lease, Tenant agrees that Tenant’s sole right to make repairs at Landlord’s
expense shall be as set forth in Section 9.4 below, and Tenant hereby waives and releases its right
to make repairs at Landlord’s expense under Section 1942 of the California Civil Code or under any
other law, statute or ordinance now or hereafter in effect, and Tenant waives and releases the
right to terminate this Lease under Section 1932(1) of the California Civil Code or any similar or
successor statute.

     9.2 Tenant’s Obligations. During the Term of this Lease, Tenant shall, at its sole
cost and expense, maintain Tenant’s Property (as defined in Section 11.2.1) in the Premises in good
order and repair and in a safe, clean and neat condition. Tenant shall make all repairs to same
(including, without limitation, all damaged and broken fixtures and appurtenances) with
replacements of any materials to be made by use of materials of equal or better quality. Further,
Tenant shall be responsible for, and upon demand by Landlord shall promptly reimburse Landlord for,
any damage to any portion of the Project or the Premises caused by (a) activities of Tenant or any
Tenant Party in the Building or the Premises (except normal wear and tear and damage by casualty);
(b) the performance or existence of any alterations, additions or improvements made by Tenant or
any Tenant Party

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in or to the Premises; (c) the installation, use, operation or movement of Tenant’s property in or
about the Building or the Premises; or (d) any act or omission by Tenant or any Tenant Party or
any other person permitted in or invited to the Premises or the Project by Tenant or any Tenant
Party.

     9.3 Landlord’s Rights. Landlord and its contractors shall have the right, at all
reasonable times, to enter upon the Premises to make any repairs to the Premises or the Building
or the Project reasonably required or deemed reasonably necessary by Landlord and to erect such
equipment, including scaffolding, as is reasonably necessary to effect such repairs. In the event
of any failure of Tenant to perform any of its obligations under this Article 9, or under Article
7, 10 or 11, where such failure remains uncured for thirty (30) days after delivery by Landlord to
Tenant of written notice of such failure (or in the case of an emergency, after such oral or
written notice, if any, as may be practical under the circumstances), Landlord may (but shall not
be obligated to) elect to perform such obligation of Tenant at Tenant’s sole cost and expense, and
in the event of such performance by Landlord, Tenant shall pay to Landlord, within thirty (30)
days of written demand therefor, Landlord’s actual costs (including interest at the Interest Rate,
overhead, general conditions and administration) in performing such
obligations of Tenant.

     9.4 Tenant’s Right to Perform Actions. Notwithstanding any provision set forth in
this Lease to the contrary, if (a) Tenant provides prior written notice to Landlord of an event or
circumstance which requires the action of Landlord with respect to a repair, maintenance or
service (referred to herein as an “Action”), (b) Landlord is, in fact, required to perform such
Action under the terms of this Lease, and (c) Landlord fails to commence such Action within a
reasonable period of time, given the circumstances, after the receipt of such notice, but in any
event not later than thirty (30) days after receipt of such notice (or within three (3) business
days in the case of an Emergency (defined in this Section 9.4,
below)), then Tenant may proceed to
take the required Action after delivery of an additional two (2) business days notice to Landlord
and the holder of any Security Documents for which Landlord has given Tenant an address for
notices (such second notice given not earlier than the expiration of the aforesaid thirty (30) day
period) specifying that the thirty (30) day period has expired, the specific Action required and
that Tenant intends to make such required Action; provided, however, if Tenant reasonably
anticipates that a dispute will result under this Section 9.4, Tenant may, but is not obligated
to, submit the anticipated dispute to arbitration in accordance with Section 9.5 by written notice
given not earlier than ten (10) days after Tenant’s delivery of the first aforesaid notice.
Notwithstanding any other provision hereof, Tenant shall be entitled to make any such Action only
if there is a material adverse effect on the operation of Tenant’s business or Tenant is unable to
occupy a material portion of the Premises. If Landlord believes that the requested Action is not
required because it is not necessary pursuant to the terms of this Lease, or if Landlord is
already taking the requested Action or other action Landlord believes appropriate in the
circumstances in accordance with its obligations under this Lease, Landlord shall have the option
within said two (2) business day period to obtain an injunction against Tenant’s performance of
such Action or commence the requested Action. If such Action is required under the terms of this
Lease to be taken by Landlord and is not taken by Landlord within such two (2) business day period
and Landlord has not obtained an injunction against Tenant, then Tenant shall be entitled to
prompt reimbursement by Landlord of Tenant’s reasonable and necessary, actual out-of-pocket costs
and expenses in taking such Action (and only such Action as specified in the 2-business day notice
given to Landlord) plus interest thereon at the Interest Rate but in no event in excess of the
maximum interest rate permitted by law. Such amounts shall be promptly reimbursed by Landlord on
the receipt from Tenant of a detailed invoice setting forth a particularized breakdown of the
costs and expenses incurred in connection with the action taken by Tenant. In the event Tenant
takes such action, and such work affects the Building Systems or Building Structure, Tenant shall
use only those contractors used by Landlord in the Building for work on such systems unless such
contractors are unwilling or unable to perform, or timely perform, such work, in which event
Tenant may utilize the services of any other qualified contractor which normally and regularly
performs similar work in other first class office buildings in the Brea submarket of Orange
County. Further, if Landlord or the holder of any Security Document does not deliver a detailed
written objection to Tenant within ten (10) days after Landlord’s receipt of an invoice by Tenant
of its costs and expenses of taking such action which Tenant claims should have been taken by
Landlord, and if such invoice from Tenant sets forth a particularized breakdown of its costs and
expenses incurred in connection with taking such action, then Tenant shall be entitled to deduct
from Rent the amount set forth in the invoice. If, however, Landlord or the holder of any Security
Documents delivers to Tenant within ten (10) days after receipt of Tenant’s invoice, a written
objection to the payment of such invoice, setting forth with reasonable particularity Landlord’s
reasons for its claim that such action did not have to be taken by Landlord pursuant to the terms
of this Lease or that the charges are excessive (in which case Landlord shall pay the amount it
contends would not have been excessive), then Tenant shall not be entitled to such deduction from
Rent, but as Tenant’s sole remedy, Tenant may submit the dispute to arbitration in accordance with
Section 9.5. If Tenant prevails in the arbitration action and receives an award, then Tenant shall
be entitled to deduct the amount of such award, together with attorneys’ fees and related
arbitration costs to which Tenant is entitled under Article 17, from the Rents next due and
payable under this Lease if Landlord fails to pay the same within ten (10) days after the date the
award is final. As used in this Section 9.4, an “Emergency” shall be a situation in which there is
an immediate and material threat to life, safety, or to the operation of Tenant’s business in the
Premises.

     9.5 Arbitration. Whenever in Section 9.4 above it is provided that a dispute may be
submitted to arbitration, the arbitration shall be conducted in Irvine, California, as provided in
this Section 9.5. The party desiring such arbitration shall give written notice thereof to the
other specifying the dispute to be arbitrated. Within twenty (20) days after the date on which the
arbitration procedure is invoked as provided in Section 9.4, each party shall appoint an
experienced arbitrator and notify the other party of the arbitrator’s name and address. The two
arbitrators so appointed shall appoint a third experienced arbitrator. If the three arbitrators to
be so appointed are not appointed within thirty (30) days after the date the arbitration procedure
is invoked as provided in Section 9.4, then the arbitrator or arbitrators, if any, who have been
selected shall proceed to carry out the arbitration. The arbitrator or arbitrators so selected
shall furnish Landlord and Tenant with a written decision within thirty (30) days after the date of
selection of the last of the arbitrators to be so selected. Any decision so submitted shall be
signed by a majority of the arbitrators, if more than two have been selected. If only two
arbitrators have been selected and they are unable to agree, then either Landlord or Tenant shall
be entitled to apply to the presiding judge of the Superior Court of Orange County, California for
the selection of a third arbitrator who shall be selected from a list of names of experienced
arbitrators submitted by Landlord or from a list of names submitted by Tenant, as the case may be,
unless both Landlord and Tenant submit lists of names, in which case the Court, in its sole
discretion, shall select the third arbitrator from the lists. In designating arbitrators and in
deciding the dispute, the arbitrators shall act in accordance with the Commercial Rules of
Arbitration and the Real Estate Valuation Arbitration Rules then in force of the American
Arbitration Association, subject, however, to such limitations as may be placed upon them by the
provisions of this Lease. The decision of the arbitrators shall be final and binding upon the
parties, and judgment on the award rendered by the arbitrators may be entered in any court having
jurisdiction thereof.

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ARTICLE 10

ALTERATIONS, ADDITIONS AND IMPROVEMENTS

     10.1 Landlord’s Work. Subject to Landlord’s Warranties, including repair
obligations, Landlord’s sole construction obligation under this Lease is set forth in the Work
Letter attached hereto as Exhibit “C”.

     10.2 Landlord’s Consent; Conditions. Except for Alterations that (x) cost less than
Fifty Thousand Dollars ($50,000.00) per Alteration (not the aggregate of all Alterations in a
given period), (y) are non-structural and (z) are cosmetic or decorative, Tenant shall not make
or permit to be made any alterations, additions, or improvements in or to the Premises
(“Alterations”) without first obtaining the prior written consent of Landlord, which consent
shall be requested in writing not less than fifteen (15) business days prior to the scheduled
and actual commencement of any work therein. All such Alterations (i) shall comply with all
applicable Laws; (ii) shall be compatible (as reasonably determined by Landlord) with the
Building and its mechanical, electrical, heating, ventilating, air-conditioning, and life safety
systems; (iii) shall not be visible from the exterior of the Building or from any Common Areas;
and (iv) shall not affect the structural integrity of the Building. In addition, Landlord may
impose as a condition to such consent such additional requirements as Landlord in its reasonable
discretion deems necessary or desirable including without limitation: (A) Tenant’s submission to
Landlord, for Landlord’s prior written approval, of all plans and specifications relating to
the Alterations; (B) Landlord’s prior written approval of the time or times when the
Alterations are to be performed; (C) Landlord’s prior written approval of the contractors
and subcontractors performing work in connection with the Alterations; (D) Tenant’s receipt of
all necessary permits and approvals from all governmental authorities having jurisdiction
over the Premises prior to the construction of the Alterations; (E) Tenant’s written notice
of whether the Alterations include the Handling of any Hazardous Materials; (F) Tenant’s
delivery to Landlord of such insurance as Landlord shall customarily require; (G) Tenant’s
payment to Landlord within thirty (30) days of written demand therefor of all actual and
reasonable out-of-pocket third party structural and engineering costs and expenses incurred
by Landlord’s consultants in accordance with Institutional Owner Practices; and (H) Tenant’s
(and Tenant’s contractor’s) compliance with such construction rules and regulations and
building standards as Landlord may promulgate from time to time. Except for building code
modifications which are unrelated to Tenant’s Alterations and except for ADA requirements
related to the Building in general (in which case such modifications shall be performed by
Landlord as an Operating Expense subject to Sections 1.2 and 4.2.4 above and Section 9.1 of
this Lease), all direct and indirect costs relating to any modifications, alterations or
improvements of the Project or the Building, whether outside or inside of the Premises,
required by any governmental agency or by Law as a condition or as the result of any
Alteration requested or effected by Tenant shall be borne by Tenant, and in connection
therewith, with respect to any such alterations or improvements that are located outside of
the Premises, Landlord may elect to perform such modifications, alterations or improvements
(at Tenant’s sole cost and expense) or require such performance directly by Tenant. The
construction of the initial improvements to the Premises shall be governed by the terms of
the Work Letter and not the terms of this Article 10.

     10.3 Performance of Alterations Work. All work relating to the Alterations shall be
performed in compliance with the plans and specifications approved by Landlord, all applicable
Laws, and the requirements of all carriers of insurance on the Premises and the Building, the
Board of Underwriters, Fire Rating Bureau, or similar organization. Except for building code
modifications which are unrelated to Tenant’s Alterations and except for ADA requirements
related to the Building in general (in which case such modifications shall be performed by
Landlord as an Operating Expense subject to Sections 1.2 and 4.2.4 above), all work shall be
performed by Tenant at Tenant’s sole cost and expense and shall be prosecuted to completion in a
diligent, first class manner and so as not to unreasonably interfere with any other tenants or
occupants of the Building. Without Landlord’s prior written consent, which Landlord may withhold
in its reasonable discretion, Tenant shall not use any portion of the Common Areas in connection
with the making of any Alterations, and subject to Tenant’s rights under Sections 8.3.4 and
8.3.5, Tenant shall not modify or alter any improvements or components of the Building or the
Project outside of the Premises. Upon completion of any Alterations, Tenant agrees to cause a
timely Notice of Completion to be recorded in the office of the Recorder of Orange County in
accordance with the terms of Section 3093 of the Civil Code of the State of California or any
successor statute, and Tenant shall deliver to the Building management office, within thirty
(30) days following completion of the Alterations, a reproducible copy of the “as built”
drawings of the Alterations together with a CAD file of the “as built” documents of the
Alterations (current version of AutoCad), if such drawings and/or documents have been obtained
by Tenant in connection with the Alterations.

     10.4 Liens. Tenant shall pay when due all costs for work performed and materials
supplied to the Premises. Tenant shall keep Landlord, the Premises and the Project free from all
liens, stop notices and violation notices relating to the Alterations or any other work
performed for, materials furnished to or obligations incurred by Tenant and Tenant shall
indemnify, defend and hold harmless Landlord, the Premises and the Project of and from any and
all loss, cost, damage, liability and expense, including attorneys’ fees, arising out of or
related to any such liens or notices. Tenant shall give Landlord not less than seven (7)
business days prior written notice before commencing any Alterations in or about the Premises to
permit Landlord to post appropriate notices of non-responsibility. During the progress of such
work, Tenant shall, upon Landlord’s request, furnish Landlord with sworn contractor’s statements
and lien waivers covering all work theretofore performed. Tenant shall remove all liens, stop
notices or other claims or encumbrances, by bond or otherwise, within ten (10) business days
after Landlord notifies Tenant in writing that any such lien, stop notice, claim or encumbrance
has been filed. If Tenant fails to remove such lien, claim or encumbrance, by bond or
otherwise, within such ten (10) business day period, Landlord, at its election, may pay and
satisfy the same and in such event the sums so paid by Landlord, with interest from the date of
payment at the Interest Rate, shall be deemed to be Additional Rent due and payable by Tenant at
once without notice or demand.

     10.5 Surrender. Upon expiration or earlier termination of this Lease, Tenant shall
surrender the Premises to Landlord in its then improved, broom clean condition, subject to
ordinary wear and tear. Except as otherwise provided herein, all Alterations and the Tenant
Improvements shall become a part of the Premises and shall become the property of Landlord upon
the expiration or earlier termination of this Lease. Tenant shall not be required to remove any
Tenant Improvements (other than cabling) completed prior to the Commencement Date. Tenant shall
not be required to remove any Alterations from the Premises unless Landlord conditioned its
consent upon such removal by written notice to Tenant at the time Landlord first consented to the
Alteration. If Landlord conditioned its consent on Tenant’s obligation to remove any Alterations
from the Premises, Tenant shall promptly remove prior to the date of such expiration or
termination the Alterations designated by Landlord to be so removed and shall promptly restore,
patch and repair any resulting damage, all at Tenant’s sole expense. All business and trade
fixtures, machinery and equipment, furniture, movable partitions, wallcoverings,
telecommunications equipment, data cabling and items of personal property owned by Tenant or
installed by Tenant at its expense in the Premises shall be and remain the property of Tenant;
upon the expiration or earlier termination of this Lease, Tenant shall, at its sole expense,
remove all such items and repair any damage to the Premises or the Project caused by such
removal. If Tenant fails to remove any such items or repair such damage promptly after the
expiration or earlier termination of this Lease, Tenant shall be deemed to have abandoned the
same, in

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which case Landlord may store the same at Tenant’s expense (and Tenant shall pay Landlord the cost
thereof within thirty (30) days of demand) and thereafter dispose of the same in any manner
permitted by applicable Laws.

ARTICLE 11

INDEMNIFICATION AND INSURANCE

     11.1 Waiver of Liability and Indemnification.

          11.1.1 Subject to Section 11.5 below, Tenant shall indemnify, protect, defend and hold
harmless, Landlord, its officers, directors, partners, members, agents, attorneys and employees,
and any affiliate of Landlord, including without limitation, any corporations or any other
entities controlling, controlled by or under common control with Landlord (collectively,
“Landlord Indemnified Parties”), from and against any and all claims, suits, demands, liability,
damages and expenses, including attorneys’ fees and costs (collectively, “Claims, Damages and
Costs”) (but excluding injury to or interference with Landlord’s or any Landlord Indemnified
Parties’ business and any consequential damages), arising from or in connection with Tenant’s use
or alteration of the Premises or the conduct of its business or from any activity performed or
permitted by Tenant in or about the Premises, the Building or any part of the Project during the
Term or prior to the Commencement Date if Tenant has been provided access to the Premises, the
Building or any part of the Project for any purpose, or arising from any breach or default in the
performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or
arising from Tenant’s use of the Building Systems in excess of their capacity or arising from any
other act, neglect, fault or omission of Tenant or any of its officers, agents, directors,
contractors, employees, subtenants, assignees, licensees or invitees. If any action or proceeding
is brought against any of the Landlord Indemnified Parties for an Claims, Damages and Costs for
which Tenant is required to indemnify the Landlord Indemnified Parties under this Section 11.1.1,
Tenant, upon notice from Landlord, shall defend the same at Tenant’s expense with counsel approved
by Landlord, which approval shall not be unreasonably withheld. Tenant’s obligations under this
Section 11.1.1 shall survive the expiration or earlier termination of this Lease. Notwithstanding
any provision to the contrary in this Lease, in no event shall Tenant be required to indemnify or
defend Landlord for any Claims, Damages and Costs to the extent arising from Landlord’s negligence
or willful misconduct.

          11.1.2 As a material part of the consideration to the Landlord for entering into this Lease,
Tenant hereby assumes all risk of and releases, discharges and holds harmless Landlord from and
against any and all liability to Tenant for damage to property or injury to persons in, upon or
about the Premises from any cause whatsoever, except as provided in Section 11.1.3 below. In no
event shall Landlord be liable to Tenant for any injury to any person in or about the Premises or
damage to the Premises or for any loss, damage or injury to any property of Tenant therein or by
any malfunction of any utility or other equipment, installation or system, or by the rupture,
leakage or overflow of any plumbing or other pipes, including without limitation, water, steam
and refrigeration lines, sprinklers, tanks, drains, drinking fountains or similar cause in, about
or upon the Premises, the Building or any other portion of the Project, except as provided in
Section 11.1.3 below.

          11.1.3 Notwithstanding the provisions of Sections 11.1.1 and 11.1.2 to the contrary, but
subject to the limitation on Landlord’s liability set forth in Section 24.1 and subject to Section
11.5, Landlord shall indemnify, protect, defend and hold harmless Tenant and its officers,
directors, partners, agents, shareholders, attorneys, employees and any affiliate of Tenant,
including without limitation, any corporations or any other entities controlling, controlled by or
under common control with Tenant and their respective successors and assigns (collectively,
“Tenant Indemnified Parties”), from and against any Claims, Damages and Costs (but excluding
injury to or interference with Tenant’s or any Tenant Indemnified Parties’ business and any
consequential damages), to the extent arising or resulting from (i) the negligence or willful
misconduct of Landlord, or any of its agents, contractors or employees (but only to the extent
such agents, contractors and employees are acting within the scope of their relationship with
Landlord); and/or (ii) a breach of any Landlord representation set forth in this Lease or the
default in the performance by Landlord of any obligations on Landlord’s part to be performed under
the terms of this Lease provided, however, that Landlord’s indemnity shall not apply or extend to
any Claims, Damages and Costs which are covered by any insurance maintained by Tenant or any
Tenant Indemnified Parties (or which would have been covered had Tenant obtained the insurance
required under the provisions of this Lease).

     11.2 Property Insurance.

          11.2.1 At all times during the Term of this Lease, Tenant shall procure and maintain in
effect, at its sole expense, policies of insurance covering (i) all Tenant Improvements and
Alterations in and to the Premises, including, without limitation, all floor and wall coverings
(collectively, the “Leasehold Improvements”); and (ii) Tenant’s office furniture, business and
personal trade fixtures, equipment, furniture system and other personal property from time to time
situated in the Premises (collectively, “Tenant’s Property”), in an amount not less than one
hundred percent (100%) of their full replacement cost from time to time during the Term, providing
protection against any peril included within the classification “all risk coverage” or “causes of
loss – special form” together with insurance against sprinkler water damage (including earthquake
caused sprinkler damage), vandalism and malicious mischief. Such property insurance shall provide
equivalent or greater coverage than that provided by ISO Form CP 10 30. The proceeds of such
insurance, so long as this Lease remains in effect, shall be used for the repair or replacement of
the property so insured. Upon termination of this Lease due to any casualty, the proceeds of
insurance shall be paid to Landlord and Tenant, as their interests appear in the insured property.
The full replacement value of the items to be insured under this Section 11.2.1 shall be
determined by Tenant and acknowledged by the company issuing the insurance policy by the issuance
of an agreed amount endorsement at the time the policy is initially obtained, and shall be
increased from time to time in order to maintain replacement value coverage.

          11.2.2 Tenant shall at all times during the Term, and at its own cost and expense, procure
and maintain in effect insurance providing coverage for the extra expenses attributable to perils
commonly insured against by prudent tenants and attributable to prevention of access to the
Premises as a result of such perils.

     11.3 Liability Insurance.

          11.3.1 At all times during the Term of this Lease (and prior to the commencement of the Term
with respect to any activity of Tenant hereunder at the Project), Tenant shall procure and
maintain, at its sole expense, commercial general liability insurance applying to the use and
occupancy by Tenant of the Premises and the Parking Facilities and the business operated by Tenant.
Such insurance shall have a minimum combined single limit of liability of at least One Million
Dollars ($1,000,000) per occurrence and a general aggregate limit of at least Two Million Dollars
($2,000,000), and Tenant shall provide in addition excess liability insurance on a following form
basis, excess of the primary liability policies, with overall limits of at least Five Million
Dollars ($5,000,000).

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          11.3.2 At all times during the Term of this Lease, Tenant shall procure and maintain, at its
sole expense, primary automobile liability insurance with limits of not less than One
Million Dollars ($1,000,000) per occurrence covering owned, hired and non-owned vehicles used by
Tenant, which shall be endorsed to include Landlord as an additional insured, but solely with
respect to those matters for which Tenant is required to provide indemnification under this Lease,
and then only to the extent of the indemnification provided by Tenant under this Lease.

          11.3.3 At all times during the Term of this Lease, Tenant shall procure and maintain
Workers’ Compensation Insurance and Employer’s Liability or other similar insurance in accordance
with the laws of the State of California. The limits of liability under the workers’ compensation
insurance policy shall be at least equal to the statutory requirements therefor, and the limits of
liability under the Employer’s Liability Insurance policy shall be at least One Million Dollars
($1,000,000).

     11.4 Policy Requirements.

          11.4.1 All insurance required to be maintained by Tenant shall be issued by insurance
companies qualified to do insurance business in the State of California and reasonably acceptable
to Landlord. Insurance companies rated A:VII or better by Best’s Insurance Reports shall be deemed
acceptable.

          11.4.2 Each policy shall be written on an “occurrence” basis and shall have a deductible or
deductibles, if any, which do not exceed the deductible amount(s) maintained by similarly situated
tenants in office buildings comparable to the Building in the Brea submarket area of Orange
County, California. Each policy shall name Landlord, Landlord’s Project manager and Landlord’s
lender as additional insureds, as their interests may appear, and certificates evidencing the
existence and amounts of such insurance and further evidencing that such insurance is in full
force and effect, shall be delivered to Landlord by Tenant prior to Tenant’s occupancy of any
portion of the Premises, and in any event, prior to any activity of Tenant hereunder at the
Project. No such policy shall be cancelable except after thirty (30) days written notice to
Landlord. Copies of the relevant portions of Tenant’s insurance policies (suitably redacted to
protect information that Tenant deems confidential and not relevant to the insurance requirements
provided hereunder) and endorsements thereto shall be delivered to Landlord within fifteen (15)
days after Landlord’s request, to the extent in Tenant’s possession or control (and to the extent
not in Tenant’s possession or control Tenant shall use commercially reasonable efforts to obtain
same) if reasonably required by Landlord in lieu of certificates to pursue or defend claims or
losses related to such policies. Tenant shall, at least thirty (30) days prior to the expiration
of any such policy, furnish Landlord with renewals or “binders” thereof. Should Tenant at any time
neglect or refuse to provide the insurance required by this Lease, or should such insurance be
cancelled, Landlord shall have the right, but not the duty, to procure the same and Tenant shall
pay the cost thereof as Additional Rent promptly upon Landlord’s demand.

          11.4.3 The policies of insurance required to be carried by Tenant shall be primary and
non-contributing with, and not in excess of any other insurance available to Landlord. The cost of
defending any claims made against any of the policies required to be carried by Tenant shall not
be included in any of the limits of liability for such policies. Tenant shall immediately report
to Landlord, and promptly thereafter confirm in writing, the occurrence of any injury, loss or
damage incurred by Tenant, or Tenant’s receipt of notice or knowledge of any claim by a third
party or any occurrence that might give rise to such claims. It shall be the responsibility of
Tenant not to violate nor knowingly permit to be violated any condition of the policies required
by this Lease.

          11.4.4 If any of the liability insurance policies required to be maintained by Tenant
pursuant to this Article 11 contains aggregate limits which apply to operations of Tenant other
than those operations which are the subject of this Lease, and such limits are diminished by more
than Two Hundred Thousand Dollars ($200,000) after any one or more incidents, occurrences,
claims, settlements, or judgments against such insurance, Tenant shall take immediate steps to
restore aggregate limits or shall maintain other insurance protection for such aggregate limits.
Any policy of property insurance required hereunder may be in “blanket coverage” form, provided
any such “blanket coverage” policy (i) specifically provides that the amount of insurance coverage
required hereunder shall in no way be prejudiced by other losses covered by the policy or (ii) is
in an amount not less than the sum of one hundred percent (100%) of the actual replacement costs
of all of the properties covered under such “blanket coverage” insurance policy. Neither the
issuance of any such property insurance policy nor the minimum limits specified in this Section
11.4.4 shall be deemed to limit or restrict in any way Tenant’s liability arising under or out of
this Lease.

     11.5 Mutual Waiver of Subrogation. Notwithstanding any provision to the contrary in
this Lease, Landlord and Tenant each hereby releases the other, and waives its entire right of
recovery against the other for any direct or consequential loss or damage arising out of or
incident to any damage to property, including by perils covered by the property insurance policy or
policies carried by, or required to be carried by, the waiving party pursuant to this Lease
(including deductible amounts), whether or not such damage or loss may be attributable to the
negligence of either party or their agents, invitees, contractors, or employees. Each insurance
policy carried by either Landlord or Tenant in accordance with this Lease shall include a waiver of
the insurer’s rights of subrogation to the extent necessary.

     11.6
Miscellaneous. Landlord makes no representation that the insurance coverage
specified to be carried by Tenant pursuant to this Article 11 is adequate to protect Tenant against
Tenant’s undertaking under the terms of this Lease or otherwise, and in the event Tenant believes
that any such insurance coverage called for under this Lease is insufficient, Tenant shall provide,
at its own expense, such additional insurance as Tenant deems adequate. Tenant shall not keep, use,
sell or offer for sale in or upon the Premises any article which may be prohibited by any insurance
policy periodically in force covering the Premises, the Building or
the Project. If any of
Landlord’s insurance policies shall be canceled or cancellation shall be threatened or the coverage
thereunder reduced or threatened to be reduced in any way because of the use of the Premises or any
part thereof by Tenant or any assignee, subtenant, licensee or invitee of Tenant in violation of
this Lease and, if Tenant fails to remedy the condition giving rise to such cancellation,
threatened cancellation, reduction of coverage, or threatened reduction of coverage, within ten
(10) business days after notice thereof, Landlord may enter upon the Premises and attempt to remedy
such condition, and Tenant shall promptly pay the cost thereof to
Landlord as Additional Rent.
Landlord shall not be liable for any damage or injury caused to any property of Tenant or of
others located on the Premises resulting from such entry, except as provided in Section 11.1.3
above. If Landlord is unable, or elects not to remedy such condition, then Landlord shall have all
of the remedies provided for in this Lease upon the occurrence and continuance of an Event of
Default. If, as a result of any act or omission by or on the part of Tenant in violation of
this Lease, the rate of “All Risk” or other property insurance maintained by Landlord on or with
respect to the Building and fixtures and property therein, shall be increased to an amount higher
than it otherwise would be, Tenant shall reimburse Landlord for all increases of Landlord’s
insurance premiums so caused within thirty (30) days after delivery of written demand therefor by
Landlord. In any action or proceeding wherein Landlord and Tenant are parties, a schedule or
“make-up” of rates for the Project or the Premises issued by the body making fire insurance rates
or established by insurance carrier providing coverage for the Building or Premises shall be
presumptive evidence of the facts stated therein

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including the items and charges taken into consideration in fixing the “All Risk” insurance
rate then applicable to the Building or the Premises.

     11.7 Landlord’s Insurance. At all times during the Term of this Lease, Landlord
will carry and maintain “All Risk” property insurance covering the Building Property and its
equipment in amounts not less than their full replacement cost. Landlord shall also carry
commercial general liability insurance with respect to the Building Property. Such coverage
shall be in such amounts, from such companies, and on such other terms and conditions, as
Landlord may from time to time determine in good faith, and in any case shall be consistent with
Institutional Owner Practices. Additionally, at the option of Landlord, such insurance coverage
may include the risks of earthquakes and/or flood damage and additional hazards, a rental loss
endorsement and one or more loss payee endorsements in favor of the holders of any mortgages or
deeds of trust encumbering the interest of Landlord in the Building or the ground or underlying
lessors of the Building, or any portion thereof. Notwithstanding anything to the contrary
contained in this Lease, in no event shall Landlord be required to carry earthquake insurance,
flood insurance, or terrorism insurance.

ARTICLE 12

DAMAGE OR DESTRUCTION

     12.1 Landlord’s Repair Obligation. Tenant and Landlord shall each promptly
notify the other in writing (a “Damage Notice”) of any casualty event, damage or condition to
which this Article 12 is or may be applicable. Landlord shall, within thirty (30) days after the
date of Landlord’s discovery of any Casualty affecting the Premises or access to the Premises
(except that such thirty (30) day period shall be extended to sixty (60) days in the case of an
earthquake), deliver to Tenant a non-binding estimate (the “Restoration Estimate”) of the time
that Landlord expects will be required to complete the Restoration (defined below). Unless this
Lease is terminated in accordance with this Article 12, Landlord shall, within a reasonable time
after the discovery by Landlord of any damage resulting from any casualty event (“Casualty”),
subject to reasonable delays for insurance adjustment or other matters beyond Landlord’s
reasonable control, and subject to all other terms of this Article 12, begin to repair the
damage to the Building Property (as defined in Section 7.2.2 above) and the Premises resulting
from such Casualty and shall proceed with reasonable diligence to restore the Building Property
and Premises to substantially the same condition as existed immediately before such Casualty,
except for (i) modifications required by applicable Laws or covenants, conditions and
restrictions, and (ii) modifications to the Building Property reasonably deemed desirable by
Landlord and approved by Tenant in its reasonable discretion and which does not materially
interfere with Tenant’s use and enjoyment of the
Premises; provided, however, that Landlord shall not be required to repair or replace any of
the Leasehold Improvements or any of Tenant’s Property which may have been placed by, or at the
request of, Tenant or other occupants in the Project or the Premises. Base Rent, and Additional
Rent payable under Article 4, shall abate on a day-for-day basis relative to that portion of the
Premises affected by the Casualty from the date of the Casualty until the date the Restoration to
be performed by Landlord is substantially complete, as determined by Landlord’s architect and the
local governmental inspector, if applicable, and Tenant shall have been given a reasonable period
of time to complete its repair and restoration of the Leasehold Improvements in the Premises.
Unless this Lease is terminated in accordance with this Article 12, Tenant shall, at its sole
cost and expense (using contractors and subcontractors reasonably approved by Landlord) promptly
and diligently restore the Leasehold Improvements in the Premises. Prior to commencing the repair
of same, Tenant shall submit to Landlord, for Landlord’s approval in accordance with Article 10,
above, all plans and specifications relating to such work.

     12.2 Exceptions to Landlord’s Obligations.

          12.2.1 Notwithstanding anything to the contrary contained in this Article 12, Landlord
shall have no obligation to repair the Premises and shall have the right to terminate this Lease
in any case where (a) any portion of the Premises or any material portion of the Project is
damaged and (b) (i) Landlord reasonably estimates that the repair and restoration of such damage
under Section 12.1 (“Restoration”) cannot reasonably be completed (without the payment of
overtime) within two hundred seventy (270) days of (or for any Casualty that occurs during the
last twelve (12) months of the Term (disregarding the Renewal Term if the Renewal Option has not
been exercised), within ninety (90) days of) the date Landlord is informed of the Casualty, or
(ii) the cost of such Restoration is not fully covered by insurance proceeds available to
Landlord and/or payments received by Landlord from tenants. Such right of termination shall be
exercisable by Landlord by delivery of written notice to Tenant at any time following the
Casualty until thirty (30) days following the later of (X) delivery of the Damage Notice or (Y)
Landlord’s discovery or determination of any of the events described in clauses (i) through (ii)
of the preceding sentence and shall be effective upon delivery of such notice of termination (or
if Tenant has not vacated the Premises, upon the expiration of thirty (30) days thereafter).

          12.2.2 Notwithstanding anything to the contrary contained in this Article 12, following a
Casualty that affects the Premises or access to the Premises in a manner that materially and
substantially interferes with Tenant’s ability to conduct its business in the Premises, if (i)
the Restoration Estimate indicates that Landlord cannot complete the Restoration within two
hundred seventy (270) days (or if the Casualty occurs during the last twelve (12) months of the
Term (disregarding the Renewal Term if the Renewal Option has not been exercised), within ninety
(90) days) after the date Landlord is informed of the Casualty, Tenant shall have the right to
terminate this Lease upon written notice to Landlord within fifteen (15) days after Tenant’s
receipt of the Restoration Estimate, in which case this Lease shall terminate on the date set
forth in Tenant’s notice (which termination date shall not be later than sixty (60) days
following the date of delivery of Tenant’s notice to Landlord) as if such date were the
Expiration Date of the Lease or (ii) if Landlord does not elect to terminate this Lease under
Section 12.2.1, above and Tenant does not elect to terminate this Lease under clause (i), above
and Landlord does not substantially complete the Restoration on or before the date (the “Outside
Completion Date”) which is the later of (a) two hundred seventy (270) days after the date
Landlord is informed of the Casualty and (b) ninety (90) days after the date set forth in the
Restoration Notice, and if the damage not repaired on the Outside Completion Date renders a
substantial part of the Premises untenantable for the Permitted Use, then Tenant shall have the
right to terminate this Lease upon thirty (30) days written notice delivered to Landlord at any
time on or before the date on which Landlord substantially completes the Restoration, in which
case, if Tenant so delivers such notice of termination, this Lease shall terminate unless
Landlord substantially completes the Restoration on or before the date that is thirty (30) days
after the date on which it receives such notice.

     12.3 Waiver. Landlord and Tenant agree that the provisions of this Article 12 and
the remaining provisions of this Lease shall exclusively govern the rights and obligations of the
parties with respect to any and all damage to, or (destruction of, all or any portion of the
Premises or the Project, and Landlord and Tenant hereby waive and release each and all of their
respective common law and statutory rights inconsistent herewith, whether now or hereinafter in
effect (including, without limitation, Sections 1932(2) and 1933(4) of the California Civil Code,
as amended from time to time).

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ARTICLE 13

CONDEMNATION

     13.1
Taking. In the event the whole or a material portion of the Premises, the
Building or the Project shall be taken under the power of eminent domain, or sold to prevent the
exercise thereof (collectively, a “Taking”), this Lease shall automatically terminate as of the
date of such Taking. In the event of a Taking of (i) such portion of the Project, the Building
and the Premises as shall, in the reasonable opinion of Landlord, substantially interfere with
Landlord’s operation thereof and Landlord’s receipt of rents, Landlord may terminate this Lease
upon thirty (30) days’ written notice to Tenant or (ii) such portion of the Premises or access
to the Premises, the loss of which, in the reasonable opinion of Tenant, substantially
interferes with Tenant’s ability to conduct its business in the Premises, Tenant may terminate
this Lease upon thirty (30) days’ written notice to
Landlord, in either case, given at any time within sixty (60) days following the date of
such Taking. For purposes of this Lease, the date of Taking shall be the earlier of the date
of transfer of title resulting from such Taking or the date of transfer of possession
resulting from such Taking.

     13.2 Restoration of Premises. In the event that a portion of the Premises is so
taken and this Lease is not terminated, Landlord shall, with reasonable diligence, proceed to
restore (to the extent permitted by Law and covenants, conditions and restrictions then
applicable to the Project) the Premises (other than Tenant’s personal property and fixtures, and
Leasehold Improvements) to a complete, functioning unit, to the extent of the condemnation award
received by Landlord. In such case, the Base Rent shall be reduced proportionately based on the
portion of the Premises so taken.

     13.3 Award. In the event of any Taking, the entire award for such taking shall
belong to Landlord, except that Tenant shall be entitled to independently pursue a separate
award relating to the loss of, or damage to, Tenant’s personal property and trade fixtures and
Tenant’s relocation costs directly associated with the taking. Except as provided herein, Tenant
shall not assert any claim against Landlord or the condemning authority for, and hereby assigns
to Landlord, any compensation in connection with any such Taking, and Landlord shall be entitled
to receive the entire amount of any award therefor, without deduction for any estate or interest
of Tenant.

     13.4 Temporary Taking. Any award for a temporary taking shall belong to Tenant to
the extent that the award applies to any time period during the Term of this Lease and to
Landlord to the extent that the award applies to any time period outside the Term.

     13.5 Exclusive Remedy. This Article 13 shall be Tenant’s sole and exclusive remedy
in the event of a Taking. Each party hereby waives the provisions of Sections 1265.130 and
1265.150 of the California Code of Civil Procedure and the provisions of any successor or other
law of like import.

ARTICLE 14

INTENTIONALLY DELETED

ARTICLE 15

ASSIGNMENT AND SUBLETTING

     15.1 Restriction.

          15.1.1 General. Tenant shall not directly or indirectly, voluntarily or
involuntarily assign, mortgage or otherwise encumber all or any portion of its interest in this
Lease or in the Premises (collectively, “Assignment”) or permit the Premises to be occupied by
anyone other than Tenant or Tenant’s employees or sublet the Premises (collectively, “Sublease”)
or any portion thereof without obtaining the prior consent of Landlord, which, subject to
Sections 15.3 and 15.4, shall not be unreasonably withheld, conditioned or delayed, and any such
attempted Assignment or Sublease (collectively, “Transfer”) without such consent shall be null
and void and of no effect.

          15.1.2 Permitted Transfers. Notwithstanding the foregoing Section 15.1.1, Tenant
shall have the right, after notice thereof to Landlord, to Transfer all or a portion of the
Premises, or the leasehold hereunder, to an Affiliate (or a combination of Affiliates) or
Successor of Tenant without Landlord’s consent and without Landlord having any of the rights
provided under Sections 15.2 to 15.5 below. For purposes hereof, an “Affiliate” or “Successor” of
Tenant is an entity which is a successor-in-interest to Tenant by merger, consolidation or
corporate reorganization, or by the purchase of all or substantially all of the assets or shares
of Tenant, or an entity controlling, under common control with or controlled by Tenant, but
excluding, in each case, any entity formed to avoid the restrictions on Transfer by Tenant
hereunder and excluding any agency or department of the United States
Government. For purposes of
this definition, the word “control,” as used above, means with respect to a Person that is a
corporation, the right to exercise, directly or indirectly, more than fifty percent (50%) of the
voting rights attributable to the shares of the controlled corporation and, with respect to a
Person that is not a corporation, the possession, directly or indirectly, of the power to direct
or cause the direction of the management or policies of the controlled Person. The word “Person”
means an individual, partnership, trust, corporation, firm or other entity. Any such Affiliate or
Successor of Tenant must expressly assume in writing a pro rata share of Tenant’s obligations
hereunder in the proportion that the number of square feet of Rentable Area of the Premises
subleased or assigned to such Affiliate or Successor of Tenant bears to the total number of
square feet of Rentable Area in the Premises, without relieving Tenant of any liability
hereunder.

     15.2 Notice to Landlord. If Tenant desires at any time to Transfer the Premises or
any portion thereof, it shall first give Landlord a notice (the “First Transfer Notice”)
specifying (a) the size and location of the space Tenant proposes to Transfer (the “Transfer
Space”); (b) the term for which Tenant proposes to Transfer the Transfer Space; and (c) the date
on which Tenant proposes that the Transfer be effective, which shall not be less than sixty (60)
days after the Transfer Notice.

     15.3 Landlord’s Options. At any time within fifteen (15) days after Landlord’s
receipt of all of the information required in the First Transfer Notice, but excluding for
Transfers to an Affiliate or Successor of Tenant pursuant to Section 15.1.2 above, Landlord may
by written notice to Tenant elect to terminate this Lease as to the Transfer Space specified in
the First Transfer Notice, in the case of a proposed Assignment or Sublease for all or
substantially all of the remaining Term, with a proportionate abatement in the rent payable
hereunder.

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     15.4
Landlord’s Consent; Standards.

               (a) If Landlord does not elect or is not entitled to elect to terminate the Lease as set
forth in Section 15.3 and Tenant desires to consummate a Transfer, Tenant shall give a second
written notice (the “Second Transfer Notice”) to Landlord with respect to such Transfer and which
notice shall specify (1) the Transfer Space, (2) the name of the proposed assignee, subtenant,
transferee or occupant (“Transferee”), (3) the nature of the proposed Transferee’s business to be
carried on in the Transfer Space, (4) the terms and provisions of the proposed Transfer, and (5)
such financial information as Landlord may reasonably request concerning the proposed Transferee.
If the Transfer described in the Second Transfer Notice differs by more than twenty percent (20%)
from the First Transfer Notice in amount of space covered or in length of term, or materially
differs as to the location of the Transfer Space, then Landlord shall have the option set forth in
Section 15.3 with respect to the Transfer proposed in the Second Transfer Notice, such option to
be exercised within fifteen (15) days after Landlord’s receipt of the Second Transfer Notice.

               (b) If Landlord does not elect or is not permitted to terminate this Lease as set forth in
Section 15.3, and does not elect or is not entitled to elect such option pursuant to Paragraph (a)
above, Landlord shall within fifteen (15) days of receipt of the Second Transfer Notice, notify
Tenant whether Landlord consents to the proposed Transfer, which consent shall not be unreasonably
withheld. If Landlord fails to respond within said 15 day period, Tenant may give Landlord a
second (2nd) notice. If Landlord fails to notify Tenant whether Landlord consents to
the proposed Transfer within five (5) days of receipt of such second notice, then Landlord shall
be deemed to have approved of the proposed Transfer, provided, however, that Landlord’s refusal to
consent to any Transfer shall be deemed reasonable if:

                    (1) The Transferee is of a character or reputation or engaged in a business which is not
consistent with the quality of the Building or the Project, based on objective factors;

                    (2) The Transferee intends to use the Transfer Space for purposes which are not permitted
under this Lease;

                    (3) The Transferee intends to use the Transfer Space for purposes in violation of the terms
of any other lease in the Project, it being understood that the purpose for which any Transferee
intends to use the Transfer Space may not be in violation of this Lease;

                    (5) The Transfer Space is not suitable for normal renting purposes in conformity with all
applicable building and safety codes;

                    (6) The Transferee is either a government (or subdivision or agency thereof) or an occupant
of the Project (and, if an occupant of the Project, provided Landlord has space available of a
size that will satisfy the space requirements set forth in the proposed transfer); or

                    (7) The Transferee is insolvent or does not have the financial capacity to perform the
obligations to be assumed for the term of the Transfer.

               (c) If Landlord consents to any Transfer under this Section 15.4, Tenant may thereafter
within one hundred eighty (180) days after Landlord’s consent, but not later than the expiration
of said one hundred eighty (180) days, enter into such Transfer of the Transfer Space, upon the
same terms and conditions as are set forth in the Second Transfer Notice furnished by Tenant to
Landlord pursuant to Section 15.4(a).

               (d) As a condition to Landlord’s consent to any Sublease, such Sublease shall provide that it
is subject and subordinate to this Lease; that Landlord may enforce the provisions of the
Sublease, including collection of rent; that the cost of any modification to the Premises,
Building and/or Project arising from or as a result of the Sublease shall be the sole
responsibility of Tenant (as between Landlord and Tenant); that in the event of termination of
this Lease for any reason, including without limitation a voluntary surrender by Tenant, Landlord
may, at its option, either (i) terminate the Sublease or (ii) take over all of the right, title
and interest of Tenant, as sublessor, under such Sublease, in which case the Transferee shall
attorn to Landlord, but that nevertheless Landlord shall not (1) be liable for any previous act or
omission of Tenant under such Sublease, (2) be subject to any defense or offset previously accrued
in favor of the Transferee against Tenant, or (3) be bound by any previous modification of any
Sublease made without Landlord’s written consent, or by any previous prepayment by the Transferee
of more than one month’s rent Notwithstanding anything to the contrary in this Lease, Tenant
waives any right it may have at law or in equity to terminate this Lease as a result of Landlord’s
failure to consent to a Transfer, including any of its rights under California Civil Code Section
1995.310; provided, however, Landlord shall be liable to Tenant for all direct damages incurred by
Tenant as a result of such failure by Landlord in breach of this Lease. If Landlord improperly
denies its consent to a Transfer which Tenant is permitted to make under this Article 15, Landlord
shall reimburse Tenant for all direct damages incurred by Tenant as a result of such improper
refusal to consent.

     15.5
Profits.

               (a) If there are any Profits (as defined in paragraph (b) below) from any Transfer (excluding
any Transfer to an Affiliate or Successor of Tenant), Tenant shall pay fifty percent (50%) of such
Profits to Landlord as Additional Rent. Landlord’s share of Profits shall be paid to Landlord
within ten (10) days after receipt thereof by Tenant. The payments of Profits to Landlord shall be
made on a monthly basis as Additional Rent with respect to each Transfer separately, subject to
an annual reconciliation on each anniversary date of the Transfer. If the payments to Landlord
under this Section during the twelve (12) months preceding each annual reconciliation exceed the
amount of Profits determined on an annual basis, then Landlord shall promptly refund to Tenant the
amount of such overpayment or credit the overpayment against Tenant’s future obligations under
this Section, at Tenant’s option. If Tenant has underpaid its obligations hereunder during the
preceding twelve (12) months, Tenant shall promptly pay to Landlord the amount owing after the
annual reconciliation.

               (b) For purposes of this Article 14, “Profits” are defined as all cash or cash equivalent
amounts and sums which Tenant (including any Affiliate or Successor of Tenant or other entity
related to Tenant) receives on an annual basis from any Transferee, directly or indirectly,
attributable to the Premises or any portion thereof, less the sum of (1) the amortized amount for
each such annual period of (i) any additional tenant improvement costs paid to Tenant’s Transferee
by Tenant; (ii) reasonable leasing commissions paid by Tenant in connection with the Transfer;
(iii) other economic concessions (planning allowance, lease takeover payments, moving expenses,
etc.) paid by Tenant to or on behalf of the Transferee in connection with the Transfer; (iv)
reasonable costs incurred by Tenant in advertising the Transfer Space; and (v) Tenant’s

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reasonable attorneys’ fees paid by Tenant in connection with the Transfer (such amounts to be
amortized over the term of the Transfer), and (2) the Base Rent and Additional Rent pursuant to
Article 4 of the Lease paid during each such annual period by Tenant attributable pro rata based on
Rentable Area to the Transfer Space. Any lump sum payment received by Tenant from a Transferee
shall be treated like any other amount so received by Tenant for the applicable annual period and
shall be utilized in computing Profits in accordance with the foregoing. All Profits and the
components thereof shall be subject to audit by Landlord or its representatives at reasonable
times. Tenant shall deliver to Landlord, upon request, any information reasonably required by
Landlord to calculate and/or substantiate the amount of Profits hereunder.

     15.6 No Release of Tenant’s Obligations. No Transfer shall relieve Tenant of its
obligation to pay the rent and to perform all of the other obligations to be performed by Tenant
hereunder. The acceptance of rent by Landlord from any other person shall not be deemed to be a
waiver by Landlord of any provision of this Lease or to be a consent to any Transfer. Consent to
one Transfer shall not be deemed to constitute consent to any subsequent Transfer.

     15.7 Assumption of Obligations. Each Transferee, other than Landlord, shall assume,
as provided in this Section 15.7, all obligations of Tenant under this Lease arising after the
date of the Transfer and shall be and remain liable jointly and severally with Tenant for the
payment of the rent, and for the performance of all of the terms, covenants, conditions and
agreements herein contained on Tenant’s part to be performed for the term of this Lease arising
after the date of the Transfer; provided, however, that the Transferee shall be liable to Landlord
for rent only in the amount set forth in the Transfer. No Assignment shall be binding on Landlord
unless the Transferee or Tenant shall deliver to Landlord a counterpart of the Assignment and an
instrument in recordable form which contains a covenant of assumption by the Transferee
satisfactory in substance and form to Landlord consistent with the requirements of this Section
15.7, but the failure or refusal of the Transferee to execute such instrument of assumption shall
not release or discharge the Transferee from its liability as set forth above.

     15.8 Costs. Tenant agrees to reimburse Landlord for Landlord’s reasonable costs and
attorneys’ fees incurred in connection with the processing and documentation of any requested
Transfer whether or not Landlord consents to the Transfer or the same is finally consummated;
provided Tenant shall not be obligated to reimburse such costs and fees in excess of One Thousand
Five Hundred Dollars ($1,500) for any proposed Transfer for which Tenant and the Transferee
execute Landlord’s standard form consent to sublease or assignment.

ARTICLE 16

DEFAULT AND REMEDIES

     16.1
Events of Default By Tenant. The occurrence of any of the following shall
constitute a material default and breach of this Lease by Tenant (an “Event of Default”):

          16.1.1 Any failure by Tenant to pay any Rent or any other charge required to be paid under
this Lease, or any part thereof, within five (5) business days
of notice that the same is due,
which notice shall be in lieu of any notice required under California Code of Civil Procedure
Section 1161 or any similar or successor law.

          16.1.2
The abandonment of the Premises by Tenant coupled with the failure to pay rent, as
provided in Section 1951.3 of the California Civil Code.

          16.1.3 The failure by Tenant to observe or perform the provisions of Section 7.1 or Article
10 where such failure continues and is not remedied within three (3) business days after notice
thereof from Landlord to Tenant;

          16.1.4 Any failure by Tenant to execute and deliver any statement or document described in
Articles 18 and 22 requested by Landlord within the time periods specified therein, where such
failure continues for five (5) business days after notice thereof by Landlord to Tenant; provided,
however, that any such notice shall be in lieu of, and not in addition to, any notice required
under Section 1161 et seq., of the California Code of Civil Procedure.

          16.1.5 The failure by Tenant to observe or perform any other provision of this Lease to be
observed or performed by Tenant, other than those described in Sections 16.1.1, 16.1.2 and 16,1.3
above, if such failure continues for thirty (30) days after written notice thereof by Landlord to
Tenant; provided, however, that if the nature of the default is such that it cannot be cured
within the thirty (30) day period, no default shall exist if
Tenant commences the curing of the
default within the thirty (30) day period and thereafter diligently prosecutes the same to
completion. The thirty (30) day notice described herein shall be in lieu of, and not in addition
to, any notice required under Section 1161 of the California Code of Civil Procedure or any other
law now or hereafter in effect requiring that notice of default be given prior to the commencement
of an unlawful detainer or other legal proceeding.

          16.1.6 Any Rent paid by Tenant is recovered by the debtor or bankruptcy trustee as a
preference payment in the event of the filing by or against Tenant of any proceeding under
bankruptcy law.

          16.1.7 Any failure by Tenant to provide Landlord with a renewed LC or a substitute LC in form
reasonably acceptable to Landlord at least fifteen (15) days prior to the expiration of the then
existing LC.

     16.2
Landlord’s Right To Terminate Upon Tenant Default. In the event of any Event of
Default by Tenant as provided in Section 16.1 above, Landlord shall have the right to terminate
this Lease and recover possession of the Premises by giving written notice to Tenant of Landlord’s
election to terminate this Lease, in which event Landlord shall be entitled to receive from
Tenant:

          16.2.1
The worth at the time of award of any unpaid Rent which had been earned at the time of
such termination; plus

          16.2.2
The worth at the time of award of the amount by which the unpaid Rent which would have
been earned after termination until the time of award exceeds the amount of such rental loss
Tenant proves could have been reasonably avoided; plus

          16.2.3
The worth at the time of award of the amount by which the unpaid Rent for the balance
of the Term after the time of award exceeds the amount of such rental loss that Tenant proves could
be reasonably avoided; plus

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          16.2.4
Any other amount necessary to compensate Landlord for all the detriment proximately
caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary
course of things would be likely to result therefrom; and

          16.2.5 At Landlord’s election, such other amounts in addition to or in lieu of the foregoing
as may be permitted from time to time by applicable law.

     As used in Sections 16.2.1 and 16.2.2 above, “worth at the time of award” shall be computed by
allowing interest at the Interest Rate. As used in Section 16.2.3 above, “worth at the time of
award” shall be computed by discounting such amount at the discount rate of the Federal Reserve
Bank of San Francisco at the time of the award plus one percent (1%).

     16.3 Landlord’s Right To Continue Lease Upon Tenant Default. In the event of an Event
of Default of this Lease and abandonment of the Premises by Tenant, if Landlord does not elect to
terminate this Lease as provided in Section 16.2 above, Landlord may from time to time, without
terminating this Lease, enforce all of its rights and remedies under this Lease. Without limiting
the foregoing, Landlord has the remedy described in California Civil Code Section 1951.4 (Landlord
may continue this Lease in effect after Tenant’s breach and abandonment and recover Rent as it
becomes due, if Tenant has the right to sublet or assign, subject only to reasonable limitations).
To the fullest extent permitted by Law, the proceeds of any reletting shall be applied first to
pay to Landlord all costs and expenses of such reletting (including without limitation, costs and
expenses of retaking or repossessing the Premises, removing persons and property therefrom,
securing new tenants, including expenses for redecoration, alterations and other costs in
connection with preparing the Premises for the new tenant, and if Landlord shall maintain and
operate the Premises, the costs thereof) and receivers’ fees incurred in connection with the
appointment of and performance by a receiver to protect the Premises and Landlord’s interest under
this Lease and any necessary or reasonable alterations; second, to the payment of any indebtedness
of Tenant to Landlord other than Rent due and unpaid hereunder; third, to the payment of Rent due
and unpaid hereunder; and the residue, if any, shall be held by Landlord and applied in payment of
other or future obligations of Tenant to Landlord as the same may become due and payable, and
Tenant shall not be entitled to receive any portion of such revenue. No re-entry or taking of
possession of the Premises by Landlord pursuant to this Section 16.3 shall be construed as an
election to terminate this Lease unless a written notice of such election shall be given to Tenant
or unless the termination thereof be decreed by a court of competent jurisdiction. Notwithstanding
any reletting without termination by Landlord, Landlord may, at any time after such reletting,
elect to terminate this Lease for any such default. Upon the occurrence of an Event of Default by
Tenant under Section 16.1 above, if the Premises or any portion thereof are sublet, Landlord, in
addition and without prejudice to any other remedies herein provided or provided by Law, may, at
its option, collect directly from the sublessee all rentals becoming due to the Tenant and apply
such rentals against other sums due hereunder to Landlord.

     16.4 Right of Landlord to Perform. All covenants and agreements to be performed by
Tenant under this Lease shall be performed by Tenant at Tenant’s sole cost and expense. If Tenant
shall fail to pay any sum of money, other than Base Rent, required to be paid by it hereunder or
shall fail to perform any other act on its part to be performed hereunder, then, in addition to
and without prejudice to any other right or remedy of Landlord (including, without limitation, any
right or remedy provided under Article 9), Landlord may cure the same at the expense of Tenant (i)
immediately and without notice in the case (a) of emergency, (b) where such default unreasonably
interferes with any other tenant in the Project, or (c) where such default will result in the
violation of Law or the cancellation of any insurance policy maintained by Landlord and (ii) in
any other case if such default continues beyond the applicable notice and cure period (such that
such default constitutes an Event of Default). Any sums so paid by Landlord and all incidental
costs, together with interest thereon at the Interest Rate, shall be payable to Landlord as
Additional Rent on demand, and Landlord shall have the same rights and remedies in the event of
nonpayment as in the case of default by Tenant in the payment of Rent.

     16.5 Efforts to Relet. For the purposes of this Article 16, Tenant’s right to
possession shall not be deemed to have been terminated by efforts of Landlord to relet the
Premises, by its acts of maintenance or preservation with respect to the Premises, or by
appointment of a receiver to protect Landlord’s interests hereunder. The foregoing enumeration is
not exhaustive, but merely illustrative of acts which may be performed by Landlord without
terminating Tenant’s right to possession.

     16.6 Waiver of Right of Redemption. Tenant hereby waives for Tenant and for all those
claiming under Tenant all right now or hereafter existing to redeem by order or judgment of any
court or by any legal process or writ, Tenant’s rights of occupancy of the Premises after any
termination of this Lease. Notwithstanding any provision of this Lease to the contrary, the
expiration or termination of this Lease and/or the termination of Tenant’s rights to possession of
the Premises shall not discharge, relieve or release Tenant from any obligation or liability
whatsoever under any indemnity provision of this Lease including without limitation the provisions
of Section 11.1 hereof.

     16.7 Non-Waiver. Nothing in this Article 16 shall be deemed to affect Landlord’s
rights to indemnification for liability or liabilities arising prior to termination of this Lease
for personal injury or property damages under the indemnification clause or clauses contained in
this Lease. No acceptance by Landlord of a lesser sum than the Rent then due shall be deemed to be
other than on account of the earliest installment of such Rent due, nor shall any endorsement or
statement on any check or any letter accompanying any check or payment as rent be deemed an accord
and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s
right to recover the balance of such installment or pursue any other remedy provided in this
Lease. The delivery of keys to any employee of Landlord or to Landlord’s agent or any employee
thereof shall not operate as a termination of this Lease or a surrender of the Premises.

     16.8 Waiver of Trial by Jury. Landlord and Tenant each expressly waive their right to
trial by jury in any trial held as a result of a claim arising out of or in connection with this
Lease in which Landlord and Tenant are adverse parties. The filing of a cross-complaint by one
against the other is sufficient to make the parties “adverse.”

     16.9 Cumulative Remedies. Subject to Section 24.4 of this Lease, the specific
remedies to which Landlord may resort under the terms of this Lease are cumulative and are not
intended to be exclusive of any other remedies or means of redress to which it may be lawfully
entitled in case of any breach or threatened breach by Tenant of any provisions of this Lease. In
addition to the other remedies provided in this Lease, Landlord shall be entitled to a restraint
by injunction of the violation or attempted or threatened violation of any of the covenants,
conditions or provisions of this Lease or to a decree compelling specific performance of any such
covenants, conditions or provisions.

     16.10
Default by Landlord. Landlord’s failure to perform or observe any of its
obligations under this Lease shall constitute a default by Landlord under this Lease if such
failure shall continue for a period of thirty (30) days (provided, however, that if the nature of
the default is such that it cannot reasonably be cured within the thirty (30) day period, no
default shall exist if Tenant commences the curing of the default within the thirty (30) day period
and thereafter diligently prosecutes the same to

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completion) after Landlord receives written notice from Tenant specifying the default, which
notice shall describe in reasonable detail the nature and extent of the failure and shall identify
the Lease provision(s) containing the obligation(s) in question. Subject to the remaining
provisions of this Lease (and without limiting Tenant’s rights under Section 9.4 above), following
the occurrence of any such default, Tenant shall have the right to pursue any other remedy
available under Law or under this Lease for such default by Landlord; provided, however, that in
no case shall Tenant have any right to terminate this Lease on
account of any such default.

ARTICLE 17

ATTORNEYS
FEES; COSTS OF SUIT

     If either Landlord or Tenant shall commence any action or other proceeding against the other
arising out of, or relating to, this Lease or the Premises, the prevailing party shall be entitled
to recover from the losing party, in addition to any other relief, reasonable attorneys fees
irrespective of whether or not the action or other proceeding is prosecuted to judgment.

ARTICLE
18

SUBORDINATION
AND ATTORNMENT

     18.1
Subordination.

          18.1.1 Subject to Tenant’s receiving an SNDAA (as hereinafter defined), this Lease, and the
rights of Tenant hereunder, are and shall be subordinate to the interests of (i) future ground
leases and master leases of all or any part of the Building; (ii) future mortgages and deeds of
trust encumbering all or any part of the Building; (iii) future advances made under any such
mortgages or deeds of trust; and (iv) all renewals, modifications, replacements and extensions of
any such future ground leases, master leases, mortgages and deeds of trust (collectively,
“Security Documents”) which hereafter constitute a lien upon or affect the Project, the Building
or the Premises. Such subordination shall be effective without the necessity of the execution by
Tenant of any additional document for the purpose of evidencing or effecting such subordination.
In addition, Landlord shall have the right to subordinate or cause to be subordinated any such
Security Documents to this Lease and in such case, in the event of the termination or transfer of
Landlord’s estate or interest in the Project by reason of any termination or foreclosure of any
such Security Documents, Tenant shall, notwithstanding such
subordination, attorn to and become the
Tenant of the successor in interest to Landlord so long as Tenant is provided a commercially
reasonable subordination non-disturbance and attornment agreement (an
“SNDAA”). Furthermore,
Tenant shall within ten (10) days of demand therefor execute any commercially reasonable
instruments or other documents which may reasonably be required by Landlord or the holder
(“Holder”) of any Security Document which does not materially impair Tenant’s rights under this
Lease or materially increase Tenant’s liabilities, and specifically shall execute, acknowledge and
deliver within ten (10) business days of demand therefor a subordination of lease or
subordination of deed of trust, in the commercially reasonable form required by the Holder of the
Security Document requesting the document, provided such document does not materially impair
Tenant’s rights under this Lease or subject Tenant to materially increased liabilities; the
failure to do so by Tenant within such time period shall be a material default hereunder. Such
instruments may contain, among other things, provisions to the effect that such lessor, mortgagee
or beneficiary (hereafter, for the purposes of this
Section 18.1, a “Successor Landlord”) shall
(a) not be liable for any act or omission of Landlord or its predecessors, if any, prior to the
date of such Successor Landlord’s succession to Landlord’s interest under this Lease (provided
that the Successor Landlord shall remain obligated to cure any defaults of Landlord that
remain outstanding (as a continuing default) at the time of transfer); (b) not be subject to any
offsets or defenses which Tenant might have been able to assert against Landlord or its
predecessors, if any, prior to the date of such Successor Landlord’s succession to Landlord’s
interest under this Lease; (c) not be liable for the return of any security deposit under this
Lease unless the same shall have actually been deposited with such Successor Landlord; and (d) be
entitled to receive notice of any Landlord default under this Lease plus the same opportunity to
cure such default as Landlord prior to Tenant having any right or ability to terminate this Lease
as a result of such Landlord default.

          18.1.2
There is currently no Security Document encumbering the Building. Landlord’s delivery
to Tenant of a commercially reasonable SNDAA in favor of Tenant from each Holder of any Security
Document which shall come into existence at any time after the
Effective Date (each a “Future
Security Document”) shall be in consideration of, and shall be a condition precedent to, Tenant’s
(a) agreement under Section 18.1.1 to subordinate its interest hereunder to such Future Security
Document and (b) agreement under Section 18.2 to attorn to and recognize as the landlord hereunder,
the Holder of any such Future Security Document.

     18.2
Attornment. Provided Tenant receives the applicable SNDAA referenced above,
Tenant shall attorn to and recognize as Tenant’s landlord under this Lease any superior lessor,
superior mortgagee or other purchaser or person taking title to the Building by reason of the
termination of any superior lease or the foreclosure of any superior mortgage or deed of trust,
and Tenant shall, within ten (10) days of demand therefor execute any commercially reasonable
instruments or other documents which may be required by Landlord or the Holder of any such
Security Document to evidence the attornment described in this Section 18.2 which does not
materially impair Tenant’s rights under this Lease or materially increase Tenant’s liabilities.

     18.3
Mortgage and Ground Lessor Protection. Tenant agrees to give each Holder of any
Security Document, by any manner permitted under this Lease, a copy of any notice of default
served upon the Landlord by Tenant, provided that prior to such notice Tenant has been notified in
writing of the address of such Holder.

ARTICLE
19

QUIET
ENJOYMENT

     Provided that Tenant performs all of its obligations hereunder, Tenant shall have and
peaceably enjoy the Premises during the Term of this Lease, subject to all of the terms and
conditions contained in this Lease, from and against all persons holding an interest in the
Project from and through Landlord. Landlord covenants that no other party will have a possessory
interest in the Premises or Building as of the Commencement Date.

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ARTICLE 20

PARKING

     20.1 Tenant shall have the right to lease from Landlord in connection with Tenant’s lease of
the Premises, at no additional cost to Tenant during the Initial Term, up to two hundred fourteen
(214) car parking spaces (“Parking Spaces”) (equivalent to 5 per 1,000 square feet of Usable Area
in the Premises) for use for parking in the Project’s surface parking lot. From such two hundred
fourteen (214) Parking Spaces, Landlord shall designate fifteen (15) Parking Spaces as reserved
for Tenant’s executives, and five (5) Parking Spaces as visitor parking; the remaining Parking
Spaces shall be unreserved. The aforementioned 15 reserved Parking Spaces and 5 visitor parking
spaces shall be in locations mutually reasonably agreed upon by Landlord and Tenant, provided
that Landlord shall use commercially reasonable efforts to cause such spaces to be located as
close to the main entrance of the Building as possible.

     20.2 Tenant shall have no obligation to pay any amount for any of the Parking Spaces leased
by Tenant pursuant to Section 20.1 above during the Initial Term.

     20.3 Tenant’s employees, visitors and guests shall only have the right to park in Tenant’s
designated area(s). Landlord shall have the right to modify, change, add to or delete the design,
configuration, layout, size, ingress, egress, areas, method of operation, and other
characteristics of or relating to the Parking Facilities at any time, and/or to provide for
nonuse, partial use or restricted use of portions thereof, but in no event will Tenant’s access
to the surface parking lot be restricted or Tenant’s right to its allocated number of Parking
Spaces hereunder be reduced (Landlord shall use commercially reasonable efforts to give Tenant
advance notice of such actions if Tenant would be affected thereby).

     20.4 If any employee, contractor or other individual using one of Tenant’s Parking Spaces
violates any of the terms and conditions of this Article or such parking rules and regulations,
then, after written notice and the opportunity to cure, Landlord may revoke the license granted
hereunder with respect to the particular violating party’s use of the Parking Facilities
(provided, however, Tenant’s allotted number of Parking Spaces hereunder shall not be reduced).
Landlord may delegate its responsibilities hereunder to a parking operator in which case such
parking operator shall have all the rights of control attributed hereby to the Landlord. The
Parking Spaces provided to Tenant pursuant to this Article 20 are provided to Tenant solely for
use by Tenant’s employees, visitors, guests, customers, agents, vendors, officers, directors,
affiliates, sublessees and assignees, and such spaces may not otherwise be transferred, assigned,
subleased or otherwise alienated by Tenant to any other type of transferee (except a Transferee
consented to by Landlord or for which Landlord’s consent is not required under this Lease) without
Landlord’s prior approval. The Parking Facilities shall contain at least the minimum number of
handicap parking spaces as required by applicable law.

     20.5 Tenant’s business visitors may park in the Parking Facilities on a space-available
basis, upon payment of the prevailing fee for parking charged to visitors to the Building.

ARTICLE 21

RULES
AND REGULATIONS

     Tenant shall abide by, and faithfully observe and comply with the Rules and Regulations. As
used herein, the “Rules and Regulations” means the “Rules and Regulations’’ and the “Parking
Rules” attached hereto as Exhibit “D” (which are hereby incorporated by reference herein
and made a part hereof) and any reasonable and non-discriminatory amendments, modifications and/or
additions thereto as may hereafter be adopted and published by written notice to tenants by
Landlord for the safety, care, security, good order and/or cleanliness of the Premises and/or the
Project consistent with Institutional Owner Practices, provided that (i) in the event of any
conflict between the Rules and Regulations and any of the other express terms of this Lease, the
latter shall control and (ii) any amendments, modifications and/or additions shall not materially
interfere with Tenant’s use and enjoyment of the Premises. Landlord shall not be liable to Tenant
for any violation of such rules and regulations by any other tenant or occupant of the Project.

ARTICLE 22

ESTOPPEL CERTIFICATES

     Tenant agrees at any time and from time to time upon not less than ten (10) business days’
prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in
writing certifying to those facts for which certification has been requested by Landlord or any
current or prospective purchaser, holder of any Security Document, ground lessor or master lessor,
including, but without limitation, that except as may be disclosed by Tenant in such
certification, (i) this Lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as modified and stating the
modifications), (ii) the dates to which the Base Rent, Additional Rent and other charges hereunder
have been paid, if any, and (iii) whether or not to the actual knowledge of Tenant, Landlord is
in default in the performance of any covenant, agreement or condition contained in this Lease and,
if so, specifying each such default of which Tenant may have knowledge. Tenant’s failure to
execute and deliver such statement within such time period, subject to notice and cure as provided
in Section 16.1.4, shall constitute an Event of Default under this Lease. In the event that such
certificate is being given to any Holder or ground lessor, such statement may contain any other
provisions reasonably and customarily required, without limitation, an agreement on the part of
Tenant to furnish to such Holder or ground lessor, as applicable, written notice of any Landlord
default and a reasonable opportunity for such Holder or ground lessor to cure such default prior
to Tenant being able to terminate this Lease. Any statement delivered pursuant to this Article 22
may be relied upon by any prospective purchaser of the fee of the Building or the Project or any
mortgagee, ground lessor or other like encumbrancer thereof or any assignee of any such
encumbrance upon the Building or the Project.

ARTICLE 23

ENTRY BY LANDLORD

     Landlord may enter the Premises at reasonable times, with reasonable (not to be less than
twenty-four (24) hours) prior notice (except in the case of an emergency, in which case, Landlord
shall provide such notice (if any) as may be reasonable under the circumstances) and subject at
all times to Tenant’s reasonable security requirements, to: inspect the same; exhibit the same to
prospective purchasers, lenders or, during the last nine (9) months of the Term, tenants;
determine whether Tenant is complying

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with all of its obligations under this Lease; supply janitorial and other services to be provided
by Landlord to Tenant under this Lease; post notices of non-responsibility; and make repairs or
improvements in or to the Project or the Premises; provided, however, that all such work shall be
done as promptly as reasonably possible and so as to cause as little interference to Tenant as
reasonably possible. No such entry made in compliance with the foregoing shall be construed as a
forcible or unlawful entry into, or a detainer of, the Premises, or an eviction of Tenant.
Landlord shall, subject to Tenant’s reasonable security requirements, at all times have and
retain a key with which to unlock all of the doors in, on or about
the Premises, and upon
emergency and only after attempting to contact Tenant if reasonable under the circumstances,
Landlord shall have the right to use any and all reasonable means by which Landlord may deem
proper to open such doors to obtain entry to the Premises, and any entry to the Premises obtained
by Landlord by any such means, and under such circumstances, shall not be deemed or construed to
be a forcible or unlawful entry into or a detainer of the Premises or an eviction, actual or
constructive, of Tenant from any part of the Premises. Such entry by Landlord shall not act as a
termination of Tenant’s duties under this Lease. If Landlord shall be required to obtain entry by
means other than a key provided by Tenant (because Tenant has failed to provide such key), the
actual cost of such entry shall be payable by Tenant to Landlord as
Additional Rent.

ARTICLE
24

LEASE
UNDERTAKINGS; EXCULPATION FROM PERSONAL

LIABILITY; TRANSFER OF LANDLORD’S INTEREST; WAIVER OF
CONSEQUENTIAL DAMAGES

     24.1
Landlord’s Lease Undertakings. Notwithstanding anything to the contrary
contained in this Lease or in any exhibits, riders or addenda hereto attached (collectively the
“Lease Documents”), it is expressly understood and agreed by and between the parties hereto that:
(a) the recourse of Tenant or its successors or assigns against Landlord (and the liability of
Landlord to Tenant, its successors and assigns) with respect to (i) any actual or alleged breach
or breaches by or on the part of Landlord of any representation, warranty, covenant, undertaking
or agreement contained in any of the Lease Documents or (ii) any matter relating to Tenant’s
occupancy of the Premises (collectively, “Landlord’s
Lease Undertakings”) shall be limited to
solely an amount equal to Landlord’s interest in the Building; (b) Tenant shall have no recourse
against any other assets of Landlord or the Landlord Parties (as defined below); and (c) no
present or future officer, director, employee, trustee, mortgagee, ground lessor, member,
retirant, beneficiary, internal investment contractor, manager, investment manager, agent,
successor and assign of Landlord (collectively, the “Landlord
Parties”) shall have any personal
liability or personal responsibility, directly or indirectly, with respect to any of Landlord’s
Lease Undertakings and recourse shall not be had against any such officer, director, shareholder,
employee, trustee, mortgagee, ground lessor, member, retirant, beneficiary, internal investment
contractor, investment manager, agent, successor and assign under or in connection with any
Landlord’s Lease Undertakings or any alleged breach thereof. The limitations of liability provided
in this Section 24.1 are in addition to, and not in limitation of, any limitation on liability
applicable to Landlord provided by Law or in any other contract, agreement or instrument.

     24.2
Sale by Landlord. The term “Landlord” as used in this Lease, so far as covenants
or obligations on the part of Landlord are concerned, shall be limited to mean and include only
the owner or owners, at the time in question, of the fee title of the Premises or the lessees
under ground leases of the Land or master leases of the Building, if any. In the event of any
transfer, assignment or other conveyance of any such title, Landlord herein named (and in case of
any subsequent transfer or conveyance, the then grantor) shall be automatically freed and relieved
from and after the date of such transfer, assignment or conveyance of all liability for the
performance of any covenant or obligation on the part of Landlord contained in this Lease
thereafter to be performed; provided that the transferee assumes, in writing, all of Landlord’s
obligations hereunder. Without further agreement, the transferee of such title shall be deemed to
have assumed and agreed to observe and perform any and all obligations of Landlord hereunder,
during its ownership of the Premises. Landlord may transfer its interest in the Premises without
the consent of Tenant and such transfer or subsequent transfer shall not be deemed a violation on
Landlord’s part of any term or condition of this Lease.

     24.3
Tenant’s Lease Undertakings. Notwithstanding any provisions of this Lease to the
contrary, including the remedies available to Landlord hereunder, this Lease is executed and
delivered by Tenant on the express condition that in all events, including an Event of Default by
Tenant, no personal liability is assumed by nor shall any personal liability be asserted against
any individual (whether current, former, or retired), or any manager, member, trustee, partner,
shareholder, officer or director of Tenant, all such personal liability having been waived and
Landlord’s only recovery for damages or otherwise being limited
to the assets of Tenant. Landlord
agrees that, in any action arising out of or relating to the performance of this Lease, Landlord
will proceed only against Tenant or its successors and assigns and not against any individual
shareholder or officer of Tenant (or any entity to which Tenant may assign this Lease), or any of
such shareholder’s directors, officers, employees, agents, shareholders, or members, or any
personal representative, successor or assign of any of the foregoing, except to the extent
necessary to proceed against Tenant or its successors and assigns. Nothing contained herein,
however, shall limit the liability of persons for their own negligence or willful misconduct in
their individual capacities, as distinct from their capacities as constituent shareholders of
Tenant. In addition, all property and assets of Tenant shall remain liable for the obligations set
forth in this Lease, notwithstanding any dissolution, liquidation, reformation, or other
reorganization of Tenant. The provisions of this Section 24.3 are enforceable by both Tenant and
any constituent shareholder of Tenant, and shall survive the expiration or earlier termination of
this Lease.

     24.4
Waiver of Consequential Damages. Notwithstanding anything to the contrary
contained in this Lease, neither Landlord nor Tenant shall be liable under any circumstances for,
and each hereby releases the other from all liability for, consequential damages and injury or
damage to, or interference with, the other party’s business, including, but not limited to, loss
of profits, loss of business opportunity or loss of goodwill, in each case however occurring
except as provided in Article 25 in the case of a holding over.

ARTICLE
25

HOLDOVER
TENANCY

     If Tenant holds possession of the Premises after the expiration or termination of the Term of
this Lease, by lapse of time or otherwise, with or without the express or implied consent of
Landlord, Tenant shall become a tenant at sufferance upon all of the terms contained herein,
except as to Term and Base Rent and any other provision reasonably determined by Landlord to be
inapplicable. During such holdover period, Tenant shall pay to Landlord a monthly Base Rent
equivalent to one hundred fifty percent (150%) of the greater of (i) the Base Rent payable by
Tenant to Landlord during the last month of the Term of this Lease, and (ii) Landlord’s then
prevailing rate for space in the Project that is comparable to the Premises. The monthly rent
payable for such holdover period shall in no event be construed as a penalty or as liquidated
damages for such retention of possession. Neither any provision hereof nor any acceptance by
Landlord of any rent after any such expiration or earlier termination shall be deemed a consent to
any holdover hereunder or result in a renewal of this Lease or an extension of the Term, or any
waiver of

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any of Landlord’s rights or remedies with respect to such holdover. Notwithstanding any
provision to the contrary contained herein, (a) Landlord expressly reserves the right to require
Tenant to surrender possession of the Premises upon the expiration of the Term of this Lease or
upon the earlier termination hereof or at any time during any holdover and the right to assert
any remedy at law or in equity to evict Tenant and collect damages in connection with any such
holdover, and (b) Tenant shall indemnify, defend and hold Landlord harmless from and against any
and all claims, demands, actions, proceedings, losses, damages, liabilities, obligations,
penalties, costs and expenses incurred or suffered by or asserted against Landlord by reason of
Tenant’s failure to surrender the Premises on the expiration or earlier termination of this Lease
in accordance with the provisions of this Lease; provided, however, that Landlord shall not be
entitled to any damages incurred by Landlord due to the loss of a prospective tenant or delay in
delivering the Premises or any portion thereof to a prospective tenant resulting from Tenant’s
holdover unless Landlord has given notice to Tenant of the execution of a lease and the date
Landlord, pursuant to such lease, intends to deliver the Premises or any portion thereof to the
prospective tenant at least thirty (30) days prior to such date.

ARTICLE 26

NOTICES

     All notices which Landlord or Tenant may be required, or may desire, to serve on the other
may be served, as an alternative to personal service, by (i) mailing the same by registered or
certified mail, postage prepaid, or (ii) by a reputable overnight courier service, which
provides evidence of delivery, addressed to the Landlord at the address for Landlord set forth in
Item 10 of the Basic Lease Provisions and to Tenant at the address for Tenant set forth in Item
10 of the Basic Lease Provisions, or addressed to such other address or addresses as either
Landlord or Tenant may from time to time designate to the other in writing or to such addresses
required to comply with applicable Law. Any notice shall be deemed to have been served at the
time the same was delivered (or at the time delivery was rejected).

ARTICLE 27

BROKERS

     Landlord and Tenant each warrants to the other that it has not had any contact or dealings
with any person or real estate broker other than the firms specified in Item 8 of the Basic Lease
Provisions (collectively, “Broker”) which would give rise to the payment of any fee or brokerage
commission in connection with this Lease, and Landlord and Tenant shall indemnify, hold harmless
and defend the other from and against any liability with respect to any fee or brokerage
commission (except one owing to Broker) arising out of any act or omission of the indemnifying
party. Landlord covenants and agrees to pay all real estate commissions due in connection with
this Lease to Broker in accordance with the commission agreement executed by Landlord.

ARTICLE 28

SIGNAGE RIGHTS

     28.1 Tenant shall not (i) place or install (or permit to be placed or installed by any Tenant
Party) any signs, advertisements, logos, identifying materials, pictures or names of any type on
the roof, exterior areas or Common Areas of the Building or the
Project or in any area of the
Building, Premises or Project which is visible from the exterior of the Building or outside of the
Premises except for the Building Top Sign and Monument Sign or (ii) place or install (or permit to
be placed or installed by any Tenant Party) in or about any portion of the Premises any window
covering (even if behind Building standard window coverings) or any other material visible from
outside of the Premises or from the exterior of the Building.

     28.2
Subject to compliance with applicable Laws and such Building signage criteria as
Landlord shall apply from time to time and subject to receipt of Landlord’s prior written consent,
Tenant may require Landlord to install, at Landlord’s sole cost and expense (including the cost to
remove at the expiration or earlier termination of this Lease), Project-standard suite
identification signage and lobby directory signage for the Premises. In addition, Tenant may place
in any portion of the inside of the Premises not visible from the exterior of the Building or from
outside of the Premises such additional identification signage as Tenant shall desire at Tenant’s
sole cost and expense. All signage described in this Article 28 shall be treated as Tenant’s
personal property under the provisions of Section 10.5 with respect to Tenant’s obligation at the
expiration or early termination of this Lease.

     28.3 Exterior Signs.

          28.3.1
Grant of Rights. Subject to the provisions of this Section 28.3, Tenant shall
have the exclusive right to cause Landlord to display a sign (the “Building Top Sign”) identifying
Tenant by its Business Name on the parapet of the Building in an exact location mutually agreed by
Landlord and Tenant in good faith; provided, however, that if Tenant is unable to obtain the
necessary governmental permits and approvals for the Building Top Sign, Tenant shall have the
exclusive right, subject to the provisions of this Section 28.3, to cause Landlord to identify
Tenant by its Business Name on an eyebrow sign (“Eyebrow Signage”), in lieu of the Building Top
Sign, on the exterior of the Building in an exact location reasonably agreeable to Landlord and
Tenant and all references herein to the Building Top Sign shall refer and apply to the Eyebrow
Signage.

          28.3.2 Definitions.

               (i) “Business
Name” means “CapitalSource Bank”, and may include the
CapitalSource Bank logo, and no other name, logo or trade name except of a
Permitted Transferee in accordance with Section 28.3.7 below.

               (ii) “Building
Top Sign Occupancy Requirement” means, and shall be satisfied only if, the
Tenant or Permitted Transferee whose Business Name is on the Building Top Sign leases and occupies
at least 1% in the case of Tenant, or 25% as to a Permitted Transferee, of the Rentable Area in
the Building (provided that, for purposes of determining whether the Building Top Sign Occupancy
Requirement is satisfied, space that is occupied by any of such Tenant’s Affiliates or Successors
shall be deemed occupied by the Tenant whose Business Name is on the Building Top Sign).

               (iii) “Objectionable
Name” means any name or trade name or logo that (a) relates to an
entity that is of a character or reputation, or is associated with a political faction or
orientation that is materially inconsistent with the quality of the Project, or that would
otherwise be reasonably objectionable to an institutional quality landlord of a building

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comparable to the Building (taking into consideration the visibility, location, size and prominence
of the Building Top Sign) or (b) conflicts with any covenants contained in any other leases of
space in the Project.

          28.3.3
Intentionally Omitted.

          28.3.4 Specifications and Permits. The graphics, materials, color, design,
lettering, size, area exact location, lighting and specifications and all other aesthetic
factors of the Building Top Sign shall be (i) subject to the prior written consent of Landlord
(in Landlord’s reasonable discretion), (ii) consistent with the size and quality of comparable
signage on comparable institutionally owned first-class office buildings in the local market, and
(iii) consistent with the overall character of the Project’s architecture (as determined by
Landlord in its reasonable discretion). In addition, all of Tenant’s rights under this Section
28.3 shall be subject to (a) the receipt of and continuing compliance with all required
governmental permits and approvals (and the submission of copies thereof to Landlord) required
for the installation and continuing display of the Building Top Sign and (b) the continuing
compliance of such signs with all applicable Laws. Landlord shall, at no expense to Landlord,
reasonably cooperate with Tenant’s efforts to obtain the necessary governmental permits and
approvals for the Building Top Sign, but Landlord makes no representation or warranty as to
Tenant’s ability to obtain same.

          28.3.5
Cost and Maintenance; Removal. The Building Top Sign shall be installed by a
contractor retained by Tenant and approved by Landlord (in its
reasonable discretion),  and shall
be operated and maintained by Tenant, at Tenant’s sole cost and expense. Without limiting the
foregoing, Tenant shall be responsible for all costs and expenses incurred in connection with or
relating to the installation, operation, lighting (including electrical charges therefor),
maintenance and repairs of the Building Top Sign and the eventual removal and disposal of the
Building Top Sign. Within a reasonable time following the expiration or earlier termination of
this Lease (or after termination of Tenant’s rights with respect to the Building Top Sign pursuant
to Section 28.3.6 or 28.3.7, below), which shall in no event be later than thirty (30) days after
such expiration or termination of this Lease (or after such termination of such signage rights),
Tenant shall, at Tenant’s sole cost and expense, commence, and thereafter shall diligently pursue,
the removal of the Building Top Sign, and shall cause the areas in which such Building Top Sign
were located to be restored to the condition existing immediately prior to the placement of such
Building Top Sign on the Building (subject to ordinary wear and tear). If Tenant fails to timely
remove the Building Top Sign or to restore the areas in which the Building Top Sign was located,
as provided in the immediately preceding sentence, then Landlord may perform such work, and all
reasonable costs incurred by Landlord in so performing such work, plus interest at the Interest
Rate from the date of Landlord’s payment of such costs to the date of Tenant’s reimbursement to
Landlord, shall be reimbursed by Tenant to Landlord within thirty (30) days after Tenant’s receipt
of an invoice therefor. The terms of this Section 28.3.5 shall survive the expiration or earlier
termination of this Lease.

          28.3.6 Termination. Notwithstanding any provision of this Lease to the contrary, by
notice delivered to Tenant, Landlord may, at its option, elect to terminate all of Tenant’s rights
with respect to the Building Top Sign at any time that the Building Top Sign Occupancy Requirement
is no longer satisfied, in which case, upon delivery of such notice all of Tenant’s rights under
this Section 28.3 to the Building Top Sign shall terminate and shall be of no further force or
effect. In the event that Tenant’s rights with respect to the Building Top Sign are terminated in
accordance with the previous sentence, Tenant shall, at its sole cost and expense, remove the
Building Top Sign in accordance with Section 28.3.5, above.

          28.3.7 Transfer of Rights. The rights granted under this Section 28.3 shall not be
transferable in any respect whatsoever other than to a Transferee consented to by Landlord
pursuant to Article 15 or an Affiliate or Successor of Tenant (each a “Permitted Transferee”), in
each case in connection with an assignment or a sublease to such Permitted Transferee; provided,
however, that Tenant may only effectuate a transfer of its rights under this Section 28.3 to such
Permitted Transferee if and to the extent such Permitted Transferee does not have an Objectionable
Name. Following any such assignment or a change in name of Tenant or a Permitted Transferee,
Tenant shall have the right to cause a contractor retained by Tenant and approved by Landlord (in
Landlord’s reasonable discretion) to install a different sign identifying such Permitted
Transferee by its business or trade name on the parapet of the Building in the same location as
the previous sign, but only on the condition that such different business or trade name is the
business or trade name of the Tenant or such Permitted Transferee, as applicable, is not an
Objectionable Name and is otherwise in substantial conformance with all of the requirements of this
Article 28.

          28.3.8 Monument Sign. Landlord and Tenant acknowledge and agree that there is not
currently a monument sign located near the front entrance to the Building. To the extent Tenant
desires to install a single tenant monument sign, Tenant shall have the right to seek, at Tenant’s
sole cost and expense, all required governmental permits and approvals for the construction of
such monument sign, in a location mutually reasonably agreed upon by Landlord and Tenant near the
front entrance to the Building, and the placement of Tenant’s Business Name thereon (“Monument
Sign”). In the event Tenant seeks such permits and approvals and is unsuccessful, the obligations
of Tenant under this Lease shall not be affected. If Tenant successfully obtains such permits and
approvals, Tenant’s installation, repair and usage of such monument sign shall be at Tenant’s sole
cost and expense and subject to all terms set forth above in this Section 28.3 related to the
 Building Top Sign. Landlord shall, at no expense to Landlord, reasonably cooperate with Tenant’s
efforts to obtain the necessary governmental permits and approvals for the Monument Sign, but
Landlord makes no representation or warranty as to Tenant’s ability to obtain same.

          28.3.9
Restriction on Landlord. For so long as Tenant retains its rights with
respect to the Building Top Sign, Landlord shall not grant Building top signage rights to any
other tenant.

ARTICLE 29

BROKERAGE COMMISSION — OFFSET RIGHT

     If (a) Landlord breaches its obligation relating to the payment of any commission due to
Grubb & Ellis Company (“Tenant’s Broker”) as set forth in Article 27 above, (b) Tenant has paid to
Tenant’s Broker such amount which was required to be paid by Landlord to Tenant’s Broker pursuant
to Article 27, and (c) Landlord does not reimburse Tenant for such amount within ten (10) business
days after demand therefor by Tenant, then Tenant shall have the right to offset any such amount
paid by Tenant to Tenant’s Broker against the Base Rent next falling due after the expiration of
said ten (10) business day period. Any such offset made by Tenant shall be credited against
Landlord’s obligations with respect to the payment of commissions to Tenant’s Broker. This Article
29 shall not negate or limit Landlord’ indemnification obligations under Article 27.

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ARTICLE 30

MISCELLANEOUS

     30.1 Entire Agreement. This Lease contains all of the agreements and understandings
relating to the leasing of the Premises and the obligations of Landlord and Tenant in connection
with such leasing. Landlord has not made, and Tenant is not relying upon, any warranties, or
representations, promises or statements made by Landlord or any agent of Landlord, except as
expressly set forth herein. This Lease supersedes any and all prior agreements and understandings
between Landlord and Tenant and alone expresses the agreement of the parties.

     30.2 Amendments. This Lease shall not be amended, changed or modified in any way
unless in writing executed by Landlord and Tenant. Landlord shall not have waived or released any
of its rights hereunder unless in writing and executed by the Landlord.

     30.3
Successors. Except as expressly provided herein, this Lease and the obligations
of Landlord and Tenant contained herein shall bind or inure to the benefit Landlord and Tenant and
their respective successors and assigns, provided this clause shall not permit any Transfer by
Tenant contrary to the provisions of Article 15.

     30.4 Intentionally Omitted.

     30.5 Force Majeure. Neither Landlord nor Tenant shall be liable for any failure to
comply or delay in complying with its obligations hereunder to the extent such failure or delay is
due to acts of God, inability to obtain labor, strikes, lockouts, lack of materials, governmental
restrictions, enemy actions, war, terrorism, bioterrorism, civil commotion, fire, earthquake,
unavoidable casualty or other similar causes beyond Landlord’s or Tenant’s (as applicable)
reasonable control (all of which events are herein referred to as “Force Majeure”). It is
expressly agreed that Landlord shall not be obliged to settle any strike to avoid a force majeure
event from continuing. In no event shall failure to pay Rent or other sums due hereunder from one
party to the other be excused as a result of Force Majeure.

     30.6 Intentionally Omitted.

     30.7 Intentionally Omitted.

     30.8 Governing Law. This Lease shall be governed by, and construed in accordance
with, the laws of the state of California (without regard to its conflicts of laws rules or
principles).

     30.9
Prohibition Against Recording. Neither this Lease nor any memorandum,
affidavit or other writing with respect thereto shall be recorded by Tenant or by anyone acting
through, under or on behalf of Tenant.

     30.10 Severability. In the event any provision of this Lease is found to be
unenforceable, the remainder of this Lease shall not be affected, and any provision found to be
invalid shall be enforceable to the extent permitted by law. The parties agree that in the event
two different interpretations may be given to any provision hereunder, one of which will render
the provision unenforceable, and one of which will render the provision enforceable, the
interpretation rendering the provision enforceable shall be adopted.

     30.11 Captions. All captions, headings, titles, numerical references and computer
highlighting are for convenience only and shall have no effect on the interpretation of this
Lease.

     30.12 Interpretation. Tenant acknowledges that it has read and reviewed this Lease
and that it has had the opportunity to confer with counsel in the negotiation of this Lease.
Accordingly, this Lease shall be construed neither for nor against Landlord or Tenant, but shall
be given a fair and reasonable interpretation in accordance with the meaning of its terms

 and the intent of the parties.

     30.13 Independent Covenants. Except as otherwise provided herein, each covenant,
agreement, obligation or other provision of this Lease to be performed by Tenant and Landlord are
separate and independent covenants of Tenant and Landlord, as applicable, and not dependent on any
other provision of this Lease.

     30.14 Number and Gender. All terms and words used in this Lease, regardless of the
number or gender in which they are used, shall be deemed to include the appropriate number and
gender, as the context may require.

     30.15 Time is of the Essence. Time is of the essence of this Lease and the performance of all obligations
hereunder.

     30.16 Joint and Several Liability. If Tenant comprises more than one person
or entity, all such persons shall be jointly and severally liable for payment of Rents and the
performance of Tenant’s obligations hereunder.

     30.17 Intentionally Omitted.

     30.18 Choice of Jurisdiction. Tenant hereby submits to local jurisdiction in the
State of California and agrees that any action by Tenant against Landlord shall be instituted in
the State of California and that Landlord shall have personal jurisdiction over Tenant for any
action brought by Landlord against Tenant in the State of California.

     30.19 Rights Reserved by Landlord. Landlord reserves the following rights exercisable
without notice (except as otherwise expressly provided to the contrary in this Lease) and without
being, deemed an eviction or disturbance of Tenant’s use or possession of the Premises or giving
rise to any claim for set-off or abatement of Rent: (i) to change the name or street address of the
Project (provided that, notwithstanding the foregoing, Landlord shall not initiate a change of name
or address for the Building); (ii) to install, affix and maintain all signs on the exterior and/or
interior of the Building (subject to the restriction set forth in Section 28.3.9, and provided that
Landlord shall not grant any tenant, licensee, occupant or other party the right to exterior
identification signage on the Building Property without Tenant’s consent) and/or the Project; (iii)
to designate and/or approve prior to installation, all types of signs, window shades, blinds,
drapes, awnings or other similar items, and all internal lighting that may be visible from the
exterior of the Premises and, notwithstanding the provisions of Article 10, the design,

-31-

 

arrangement, style, color and general appearance of the portion of the Premises visible from the
exterior, and contents thereof, including, without limitation, furniture, fixtures, signs, art
work, wall coverings, carpet and decorations, and all changes, additions and removals thereto,
shall, at all times have the appearance of premises having the same type of exposure and used for
substantially the same purposes that are generally prevailing in first class office buildings in
the area. Any violation of this provision shall be deemed a material breach of this Lease; (iv) to
display the Premises and/or the Building and/or the Project to mortgagees, prospective mortgagees,
prospective purchasers and ground lessors at reasonable hours upon reasonable advance notice to
Tenant; (v) to change the arrangement of entrances, doors, corridors, elevators and/or stairs in
the Building and/or the Project, provided no such change shall materially adversely affect access
to the Premises; (vi) to grant any party the exclusive right to conduct any business or render any
service in the Project, provided such exclusive right shall not materially interfere with Tenant’s
use of the Premises for the purposes permitted under this Lease, and further provided that
Landlord shall give Tenant prior notice of any such exclusive rights; (vii) to prohibit the
placement of vending or dispensing machines of any kind in or about the Premises other than for
use by Tenant’s employees; (viii) to prohibit the placement of video or other electronic games in
the Premises; (ix) to have access for Landlord and United States Post Office workers to any mail
chutes and boxes located in or on the Premises according to the rules of the United States Post
Office and to discontinue any mail chute business in the Building and/or the Project; (x) to close
the Building after normal business hours, except that Tenant and its employees and invitees shall
be entitled to admission at all times under such rules and regulations as Landlord prescribes for
security purposes; (xi) to install, operate and maintain security systems which monitor, by
closed circuit television or otherwise, all persons entering or leaving the Building and/or the
Project; and (xii) to install and maintain pipes, ducts, conduits, wires and structural elements
located in the Premises which serve other parts or other tenants of the Building and/or the
Project and do not impair Tenant’s operations.

     30.20 Intentionally Omitted.

     30.21 Authority. If Tenant signs as a corporation, the person(s) executing this Lease
on behalf of Tenant hereby covenant and warrant that Tenant is a duly authorized and existing
entity, that Tenant has and is qualified to do business in California, that Tenant has full right
and authority to enter into this Lease, and that the person signing on behalf of Tenant is
authorized to do so. The person executing this Lease on behalf of Landlord hereby covenants and
warrants that Landlord has full right and authority to enter into this Lease and that the person
signing on behalf of Landlord is authorized to do so. If requested by the other party within
thirty (30) days after the Effective Date, a party shall deliver to the other party resolutions or
other evidence of the authority of the person(s) signing this Lease
on behalf of such party to
execute and deliver this Lease on its behalf; provided, however, that Landlord agrees not to
request such resolutions or evidence from Tenant if this Lease is executed by two (2) of the
corporate officers which satisfy the presumption of authority set forth in Section 313 of the
California Corporations Code.

     30.22
Transportation Management. Tenant shall fully comply with all present or future
programs required by Law or implemented at the Project consistent with Intuitional Owner Practices
to manage parking, transportation or traffic in and around the Building, and in connection
therewith, Tenant shall take responsible action for the transportation planning and management of
all employees located at the Premises by working directly with Landlord, any governmental
transportation management organization or any other transportation-related committees or entities.

     30.23 The Other Improvements. If portions of the Project or property adjacent
to the Project (collectively, the “Other Improvements”) are owned by an entity other than Landlord,
Landlord, at its option, in its sole and absolute discretion, may enter into an agreement with the
owner or owners of any or all of the Other Improvements to provide (i) for reciprocal rights of
access and/or use of the Project and the Other Improvements, (ii) for the common management,
operation, maintenance, improvement and/or repair of all or any portion of the Project and the
Other Improvements, (iii) for the allocation of a portion of the Operating Expenses to the Other
Improvements and the operating expenses and taxes for the Other Improvements to the Project, and
(iv) for the use or improvement of the Other Improvements and/or the Project in connection with the
improvement, construction, and/or excavation of the Other Improvements and/or the Project to the
extent such actions will not materially impair Tenant’s use and operation of the Premises or
materially increase Tenant’s liabilities hereunder. Nothing contained herein shall be deemed or
construed to limit or otherwise affect Landlord’s right to convey all or any portion of the Project
or any other of Landlord’s rights described in this Lease.

     30.24 Renovation of the Project and Other Improvements. Tenant acknowledges that
portions of the Project and/or the Other Improvements may be under construction following Tenant’s
occupancy of the Premises, and that such construction may result in levels of noise, dust,
obstruction of access, etc. which are in excess of that present in a fully constructed project.
Tenant acknowledges and agrees that Landlord may alter, remodel, improve and/or renovate
(collectively, the “Renovation Work”) the Building and/or the Project, and in connection with any
Renovation Work, Landlord may, among other things, erect scaffolding or other necessary structures
in the Building, or the Project, restrict access to portions of the Project, including portions of
the Common Areas, or perform work in the Building and/or the Project. Landlord agrees to use
commercially reasonable efforts to minimize any disruption or interference with Tenant’s business
operations during the course of the Renovation Work and at all times to comply with governmental
security regulations and Tenant’s reasonable internal security procedures.

     30.25 No Partnership or Joint Venture. Nothing contained in this Lease shall be
deemed or construed to create the relationship of principal and agent, or partnership, or joint
venturer, or any other relationship between Landlord and Tenant other than landlord and tenant.

     30.26 Right to Lease. Landlord reserves the absolute right to lease space in the
Project and to create such other tenancies in the Project as Landlord, in its sole business
judgment, shall determine is in the best interests of the Project. Landlord does not represent and
Tenant does not rely upon any specific type or number of tenants occupying any space in the
Building and/or the Project during the Term of this Lease.

     30.27 Counterparts. This Lease may be executed in counterparts, each of which shall
be deemed an original, but such counterparts, when taken together, shall constitute one agreement.

     30.28 OFAC. Tenant represents and warrants that, to Tenant’s knowledge, neither Tenant nor any
of its affiliates, nor any of their respective partners, members, shareholders or other equity
owners, and none of their respective employees, officers, directors, representatives or agents, is
a person or entity with whom U.S. persons or entities are restricted from doing business under
regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury
(including those named on OFAC’s Specially Designated and Blocked Persons List) or under any
statute, executive order (including the September 24, 2001, Executive Order Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or
other governmental action. Landlord represents and warrants that, to Landlord’s knowledge,

-32-

 

neither Landlord nor any of its affiliates, nor any of their respective partners, members,
shareholders or other equity owners, and none of their respective employees, officers, directors,
representatives or agents, is a person or entity with whom U.S. persons or entities are restricted
from doing business under OFAC (including those named on OFAC’s Specially Designated and Blocked
Persons List) or under any statute, executive order (including the September 24, 2001, Executive
Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit,
or Support Terrorism), or other governmental action.

ARTICLE 31

PATIO

     (a) Landlord conceptually approves of Tenant’s construction of a patio area in the location
shown on the Space Plan (as defined in Section 2.1(a) of Exhibit “C”) (the “Patio”), for
the exclusive use of Tenant, its employees and invitees. Notwithstanding Landlord’s approval of the
Space Plan, Tenant’s right to construct the Patio is subject to Tenant’s obtaining, at its sole
cost and expense, the approvals from the required governmental entities (including the City of
Irvine, if applicable). Landlord shall, at no expense to Landlord, reasonably cooperate with
Tenant’s efforts to obtain such approvals, but Landlord makes no representation or warranty as to
Tenant’s ability to obtain same.

     (b) All costs of any planning, construction and/or improvement in connection with the Patio
shall be borne by Tenant. The submittal by Tenant and review and approval by Landlord of plans for
the Patio shall be governed by Exhibit “C”; provided that the landscaping design for the
Patio shall be consistent with the landscaping plan for the Project. Tenant may place, but shall
seek Landlord’s advance written consent (not to be unreasonably withheld) to all proposed
furniture, fixtures, umbrellas, large plants or other large material items of any kind whatsoever
which Tenant desires to place on the Patio, and the general configuration thereof.

     (c) Tenant acknowledges that Landlord has an interest in maintaining control over the exterior
appearance of the Building Property in order to preserve the image and reputation of the Building
as a first class office building. Tenant agrees, therefore, that Landlord shall have the right to
approve or reasonably withhold approval of any furniture, fixtures, plants or other items that
Tenant desires to place on the Patio, and the configuration thereof, on such grounds. In
determining whether to approve such items, Landlord may consider such factors as, without
limitation, which Tenant agrees are reasonable factors, (i) whether such items are compatible with
a first-class project and its appearance to the public, (ii) the impact of such items on the
overall ambience and atmosphere of the Project, and (iii) whether such items are compatible with
the appearance of the Building’s exterior. Tenant shall not be permitted to display any graphics,
signs or insignias or the like on the Patio without Landlord’s consent.

     (d) The cleaning and landscape maintenance for the Patio shall be performed by Landlord’s
contractors, and included in Operating Expenses. Landlord shall be entitled to reasonable access to
the Patio in order to fulfill its responsibility with respect to maintenance and landscape
maintenance and perform its other obligations under this Lease, and Landlord shall be entitled to
access the Patio at any time and to the extent reasonably necessary in the event of an emergency.

     (e) Tenant’s use of the Patio shall, at all times, be consistent with a first-class commercial
office project (by way of example, uses of the Patio may include, without limitation, office
meetings and luncheons). Without limiting the generality of the foregoing, the Patio shall not be
used for weddings, wedding receptions, proms, bar mitzvahs, or other events inconsistent with a
first-class commercial office project. Compliance with all rules, regulations, statutes and laws of
any governmental agency pertaining to Tenant’s use of the Patio will be the sole responsibility of
Tenant.

     (f) Promptly following the substantial completion of the Patio, Tenant shall furnish Landlord
with evidence that Tenant’s current insurance coverages, per the terms of this Lease, are extended
to cover the Patio.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-33-

 

     IN WITNESS WHEREOF, this Lease is hereby executed as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 
	 	 	MAGUIRE PROPERTIES — 130 S. STATE COLLEGE, LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Douglas J. Gardner
 

Douglas J. Gardner
	 	 
	 

	 	Title:
	 	EVP	 	 
	 
	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	 	 	CAPITALSOURCE BANK,	 	 
	 	 	a California corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Mark Gordon
 

Mark Gordon
	 	 
	 

	 	Title:
	 	SVP Corporate Real Estate	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John A. Bogler
 

John A. Bogler
	 	 
	 

	 	Title:
	 	CPO	 	 

-34-exv10w4

Exhibit 10.4

COMPOSITE VERSION

Reflects all Amendments through April 29, 2009

      

U.S. $90,000,000

SALE AND SERVICING AGREEMENT

by and among

CAPITALSOURCE FUNDING III LLC,

as the Seller

CAPITALSOURCE FINANCE LLC,

as the Originator and as the Servicer

EACH OF THE CONDUIT PURCHASERS AND THE INSTITUTIONAL

PURCHASERS FROM TIME TO TIME PARTY HERETO,

as Purchasers

EACH OF THE PURCHASER AGENTS

FROM TIME TO TIME PARTY HERETO,

as the Purchaser Agents

WACHOVIA CAPITAL MARKETS, LLC,

as the Administrative Agent and as the WBNA Agent

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as the Backup Servicer and as the Collateral Custodian

Dated as of April 20, 2004

Conformed as of April 29, 2009

 

 

 

	 	 	 	 	 
	ARTICLE I DEFINITION
	 	 	2	 
	Section 1.1 Certain Defined Terms
	 	 	2	 
	Section 1.2 Other Terms
	 	 	51	 
	Section 1.3 Computation of Time Periods
	 	 	51	 
	Section 1.4 Interpretation
	 	 	51	 
	 
	 	 	 	 
	ARTICLE II PURCHASE OF THE VARIABLE FUNDING NOTES
	 	 	52	 
	Section 2.1 The Variable Funding Notes
	 	 	52	 
	Section 2.2 [Reserved]
	 	 	53	 
	Section 2.3 Procedures for Advances by Purchasers
	 	 	53	 
	Section 2.4 Reduction of the Facility Amount; Mandatory and Optional Repayments
	 	 	53	 
	Section 2.5 Determination of Interest
	 	 	55	 
	Section 2.6 [Reserved]
	 	 	55	 
	Section 2.7 [Reserved]
	 	 	55	 
	Section 2.8 Notations on Variable Funding Notes
	 	 	55	 
	Section 2.9 Settlement Procedures During the Revolving Period
	 	 	55	 
	Section 2.10 Settlement Procedures During the Amortization Period
	 	 	57	 
	Section 2.11 Collections and Allocations
	 	 	58	 
	Section 2.12 Payments, Computations, Etc
	 	 	59	 
	Section 2.13 Optional Repurchase
	 	 	60	 
	Section 2.14 Fees
	 	 	60	 
	Section 2.15 Increased Costs; Capital Adequacy; Illegality
	 	 	61	 
	Section 2.16 Taxes
	 	 	62	 
	Section 2.17 Assignment of the Sale Agreement
	 	 	64	 
	Section 2.18 Substitution of Assets
	 	 	64	 
	Section 2.19 Optional Sales
	 	 	65	 
	Section 2.20 Discretionary Sales
	 	 	67	 
	Section 2.21 Loans Originated by Affiliates of CapitalSource Inc. Other than the Originator
	 	 	68	 
	 
	 	 	 	 
	ARTICLE III CONDITIONS TO ADVANCES
	 	 	68	 
	Section 3.1 Conditions to Closing and Initial Advance
	 	 	68	 
	Section 3.2 Conditions Precedent to All Advances
	 	 	69	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	71	 

 

 

	 	 	 	 	 
	Section 4.1 Representations and Warranties of the Seller
	 	 	71	 
	Section 4.2 Representations and Warranties of the Seller Relating to the Agreement and the Collateral
	 	 	81	 
	Section 4.3 Representations and Warranties of the Servicer
	 	 	82	 
	Section 4.4 Representations and Warranties of the Backup Servicer
	 	 	85	 
	Section 4.5 Representations and Warranties of the Collateral Custodian
	 	 	85	 
	Section 4.6 Breach of Certain Representations and Warranties
	 	 	86	 
	 
	 	 	 	 
	ARTICLE V GENERAL COVENANTS
	 	 	87	 
	Section 5.1 Affirmative Covenants of the Seller
	 	 	87	 
	Section 5.2 Negative Covenants of the Seller
	 	 	90	 
	Section 5.3 Covenants of the Seller Relating to the Hedging of Assets
	 	 	92	 
	Section 5.4 Affirmative Covenants of the Servicer
	 	 	93	 
	Section 5.5 Negative Covenants of the Servicer
	 	 	96	 
	Section 5.6 Affirmative Covenants of the Backup Servicer
	 	 	97	 
	Section 5.7 Negative Covenants of the Backup Servicer
	 	 	98	 
	Section 5.8 Affirmative Covenants of the Collateral Custodian
	 	 	98	 
	Section 5.9 Negative Covenants of the Collateral Custodian
	 	 	98	 
	 
	 	 	 	 
	ARTICLE VI ADMINISTRATION AND SERVICING OF CONTRACTS
	 	 	98	 
	Section 6.1 Designation of the Servicer
	 	 	98	 
	Section 6.2 Duties of the Servicer
	 	 	99	 
	Section 6.3 Authorization of the Servicer
	 	 	101	 
	Section 6.4 Collection of Payments
	 	 	101	 
	Section 6.5 Servicer Advances
	 	 	103	 
	Section 6.6 Realization Upon Charged-Off Assets
	 	 	103	 
	Section 6.7 Maintenance of Insurance Policies
	 	 	104	 
	Section 6.8 Servicing Compensation
	 	 	104	 
	Section 6.9 Payment of Certain Expenses by Servicer
	 	 	104	 
	Section 6.10 Reports
	 	 	105	 
	Section 6.11 Annual Statement as to Compliance
	 	 	105	 
	Section 6.12 Annual Independent Public Accountant’s Servicing Reports
	 	 	106	 
	Section 6.13 Limitation on Liability of the Servicer and Others
	 	 	106	 
	Section 6.14 The Servicer Not to Resign
	 	 	106	 
	Section 6.15 Servicer Defaults
	 	 	107	 

 

 

	 	 	 	 	 
	Section 6.16 Appointment of Successor Servicer
	 	 	108	 
	 
	 	 	 	 
	ARTICLE VII THE BACKUP SERVICER
	 	 	110	 
	Section 7.1 Designation of the Backup Servicer
	 	 	110	 
	Section 7.2 Duties of the Backup Servicer
	 	 	111	 
	Section 7.3 Merger or Consolidation
	 	 	112	 
	Section 7.4 Backup Servicing Compensation
	 	 	112	 
	Section 7.5 Backup Servicer Removal
	 	 	112	 
	Section 7.6 Limitation on Liability
	 	 	113	 
	Section 7.7 The Backup Servicer Not to Resign
	 	 	113	 
	 
	 	 	 	 
	ARTICLE VIII THE COLLATERAL CUSTODIAN
	 	 	114	 
	Section 8.1 Designation of Collateral Custodian
	 	 	114	 
	Section 8.2 Duties of Collateral Custodian
	 	 	114	 
	Section 8.3 Merger or Consolidation
	 	 	116	 
	Section 8.4 Collateral Custodian Compensation
	 	 	116	 
	Section 8.5 Collateral Custodian Removal
	 	 	116	 
	Section 8.6 Limitation on Liability
	 	 	116	 
	Section 8.7 The Collateral Custodian Not to Resign
	 	 	117	 
	Section 8.8 Release of Documents
	 	 	117	 
	Section 8.9 Return of Required Asset Documents
	 	 	118	 
	Section 8.10 Access to Certain Documentation and Information Regarding the Collateral; Audits
	 	 	119	 
	 
	 	 	 	 
	ARTICLE IX SECURITY INTEREST
	 	 	119	 
	Section 9.1 Grant of Security Interest
	 	 	119	 
	Section 9.2 Release of Lien on Collateral
	 	 	120	 
	Section 9.3 Further Assurances
	 	 	120	 
	Section 9.4 Remedies
	 	 	120	 
	Section 9.5 Waiver of Certain Laws
	 	 	120	 
	Section 9.6 Power of Attorney
	 	 	121	 
	 
	 	 	 	 
	ARTICLE X TERMINATION EVENTS
	 	 	121	 
	Section 10.1 Termination Events
	 	 	121	 
	Section 10.2 Remedies
	 	 	124	 
	 
	 	 	 	 
	ARTICLE XI INDEMNIFICATION
	 	 	125	 
	Section 11.1 Indemnities by the Seller
	 	 	125	 

 

 

	 	 	 	 	 
	Section 11.2 Indemnities by the Servicer
	 	 	128	 
	Section 11.3 After-Tax Basis
	 	 	128	 
	 
	 	 	 	 
	ARTICLE XII THE ADMINISTRATIVE AGENT AND PURCHASER AGENTS
	 	 	129	 
	Section 12.1 The Administrative Agent
	 	 	129	 
	Section 12.2 The Purchaser Agents
	 	 	131	 
	Section 12.3 Additional Agent
	 	 	133	 
	 
	 	 	 	 
	ARTICLE XIII MISCELLANEOUS
	 	 	136	 
	Section 13.1 Amendments and Waivers
	 	 	136	 
	Section 13.2 Notices, Etc
	 	 	136	 
	Section 13.3 Ratable Payments
	 	 	136	 
	Section 13.4 No Waiver; Remedies
	 	 	136	 
	Section 13.5 Binding Effect; Benefit of Agreement
	 	 	137	 
	Section 13.6 Term of this Agreement
	 	 	137	 
	Section 13.7 Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue
	 	 	137	 
	Section 13.8 Waiver of Jury Trial
	 	 	137	 
	Section 13.9 Costs, Expenses and Taxes
	 	 	138	 
	Section 13.10 No Proceedings
	 	 	138	 
	Section 13.11 Recourse Against Certain Parties
	 	 	139	 
	Section 13.12 Protection of Right, Title and Interest in the Collateral; Further Action Evidencing Advances
	 	 	140	 
	Section 13.13 Confidentiality
	 	 	141	 
	Section 13.14 Execution in Counterparts; Severability; Integration
	 	 	143	 
	Section 13.15 Waiver of Setoff
	 	 	143	 
	Section 13.16 Assignments
	 	 	143	 
	Section 13.17 Heading and Exhibits
	 	 	144	 
	Section 13.18 Loans Subject to Retained Interest Provisions
	 	 	144	 
	Section 13.19 Tax Treatment of Advances
	 	 	144	 

 

 

SALE AND SERVICING AGREEMENT

     THIS SALE AND SERVICING AGREEMENT (such agreement as amended, modified, waived, supplemented,
restated or replaced from time to time, the “Agreement”) is made as of this April 20, 2004,
by and among:

     (1) CAPITALSOURCE FUNDING III LLC, a Delaware limited liability company (as
successor-in-interest to CapitalSource Funding III Inc.), as the seller (together with its
successors and assigns in such capacity, the “Seller”);

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

     (3) EACH OF THE CONDUIT PURCHASERS FROM TIME TO TIME PARTY HERETO (together with their
successors and assigns in such capacity, each a “Conduit Purchaser”);

     (4) EACH OF THE INSTITUTIONAL PURCHASERS FROM TIME TO TIME PARTY HERETO (together with their
respective successors and assigns in such capacities, each an “Institutional Purchaser”,
and together with Conduit Purchasers, the “Purchasers”); and

     (5) EACH OF THE PURCHASER AGENTS FROM TIME TO TIME PARTY HERETO (together with its successors
and assigns in such capacity, each a “Purchaser Agent”);

     (6) WACHOVIA CAPITAL MARKETS, LLC, a Delaware limited liability company (together with its
successors and assigns, “WCM”), as the administrative agent for the Purchaser Agents
hereunder (together with its successors and assigns in such capacity, the “Administrative
Agent”), and as the Purchaser Agent for Wachovia Bank, National Association (“WBNA”),
as an Institutional Purchaser (together with its successors and assigns in such capacity, the
“WBNA Agent”); and

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

 

 

R
E C I T A L S

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

     WHEREAS, the Seller is prepared to grant security interests in, certain Assets and other
proceeds with respect thereto to the Purchasers from time to time;

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

     WHEREAS, it is the intention of the parties hereto that (i) in connection with each Advance
hereunder, the Seller hereby grants a security interest to the Administrative Agent, for the
benefit of the Secured Parties, in all of the Seller’s right, title and interest in and to the
Assets and proceeds with respect thereto, and (ii) this Agreement shall constitute a security
agreement under Applicable Law, in respect of the grant described in the second Recital above, and
all other security interests granted hereunder; and

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

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

ARTICLE I

DEFINITION

     Section 1.1 Certain Defined Terms.

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

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

     “Accrual Period”: With respect to each Advance (or portion thereof), (i) with respect
to the first Payment Date, the period from and including the Closing Date to and including the last
day of the calendar month in which the Closing Date occurs and (ii) with respect to any subsequent
Payment Date, the period ending on the last day of the calendar month immediately preceding the
month in which the Payment Date occurs and commencing on the first (1st) day of such immediately
preceding calendar month.

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

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     “Additional Agent”: Each Person (together with its successors and assigns) that
becomes a party to this Agreement as an Additional Agent, on behalf of any Additional Purchaser,
pursuant to an Additional Purchaser Agreement.

     “Additional Agent Fee Letter”: Each Additional Agent Fee Letter Agreement that shall
be entered into by and among the Seller, the Servicer and such Additional Agent in connection with
the transactions contemplated by this Agreement, as amended, modified, waived, supplemented,
restated or replaced from time to time.

     “Additional Agent’s Account”: A special account, designated by the Additional Agent
in an Additional Purchaser Agreement, in the name of an Additional Agent maintained with the
related Additional Purchaser.

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

     “Additional Purchaser”: Each Person (together with its successors and assigns) that
becomes a party to this Agreement as an Additional Purchaser pursuant to an Additional Purchaser
Agreement.

     “Additional Purchaser Agreement”: With respect to each Additional Purchaser, the
Transferee Letter or Assumption Agreement relating to such Additional Purchaser.

     “Adjusted Eurodollar Rate”: For any Accrual Period, an interest rate per annum equal
to a fraction, expressed as a percentage and rounded upwards (if necessary) to the nearest 1/100 of
1%, (i) the numerator of which is equal to the LIBOR Market Index Rate for such Accrual Period and
(ii) the denominator of which is equal to 100% minus the Eurodollar Reserve Percentage for
such Accrual Period.

     “Administrative Agent”: WCM, in its capacity as administrative agent for the
Purchaser Agents, together with its successors and assigns, including any successor appointed
pursuant to ARTICLE XII.

     “Advance”: Defined in Section 2.1(b).

     “Advance Rate”: With respect to any type of Asset on any date of determination, the
corresponding percentage set forth below:

	 	 	 	 	 
	Type of Asset	 	Advance Rate
	Senior Secured ABL Loans
	 	 	77.5	%
	Senior Secured Loans
	 	 	72.5	%
	Stretch Senior Secured Loans
	 	 	67.5	%
	Senior B-Note Loans
	 	 	60.0	%
	Subordinated Loans
	 	 	40.0	%

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

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

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

     “Affiliate”: With respect to a Person, means any other Person that, directly or
indirectly, controls, is controlled by or under common control with such Person, or is a director
or officer of such Person. For purposes of this definition, “control” (including the terms
“controlling,” “controlled by” and “under common control with”) when used with respect to any
specified Person means the possession, direct or indirect, of the power to vote 20% or more of the
voting securities of such Person or to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by contract or otherwise.

     “Agent’s Account”: The WBNA Agent’s Account or any Additional Agent’s Account, as
applicable.

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

     “Aggregate Outstanding Asset Balance”: On any date of determination, the sum of the
Outstanding Asset Balances of all Eligible Assets included as part of the Collateral on such date,
minus the Outstanding Asset Balances of any Delinquent Assets. Notwithstanding anything to
the contrary contained herein, for purposes of determining the Aggregate Outstanding Asset Balance,
if any portion of an Asset is deemed to be “charged-off” in accordance with the provisions of the
definition of Charged-Off Asset, then the entire Asset shall be deemed to have

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a zero Outstanding Asset Balance, except for purposes of calculating Average Pool Charged-Off
Ratio.

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

     “Alarm Service Agreement”: An agreement between a Dealer and its customer pursuant to
which the Dealer is obligated to service and monitor the customer’s alarm system in consideration
for monthly payments by the customer.

     “Allocation Adjustment Event”: With respect to each Loan included in the Collateral
subject to the Retained Interest provisions of this Agreement, the occurrence of any one or more of
the following under and as defined in any Permitted Securitization Transaction rated by the Rating
Agencies, as applicable: (i) a “servicer default”, (ii) an “event of default”, (iii) an
“accelerated amortization event”, (iv) a “collateral manager default”, (v) a “termination event”,
(vi) a “servicer termination event” or (vii) any event with substantially similar results to the
foregoing.

     “Alternative Rate”: An interest rate per annum equal to the Adjusted Eurodollar Rate;
provided, however, that the Alternative Rate shall be the Base Rate if a Eurodollar Disruption
Event occurs.

     “Amortization Period”: The period beginning on the Termination Date and ending on the
Collection Date.

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

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

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

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

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

     “Assigned Loan”: A Loan originated by a Person other than the Originator or any other
Subsidiary of CapitalSource Inc. in compliance with Section 2.21 in which a constant
percentage interest has been assigned to the Originator by such Person in accordance with the
Credit and Collection Policy and (i) such transaction has been fully consummated prior to such Loan
becoming part of the Collateral hereunder, (ii) the Originator is a party to a credit agreement
and/or an assignment agreement and a promissory note or loan register, as applicable, with the
Obligor with respect to such Loan and (iii) the agent receives payment directly from the Obligor
thereof on behalf of each lender that has been assigned a percentage interest in such Loan.

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

     “Assumption Agreement”: Defined in Section 13.16(b).

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

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

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

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and the denominator of which is twelve (or the corresponding lesser number of Determination
Dates included in the calculations described herein).

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

     “Average Portfolio Delinquency Ratio”: As of any Determination Date, the percentage
equivalent of a fraction the numerator of which is equal to the sum of the Portfolio Delinquency
Ratio on such Determination Date and each of the two preceding Determination Dates (or such lesser
number as shall have elapsed as of such Determination Date) and the denominator of which is equal
to three (or the corresponding lesser number of Determination Dates included in the calculations
described herein).

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

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

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

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

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

     “Banded Floating Rate Asset”: An Asset where the interest rate payable by the Obligor
thereof fluctuates between a minimum interest rate and a maximum interest rate allowable under its
Required Asset Documents.

     “Bank Subsidiary”: CapitalSource Bank, an industrial bank incorporated under the laws
of the State of California.

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

-7-

 

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

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

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

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

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

     “Breakage Costs”: Any amount or amounts as shall compensate a Purchaser for any loss,
cost or expense incurred by such Purchaser (as determined by such Purchaser’s Purchaser Agent in
such Purchaser Agent’s sole discretion) as a result of (i) a prepayment by the Seller of Advances
Outstanding or Interest or (ii) any difference between the CP Rate and the Adjusted Eurodollar
Rate. All Breakage Costs shall be due and payable hereunder upon demand.

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

     “CapitalSource Bank Transaction”: The acquisition by CapitalSource Inc. of the assets
of Fremont Investment & Loan that occurred on July 25, 2008.

     “CapitalSource LIBOR Rate”: The London interbank offered rate for deposits in Dollars
for the applicable maturity, as and when determined in accordance with the applicable Required
Asset Documents.

     “CapitalSource Prime Rate”: The rate designated by CapitalSource Finance (or the
originator of, or applicable agent with respect to, an Assigned Loan) from time to time and/or
pursuant to the related loan documents as its prime rate in the United States, such rate to change
as and when the designated rate changes; provided, however, the CapitalSource Prime Rate is not
intended to be the lowest rate of interest charged by CapitalSource (or such originator) in
connection with extensions of credit to debtors.

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     “Capital Stock”: With respect to any Person, shares of capital stock of (or other
ownership or profit interests in) such Person, warrants, options or other rights for the purchase
or other acquisition from such Person of shares of capital stock of (or other ownership or profit
interests in) such Person, securities convertible into or exchangeable for shares of capital stock
of (or other ownership or profit interests in) such Person or warrants, rights or options for the
purchase or other acquisition from such Person of such shares (or such other interests), and other
ownership or profit interests in such Person (including, without limitation, partnership, member or
trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants,
options, rights or other interests are authorized or otherwise existing on any date of
determination.

     “Change-in-Control”: Means (a) any Person or two or more Persons acting in concert
shall have acquired “beneficial ownership,” directly or indirectly, of, or shall have acquired by
contract or otherwise, or shall have entered into a contract or arrangement that, upon
consummation, will result in its or their acquisition of, or control over, Voting Stock of
CapitalSource Inc. (or other securities convertible into such Voting Stock) representing 33-1/3% or
more of the combined voting power of all Voting Stock of CapitalSource Inc., (b) the sale, lease,
transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or
a series of related transactions, of all or substantially all of the assets of CapitalSource Inc.
and its Subsidiaries taken as a whole to any “person” (as such term is used in Sections
13(d) and 14(d) of the Exchange Act), (c) the failure of CapitalSource Inc. to own
(directly or through wholly owned subsidiaries) 99.9% of the outstanding Voting Stock of
CapitalSource TRS LLC (f/k/a CapitalSource TRS Inc.) or any Servicing Guarantor, (d) the failure of
CapitalSource TRS LLC (f/k/a CapitalSource TRS Inc.) to own (directly or through wholly owned
subsidiaries) 99.9% of the outstanding Voting Stock of the Originator or any Servicing Guarantor,
(e) the creation or imposition of any Lien on any limited liability company membership interests in
the Seller; provided, however, that it shall not be a Change-in-Control if a Lien on such limited
liability membership interests of the Seller shall be created or imposed in favor of WBNA, as
agent, or its successors, assigns or subsequent transferees in such capacity, in connection with
(i) that certain Credit Agreement, dated as of March 14, 2006, by and among CapitalSource Inc., the
guarantors listed therein, the lenders listed therein, WBNA and Bank of America, N.A., and all
Credit Documents (as defined therein) thereunder, (ii) that certain Pledge Agreement, dated as of
December 23, 2008, by and among CapitalSource Inc., its direct and indirect subsidiaries listed
therein, WBNA, the Collateral Custodian and the Servicer, and (iii) that certain Security
Agreement, dated as of December 23, 2008, by and among CapitalSource Inc., its direct and indirect
subsidiaries listed therein and WBNA or (f) the failure by the Originator to own all of the limited
liability company membership interests in the Seller; provided, however, that it shall not be a
Change-in-Control if WBNA, or its successors, assigns or subsequent transferees, shall own such
limited liability membership interests of the Seller. Notwithstanding the foregoing, solely for
the purpose of determining whether there has been a Change-in-Control pursuant to clause
(a) above, any purchase by one or more Excluded Persons which increases any of such Excluded
Persons’ direct or indirect ownership interest (whether individually or in the aggregate) in the
Voting Stock of CapitalSource Inc. shall not constitute a Change-in-Control even if the amount of
Voting Stock acquired or controlled by such Excluded Person(s) exceeds (whether individually or in
the aggregate) 33-1/3% of the combined voting power of all Voting Stock of the Originator, any
Servicing Guarantor or CapitalSource Inc., as applicable; provided that for so long as any of such
Excluded Persons’ direct or indirect ownership interest in the Voting Stock

-9-

 

of the Originator, any Servicing Guarantor or CapitalSource Inc. exceeds (individually or in
the aggregate) 33-1/3% of the combined voting power of all Voting Stock of the Originator, any
Servicing Guarantor or CapitalSource Inc., as applicable, the initiation by the Originator, any
Servicing Guarantor or CapitalSource Inc. of any action intended to terminate or having the effect
of terminating the registration of its securities under Section 12(g) of the Exchange Act
or intended to suspend or having the effect of suspending its obligation to file reports with the
U.S. Securities and Exchange Commission under Sections 13 and 15(d) of the Exchange
Act, shall constitute a Change-in-Control. “Excluded Person” shall mean each of John Delaney,
Farallon Capital Management, LLC and Madison Dearborn Partners, LLC and their Affiliates. As used
herein, “beneficial ownership” shall have the meaning provided in Rule 13d-3 of the Securities and
Exchange Commission under the Exchange Act.

     “Charged-Off Asset”: An Asset (or portion thereof deemed to be “charged-off”) as to
which any of the following first occurs: (i) the Servicer has determined or should have reasonably
determined in accordance with the Credit and Collection Policy that such Asset is not collectible,
(ii) (a) all or any portion of one or more principal or interest payments (other than in respect of
default rate interest) remain unpaid for at least ninety (90) days from the original due date for
such payment (without giving effect to any Servicer Advance thereon), in which case not less than
fifty percent (50%) of the Outstanding Asset Balance shall be deemed to be “charged-off” for
purposes of this Agreement (and for the avoidance of doubt, the remaining fifty percent (50%) of
such Outstanding Asset Balance shall be deemed to be “delinquent” for purposes of this Agreement),
and (b) all or any portion of one or more principal or interest payments (other than in respect of
default rate interest) remain unpaid for at least one hundred and eighty (180) days from the
original due date for such payment (without giving effect to any Servicer Advance thereon), in
which case not less than one hundred percent (100%) of the Outstanding Asset Balance of an Asset
shall be deemed to be “charged-off” for purposes of this Agreement, or (iii) (a) the Obligor
thereof or any Person obligated thereon is subject to an Insolvency Event, in which case not less
than fifty percent (50%) of the Outstanding Asset Balance of an Asset shall be deemed to be
“charged-off” as of the date of the occurrence of such Insolvency Event for purposes of this
Agreement, (b) the Obligor thereof or any Person obligated thereunder has suffered a material
adverse change which materially affects its viability as a going concern as reasonably determined
by the Servicer, or (c) adequate collateral or other source of payment does not exist to repay the
full amount due to the Seller under the Asset as determined by the Servicer.

     “Charged-Off Portfolio Asset”: A Portfolio Asset (or portion thereof deemed to be
“charged-off”) (excluding equity investments) as to which any of the following first occurs: (i)
the Servicer has determined or should have reasonably determined in accordance with the Credit and
Collection Policy (or such similar policies and procedures utilized by the Servicer in servicing
such Portfolio Asset) that such Portfolio Asset is not collectible, (ii) (a) all or any portion of
one or more principal or interest payments (other than in respect of default rate interest) remain
unpaid for at least ninety (90) days from the original due date for such payment (without giving
effect to any Servicer Advance thereon), in which case not less than fifty percent (50%) of the
Portfolio Outstanding Asset Balance of such Portfolio Asset shall be deemed to be “charged-off” for
purposes of this Agreement (and for the avoidance of doubt, the remaining fifty percent (50%) of
such Outstanding Asset Balance shall be deemed to be “delinquent” for purposes of this Agreement),
and (b) all or any portion of one or more principal or interest payments (other than in respect of
default rate interest) remain unpaid for at least one hundred

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and eighty (180) days from the original due date for such payment (without giving effect to
any Servicer Advance thereon), in which case not less than one hundred percent (100%) of the
Portfolio Outstanding Asset Balance of such Portfolio Asset shall be deemed to be “charged-off” for
purposes of this Agreement, or (iii) (a) the Obligor thereof or any Person obligated thereon is
subject to an Insolvency Event, in which case not less than fifty percent (50%) of the Portfolio
Outstanding Asset Balance of such Portfolio Asset shall be deemed to be “charged-off” as of the
date of the occurrence of such Insolvency Event for purposes of this Agreement, (b) the Obligor or
any Person obligated thereon has suffered a material adverse change which materially affects its
viability as an ongoing concern as reasonably determined by the Servicer, or (c) adequate
collateral or other source of payment does not exist to repay the principal due under the Portfolio
Asset as determined by the Servicer.

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

     “Closing Date”: April 20, 2004.

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

     “Collateral”: All right, title, and interest (whether now owned or hereafter acquired
or arising, and wherever located) of the Seller in all accounts, cash and currency, chattel paper,
tangible chattel paper, electronic chattel paper, copyrights, copyright licenses, equipment,
fixtures, general intangibles, instruments, commercial tort claims, deposit accounts, inventory,
investment property, letter-of-credit rights, software, supporting obligations, accessions, and
other property consisting of, arising out of, or related to any of the following (in each case
excluding the Retained Interest and the Excluded Amounts): (i) the Existing Assets and Additional
Assets, and all monies due or to become due in payment under such Existing Assets and Additional
Assets on and after the related Cut-Off Date, including but not limited to all Collections, but
excluding any Excluded Amounts; (ii) all Related Security with respect to the Assets referred to in
clause (i) and (iii) all income and Proceeds of the foregoing.

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

     “Collateral Custodian Fee”: Defined in the Collateral Custodian Fee Letter.

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

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

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

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

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     “Collection Period”: Each calendar month.

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

     “Commercial Paper Notes”: On any day, any short-term promissory notes of any
Purchaser (or its related commercial paper issuer) issued in the commercial paper market.

     “Commitment”: With respect to each Purchaser, the commitment of such Purchaser to
make Advances in accordance herewith in an amount not to exceed (i) (a) prior to the Termination
Date, the dollar amount set forth opposite such Purchaser’s signature on the signature pages hereto
or the signature pages of the Additional Purchaser Agreement relating to such Purchaser, as
applicable, under the heading “Commitment” and (b) on or after the Termination Date, such Conduit
Purchaser’s Pro Rata Share of the aggregate Advances Outstanding or (ii) as to Conduit Purchasers
only, with respect to each Advance, the Pro-Rata Share.

     “Commitment Fee”: (a) With respect to any Purchaser, as defined in such Purchaser’s
Purchaser Fee Letter and (b) with respect to any Additional Purchaser, as defined in such
Additional Purchaser’s Additional Agent Fee Letter.

     “Conduit Purchasers”: Defined in the Preamble of this Agreement.

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

     “Consolidated Subsidiary”: With respect to any Person, at any date, any Subsidiary
the accounts of which, in accordance with GAAP, would be consolidated with those of such Person in
its consolidated and consolidating financial statements as of such date.

     “Consolidated Tangible Net Worth”: As of any date of determination, (i) with respect
to CapitalSource Inc., the assets less the liabilities of CapitalSource Inc. and its Consolidated
Subsidiaries, less intangible assets (including goodwill), less loans or advances to stockholders,
directors, officers or employees, all determined in accordance with GAAP; provided, however, that
if CapitalSource Inc.’s financial statements as of such date include goodwill created as a result
of the CapitalSource Bank Transaction, then all such goodwill in an amount not to exceed
$200,000,000 shall be treated as a tangible asset for the purpose of this definition; provided,
further, however, that with respect to any Consolidated Subsidiary, if all of the shares of Capital
Stock are not, directly or indirectly, owned by CapitalSource Inc., then, with respect to any such
Person, the Consolidated Tangible Net Worth of such Person shall be calculated by multiplying the
Consolidated Tangible Net Worth of such Person by the percentage of the aggregate proceeds that
would be distributed to CapitalSource Inc., directly or indirectly, upon the dissolution of such
Person, and (ii) with respect to any other Person, the assets less the liabilities of such Person

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and its Subsidiaries on a consolidated basis, less intangible assets (including goodwill), all
determined in accordance with GAAP.

     “Contractual Obligation”: With respect to any Person, any provision of any securities
issued by such Person or any indenture, mortgage, deed of trust, contract, undertaking, agreement,
instrument or other document to which such Person is a party or by which it or any of its property
is bound or is subject.

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

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

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

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

     “Delinquent Asset”: An Asset (that is not a Charged-Off Asset) as to which either of
the following first occurs: (a) all or any portion of one or more principal or interest payments
(other than in respect of default rate interest) remain unpaid for (i) at least thirty (30) days
but less than sixty (60) days from the original due date for such payment (without giving effect to
any Servicer Advance thereon), in which case not less than fifty percent (50%) of the Outstanding
Asset Balance of such Asset shall be deemed to be “delinquent” for purposes of this Agreement, (ii)
at least sixty (60) days from the original due date for such payment (without giving effect to

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any Servicer Advance thereon), in which case, for the avoidance of doubt, one hundred percent
(100%) of the Outstanding Asset Balance of such Asset shall be deemed to be “delinquent” for
purposes of this Agreement, or (b) consistent with the Credit and Collection Policy such Asset
would be classified as delinquent by the Servicer.

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

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

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

     “DIP Loan”: Any Loan to an Obligor that is a Chapter 11 debtor under the Bankruptcy
Code which is permitted by the Credit and Collection Policy and also satisfies the following
criteria: (a) the Loan is duly authorized by a final order of the applicable bankruptcy or federal
district court under the provisions of subsection (b), (c) or (d) of 11
U.S.C. § 364, (b) the Obligor’s bankruptcy case is still pending as a case under the provisions of
Chapter 11 of Title 11 of the Bankruptcy Code and has not been dismissed or converted to a case
under the provisions of Chapter 7 of Title 11 of the Bankruptcy Code, (c) the Obligor’s obligations
under such Loan have not been (i) disallowed, in whole or in part, or (ii) subordinated, in whole
or in part, to the claims or interests of any other Person under the provisions of 11 U.S.C. § 510,
(d) the Loan is secured and the liens and security interests granted by the applicable federal
bankruptcy or district court in relation to the Loan have not been subordinated, in whole or in
part, to the liens or interests of any other lender under the provisions of 11 U.S.C. § 364(d) or
otherwise, (e) the Obligor is not in default on its payment obligations under the Loan, (f) neither
the Obligor nor any party in interest has filed a Chapter 11 plan with the applicable federal
bankruptcy or district court that, upon confirmation, would (i) disallow or subordinate the Loan,
in whole or in part, (ii) subordinate, in whole or in part, any lien or security interest granted
in connection with such Loan, (iii) fail to provide for the repayment, in full and in cash, of the
Loan upon the effective date of such plan or (iv) otherwise impair, in any manner, the claim
evidenced by the Loan and (g) the Loan is substantially in a form previously delivered by the
Originator to the Administrative Agent in connection with this transaction or in such other form as
shall be adopted by the Originator and approved in writing by the Administrative Agent at least ten
days prior to such Loan becoming part of the Collateral hereunder. For the purposes of this
definition, an order is a “final order” if the applicable period for filing a motion to reconsider
or notice of

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appeal in respect of a permanent order authorizing the Obligor to obtain credit has lapsed and
no such motion or notice has been filed with the applicable federal bankruptcy or district court or
the clerk thereof.

     “Discretionary Sale”: Defined in Section 2.20.

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

     “Discretionary Sale Notice”: Defined in Section 2.20.

     “Distributions”: All dividends, payments, deferred payments, money and other
distributions (whether in cash or in kind) on and all interest on and in respect of, and all
proceeds of the Collateral, of whatever kind or description, real or personal, whether in the
ordinary course or in partial or total liquidation or dissolution, or any recapitalization,
reclassification of capital, or reorganization or reduction of capital, or otherwise.

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

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

(1) With respect to any Asset:

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

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     (b) the Asset (together with the Collections and Related Security related thereto) has been
the subject of a grant by the Seller in favor of the Administrative Agent, on behalf of the Secured
Parties, of a first priority perfected security interest;

     (c) at the time such Asset is included in the Collateral, the Asset (i) is not (and since its
origination by the Originator) a Charged-Off Asset (either in whole or in part), (ii) is not more
than ten days past due with respect to payments of principal or interest, and (iii) has never been
more than thirty days past due (after giving effect to a five day grace period in determining the
number of days past due) with respect to payments of principal or interest;

     (d) the Asset is an “eligible asset” as defined in Rule 3a-7 under the 40 Act;

     (e) the Asset is a contract the purchase of which with the proceeds of Commercial Paper Notes
would constitute a “current transaction” within the meaning of Section 3(a)(3) of the
Securities Act of 1933, as amended;

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

     (g) the Obligor with respect to such Asset is an Eligible Obligor and such Asset is payable
only in United States Dollars and the Related Property with respect to which the Asset is
principally underwritten is located in the United States;

     (h) the Asset is evidenced by (1) a promissory note or Loan Register and (2) a credit
agreement, security agreement, loan or note purchase agreement or other Underlying Instruments, in
each case, that have been duly authorized and executed, are in full force and effect and constitute
the legal, valid, binding and absolute and unconditional payment obligation of the related Obligor,
enforceable against such Obligor in accordance with their terms (subject to applicable bankruptcy,
insolvency, moratorium or other similar laws affecting the rights of creditors generally and to
general principles of equity, whether considered in a suit at law or in equity), and there are no
conditions precedent to the enforceability or validity of the Asset that have not been satisfied or
validly waived; provided that, in the case of clause (2) above, in the absence of a separate
security agreement, the related credit agreement, loan or note purchase agreement or other
Underlying Instruments shall provide for the grant of a security interest in the Related Property
by the Obligor;

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

     (j) neither the assignment of the Asset under the Sale Agreement by the Originator nor the
granting of a security interest hereunder by the Seller violates, conflicts with or contravenes any
Applicable Laws or any contractual or other restriction, limitation or encumbrance;

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

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

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

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

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

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

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

     (r) the Asset, together with the Required Asset Documents and Asset File related thereto, is
assignable and does not require the consent of or notice to the Obligor to consummate the
transactions contemplated by the Transaction Documents or contain any other restriction on the
transfer or the assignment of the Asset for the purpose of consummating the transactions
contemplated by the Transaction Documents other than a consent or waiver of such restriction that
has been obtained prior to the date on which the Asset was sold to the Seller;

     (s) the Obligor of such Asset is legally responsible for all taxes relating to the Related
Security or other security relating to such Asset, and all payments in respect of the Asset are
required to be made free and clear of, and without deduction or withholding for or on account of,
any taxes, unless such withholding or deduction is required by Applicable Law in which case the
Obligor thereof is required to make “gross-up” payments that cover the full amount of any such
withholding taxes on an after-tax basis;

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

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

     (v) no selection procedure adverse to the interests of the Administrative Agent, the Purchaser
Agents or the Secured Parties was utilized by the Seller or Originator in the selection of Asset
for inclusion in the Collateral; it being understood that selection procedures used by the Seller
or Originator for the inclusion of Assets in one or more of its various securitizations or other
financing facilities and which are solely intended to obtain the most beneficial advance rates
thereunder and/or otherwise maximize the efficiency of such facilities, shall not be deemed to be
adverse procedures for purposes of this paragraph;

     (w) the Asset has not been compromised, adjusted, extended, satisfied, rescinded, set-off or
modified by the Seller, the Originator or the Obligor with respect thereto, and no Asset is subject
to compromise, adjustment, extension, satisfaction, rescission, set-off, counterclaim, defense,
abatement, suspension, deferment, deductible, reduction, termination or modification, whether
arising out of transactions concerning the Asset, or otherwise, by the Seller, the Originator or
the Obligor with respect thereto except for amendments to such Asset otherwise permitted under
Section 7.4(a) of this Agreement and in accordance with the Credit and Collection Policy;

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

     (y) except with respect to DIP Loans, the Obligor of such Asset is not and has not been the
subject of an Insolvency Event or Insolvency Proceeding in the past three years;

     (z) the Asset is secured by a valid, perfected, first priority (other than with respect to
Subordinated Loans) security interest in all assets that constitute the collateral for the Asset
(subject to Liens expressly permitted by the Underlying Instruments; provided that such Liens are
not material in relation to the value of the Related Property and are customary for transactions of
such nature), and, other than the loan types listed above, such collateral shall include but not be
limited to the material intellectual property of the Obligor (if any);

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

     (bb) [Reserved];

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

     (dd) the Asset was generated in the ordinary course of the Originator’s business;

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

     (ff) the Asset is not Margin Stock;

     (gg) the acquisition of the Asset by the Seller will not cause the Seller or the pool of
Collateral to be required to be registered as an investment company under the 40 Act;

     (hh) the Asset was purchased, acquired or originated by the Originator (or an Affiliate
thereof) at not less than 85% of its par value as of the date of its purchase, acquisition or
origination;

     (ii) from and after the date on which the Asset was first added to the Collateral, the Asset
has not been, and is not, a Materially Modified Asset; and

     (jj) the Asset is not subject to a guaranty by the Originator or any Affiliate thereof.

(2) With respect to any Loan:

     (a) the Loan provides (i) for periodic payments of interest and/or principal in cash, which
are due and payable on a monthly, quarterly or semi-annual basis unless otherwise consented to in
writing by the Administrative Agent, and (ii) that the Servicer (or, with respect to Agented Loans
and Assigned Loans, that the agent or a majority of the related lenders) may accelerate all
payments on the Loan, if the Obligor is in default under the Loan and any applicable grace period
has expired (in the case of any Subordinated Loan, subject to any applicable intercreditor or
subordination agreement);

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

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

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

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

     (f) with respect to any DIP Loan, the Originator or its assignee has been granted a first
priority lien status in respect of all or certain of the Obligor’s assets by final order of the
applicable federal bankruptcy or district court;

     (g) if the Obligor of such Loan is the Obligor of more than one Loan, all such Loans are
cross-collateralized and cross-defaulted;

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

     (i) [Reserved];

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

     (k) the Loan (or the underlying Loan in the case of any Agented Loan, Assigned Loan or
Participation Loan) is a Senior Secured ABL Loan, Senior Secured Loan, Stretch Senior Secured Loan,
Senior B-Note Loan or Subordinated Loan;

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

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

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

     (o) with respect to Senior B-Note Loans or Subordinated Loans, the Originator has entered into
an intercreditor agreement or subordination agreement (or such provisions are contained in the
principal loan documents) with, or provisions for the benefit of, the senior lender, which
agreement or provisions are assignable to and have been assigned to the Seller, and which provide
that any standstill of remedies by the Originator or its assignee is limited (A) such that there
shall be no standstill of remedies (x) until after a payment default with respect to the senior
obligation or the Originator’s or assignee’s receipt from the senior lender or Obligor of a notice
of default by the Obligor under the senior debt and (y) unless a covenant or payment default is
also in effect, and (B) to no longer than one hundred eighty (180) days in duration in the
aggregate in any given year;

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

     (q) such Loan is not a Real Estate Loan (other than a Senior Secured ABL Loan that is secured
by timeshare receivables);

     (r) [Reserved];

     (s) with respect to Agented Loans, the related underlying loan documents (i) shall include a
credit agreement, note purchase agreement or similar agreement containing provisions relating to
the appointment and duties of a payment agent and a collateral agent and intercreditor

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and (if applicable) subordination provisions substantially similar to the forms previously
delivered by the Originator to the Administrative Agent in connection with this transaction, (ii)
are duly authorized, fully and properly executed and are the valid, binding and unconditional
payment obligation of the Obligor thereof and (iii) are consistent with the documentation and
perfection standards of transactions of such nature;

     (t) with respect to Agented Loans, the Originator (or a wholly owned subsidiary of
CapitalSource Inc.) has been appointed the collateral agent of the security and the payment agent
for all such loans prior to such Agented Loan becoming a part of the Collateral;

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

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

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

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

     (y) no portion of the proceeds used to make payments of principal or interest on such Loan
have come from a new loan by the Originator, CapitalSource Inc. or an Affiliate of CapitalSource
Inc.;

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

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     (aa) has an original term to maturity (A) in the case of Senior Secured ABL Loans, Senior
Secured Loans, Stretch Senior Secured Loans and Senior B-Note Loans of not greater than 84 months,
or (B) in the case of Subordinated Loans of not greater than 120 months;

     (bb) is not a consumer loan;

     (cc) none of the Loans secured by a mortgage are high-cost loans as defined by applicable
predatory- and abusive-lending laws; and

     (dd) the proceeds of the Loan will not be used to finance activities of the type engaged in by
businesses classified under NAICS Codes 2361 (Residential Building Construction), 2362
(Nonresidential Building Construction), 2371 (Utility System Construction), 2372 (Land
Subdivision); provided, that the foregoing shall not be deemed to render inventory loans to
timeshare operators ineligible.

     “Eligible Obligor”: On any date of determination, any Obligor that (i) is a business
organization (and not a natural person) duly organized and validly existing under the laws of its
jurisdiction of organization and has a billing address within the United States, (ii) has not
entered into the related asset agreement primarily for personal, family or household purposes,
(iii) is not a Governmental Authority, (iv) is not an Affiliate of the Originator or the Seller,
(v) is not in the gaming (other than Obligors in the business of providing services to the gaming
industry), real estate construction or development (other than Obligors in the business of
providing services to the real estate construction or development industries), nuclear waste or
natural resource exploration/production and oil field service industries, (vi) is not engaged in
the business of conducting proprietary research on new drug development, (vii) is not and has not
been the subject of an Insolvency Proceeding (except with respect to a DIP Loan) in the past three
years, (viii) as of the applicable Cut-Off Date, has an Eligible Risk Rating, and (ix) is not an
Obligor of a Charged-Off Asset or Delinquent Asset.

     “Eligible Repurchase Obligations”: Repurchase obligations with respect to any
security that is a direct obligation of, or fully guaranteed by, the United States or any agency or
instrumentality thereof the obligations of which are backed by the full faith and credit of the
United States, in either case entered into with a depository institution or trust company (acting
as principal) described in clauses (c)(ii) and (c)(iv) of the definition of
Permitted Investments.

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

     “Environmental Laws”: Any and all foreign, federal, state and local laws, statutes,
ordinances, rules, regulations, permits, licenses, approvals, interpretations and orders of courts
or Governmental Authorities, relating to the protection of human health or the environment,
including, but not limited to, requirements pertaining to the manufacture, processing,
distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing,
permitting, investigation or remediation of hazardous materials. Environmental Laws include,
without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act (42
U.S.C. § 9601 et seq.), the Hazardous Material Transportation Act (49 U.S.C. § 331 et

-22-

 

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

     “Equipment”: Healthcare related equipment or such other equipment types as are
approved for inclusion in the Collateral by the Administrative Agent (in its sole discretion).

     “Equity Contribution”: On any date of determination, an amount equal to the excess,
if any, of (a) the sum of (i) the Borrowing Base on such date plus (ii) all Principal Collections
on deposit in the Principal Collections Account on such date, minus (b) the Advances Outstanding on
such date.

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

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

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

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

-23-

 

applicable, to obtain Dollars in the London interbank market to make, fund or maintain any
Advance.

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

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

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

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

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

     “Facility Amount”: $90,000,000, as such amount may vary from time to time upon the
written agreement of the parties hereto; provided, that such amount may not at any time exceed the
aggregate Commitments then in effect; provided, further, that on or after the Termination Date, the
Facility Amount shall mean the Advances Outstanding.

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

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

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

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

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

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

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

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

     “Funding Date”: The third Business Day following the Closing Date, and (i) as to any
incremental Advance funded on a same-day basis pursuant to Section 2.3(a), the Business Day
of, and (ii) as to any other incremental Advance, any Business Day that is one Business Day
immediately following, the receipt by the Administrative Agent and each Purchaser Agent of a
Borrowing Notice (along with a Borrowing Base Certificate) in accordance with Section 2.3.

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

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

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

     “Healthcare REIT”: The REIT resulting from the consummation of a spin-off or initial
public offering of the healthcare net-lease business of CapitalSource Inc. and its Subsidiaries
after which the shares of such REIT are listed on a U.S. national securities exchange or the NASDAQ
Stock Market.

     “Healthcare REIT Consolidated Subsidiary”: At any date, any Healthcare REIT Entity, if
such Healthcare REIT Entity’s accounts, in accordance with GAAP, would be consolidated with

-25-

 

those of CapitalSource Inc. in its consolidated and consolidating financial statements as of
such date.

     “Healthcare REIT Entities”: The Healthcare REIT and its Subsidiaries, as well as any
direct or indirect Subsidiaries of CapitalSource Inc. that are formed for the sole purpose of
establishing, structuring or capitalizing the Healthcare REIT.

     “Hedge Amount”: On any day, an amount equal to the product of (i) the product of (x)
the Borrowing Base and (y) the Fixed Rate Asset Percentage with respect to Loans on such day and
(ii) one minus the Overcollateralization Percentage on such day.

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

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

     “Hedge Counterparty”: Means (a) Wachovia Bank, National Association and its
successors and assigns, and (b) any entity that (i) on the date of entering into a Hedging
Agreement (x) is an interest rate swap dealer that has been approved in writing by the
Administrative Agent (which approval shall not be unreasonably withheld), and (y) has a long-term
unsecured debt rating of not less than “A” by S&P, not less than “A2” by Moody’s and not less than
“A” by Fitch (if such entity is rated by Fitch) (“Long-term Rating Requirement”) and a short-term
unsecured debt rating of not less than “A-1” by S&P, not less than “P-1” by Moody’s and not less
than “F-1” by Fitch (if such entity is rated by Fitch) (“Short-term Rating Requirement”), and (ii)
in a Hedging Agreement (x) consents to the assignment of the Seller’s rights under each Hedging
Agreement to the Administrative Agent for the benefit of the Secured Parties pursuant to
Section 5.3(b) and (y) agrees that in the event that Moody’s, S&P or Fitch reduces its
long-term unsecured debt rating below the Long-term Rating Requirement, or reduces its short-term
unsecured debt rating below the Short-term Rating Requirement, it shall transfer its rights and
obligations under each Hedge Transaction to another entity that meets the requirements of
clauses (i) and (ii) hereof and has entered into a Hedging Agreement with the
Seller on or prior to the date of such transfer.

     “Hedge Guaranty”: The Guaranty, dated as of the date hereof, by and between
CapitalSource Finance in favor of WBNA, as Hedge Counterparty, as amended, modified, waived,
supplemented, restated or replaced from time to time.

     “Hedge Notional Amount”: For any Advance, the aggregate notional amount in effect on
any day under all Hedge Transactions entered into pursuant to Section 5.3(a) for that
Advance.

     “Hedge Percentage”: With respect to:

     (a) Fixed Rate Assets that are Loans, on any day that (i) the Aggregate Outstanding Asset
Balance exceeds $150,000,000, an amount equal to 100% if the sum of the Outstanding Asset Balances
of all Fixed Rate Assets that are Loans exceeds $35,000,000 or (ii) the Aggregate Outstanding Asset
Balance is less than or equal to $150,000,000, an amount equal to 100% if the sum of the
Outstanding Asset Balances of all Fixed Rate Assets that are Loans exceeds $20,000,000;

-26-

 

     (b) Floating Rate Assets is 0%; and

     (c) Banded Floating Rate Assets, on any day, is an amount equal to 100% if the interest rate
on any such Loan is within 0.50% of the maximum interest rate allowable under its Required Asset
Documents.

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

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

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

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

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

     “Indebtedness”: With respect to any Person at any date, (a) all indebtedness of such
Person for borrowed money or for the deferred purchase price of property or services (other than
current liabilities incurred in the ordinary course of business and payable in accordance with
customary trade practices) or that is evidenced by a note, bond, debenture or similar instrument or
other evidence of indebtedness customary for indebtedness of that type, (b) all obligations of such
Person under leases that shall have been or should be, in accordance with generally accepted
accounting principles, recorded as capital leases, (c) all obligations of such Person in respect of
acceptances issued or created for the account of such Person, (d) all liabilities secured by any
Lien on any property owned by such Person even though such Person has not assumed or otherwise
become liable for the payment thereof, (e) all indebtedness, obligations or liabilities of that
Person in respect of Derivatives, (f) all obligations of such Person to redeem preferred stock of
such Person (in the event such Person is a corporation), (g) all obligations (absolute or
contingent) of such Person to reimburse any bank or other Person in respect of amounts which are
available to be drawn or have been drawn under a letter of credit or similar instrument, (h) the
principal portion of all obligations of such Person under any synthetic lease, tax retention

-27-

 

operating lease, off-balance sheet loan or similar off-balance sheet financing product where
such transaction in each case (I) is considered borrowed money indebtedness for tax purposes, and
(II) is classified as an operating lease under GAAP and (i) obligations under direct or indirect
guaranties in respect of obligations (contingent or otherwise) to purchase or otherwise acquire, or
to otherwise assure a creditor against loss in respect of, indebtedness or obligations of others of
the kind referred to in clauses (a) through (h) above.

     “Indemnified Amounts”: Defined in Section 11.1.

     “Indemnified Parties”: Defined in Section 11.1.

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

     “Initial Advance”: The first Advance.

     “Insolvency Event”: With respect to a specified Person, (a) the filing of a decree or
order for relief by a court having jurisdiction in the premises in respect of such Person or any
substantial part of its property in an involuntary case under any applicable Insolvency Law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of its property, or
ordering the winding-up or liquidation of such Person’s affairs, and such decree or order shall
remain unstayed and in effect for a period of sixty (60) consecutive days; or (b) the commencement
by such Person of a voluntary case under any applicable Insolvency Law now or hereafter in effect,
or the consent by such Person to the entry of an order for relief in an involuntary case under any
such law, or the consent by such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for
any substantial part of its property, or the making by such Person of any general assignment for
the benefit of creditors, or the failure by such Person generally to pay its debts as such debts
become due, or the taking of action by such Person in furtherance of any of the foregoing.

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

     “Insolvency Proceeding”: Any case, action or proceeding before any court or other
Governmental Authority relating to any Insolvency Event.

     “Institutional Purchaser”: Defined in the Preamble of this Agreement.

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

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

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

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

     “Interest”: For each Accrual Period and each Advance outstanding, the sum of the
products (for each day during such Accrual Period) of:

IR x P x    1

                  D

     where:

	 	 	 	 	 	 	 
	 

	 	IR
	 	=
	 	the Interest Rate applicable on such day;
	 
	 	 	 	 	 	 
	 

	 	P
	 	=
	 	the principal amount of such Advance on such day; and
	 
	 	 	 	 	 	 
	 

	 	D
	 	=
	 	360 or, to the extent the Interest Rate is based on the Base Rate,
365 or 366 days, as applicable.

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

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

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

     (i) to the extent the applicable Conduit Purchaser has funded the applicable Advance
through the issuance of commercial paper, a rate equal to the applicable CP Rate; or

     (ii) to the extent the applicable Conduit Purchaser or Institutional Purchaser did not
fund the applicable Advance through the issuance of commercial paper, a rate equal to the
Alternative Rate;

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provided, however, the Interest Rate shall be the Base Rate for any Accrual Period for any Advance
as to which a Conduit Purchaser has funded the making or maintenance thereof by a sale of an
interest therein to any Liquidity Bank under the applicable Liquidity Agreement on any day other
than the first day of such Accrual Period without giving such Liquidity Bank(s) at least two
Business Days’ prior notice of such assignment.

     “Investment”: Any investment in any Person, whether by means of purchase or
acquisition of obligations or securities of such Person, capital contribution to such Person, loan
or advance to such Person, making of a time deposit with such Person, guarantee or assumption of
any obligation of such Person or otherwise.

     “Investment Loan”: Any senior or subordinated loan (including letters of credit issued
under such loan) or lease (a) arising from the extension of credit to an Obligor by CapitalSource
Inc. or its Consolidated Subsidiaries (excluding the Bank Subsidiary and the Healthcare REIT
Consolidated Subsidiaries) in the ordinary course of business, (b) originated in accordance with
the policies and procedures set forth in the Credit and Collection Policy, and (c) good and
marketable title to which is owned by CapitalSource Inc. or a Consolidated Subsidiary

     “Investment Loan Subsidiary”: Any Person that becomes a Subsidiary as a result of the
exercise of remedies by CapitalSource Inc. or any Consolidated Subsidiary under any Investment
Loan.

     “Investment in Equity Instruments”: Each Investment, that is made in accordance with
the policies and procedures set forth in the Credit and Collection Policy, owned by CapitalSource
Inc. or its Consolidated Subsidiaries (excluding the Bank Subsidiary and the Healthcare REIT
Consolidated Subsidiaries) in (a) common stock, partnership interests or membership interests of
any Person and that is classified as “Common Stock,” “Partnership Units” or “Membership Units” on
the consolidated schedule of investments of CapitalSource Inc. for the then most recently ended
fiscal quarter, (b) preferred stock (other than redeemable preferred stock) of any Person and that
is classified as “Preferred Stock” on the consolidated schedule of investments of CapitalSource
Inc. for the then most recently ended fiscal quarter, (c) redeemable preferred stock of any Person
and that is classified as “Redeemable Preferred Stock” on the consolidated schedule of investments
of CapitalSource Inc. for the then most recently ended fiscal quarter, and (d) warrants to purchase
common stock, partnership interests or membership interests of any Person and that is classified as
“Common Stock Warrants,” “Partnership Unit Warrants” or “Membership Unit Warrants” on the
consolidated schedule of investments of CapitalSource Inc. for the then most recently ended fiscal
quarter.

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

     “Issuer”: Any Conduit Purchaser whose principal business consists of issuing
commercial paper or other securities to fund its acquisition or maintenance of receivables,
accounts, instruments, chattel paper, general intangibles and other similar assets.

     “LIBOR Market Index Rate”: For any day, with respect to any Advance (a) the rate per
annum appearing on Page 3750 of the Bridge Telerate Service (formerly Dow Jones Market

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Service) (or on any successor or substitute page of such service, or any successor to or
substitute for such service, providing rate quotations comparable to those currently provided on
such page of such service, as determined by the Administrative Agent from time to time for purposes
of providing quotations of interest rates applicable to dollar deposits in the London interbank
market) at approximately 11:00 a.m., London time for such day, provided, if such day is not a
Business Day, the immediately preceding Business Day, as the rate for dollar deposits with a
one-month maturity; (b) if for any reason the rate specified in clause (a) of this definition does
not so appear on Page 3750 of the Bridge Telerate Service (or any successor or substitute page or
any such successor to or substitute for such service), the rate per annum appearing on Reuters
Screen LIBO page (or any successor or substitute page) as the London interbank offered rate for
deposits in dollars at approximately 11:00 a.m., London time, for such day, provided, if such day
is not a Business Day, the immediately preceding Business Day, for a one-month maturity; and (c) if
the rate specified in clause (a) of this definition does not so appear on Page 3750 of the Bridge
Telerate Service (or any successor or substitute page or any such successor to or substitute for
such service) and if no rate specified in clause (b) of this definition so appears on Reuters
Screen LIBO page (or any successor or substitute page), the interest rate per annum at which dollar
deposits of $5,000,000 and for a one-month maturity are offered by the principal London office of
WBNA in immediately available funds in the London interbank market at approximately 11:00 a.m.,
London time, for such day.

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

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

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

-31-

 

upon or after the expiration or earlier termination of such Portfolio Asset and other
out-of-pocket costs related to the liquidation of any such assets, including the attempted
collection of any amount owing pursuant to such Portfolio Asset if it is a Charged-Off Portfolio
Asset, and if requested by the Administrative Agent, the Servicer and Originator must provide to
the Administrative Agent a breakdown of the Liquidation Expenses for any Portfolio Asset along with
any supporting documentation therefor.

     “Liquidity Agreement”: (a) with respect to each Conduit Purchaser, the Liquidity
Purchase Agreement or liquidity loan agreement by and among such Conduit Purchaser, the Liquidity
Banks named therein, and the related Purchaser Agent, as such agreement may be amended, modified,
waived, supplemented, restated or replaced from time to time, and (b) with respect to each
Additional Purchaser that is also a Conduit Purchaser, the liquidity purchase agreement or
liquidity loan agreement by and among such Additional Purchaser, the Liquidity Banks named therein
and the related Additional Agent, as such agreement may be amended, modified, waived, supplemented,
restated or replaced from time to time.

     “Liquidity Bank”: The Person or Persons who provide liquidity support to any Conduit
Purchaser or Additional Purchaser that is also a Conduit Purchaser pursuant to a Liquidity
Agreement in connection with the issuance by such Purchaser of Commercial Paper Notes.

     “Liquidity Factor Reduction Event”: With respect to each Asset included as part of
the Collateral subject to the Retained Interest provisions of this Agreement, a “Liquidity Factor
Reduction Event” under and as defined in any Permitted Securitization Transaction rated by the
Rating Agencies.

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

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

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

     “Loan-to-Value Ratio or LTV”: With respect to any Loan, as of any date of
determination, the percentage equivalent of a fraction (a) the numerator of which is equal to the
total commitment amount of such Loan as of the date of its origination (as provided in the related
loan documents) plus the total commitment amount or principal amount, as the case may be, as of the
applicable date of origination or incurrence, of all loans and other indebtedness which is senior
to such Loan in the “capital structure” of the related Obligor (as defined in, and as

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determined by the Servicer in accordance with, the Credit and Collection Policy and in a
commercially reasonable manner), and (b) the denominator of which is equal to the “capital
structure” of the related Obligor. With respect to any Security System Loan, as of any date of
determination, the percentage equivalent of a fraction (a) the numerator of which is equal to the
related Security System Loan Advance Multiple and (b) the denominator of which is equal to the
related Security System Loan Average Contract Term.

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

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

     “Lock-Box Agreement”: The Fifth Amended and Restated Three Party Agreement Relating
to Lockbox Services and Control (with Activation Upon Notice), dated as of June 30, 2005, by and
among Wells Fargo, as the indenture trustee and as the Citi indenture trustee (as defined therein),
Bank of America, N.A., as the lockbox bank, WCM, as the conduit administrative agent and as the
acquisition administrative agent, CapitalSource Finance, as the originator, as the original
servicer and as the lockbox servicer, and CapitalSource Funding LLC, as the owner of the account
and as the owner of the lockbox, as amended, modified, waived, supplemented, restated or replaced
from time to time.

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

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

     “Material Adverse Effect”: With respect to any event or circumstance, means a
material adverse effect on (a) the business, condition (financial or otherwise), operations,
performance, properties or prospects of the Originator, the Servicer or the Seller, (b) the
validity, enforceability or collectibility of this Agreement or any other Transaction Document or
the validity, enforceability or collectibility of the Assets generally or any material portion of
the Assets, (c) the rights and remedies of the Administrative Agent, the Purchasers, the Purchaser
Agents and the Secured Parties, (d) the ability of the Seller, the Servicer, the Backup Servicer or
the Collateral Custodian to perform its obligations under this Agreement or any Transaction
Document, or (e) the status, existence, perfection, priority or enforceability of the
Administrative Agent’s, the Purchaser Agents’, or the Secured Parties’ interest in the Collateral.

     “Material Modification”: (1) Any amendment or waiver of, or modification or
supplement to, an Underlying Instrument governing an Asset that (a) reduces the principal amount of
such Asset, (b) waives one or more interest payments, or reduces the spread over the applicable
reference rate comprising the interest rate on such Asset if such Asset is a Floating Rate Asset or
reduces the coupon comprising the interest rate on such Asset if such Asset is a Fixed Rate Asset;
provided that the foregoing shall not apply to waivers or reductions related to the operation of
default or penalty interest clauses and, in addition, the spread or coupon, as

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applicable, may be reduced by not more than 1.5% applicable to the spread or coupon of such
Asset, so long as the interest coverage ratio (howsoever defined in the related Underlying
Instruments) is greater than 2.0:1 at the time of such reduction, (c) contractually or structurally
subordinates such Asset by operation of a priority of payments, turnover provisions, the transfer
of assets in order to limit recourse to the related Obligor or the granting of security (other than
permitted security) on any of the Related Property securing such Asset, (d) postpones the due date
of any Scheduled Payment in respect of such Asset, (e) terminates or releases any material lien or
security interest securing such Asset (other than the release of such lien or security interest (i)
as required by the Underlying Instruments so long as it does not involve a material portion of the
Collateral or (ii) in conjunction with the sale or disposition of the assets subject to such lien
or security interest so long as 100% of the cash proceeds from such sale or disposition
(minus any taxes and expenses incurred in connection with such sale or disposition) are
applied to prepay the applicable Asset and the gross cash proceeds from such sale or disposition
are at least equal to 100% of the value of the property being released from such lien or security
interest) or (f) alters the status of such Loan as a Delinquent Loan or Charged-Off Loan and (2)
any loan or extension of credit by the Originator (or any other lender) to the Obligor for the
purpose of (a) making any past due principal, interest or other payments due on such Asset, (b)
preventing such Asset or any other loan to the related Obligor from becoming past due or (c)
causing a Delinquent Loan or a Charged-Off Loan to cease to be so classified; provided that a loan
or extension of credit provided for refinancing purposes at or around such Asset’s then schedule
maturity date shall not be deemed to be a Material Modification.

     “Materially Modified Asset”: Any Asset subject to a Material Modification.

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

     “Maximum Availability”: An amount equal to the least of:

     (a) the Facility Amount;

     (b) the sum of (i) the product of the Borrowing Base and the Weighted Average Advance Rate
plus (ii) the amount on deposit in the Principal Collections Account received in reduction of the
Outstanding Asset Balance of any Asset that is an Eligible Asset; or

     (c) an amount equal to (i) the Borrowing Base minus (ii) the Minimum Overcollateralization
Amount plus (iii) the amount on deposit in the Principal Collections Account received in reduction
of the Outstanding Asset Balance of any Asset that is an Eligible Asset.

     “Minimum Overcollateralization Amount”: As of any date of determination, an amount
equal to the sum of the Outstanding Asset Balances of all Eligible Assets attributable to the three
Obligors having the largest aggregate Outstanding Asset Balance of Eligible Assets included as part
of the Collateral (excluding the amount, calculated without duplication, by which such

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Eligible Assets exceed any applicable Pool Concentration Criteria), calculated for the
Borrowing Base on such date.

     “Minimum Pool Yield”: A Pool Yield equal to 2.15%.

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

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

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

     “NAICS Code” means the North American Industry Classification System Codes by two
digits.

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

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

     “Obligor”: With respect to any Asset, any Person or Persons obligated to make
payments pursuant to or with respect to such Asset, including any guarantor thereof. For purposes
of calculating any of the Pool Concentration Criteria only, all Assets included as part of the
Collateral or to be transferred to the Collateral the Obligor of which is an Affiliate of another
Obligor (excluding any Financial Sponsor or Obligors that are Affiliates solely because of common
ownership or control by a Financial Sponsor) shall be aggregated with all Assets of such other
Obligor; for example, if Corporation A is an Affiliate (other than because of a
common Financial Sponsor) of Corporation B, and the sum of the Outstanding Asset Balances of all of
Corporation A’s Loans included as part of the Collateral constitutes 10% of the Aggregate
Outstanding Asset Balance and the sum of the Outstanding Asset Balances all of Corporation B’s
Loans included as part of the Collateral constitutes 10% of the Aggregate Outstanding Asset
Balance, the combined Obligor concentration for Corporation A and Corporation B would be 20%.

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

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

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

     “Optional Sale Date”: Any Business Day during the Revolving Period, provided ten (10)
Business Days’ prior written notice is given in accordance with Section 2.19(a).

     “Originator”: CapitalSource Finance, together with its successors and assigns in such
capacity; all Assets originated by Affiliates of CapitalSource Inc. (other than CapitalSource
Finance) and acquired by CapitalSource Finance or its successors and assigns from such Affiliates
in compliance with Section 2.21 shall be deemed to have been originated by CapitalSource
Finance or its successors and assigns; provided that such acquisition shall be reflected on the
Borrowing Base Certificate.

     “Other Costs”: Defined in Section 13.9(c).

     “Outstanding Asset Balance”: With respect to (i) any Asset purchased at less than 95%
of its par value, the purchase price of such Asset (excluding any PIK component or accrued interest
payable) minus the sum of principal payments received in respect of such Asset on or before the
date of determination and (ii) any Asset purchased at no less than 95% of par or originated
directly by the Originator or an Affiliate, the sum of (a) the portion of all future Scheduled
Payments becoming due under or with respect to such Asset plus (b) any past due Scheduled
Payments with respect to such Asset (other than with respect to those payments to the extent a
Servicer Advance is outstanding with respect thereto), provided that notwithstanding anything to
the contrary contained herein, for purposes of determining the Aggregate Outstanding Asset Balance,
if any portion of an Asset is deemed to be “charged-off” in accordance with the provisions of the
definition of Charged-Off Asset, then the entire Asset shall be deemed to have an Outstanding Asset
Balance of zero, except for purposes of (i) calculating the Average Pool Charged-Off Ratio and (ii)
Section 2.20(a)(vii).

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

     “Participation Loan”: A Loan to an Obligor, originated by the Originator and serviced
by the Servicer in the ordinary course of its business, in which a participation interest has been
granted to another Person in accordance with the Credit and Collection Policy and (i) such
transaction has been fully consummated, pursuant to a participation agreement in a form previously
delivered by the Originator to the Administrative Agent in connection with this transaction or in
such other form as shall be adopted by the Originator and approved in writing by the Administrative
Agent at least five days prior to such Loan becoming part of the Collateral hereunder, (ii) such
Loan (other than in the case of a Noteless Loan) is represented by a separate promissory note, and
(iii) the Originator has the right to receive and collect payments directly in its own name, and to
enforce its rights directly against the Obligor thereof including the right to

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proceed against collateral; provided, however, any such Loan shall exclude any Retained
Interest.

     “Payment Date”: The fifteenth (15th) day of each calendar month or, if such day is
not a Business Day, the next succeeding Business Day.

     “Permitted Investments”: With respect to any Payment Date means negotiable
instruments or securities or other investments maturing on or before such Payment Date (a) which,
except in the case of demand or time deposits, investments in money market funds and Eligible
Repurchase Obligations, are represented by instruments in bearer or registered form or ownership of
which is represented by book entries by a Clearing Agency or by a Federal Reserve Bank in favor of
depository institutions eligible to have an account with such Federal Reserve Bank who hold such
investments on behalf of their customers, (b) that, as of any date of determination, mature by
their terms on or prior to the Business Day immediately preceding the next Payment Date immediately
following such date of determination, and (c) that evidence:

     (1) direct obligations of, and obligations fully guaranteed as to full and timely
payment by, the United States (or by any agency thereof to the extent such obligations are
backed by the full faith and credit of the United States);

     (2) demand deposits, time deposits or certificates of deposit of depository
institutions or trust companies incorporated under the laws of the United States or any
state thereof and subject to supervision and examination by federal or state banking or
depository institution authorities; provided, however, that at the time of the Seller’s
investment or contractual commitment to invest therein, the commercial paper, if any, and
short-term unsecured debt obligations (other than such obligation whose rating is based on
the credit of a Person other than such institution or trust company) of such depository
institution or trust company shall have a credit rating from Fitch and each Rating Agency in
the Highest Required Investment Category granted by Fitch and such Rating Agency, which in
the case of Fitch, shall be “F-1+”;

     (3) commercial paper, or other short term obligations, having, at the time of the
Seller’s investment or contractual commitment to invest therein, a rating in the Highest
Required Investment Category granted by each Rating Agency, which in the case of Fitch,
shall be “F-1+”;

     (4) demand deposits, time deposits or certificates of deposit that are fully insured by
the FDIC and either have a rating on their certificates of deposit or short-term deposits
from Moody’s and S&P of “P-1” and “A-1”, respectively, and if rated by Fitch, from Fitch of
“F-1+”;

     (5) notes that are payable on demand or bankers’ acceptances issued by any depository
institution or trust company referred to in clause (2) above;

     (6) investments in taxable money market funds or other regulated investment companies
having, at the time of the Seller’s investment or contractual commitment to invest therein,
a rating of the Highest Required Investment Category from Moody’s, S&P and Fitch (if rated
by Fitch);

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

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

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

     “Permitted Liens”: Any of the following as to which no enforcement, collection,
execution, levy or foreclosure proceeding shall have been commenced (a) Liens for state, municipal
or other local taxes if such taxes shall not at the time be due and payable, (b) Liens imposed by
law, such as materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other
similar Liens, arising in the ordinary course of business securing obligations that are not overdue
for a period of more than thirty (30) days, and (c) Liens granted pursuant to or by the Transaction
Documents.

     “Permitted Securitization Transaction”: Any financing transaction undertaken by the
Seller or an Affiliate of the Seller that is secured, directly or indirectly, by the Collateral or
any portion thereof or any interest therein, including any sale, lease, whole loan sale, asset
securitization, secured loan or other transfer.

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

     “Pool Charged-Off Ratio”: As of any Determination Date, the product of (i) twelve
(12) and (ii) the percentage equivalent of a fraction, (a) the numerator of which is equal to the
sum of the Outstanding Asset Balances of all Eligible Assets that became Charged-Off Assets (net of
Recoveries during such Collection Period) during the Collection Period related to such
Determination Date, and (b) the denominator of which is equal to the Aggregate Outstanding Asset
Balance as of the first (1st) day of the Collection Period related to such Determination Date.

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

     (1) the sum of the Outstanding Asset Balance of all Eligible Assets the Obligors of
which are resident of the same state shall not exceed 20%;

     (2) the sum of the Outstanding Asset Balances of all Eligible Assets the Obligors of
which are in the same Industry (as defined by 2-digit NAICS Codes) shall not exceed 20%;

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

     (4) the sum of the Outstanding Asset Balances of all Eligible Assets that are DIP Loans
shall not exceed 10%;

     (5) the sum of the Outstanding Asset Balances of all Eligible Assets to a single
Obligor shall not exceed $20,000,000;

     (6) the Aggregate Outstanding Asset Balance divided by the number of Obligors
(including any Affiliates thereof) shall not exceed the greater of (a) 2% or (b) $5,000,000;

     (7) the sum of the Outstanding Asset Balances of all Eligible Assets that are Senior
Secured ABL Loans or Revolving Loans shall not exceed 65%;

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

     (9) the sum of the Outstanding Asset Balances of all Eligible Assets that are
Subordinated Loans and Senior B-Note Loans shall not exceed 10%;

     (10) (a) up to and including April 28, 2009, the sum of the Outstanding Asset Balances
of all Eligible Assets which have ever been included as part of the Collateral for eighteen
(18) months or more shall not exceed 50%; and (b) from and after April 29, 2009, the sum of
the Outstanding Asset Balances of all Eligible Assets which have ever been included as part
of the Collateral for eighteen (18) months or more shall not exceed 20%;

     (11) the sum of the Outstanding Asset Balances of all Loans which provide for payments
of interest on a semi-annual basis shall not exceed the lesser of (a) 5% and (b)
$10,000,000;

     (12) the sum of the Outstanding Asset Balances of all Loans that are Security System
Loans shall not exceed 10%;

     (13) the sum of the Outstanding Asset Balances of all Loans that were first purchased
by the Originator or any affiliate thereof at a purchase price of less than 95% of their par
value shall not exceed 10%; and

     (14) the sum of the Outstanding Asset Balances of all Loans that are Senior Secured ABL
Loans secured by timeshare receivables shall not exceed 10%.

     “Pool Rate”: As of any Determination Date, the annualized percentage equivalent of a
fraction, (a) the numerator of which is equal to all Interest Collections on Assets included in the
Aggregate Outstanding Asset Balance as of the first (1st) day of the Collection Period related to
such Determination Date that are deposited into the Collection Account during such Collection

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Period, and (b) the denominator of which is equal to the Aggregate Outstanding Asset Balance
as of the first (1st) day of such Collection Period.

     “Pool Weighted Average Life”: At any point in time, the number obtained by (i) for
each Asset included in the Borrowing Base as of such point in time, multiplying each Scheduled
Payment by the number of months from such point in time until such Scheduled Payment is due; (ii)
summing all of the products calculated pursuant to clause (i); (iii) dividing the sum
calculated pursuant to clause (ii) by the sum of all successive Scheduled Payments due on
all Assets included in the Borrowing Base as of such point in time; and (iv) dividing the amount
calculated pursuant to clause (iii) by 12.

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

     “Portfolio Aggregate Outstanding Asset Balance”: With respect to all Portfolio
Assets, on any day, the sum of the Portfolio Outstanding Asset Balances of such Portfolio Assets on
such date. Notwithstanding anything to the contrary contained herein, for purposes of determining
the Portfolio Aggregate Outstanding Asset Balance, if any portion of a Portfolio Asset is deemed to
be “charged-off” in accordance with the provisions of the definition of Charged-Off Portfolio
Asset, then the entire Portfolio Asset shall have a zero (0) Outstanding Asset Balance, except for
purposes of calculating the Average Portfolio Charged-Off Ratio.

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

     “Portfolio Charged-Off Ratio”: As of any Determination Date, the product of (i)
twelve (12) and (ii) the percentage equivalent of a fraction, (a) the numerator of which is equal
to the sum of the Portfolio Outstanding Asset Balances of all Portfolio Assets (excluding equity
and preferred stock investments) that became Charged-Off Portfolio Asset (net of Recoveries during
such Collection Period) during the Collection Period related to such Determination Date and (b) the
denominator of which is equal to the Portfolio Aggregate Outstanding Asset Balance (excluding
equity and preferred stock investments) as of the first (1st) day of the Collection Period related
to such Determination Date; provided that, such calculation shall exclude the effects of any Liquid
Real Estate Assets that are acquired and levered by the Originator solely to satisfy REIT asset and
income tests.

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

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

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

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

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

     “Prime Rate”: (a) The rate announced by WBNA from time to time as its prime rate in
the United States, such rate to change as and when such designated rate changes, or (b) with
respect to any Additional Purchaser, as otherwise specified by or on behalf of such Additional
Purchaser in the applicable Additional Purchaser Agreement. The Prime Rate is not intended to be
the lowest rate of interest charged by WBNA or any other specified financial institution in
connection with extensions of credit to debtors.

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

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

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

     “Program Fee”: (a) With respect to any Purchaser, as defined in the applicable
Purchaser Fee Letter and (b) with respect to any Additional Purchaser, as specified in the
applicable Additional Agent Fee Letter.

     “Program Fee Rate”: (a) With respect to any Purchaser, the rate set forth in the
applicable Purchaser Fee Letter and (b) with respect to any Additional Purchaser, the rate set
forth in the applicable Additional Agent Fee Letter as the “Program Fee Rate.”

     “Pro-Rata Share”: (i) the percentage obtained by dividing each Conduit Purchaser’s,
as applicable, Commitment (as determined under subsection (i)(a) of the definition of
Commitment) by the aggregate Commitments of all the Conduit Purchasers (as determined under
subsection (i)(a) of the definition of Commitment).

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     “Purchaser”: (i) WBNA, (ii) any Additional Purchaser, as the context requires, and
“Purchasers” means collectively (a) WBNA and (b) the Additional Purchasers.

     “Purchaser Agent”: With respect to (i) WBNA, the WBNA Agent, (ii) any Additional
Purchasers, the related Additional Agent and (iii) each Institutional Purchaser which may from
time to time become a party hereto, each shall be deemed to be its own Purchaser Agent.

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

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

     “Qualified Transferee”:

     (a) The Seller, each Purchaser Agent and any Affiliate thereof, or the Administrative Agent or
any Affiliate of the Administrative Agent; or

     (b) any other Person which:

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

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

     (iii) is one of the following:

     (A) an insurance company, bank, savings and loan association, investment bank,
trust company, commercial credit corporation, pension plan, pension fund, pension
fund advisory firm, mutual fund, real estate investment trust, governmental entity
or plan, or

     (B) an investment company, money management firm or a “qualified institutional
buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended,
or an “institutional accredited investor” within the meaning of Regulation D under
the Securities Act of 1933, as amended; or

     (C) the trustee, collateral agent or administrative agent in connection with
(x) a securitization of the subject Asset through the creation of collateralized
debt or loan obligations or (y) an asset-backed commercial paper transaction funded
by a commercial paper conduit whose commercial paper notes are rated at least “A-1”
by S&P or at least “P-1” by Moody’s, or (z) a repurchase transaction funded by an
entity which would otherwise be a Qualified Transferee so long as the “equity
interest” (other than any nominal or de minimis equity interest) in the special
purpose entity that issues notes or certificates in connection with any such
collateralized debt or loan obligation, asset-backed commercial paper funded

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transaction or repurchase transaction is owned by one or more entities that are
Qualified Transferees under subclauses (A) or (B) above; or

     (D) any entity Controlled (as defined below) by any of the entities described
in subclauses (i), (ii) or (iii) above.

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

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

     “Rating Agency”: Each of S&P, Moody’s and any other rating agency that has been
requested to issue a rating with respect to a Permitted Securitization Transaction.

     “Real Estate Loan”: Any Loan (including any lease financing) (i) for which the
underlying Related Property consists primarily of real property or (ii) the proceeds of which are
primarily used to finance the acquisition, construction or development of real property or (iii)
the primary source of repayment from which is from the sale or liquidation of real property.

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

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

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

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

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     “REIT Requirements”: The requirements (including, without limitation, the
requirements relating to assets and income) CapitalSource Inc. must satisfy to qualify as a REIT
under the Code and applicable regulations of the Department of the Treasury promulgated thereunder.

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

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

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

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

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

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

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

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

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

     (h) the proceeds of each of the foregoing.

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

     “Reporting Date”: The date that is two Business Days prior to each Payment Date.

     “Required Advance Reduction Amount”: On any day, an amount equal to the positive
difference, if any, of (a) Advances Outstanding on such day minus (b) the Maximum
Availability on such day.

     “Required Asset Documents”: With respect to (i) any Noteless Loan identified as a
Noteless Loan on the Asset Checklist, a copy of the related Loan Register (together with a
certificate of a Responsible Officer of the Servicer certifying to the accuracy of such Loan
Register as of the date such Loan is included as a part of the Collateral), (ii) all Loans other
than Noteless Loans, the duly executed original of the promissory note and an assignment (which may

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be by endorsement or allonge) of each such promissory note to the Seller and then the
Administrative Agent, signed by an officer of the Originator and the Seller, respectively, (iii)
any Loan, any related loan agreement and the Asset Checklist together with, to the extent set forth
on the Asset Checklist, duly executed (if applicable) originals or copies of each of any related
participation agreement, acquisition agreement, subordination agreement, intercreditor agreement,
security agreements or similar instruments, UCC financing statements, guarantee, or Insurance
Policy, (iv) each Loan secured by real property, an Assignment of Mortgage and (v) any Loan
identified as an Assigned Loan on the Asset Checklist, the duly executed original assignment
agreement; provided, that with respect to any Assigned Loan, any of the foregoing documents, other
than any related promissory notes in the case of Assigned Loans only, may be copies. For the
avoidance of doubt, with respect to any Loan originated by an Affiliate of CapitalSource Inc. and
acquired by CapitalSource Finance or its successors and assigns from such Affiliate in compliance
with Section 2.21, Required Asset Documents shall include duly executed originals or
copies, as applicable, of each of the foregoing categories of documents with respect to the sale or
transfer of each such Loan from such Affiliate to CapitalSource Finance.

     “Required Reports”: Collectively, the Monthly Report, the Servicer’s Certificate
required pursuant to Section 6.10(c), the financial statements of the Servicer required
pursuant to Section 6.10(d), the annual statements as to compliance required pursuant to
Section 6.11, and the annual independent public accountant’s report required pursuant to
Section 6.12.

     “Residential Mortgage Policies and Procedures”: The written residential mortgage
policies and procedures manual of CapitalSource Inc. in the form attached hereto as Schedule
X as it may be amended or supplemented from time to time.

     “Responsible Officer”: With respect to any Person, any duly authorized officer of
such Person with direct responsibility for the administration of this Agreement and also, with
respect to a particular matter, any other duly authorized officer to whom such matter is referred
because of such officer’s knowledge of and familiarity with the particular subject.

     “Restricted Junior Payment”: (i) any dividend or other distribution, direct or
indirect, on account of any class of membership interests of the Seller now or hereafter
outstanding, except a dividend payment solely in interests of that class of membership interests or
in any junior class of membership interests of the Seller; (ii) any redemption, retirement, sinking
fund or similar payment, purchase or other acquisition for value, direct or indirect, of any class
of membership interest of the Seller now or hereafter outstanding, (iii) any payment made to
redeem, purchase, repurchase or retire, or to obtain the surrender of, any outstanding warrants,
options or other rights to acquire membership interests of Seller now or hereafter outstanding, and
(iv) any payment of management fees by the Seller (except for reasonable management fees to the
Originator or its Affiliates in reimbursement of actual management services performed).

     “Retained Interest”: (A) With respect to any Revolving Loan or any Loan with an
unfunded commitment on the part of the Originator that does not provide by its terms that funding
thereunder is in Originator’s sole and absolute discretion and that is transferred by the
Originator to the Seller, all of the obligations, if any, to provide additional funding with
respect to such Revolving Loan, and (B) with respect to any Assigned Loan, any Participation Loan
or any Agented Loan that is transferred by the Originator to the Seller, (i) all of the
obligations, if

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any, of the agent(s) under the documentation evidencing such Assigned Loan, Participation
Loan, or Agented Loan and (ii) the applicable portion of the interests, rights and obligations
under the documentation evidencing such Assigned Loan, Participation Loan, or Agented Loan that
relate to such portion(s) of the indebtedness that is owned by another lender or is being retained
by the Originator pursuant to clause (A) of this definition.

     “Revolving Loan”: A Loan that is a line of credit or contains an unfunded commitment
arising from an extension of credit by the Originator to an Obligor, pursuant to the terms of which
amounts borrowed may be repaid and subsequently reborrowed; provided, however, any such Loan shall
exclude any Retained Interest.

     “Revolving Period”: The period commencing on the Closing Date and ending on the day
immediately preceding the Termination Date.

     “S&P”: Standard & Poor’s, a division of The McGraw Hill Companies, Inc., and any
successor thereto.

     “Sale Agreement”: The Sale and Contribution Agreement, dated as of the date hereof,
between the Originator and the Seller, as amended, modified, waived, supplemented, restated or
replaced from time to time.

     “Scheduled Payments”: With respect to any Loan, each monthly, quarterly, or annual
payment of principal required to be made by the Obligor thereof under the terms of such Loan; in
all cases, excluding any payment in the nature of, or constituting, interest.

     “Secured Party”: (i) each Purchaser, (ii) the Administrative Agent and each Purchaser
Agent, and (iii) each Hedge Counterparty that is either a Purchaser or an Affiliate of the WBNA
Agent if that Affiliate is a Hedge Counterparty that executes a counterpart of this Agreement
agreeing to be bound by the terms of this Agreement applicable to a Secured Party.

     “Security System Loan”: A Loan with respect to which the related Obligor is in the
business classified under 2002 NAICS Code 56162 (Security Systems Services) and which is secured by
Alarm Service Agreements.

     “Security System Loan Advance Multiple”: With respect to any Security System Loan,
the amount funded under such Security System Loan divided by the related RMR.

     “Security System Loan Average Contract Term”: With respect to any Security System
Loan, the weighted average of the non-cancellable terms measured in months of the Alarm Service
Agreements securing such Security System Loan.

     “Seller”: Defined in the Preamble of this Agreement.

     “Senior B-Note Loan”: Any Term Loan that (i) is secured by a first priority Lien on
all of the Obligor’s assets constituting Related Property for the Loan, (ii) has a “first dollar”
at risk not to exceed 60% of the Loan-to-Value and a “last dollar” at risk not to exceed 70% of the
Loan-to-Value, (iii) contains terms which, upon the occurrence of an event of default under the
Loan Documents or in the case of any liquidation or foreclosure on the Related Property, provide

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that the principal of the Seller’s portion of such Loan would be paid only after the other
lenders party to such Loan (including any lender party making any Senior Secured Loan or Stretch
Senior Secured Loan whose right to payment is contractually senior to the Seller) is paid in full,
and (iv) is substantially in a form of “Senior B-Note Loan” previously delivered by the Originator
to the Administrative Agent in connection with this transaction or such other form as shall be
adopted by the Originator and approved in writing by the Administrative Agent at least five days
prior to such Loan becoming part of the Collateral hereunder.

     “Senior Secured ABL Loan”: Any Revolving Loan that (i) is secured by a first priority
Lien on all of the Obligor’s assets constituting Related Property for the Loan, (ii) provides the
related Obligor with the option to receive additional borrowings thereunder based on the value of
its eligible accounts receivable, inventory or equipment, (iii) has a Loan-to-Liquidation Value of
less than or equal to (a) 85% with respect to the Related Property which constitutes accounts
receivable, (b) 50% with respect to the Related Property which constitutes inventory, and (c) 80%
with respect to the Related Property which constitutes Equipment, (iii) provides that the payment
obligation of the Obligor on such Loan is either senior to, or pari passu with, all other loans or
financings to such Obligor, (iv) has an availability mechanism that is governed by a dynamic
borrowing base formula that specifies eligible collateral and advance rates, and where the
borrowing base and availability are calculated at least monthly, (v) employs lock-boxes for cash
control and (vi) is substantially in the form of a “Senior Secured ABL Loan” previously delivered
by the Originator to the Administrative Agent in connection with this transaction or such other
form as shall be adopted by the Originator and approved in writing by the Administrative Agent at
least five days prior to such Loan becoming part of the Collateral hereunder; provided, however,
any such Loan shall exclude any Retained Interest.

     “Senior Secured Loan”: Any Loan that (i) is secured by a first priority Lien on all
of the Obligor’s assets constituting Related Property for the Loan, (ii) has a Loan-to-Value of
less than 60%, (iii) provides that the payment obligation of the Obligor on such Loan is either
senior to, or pari passu with, all other loans or financings to such Obligor, and (iv) is
substantially in the form of a “Senior Secured Loan” previously delivered by the Originator to the
Administrative Agent in connection with this transaction or such other form as shall be adopted by
the Originator and approved in writing by the Administrative Agent at least five days prior to such
Loan becoming part of the Collateral hereunder.

     “Servicer”: CapitalSource Finance LLC, and each successor (in the same capacity)
appointed as Successor Servicer pursuant to 
Section 6.16(a).

     “Servicer Advance”: An advance of Scheduled Payments made by the Servicer pursuant to
Section 6.5.

     “Servicer Default”: Defined in Section 6.15.

     “Servicer Termination Notice”: Defined in Section 6.15.

     “Servicer’s Certificate”: Defined in Section 6.10(c).

     “Servicing Fee”: Defined in Section 2.14(b).

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     “Servicing Fee Rate”: 0.50% per annum.

     “Servicing Guarantor”: An Affiliate of CapitalSource Inc. that executes a Servicing
Guaranty.

     “Servicing Guaranty”: Each Servicing Guaranty by an Affiliate of CapitalSource Inc.
in favor of the Administrative Agent, as agent for the Secured Parties, pursuant to Section
2.21 in form and substance satisfactory to the Administrative Agent in its sole discretion.

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

     “Stretch Senior Secured Loan”: Any Term Loan other than a Senior Secured Loan that
(i) is secured by a first priority Lien on all of the Obligor’s assets constituting Related
Property for the Loan (which may include a pledge of common equity), (ii) has a Loan-to-Value of
greater than 60% and less than 70%, (iii) provides that the payment obligation of the Obligor on
such Loan is either senior to, or pari passu with, all other loans or financings to such Obligor,
and (iv) is substantially in a form of “Stretch Senior Secured Loan” previously delivered by the
Originator to the Administrative Agent in connection with this transaction or such other form as
shall be adopted by the Originator and approved in writing by the Administrative Agent at least
five days prior to such Loan becoming part of the Collateral hereunder.

     “Subordinated Loan”: Any Term Loan that (i) may be secured by a combination of senior
and/or junior Liens on substantially all of the Obligor’s assets constituting Related Property for
the Loan, (ii) has a Loan-to-Value of less than 85%, (iii) contains terms which, upon the
occurrence of certain events of default under the senior loan documents between another lender and
the Obligor or in the case of any liquidation or foreclosure on any Related Property, provide that
the Seller’s portion of such Loan would be paid only after the other lender party to such related
senior loan documents (including any lender party making any Senior Secured ABL Loan, Senior
Secured Loan, Stretch Senior Secured Loan or Senior B-Note Loan whose right to payment is
contractually senior to the Seller) is paid in full, and (iv) is substantially in the form of a
“Subordinated Loan” previously delivered by the Originator to the Administrative Agent in
connection with this transaction or such other form as shall be adopted by the Originator and
approved in writing by the Administrative Agent at least five days prior to such Loan becoming part
of the Collateral hereunder.

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     “Subordinated Servicing Fee Rate”: 0.50% per annum.

     “Subsidiary”: As to any Person, a corporation, partnership or other entity of which
shares of stock or other ownership interests having ordinary voting power (other than stock or such
other ownership interests having such power only by reason of the happening of a contingency) to
elect a majority of the board of directors or other managers of such corporation, partnership or
other entity are at the time owned, or the management of which is otherwise controlled, directly or
indirectly, through one or more intermediaries, or both, by such Person; provided, however, that,
solely for the purpose of calculating the Consolidated Tangible Net Worth, the term “Subsidiary”
shall not include any Person that constitutes an Investment in Equity Instruments or an Investment
Loan Subsidiary.

     “Substitute Asset”: On any day, an Eligible Asset that meets each of the conditions
for substitution set forth in Section 2.18.

     “Successor Servicer”: Defined in Section 6.16(a).

     “Tape”: Defined in Section 7.2(b)(ii).

     “Taxes”: Any present or future taxes, levies, imposts, duties, charges, assessments
or fees of any nature (including interest, penalties, and additions thereto) that are imposed by
any Governmental Authority.

     “Termination Date”: The earliest of (a) the date of the termination of the Facility
Amount pursuant to Section 2.4, (b) the Business Day designated by the Seller to the
Administrative Agent and each Purchaser Agent as the Termination Date at any time following two
Business Days’ prior written notice thereof to the Administrative Agent and each Purchaser Agent,
(c) May 29, 2009, (d) the date any Liquidity Agreement shall cease to be in full force and effect,
and (d) the date of the declaration of the Termination Date pursuant to Section 10.2(a) or
the date of the automatic occurrence of the Termination Date pursuant to Section 10.2(b).

     “Termination Event”: Defined in Section 10.1.

     “Term Loan”: A Loan that is a term loan that has been fully funded and does not
contain any unfunded commitment on the part of the Originator arising from an extension of credit
by the Originator to an Obligor.

     “Transaction”: Defined in Section 3.2.

     “Transaction Documents”: The Agreement, the Sale Agreement, each Hedging Agreement,
the Hedge Guaranty, the Lock-Box Agreement, the Intercreditor Agreement, each Variable Funding
Note, each Servicing Guaranty, each Purchaser Fee Letter, any Additional Agent Fee Letters, any
Additional Purchaser Agreements, the Backup Servicer Fee Letter, the Collateral Custodian Fee
Letter, any UCC financing statements filed pursuant to the terms of this Agreement, and any
additional document the execution of which is necessary or incidental to carrying out the terms of
the foregoing documents.

     “Transferee Letter”: Defined in Section 13.16(a).

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     “Transition Expenses”: The reasonable costs (including reasonable attorneys’ fees) of
the Backup Servicer incurred in connection with the transferring the servicing obligations under
this Agreement and amending this Agreement to reflect such transfer in an amount not to exceed
$100,000.

     “UCC”: The Uniform Commercial Code as from time to time in effect in the applicable
jurisdiction or jurisdictions.

     “United States”: The United States of America.

     “Unmatured Termination Event”: Any event that, with the giving of notice or the lapse
of time, or both, would become a Termination Event.

     “Variable Funding Note” or “VFN”: Defined in Section 2.1(a).

     “VFCC”: Variable Funding Capital Company LLC, a Delaware limited liability company.

     “Voting Stock”: With respect to any Person, capital stock or membership interests (in
the case of a limited liability company) issued by such Person the holders of which are ordinarily,
in the absence of contingencies, entitled to vote for the election of directors (or persons
performing similar functions) of such Person, even though the right so to vote has been suspended
by the happening of such contingency.

     “Wachovia”: Wachovia Bank, National Association, a national banking association in
its individual capacity, and its successors and assigns.

     “Warranty Asset”: Any Asset that fails to satisfy any criteria of the definition of
Eligible Asset; provided, however, that notwithstanding the foregoing, for purposes of determining
what is a Warranty Asset, the criteria set forth in clauses (1)(c), (1)(d),
1(m)(i), 1(t) (but solely to the extent the criteria in such clause 1(t)
relates to any express representation and warranty that an Asset is an Eligible Asset),
1(w), 1(x), (1)(y) and clauses (2)(c) and 2(d) (but solely
to the extent that the criteria in such clauses 2(c) and 2(d) would not be
satisfied as a result of the operation of law or an effective court order in connection with an
Insolvency Event) of the definition of Eligible Asset and clauses (vi), (viii) and
(ix) in the definition of Eligible Obligor shall apply only as of the applicable Cut-Off
Date of such Asset.

     “Warranty Event”: As to any Asset, the discovery that as of the related Cut-Off Date
or Funding Date there had existed a breach of any representation or warranty relating to such Asset
and the continuance of such breach through any applicable determination date or beyond any
applicable cure period.

     “WBNA”: Defined in the Preamble of this Agreement.

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

     “WBNA Agent’s Account”: A special account (account number 1459160000192) in the name
of the WBNA Agent maintained at WBNA.

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     “Weighted Average Advance Rate”: For any Advances Outstanding on any day, the
weighted average of the Advance Rates applicable to the Eligible Assets backing such Advances on
such day, weighted according to the proportion of the Aggregate Outstanding Asset Balance each type
of Asset represents.

     Section 1.2 Other Terms.

     All accounting terms used but not specifically defined herein shall be construed in accordance
with GAAP. All terms used in Article 9 of the UCC in the State of New York, and used but not
specifically defined herein, are used herein as defined in such Article 9.

     Section 1.3 Computation of Time Periods.

     Unless otherwise stated in this Agreement, in the computation of a period of time from a
specified date to a later specified date, the word “from” means “from and including” and the words
“to” and “until” each mean “to but excluding.”

     Section 1.4 Interpretation.

     In each Transaction Document, unless a contrary intention appears:

     (i) the singular number includes the plural number and vice versa;

     (ii) reference to any Person includes such Person’s successors and assigns but, if
applicable, only if such successors and assigns are permitted by the Transaction Documents;

     (iii) reference to any gender includes each other gender;

     (iv) reference to day or days without further qualification means calendar days;

     (v) reference to any time means Charlotte, North Carolina time;

     (vi) reference to any agreement (including any Transaction Document), document or
instrument means such agreement, document or instrument as amended, modified, waived,
supplemented, restated or replaced and in effect from time to time in accordance with the
terms thereof and, if applicable, the terms of the other Transaction Documents, and
reference to any promissory note includes any promissory note that is an extension or
renewal thereof or a substitute or replacement therefor; and

     (vii) reference to any Applicable Law means such Applicable Law as amended, modified,
codified, replaced or reenacted, in whole or in part, and in effect from time to time,
including rules and regulations promulgated thereunder and reference to any Section or other
provision of any Applicable Law means that provision of such Applicable Law from time to
time in effect and constituting the substantive amendment, modification, codification,
replacement or reenactment of such Section or other provision.

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ARTICLE II

PURCHASE OF THE VARIABLE FUNDING NOTES

     Section 2.1 The Variable Funding Notes.

     (a) On the terms and conditions hereinafter set forth, Seller shall deliver a duly executed
variable funding note (each such note, a “Variable Funding Note” or “VFN”), in
substantially the form of Exhibit B-1 or B-2, as applicable, (i) on the Closing
Date, to each Purchaser Agent at their respective addresses set forth on the signature pages of
this Agreement, and (ii) on each date on which an Additional Purchaser purchases a Variable Funding
Note, to the related Additional Agent at the address designated by such Additional Agent. Each
Variable Funding Note shall evidence each Purchaser’s ratable share of the security interest in the
Collateral granted pursuant to Section 9.1. Interest shall accrue, and each VFN shall be
payable, as described herein. The VFN purchased by (1) WBNA shall be in the name of “Wachovia
Capital Markets, LLC, as the WBNA Agent” and shall be in the face amount equal to $90,000,000 and
otherwise duly completed, and (2) an Additional Purchaser shall be in the name of such Additional
Purchaser and shall be in a face amount to be determined; provided, that the aggregate amount
outstanding under all VFNs at any one time shall not exceed the Facility Amount.

     (b) On the terms and conditions hereinafter set forth, from the Closing Date to, but excluding
the Termination Date, the Seller may, at its option, request the Purchasers to make advances of
funds under the VFNs (each, an “Advance”) and the Purchasers shall make such Advance in an
amount equal to their Pro-Rata Share of such requested Advance; provided, that in no event shall
the Purchasers make any Advance if, after giving effect to such Advance the aggregate Advances
Outstanding hereunder would exceed the lesser of (i) the Facility Amount or (ii) the Maximum
Availability. Notwithstanding anything contained in this Section 2.1 or elsewhere in this
Agreement to the contrary, no Purchaser shall be obligated to provide its Purchaser Agent or the
Seller with aggregate funds in connection with an Advance that would exceed such Purchaser’s unused
Commitment then in effect. Each Advance made by the Purchasers hereunder is subject to the
interests of the Hedge Counterparties under Section 2.9(a)(i) and Section
2.10(a)(i) of this Agreement.

     (c) [Reserved].

     (d) The Seller may, within sixty (60) days but not less than forty-five (45) days prior to the
expiration of any Liquidity Agreement in the case of an extension of any Liquidity Agreement or the
date set forth in clause (c) of the definition of Termination Date in the case of an extension of
this Agreement, by written notice to each Purchaser Agent, make a request (i) for each applicable
Liquidity Bank to extend the term of such Liquidity Agreement for an additional period of 364 days
and (ii) for each Purchaser to extend the date set forth in clause (c) of the definition of
Termination Date. Each Purchaser Agent will give prompt notice to the applicable Purchaser and
each applicable Liquidity Bank of its receipt of such request, and each Purchaser and each
Liquidity Bank shall make a determination, in their sole discretion, not less than fifteen (15)
days prior to the date set forth in clause (c) of the definition of Termination Date or the
expiration of any Liquidity Agreement (as applicable) as to whether or not it will agree to the

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extension requested. The failure of a Purchaser Agent or a Liquidity Bank to provide timely
notice of its decision to the Seller shall be deemed to constitute a refusal by such Purchaser or
such Liquidity Bank (as applicable) to extend the date set forth in clause (c) of the definition of
Termination Date or the term of the Liquidity Agreement, respectively. The Seller confirms that
each Liquidity Bank and each Purchaser, in their sole and absolute discretion, without regard to
the value or performance of the Collateral or any other factor, may elect not to extend any
Liquidity Agreement or the date set forth in clause (c) of the definition of Termination Date (as
applicable).

     Section 2.2 [Reserved].

     Section 2.3 Procedures for Advances by Purchasers.

     (a) Each Advance from a Purchaser hereunder shall be effected by the Seller (or the Servicer
on its behalf) delivering to the Administrative Agent and each Purchaser Agent (with a copy to the
Collateral Custodian and the Backup Servicer) a duly completed Borrowing Notice (along with a
Borrowing Base Certificate) no later than 2:00 p.m. (Charlotte, North Carolina time) at least one
Business Day prior to the proposed Funding Date; provided, however, that Advances in an aggregate
amount not to exceed $15,000,000 may be requested no later than 2:00 p.m. on the Business Day of
the proposed Funding Date. Each Borrowing Notice (along with a Borrowing Base Certificate) shall
(i) specify the desired amount of such Advance, which amount must be at least equal to $250,000 per
Purchaser, (ii) specify the date of such Advance, (iii) specify the Assets to be financed on such
Funding Date (including the appropriate file number, Outstanding Asset Balance for each Asset and
identifying each Loan by type and whether such Loan is a Senior Secured ABL Loan, Senior Secured
Loan, Stretch Senior Secured Loan, Senior B-Note Loan, Subordinated Loan, Assigned Loan, or
Participation Loan) and (iv) include a representation that all conditions precedent for an Advance
described in Article III hereof have been met. Each Borrowing Notice shall be irrevocable.

     (b) On the date of each Advance, each Purchaser shall, upon satisfaction of the applicable
conditions set forth in Article III, make available to the Seller in same day funds, at
such bank or other location reasonably designated by Seller in its Borrowing Notice given pursuant
to this Section 2.3, an amount equal to its Pro-Rata Share of the lesser of (i) the amount
requested by the Seller for such Advance, (ii) an amount equal to the Availability on such Funding
Date or (iii) the Facility Amount.

     (c) On each Funding Date, the obligation of each Purchaser to remit its Pro-Rata Share of any
such Advance shall be several from that of each other Purchaser and the failure of any Purchaser to
so make such amount available to the Seller shall not relieve any other Purchaser of its obligation
hereunder.

     Section 2.4 Reduction of the Facility Amount; Mandatory and Optional Repayments.

     (a) The Seller may, upon at least twenty (20) Business Days’ prior written notice (such notice
to be received by the Administrative Agent and each Purchaser Agent no later than 5:00 p.m.
(Charlotte, North Carolina time) on such day) to the Administrative Agent and each

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Purchaser Agent, terminate in whole or reduce in part the portion of the Facility Amount that
exceeds the sum of the Advances Outstanding, accrued Interest, Breakage Costs and Hedge Breakage
Costs; provided, however, that each partial reduction of the Facility Amount shall be in an
aggregate amount equal to at least $1,000,000. Each notice of reduction or termination pursuant to
this Section 2.4(a) shall be irrevocable. The Commitment of each Conduit Purchaser and each
Institutional Purchaser shall be reduced by an amount equal to its Pro Rata Share (prior to giving
effect to any reduction of Commitments hereunder) of the aggregate amount of any reduction under
this Section 2.4(a).

     (b) The Seller may, upon one Business Days’ prior written notice (such notice to be received
by the Administrative Agent, each Hedge Counterparty and each Purchaser Agent no later than 2:00
p.m. (Charlotte, North Carolina time) on such day) to the Administrative Agent and each Purchaser
Agent, reduce the Advances Outstanding by remitting, in accordance with their Pro-Rata Share, to
each Purchaser Agent, for payment to the respective Purchasers, (i) cash and (ii) instructions to
reduce such Advances Outstanding, related accrued Interest, Breakage Costs and Hedge Breakage
Costs; provided, that no such reduction shall be given effect (1) unless the Seller has complied
with the terms of any Hedging Agreement requiring that one or more Hedge Transactions be terminated
in whole or in part as the result of any such reduction of the Advances Outstanding, and Seller has
paid all Hedge Breakage Costs and any payments owing to the relevant Hedge Counterparty for any
such termination (2) if a Termination Event or Unmatured Termination Event has occurred, is
continuing or would result from such reduction. Any reduction of the Advances Outstanding shall be
in a minimum amount of $500,000. Any such reduction will occur only if sufficient funds have been
remitted to pay all such amounts in the succeeding sentence in full. Upon receipt of such amounts,
the Purchaser Agents shall apply such amounts first to the pro-rata reduction of the
Advances Outstanding, second to the payment of related accrued Interest on the amount of
the Advances Outstanding to be repaid by paying such amounts to the respective Purchasers, and
third to the payment of any Breakage Costs and Hedge Breakage Costs and any other payments
owing to the applicable Hedge Counterparty in respect of the termination of any Hedge Transaction.
Any notice relating to any prepayment pursuant to this Section 2.4(b) shall be irrevocable.

     (c) If on any day (i) the Administrative Agent, as agent for the Secured Parties, does not own
or have a valid and perfected first priority security interest in any of the Collateral or (ii) any
Asset which has been represented by the Seller to be an Eligible Asset is later determined not to
have been an Eligible Asset as of the related Cut-Off Date, upon the earlier of the Seller’s
receipt of notice from the Administrative Agent or the Seller becoming aware thereof and the
Seller’s failure to cure such breach within thirty (30) days, the Seller shall be deemed to have
received on such day a collection (a “Deemed Collection”) of such Asset in full and shall
on such day pay to the Administrative Agent, on behalf of the Purchasers and each Hedge
Counterparty, an amount equal to (x) the Outstanding Asset Balance of the Asset to be applied to
the pro-rata reduction of the principal of each VFN plus (y) any Breakage Costs and Hedge Breakage
Costs and any other payments owing to the applicable Hedge Counterparty in respect of the
termination of any Hedge Transaction required as a result of the Deemed Collection and release of
the related Asset contemplated by this Section 2.4(c). In connection with any such Deemed
Collection, the Administrative Agent, as agent for the Secured Parties, shall automatically and
without further action, be deemed to release to the Seller, free and clear of any Lien created by
the Administrative Agent, all of the right, title and interest of the Administrative

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Agent, as agent for the Secured Parties, in, to, and under the Asset with respect to which the
Administrative Agent has received such Deemed Collection, but without any other representation and
warranty of any kind, express or implied.

     Section 2.5 Determination of Interest.

     (a) Each Purchaser Agent shall determine such Purchaser’s Interest Rate and the Interest
(including unpaid Interest, if any, due and payable on a prior Payment Date) to be paid by the
Seller with respect to each Advance on each Payment Date for the related Accrual Period and shall
advise the Servicer thereof on or before the third (3rd) Business Day prior to such Payment Date.

     (b) Each Additional Agent shall determine such Additional Purchaser’s Interest Rate and
Interest (including unpaid Interest related to such Interest Rate, if any, due and payable to a
prior Payment Date) to be paid by the Seller with respect to each Advance on each Payment Date for
the related Accrual Period and shall advise the Servicer thereof on or before the third (3rd)
Business Day prior to such Payment Date.

     Section 2.6 [Reserved].

     Section 2.7 [Reserved].

     Section 2.8 Notations on Variable Funding Notes.

     Each Purchaser Agent is hereby authorized to enter on a schedule attached to the VFN a
notation (which may be computer generated) with respect to each Advance under the VFN made by the
related Purchaser of: (a) the date and principal amount thereof, and (b) each repayment of
principal thereof, and any such recordation shall constitute prima facie evidence of the accuracy
of the information so recorded. The failure of any Purchaser Agent to make any such notation on
the schedule attached to the VFN shall not limit or otherwise affect the obligation of the Seller
to repay the Advances in accordance with their respective terms as set forth herein.

     Section 2.9 Settlement Procedures During the Revolving Period.

     (a) On each Payment Date during the Revolving Period, the Servicer shall direct the Collateral
Custodian to pay pursuant to the Monthly Report to the following Persons, from (1) the Collection
Account, to the extent of Available Funds, and (2) Servicer Advances received with respect to the
immediately preceding Collection Period that ended on the last day of the calendar month
immediately preceding the calendar month in which such Payment Date occurs, the following amounts
in the following order of priority:

     (i) FIRST, pro rata to each Hedge Counterparty, any amounts, (other than any
Hedge Breakage Costs and any payments due in respect of the termination of any Hedging
Transaction), owing to that Hedge Counterparty under its respective Hedging Agreement in
respect of any Hedge Transaction(s), for the payment thereof;

     (ii) SECOND, to the Servicer, in an amount equal to any unreimbursed Servicer
Advances, for the payment thereof;

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     (iii) THIRD, to the Servicer, in an amount equal to any accrued and unpaid
Servicing Fees and, if the Servicer is not CapitalSource Finance, CapitalSource, Inc. or an
Affiliate of CapitalSource, Inc., Subordinated Servicing Fees, to the end of the preceding
Collection Period, for the payment thereof;

     (iv) FOURTH, to the extent not paid for by the Originator, pro rata to the
Backup Servicer and the Collateral Custodian, in an amount equal to any accrued and unpaid
Backup Servicing Fee, Collateral Custodian Fee and Transition Expenses, for the payment
thereof;

     (v) FIFTH, to each Purchaser Agent, pro rata in accordance with the amount of
Advances Outstanding hereunder for the account of the applicable Purchaser, in an amount
equal to any accrued and unpaid Interest, Program Fee, Commitment Fee and Breakage Costs,
for the payment thereof;

     (vi) SIXTH, (i) prior to the occurrence of a Termination Event, pro rata in
accordance with the amounts due under subclauses (a) and (b) of this clause,
(a) to each Purchaser Agent, if the Required Advance Reduction Amount is greater than zero,
an amount necessary to reduce the Required Advance Reduction Amount to zero, pro rata in
accordance with the amount of Advances Outstanding hereunder for the account of the
applicable Purchaser, for the payment thereof and (b) pro rata in accordance with the
amounts due under this subclause (b), to each Hedge Counterparty, any Hedge Breakage
Costs and payments due in termination of any Hedge Transaction, owing to that Hedge
Counterparty under its respective Hedging Agreement, for the payment thereof; or (ii)
following the occurrence of a Termination Event, pro rata in accordance with the amounts due
under subclauses (1) and (2) of this clause, (1) to each Purchaser Agent,
pro rata in accordance with the amount of Advances Outstanding hereunder for the account of
the applicable Purchaser, in an amount necessary to reduce the Advances Outstanding and
Aggregate Unpaids to zero, for the payment thereof and (2) pro rata in accordance with the
amounts due under this subclause (2), to each Hedge Counterparty, any Hedge Breakage
Costs and payments due in termination of any Hedge Transaction, owing to that Hedge
Counterparty under its respective Hedging Agreement, for the payment thereof;

     (vii) SEVENTH, to the Servicer, if the Servicer is CapitalSource Finance,
CapitalSource, Inc. or an Affiliate of CapitalSource, Inc., in an amount equal to any
accrued and unpaid Subordinated Servicing Fee to the end of the preceding Collection Period,
for the payment thereof;

     (viii) EIGHTH, to the Administrative Agent, each Purchaser Agent, the
applicable Purchaser, the Backup Servicer, the Collateral Custodian, the Affected Parties,
the Indemnified Parties or the Secured Parties, pro rata in accordance with the amount owed
to such Person under this EIGHTH clause, all other amounts, including Increased
Costs but other than Advances Outstanding, then due under this Agreement, for the payment
thereof; and

     (ix) NINTH, any remaining amount shall be distributed to the Seller.

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     (b) On the terms and conditions hereinafter set forth, from time to time during the Revolving
Period, the Servicer may, to the extent of any Principal Collections on deposit in the Principal
Collections Account, withdraw such funds for the purpose of reinvesting in additional Eligible
Assets, provided the following conditions are satisfied:

     (i) all conditions precedent set forth in Section 3.2(b) have been satisfied;

     (ii) the Servicer provides same day written notice to the Administrative Agent and
Collateral Custodian by facsimile (to be received no later than 2:00 p.m. (Charlotte, North
Carolina time) on such day) of the request to withdraw Principal Collections and the amount
thereof;

     (iii) the notice required in clause (ii) above shall be accompanied by a
Borrowing Notice in the form of Exhibit A-2 and a Borrowing Base Certificate and the
same are executed by the Seller and at least one Responsible Officer of the Servicer;

     (iv) the Collateral Custodian provides to the Administrative Agent by facsimile (to be
received no later than 2:00 p.m. (Charlotte, North Carolina time) on that same date) a
statement reflecting the total amount on deposit on such day in the Principal Collections
Account; and

     (v) upon the satisfaction of the conditions set forth in clauses (i) through
(iv) above, and the Administrative Agent’s confirmation of available funds, the
Administrative Agent will instruct the Collateral Custodian by facsimile on such day to
release funds from the Principal Collections Account to the Servicer in an amount not to
exceed the lesser of (A) the amount requested by the Servicer and (B) the amount on deposit
in the Principal Collections Account on such day.

     Section 2.10 Settlement Procedures During the Amortization Period.

     (a) On each Payment Date during the Amortization Period, the Servicer shall direct the
Collateral Custodian to pay pursuant to the Monthly Report to the following Persons, from (i) the
Collection Account, to the extent of Available Funds, and (ii) Servicer Advances received with
respect to the immediately preceding Collection Period, the following amounts in the following
order of priority:

     (i) FIRST, pro rata to each Hedge Counterparty, any amounts, (including any
Hedge Breakage Costs and any payments due in respect of the termination of any Hedge
Transaction in an amount not to exceed $250,000 in the aggregate for all Hedging
Agreements), owing to that Hedge Counterparty under its respective Hedging Agreement in
respect of any Hedge Transaction(s), for the payment thereof;

     (ii) SECOND, to the Servicer, in an amount equal to any unreimbursed Servicer
Advances, for the payment thereof;

     (iii) THIRD, to the Servicer, in an amount equal to any accrued and unpaid
Servicing Fee and, if the Servicer is not CapitalSource Finance, CapitalSource, Inc. or an

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Affiliate of CapitalSource, Inc., Subordinated Servicing Fee, to the end of the
preceding Collection Period, for the payment thereof;

     (iv) FOURTH, to the extent not paid for by the Originator, pro rata to the
Backup Servicer and the Collateral Custodian, in an amount equal to any accrued and unpaid
Backup Servicing Fee, Collateral Custodian Fee and Transition Expenses, for the payment
thereof;

     (v) FIFTH, to each Purchaser Agent, pro rata in accordance with the amount of
Advances Outstanding hereunder for the account of the applicable Purchaser, in an amount
equal to any accrued and unpaid Interest, Program Fee, Commitment Fee and Breakage Costs,
for the payment thereof;

     (vi) SIXTH, pro rata in accordance with the amounts due under subclauses
(a) and (b) of this clause, (a) to each Purchaser Agent, pro rata in accordance
with the amount of Advances Outstanding hereunder for the account of the applicable
Purchaser, in an amount necessary to reduce the Advances Outstanding and Aggregate Unpaids
to zero, for the payment thereof and (b) pro rata to each Hedge Counterparty, any Hedge
Breakage Costs and payments due in termination of any Hedge Transaction, owing to that Hedge
Counterparty under its respective Hedging Agreement to the extent not reimbursed pursuant to
clause FIRST above, for the payment thereof;

     (vii) SEVENTH, to each Purchaser Agent, if the Required Advance Reduction
Amount is greater than zero, an amount necessary to reduce the Required Advance Reduction
Amount to zero, pro rata in accordance with the amount of Advances Outstanding hereunder for
the account of the applicable Purchaser, for the payment thereof;

     (viii) EIGHTH, to the Servicer, if the Servicer is CapitalSource Finance,
CapitalSource, Inc. or an Affiliate of CapitalSource, Inc., in an amount equal to any
accrued and unpaid Subordinated Servicing Fee to the end of the preceding Collection Period,
for the payment thereof;

     (ix) NINTH, to the Administrative Agent, each Purchaser Agent, the applicable
Purchaser, the Backup Servicer, the Collateral Custodian, the Affected Parties, the
Indemnified Parties or the Secured Parties, pro rata in accordance with the amount owed to
such Person under this NINTH clause, all other amounts, including Increased Costs
but other than Advances Outstanding, then due under this Agreement, for the payment thereof;
and

     (x) TENTH, any remaining amount shall be distributed to the Seller.

     Section 2.11 Collections and Allocations.

     (a) Collections. The Servicer shall promptly identify any collections received as
being on account of Interest Collections, Principal Collections or other Collections and shall
transfer, or cause to be transferred, all Collections received directly by it or on deposit in the
form of available funds in the Lock-Box Accounts to the Collection Account by the close of

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business on the second (2nd) Business Day after such Collections are received. In
transferring Collections to the Collection Account, the Servicer shall segregate Principal
Collections and transfer the same to the corresponding Principal Collections Account. The Servicer
shall make such deposits or payments on the date indicated therein by wire transfer, in immediately
available funds. The Servicer shall further include a statement as to the amount of Principal
Collections and Interest Collections on deposit in the Collection Account on each Reporting Date in
the Monthly Report delivered pursuant to Section 6.10(b).

     (b) Initial Deposits. On the Closing Date and on each Addition Date thereafter, the
Servicer will deposit (in immediately available funds) into the Collection Account all Collections
received after the applicable Cut-Off Date and through and including the Closing Date or Addition
Date, as the case may be, in respect of Eligible Assets being transferred to and included as part
of the Collateral on such date.

     (c) Excluded Amounts. With the prior written consent of the Administrative Agent and
each Purchaser Agent, which consent shall not be unreasonably withheld (a copy of which will be
provided by the Servicer to the Backup Servicer), the Servicer may withdraw from the Collection
Account any deposits thereto constituting Excluded Amounts if the Servicer has, prior to such
withdrawal and consent, delivered to the Administrative Agent and each Purchaser Agent a report
setting forth the calculation of such Excluded Amounts in a format satisfactory to the
Administrative Agent and each Purchaser Agent in their sole discretion.

     (d) Investment of Funds. Until the occurrence of a Termination Event, to the extent
there are uninvested amounts deposited in the Collection Account, all amounts shall be invested in
Permitted Investments selected by the Servicer that mature no later than the Business Day
immediately preceding the next Payment Date; from and after the occurrence of a Termination Event,
to the extent there are uninvested amounts in the Collection Account (net of losses and investment
expenses), all amounts may be invested in Permitted Investments selected by the Administrative
Agent that mature no later than the Business Day immediately preceding the next Payment Date. All
earnings (net of losses and investment expenses) thereon shall be retained or deposited into the
Collection Account and shall be applied pursuant to the provisions of Section 2.9 and
Section 2.10.

     Section 2.12 Payments, Computations, Etc.

     (a) Unless otherwise expressly provided herein, all amounts to be paid or deposited by the
Seller or the Servicer hereunder shall be paid or deposited in accordance with the terms hereof no
later than 2:00 p.m. (Charlotte, North Carolina time) on the day when due in lawful money of the
United States in immediately available funds to the applicable Purchaser Agent’s Account and if not
received before such time shall be deemed received on the next Business Day. The Seller shall, to
the extent permitted by law, pay to the Secured Parties interest on all amounts not paid or
deposited when due hereunder at 2% per annum above the Base Rate, payable on demand; provided,
however, that such interest rate shall not at any time exceed the maximum rate permitted by
Applicable Law. Such interest shall be for the account of, and distributed to, each applicable
Purchaser. All computations of interest and all computations of Interest and other fees hereunder
shall be made on the basis of a year consisting of 360 days (other than calculations with respect
to the Base Rate which shall be based on a year consisting

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of 365 or 366 days, as applicable) for the actual number of days (including the first but
excluding the last day) elapsed.

     (b) Whenever any payment hereunder shall be stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day, and such extension of time
shall in such case be included in the computation of the payment of Interest or any fee payable
hereunder, as the case may be. For avoidance of doubt, to the extent that Available Funds are
insufficient on any Payment Date to satisfy the full amount of any Increased Costs pursuant to
clause EIGHTH of Section 2.9(a) or clause NINTH of Section 2.10,
such unpaid amounts shall remain due and owing and shall accrue Interest until repaid in full.

     (c) If any Advance requested by the Seller and approved by the applicable Purchaser and the
Purchaser Agents pursuant to Section 2.3 is not, for any reason made or effectuated, as the
case may be, on the date specified therefor, the Seller shall indemnify the applicable Purchaser
against any reasonable loss, cost or expense incurred by the applicable Purchaser including,
without limitation, any loss (including loss of anticipated profits, net of anticipated profits in
the reemployment of such funds in the manner determined by each Purchaser), cost or expense
incurred by reason of the liquidation or reemployment of deposits or other funds acquired by the
applicable Purchaser to fund or maintain such Advance.

     Section 2.13 Optional Repurchase.

     At any time following the Termination Date when the Borrowing Base is less than fifteen (15%)
percent of the Borrowing Base as of the Termination Date, the Seller may notify the Administrative
Agent and each Purchaser Agent in writing of its intention to secure the release of all remaining
Collateral; provided, that all Hedge Transactions have been terminated in accordance with their
terms. On the Payment Date next succeeding any such notice, the Seller shall secure the release of
all such Collateral for a price equal to the Aggregate Unpaids and the proceeds of such transaction
will be deposited into the Collection Account and paid in accordance with Section 2.10.

     Section 2.14 Fees.

     (a) The Servicer on behalf of the Seller shall pay in accordance with Section
2.9(a)(v) and Section 2.10(a)(v), as applicable, to the applicable Purchaser Agent from
the Collection Account to the extent funds are available on each Payment Date, monthly in arrears,
the applicable Program Fee and the applicable Commitment Fee agreed to between the Seller and such
Purchaser Agent in the applicable Purchaser Fee Letter and the relevant Additional Agent Fee
Letter, as applicable.

     (b) The Servicer shall be entitled to receive a fee (the “Servicing Fee”), monthly in
arrears in accordance with Section 2.9(a)(iii) and Section 2.10(a)(iii), as
applicable, which fee shall be equal to the product of (i) the Servicing Fee Rate, (ii) the
Aggregate Outstanding Asset Balance as of the first day of the immediately preceding Collection
Period and (iii) the actual number of days in such Collection Period divided by 360.

     (c) The Servicer shall be entitled to receive a fee (the “Subordinated Servicing
Fee”), monthly in arrears in accordance with Section 2.9(a)(iii) and Section
2.10(a)(iii) or Section 

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2.9(a)(vii) and Section 2.10(a)(viii), as applicable, which fee shall be equal
to the product of (i) the Subordinated Servicing Fee Rate, (ii) the aggregate Outstanding Asset
Balance as of the first day of the immediately preceding Collection Period and (iii) the actual
number of days in such Collection Period divided by 360.

     (d) The Backup Servicer shall be entitled to receive the Backup Servicing Fee in accordance
with Section 2.9(a)(iv) and Section 2.10(a)(iv), as applicable.

     (e) The Collateral Custodian shall be entitled to receive the Collateral Custodian Fee in
accordance with Section 2.9(a)(iv) and Section 2.10(a)(iv), as applicable.

     (f) The Seller shall pay to counsel to the Administrative Agent, on the Closing Date, its
reasonable estimated fees and out-of-pocket expenses in immediately available funds and shall pay
all additional reasonable fees and out-of-pocket expenses of such counsel within thirty (30)
Business Days after receiving an invoice for such amounts.

     Section 2.15 Increased Costs; Capital Adequacy; Illegality.

     (a) If either (i) the introduction of or any change (including, without limitation, any change
by way of imposition or increase of reserve requirements) in or in the interpretation of any law or
regulation or (ii) the compliance by an Affected Party with any guideline or request from any
central bank or other Governmental Authority (whether or not having the force of law), shall (a)
subject an Affected Party to any Tax (except for Taxes on the overall net income of such Affected
Party), duty or other charge with respect to its interest in the Collateral, or any right to make
Advances hereunder, or on any payment made hereunder, (b) impose, modify or deem applicable any
reserve requirement (including, without limitation, any reserve requirement imposed by the Board of
Governors of the Federal Reserve System, but excluding any reserve requirement, if any, included in
the determination of Interest), special deposit or similar requirement against assets of, deposits
with or for the amount of, or credit extended by, any Affected Party or (c) impose any other
condition affecting the security interest in the Collateral granted to the Purchasers hereunder or
the Purchasers’ rights hereunder, the result of which is to increase the cost to any Affected Party
or to reduce the amount of any sum received or receivable by an Affected Party under this
Agreement, then within ten days after demand by such Affected Party (which demand shall be
accompanied by a statement setting forth the basis for such demand), the Servicer shall pay (and to
the extent the Servicer does not make such payment the Seller shall pay) directly to such Affected
Party such additional amount or amounts as will compensate such Affected Party for such additional
or increased cost incurred or such reduction suffered.

     (b) If either (i) the introduction of or any change in or in the interpretation of any law,
guideline, rule, regulation, directive or request or (ii) compliance by any Affected Party with any
law, guideline, rule, regulation, directive or request from any central bank or other governmental
authority or agency (whether or not having the force of law), including, without limitation,
compliance by an Affected Party with any request or directive regarding capital adequacy, has or
would have the effect of reducing the rate of return on the capital of any Affected Party as a
consequence of its obligations hereunder or arising in connection herewith to a level below that
which any such Affected Party could have achieved but for such introduction, change or

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compliance (taking into consideration the policies of such Affected Party with respect to
capital adequacy) by an amount deemed by such Affected Party to be material, then from time to
time, within ten days after demand by such Affected Party (which demand shall be accompanied by a
statement setting forth the basis for such demand), the Servicer shall pay (and to the extent the
Servicer does not make such payment the Seller shall pay) directly to such Affected Party such
additional amount or amounts as will compensate such Affected Party for such reduction. For the
avoidance of doubt, if the issuance of Interpretation No. 46 by the Financial Accounting Standards
Board or any other change in accounting standards or the issuance of any other pronouncement,
release or interpretation, causes or requires the consolidation of all or a portion of the assets
and liabilities of the Originator or Seller with the assets and liabilities of the Administrative
Agent, any Purchaser Agent, any Purchaser or any Liquidity Bank, such event shall constitute a
circumstance on which such Affected Party may base a claim for reimbursement under this Section
2.15.

     (c) If as a result of any event or circumstance similar to those described in clauses
(a) or (b) of this Section 2.15, any Affected Party is required to compensate a
bank or other financial institution providing liquidity support, credit enhancement or other
similar support to such Affected Party in connection with this Agreement or the funding or
maintenance of Advances hereunder, then within ten days after demand by such Affected Party, the
Servicer shall pay (or to the extent the Servicer does not make such payment the Seller shall pay)
to such Affected Party such additional amount or amounts as may be necessary to reimburse such
Affected Party for any amounts payable or paid by it.

     (d) In determining any amount provided for in this Section 2.15, the Affected Party
may use any reasonable averaging and attribution methods. Any Affected Party making a claim under
this Section 2.15 shall submit to the Servicer a written description as to such additional
or increased cost or reduction and the calculation thereof, which written description shall be
conclusive absent demonstrable error.

     (e) If the applicable Purchaser shall notify their respective Purchaser Agent that a
Eurodollar Disruption Event as described in clause (a) of the definition of “Eurodollar
Disruption Event” has occurred, the applicable Purchaser Agent or the Administrative Agent shall in
turn so notify the Seller, whereupon all Advances Outstanding of the affected Liquidity Bank or
Institutional Purchaser in respect of which Interest accrues at the Adjusted Eurodollar Rate shall
immediately be converted into Advances Outstanding in respect of which Interest accrues at the Base
Rate.

     Section 2.16 Taxes.

     (a) All payments made by an Obligor in respect of an Asset and all payments made by the Seller
or the Servicer under this Agreement will be made free and clear of and without deduction or
withholding for or on account of any Taxes. If any Taxes are required to be withheld from any
amounts payable to the Administrative Agent, the Purchaser Agents, any Affected Party or any
Secured Party, then the amount payable to such Person will be increased (such increase, the
“Additional Amount”) such that every net payment made under this Agreement after
withholding for or on account of any Taxes (including, without limitation, any Taxes on such
increase) is not less than the amount that would have been paid had no such

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deduction or withholding been deducted or withheld. The foregoing obligation to pay
Additional Amounts, however, will not apply with respect to net income or franchise taxes imposed
on the Purchasers, any Affected Party, the Administrative Agent or the Purchaser Agents,
respectively, with respect to payments required to be made by the Seller or Servicer under this
Agreement, by a taxing jurisdiction in which the Purchasers, any Affected Party, the Administrative
Agent or the Purchaser Agents, are organized, conducts business or is paying taxes (as the case may
be).

     (b) The Servicer will indemnify (and to the extent the indemnification provided by the
Servicer is insufficient the Seller will indemnify) each Affected Party for the full amount of
Taxes payable by such Person in respect of Additional Amounts and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto. All payments in
respect of this indemnification shall be made within ten days from the date a written invoice
therefor is delivered to the Seller.

     (c) Within thirty (30) days after the date of any payment by the Seller and the Servicer of
any Taxes, the Seller and the Servicer will furnish to the Administrative Agent and each of the
Purchaser Agents at its address set forth under its name on the signature pages hereof, appropriate
evidence of payment thereof.

     (d) If a Purchaser is not created or organized under the laws of the United States or a
political subdivision thereof, such Purchaser shall deliver to the Seller, with a copy to the
Administrative Agent, (i) within fifteen (15) days after the date hereof, two (or such other number
as may from time to time be prescribed by Applicable Laws) duly completed copies of IRS Form W-8BEN
or Form W-8ECI (or any successor forms or other certificates or statements that may be required
from time to time by the relevant United States taxing authorities or Applicable Laws), as
appropriate, to permit the Seller to make payments hereunder for the account of such Purchaser
without deduction or withholding of United States federal income or similar Taxes and (ii) upon the
obsolescence of or after the occurrence of any event requiring a change in, any form or certificate
previously delivered pursuant to this Section 2.16(d), copies (in such numbers as may from
time to time be prescribed by Applicable Laws or regulations) of such additional, amended or
successor forms, certificates or statements as may be required under Applicable Laws or regulations
to permit the Seller and the Servicer to make payments hereunder for the account of such Purchaser
without deduction or withholding of United States federal income or similar Taxes.

     (e) If, in connection with an agreement or other document providing liquidity support, credit
enhancement or other similar support to the Purchasers in connection with this Agreement or the
funding or maintenance of Advances hereunder, the Purchasers are required to compensate a bank or
other financial institution in respect of Taxes under circumstances similar to those described in
this Section 2.16, then, within ten days after demand by the Purchasers, the Servicer shall
pay (or to the extent the Servicer does not make such payment the Seller shall pay) to the
Purchasers such additional amount or amounts as may be necessary to reimburse the Purchasers for
any amounts paid by them.

     (f) Without prejudice to the survival of any other agreement of the Seller and the Servicer
hereunder, the agreements and obligations of the Seller and the Servicer contained in this
Section 2.16 shall survive the termination of this Agreement.

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     Section 2.17 Assignment of the Sale Agreement.

     The Seller hereby assigns to the Administrative Agent, for the ratable benefit of the Secured
Parties hereunder, all of the Seller’s right, title and interest in and to, but none of its
obligations under, the Sale Agreement and any UCC financing statements filed under or in connection
therewith. In furtherance and not in limitation of the foregoing, the Seller hereby assigns to the
Administrative Agent for the benefit of the Secured Parties its right to indemnification under
Article VIII of the Sale Agreement. The Seller confirms that the Administrative Agent on
behalf of the Secured Parties shall have the sole right to enforce the Seller’s rights and remedies
under the Sale Agreement and any UCC financing statements filed under or in connection therewith
for the benefit of the Secured Parties.

     Section 2.18 Substitution of Assets.

     On any day prior to the occurrence of a Termination Event (and after the Termination Date at
the discretion of the Administrative Agent with the consent of the Purchaser Agents), the Seller
may, subject to the conditions set forth in this Section 2.18 and subject to the other
restrictions contained herein, replace any Asset with one or more Eligible Assets (each, a
“Substitute Asset”); provided, that no such replacement shall occur unless each of the
following conditions is satisfied as of the date of such replacement and substitution:

     (a) the Seller has recommended to the Administrative Agent (with a copy to the Collateral
Custodian) in writing that the Asset to be replaced should be replaced (each a “Replaced
Asset”);

     (b) each Substitute Asset is an Eligible Asset on the date of substitution;

     (c) after giving effect to any such substitution, the Advances Outstanding do not exceed the
lesser of (i) the Facility Amount and (ii) the Maximum Availability;

     (d) for purposes only of substitutions pursuant to Section 4.6 undertaken because an
Asset has become a Warranty Asset, the aggregate Outstanding Asset Balance of such Substitute
Assets shall be equal to or greater than the aggregate Outstanding Asset Balances of the Replaced
Assets;

     (e) [Reserved];

     (f) all representations and warranties of the Seller contained in Section 4.1 and
Section 4.2 shall be true and correct as of the date of substitution of any such Substitute
Asset;

     (g) the substitution of any Substitute Asset does not cause a Termination Event or Unmatured
Termination Event to occur;

     (h) the sum of (1) the Outstanding Asset Balance of all Assets that are Substitute Assets does
not exceed 20% of the Facility Amount, calculated on an annualized basis commencing with the
Closing Date;

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     (i) the sum of the Outstanding Asset Balance of all Substitute Assets substituted for
Delinquent Assets, Charged-Off Assets and Warranty Assets shall not exceed 10% of the Facility
Amount, calculated on an annualized basis commencing with the Closing Date;

     (j) the Seller shall deliver to the Administrative Agent on the date of such substitution a
certificate of a Responsible Officer certifying that each of the foregoing is true and correct as
of such date; and

     (k) each Asset that is replaced pursuant to the terms of this Section 2.18 shall be
substituted only with another Asset that meets the foregoing conditions.

     In addition, the Seller shall in connection with such substitution deliver to the Collateral
Custodian the related Required Asset Documents. In connection with any such substitution, the
Administrative Agent, as agent for the Secured Parties, shall, automatically and without further
action, be deemed to transfer to the Seller, free and clear of any Lien created pursuant to this
Agreement, all of the right, title and interest of the Administrative Agent, as agent for the
Secured Parties, in, to and under such Replaced Asset, but without any representation and warranty
of any kind, express or implied.

     Section 2.19 Optional Sales.

     (a) On any Optional Sale Date, the Seller shall have the right to sell and assign all or a
portion of the Collateral (each, an “Optional Sale”), subject to the following terms and
conditions:

     (i) The Seller shall have given the Administrative Agent at least ten (10) Business
Days’ prior written notice of its intent to effect an Optional Sale, unless such notice is
waived or reduced by the Administrative Agent;

     (ii) Any Optional Sale shall be in connection with a Permitted Securitization
Transaction;

     (iii) Unless an Optional Sale is to be effected on a Payment Date (in which case the
relevant calculations with respect to such Optional Sale shall be reflected on the
applicable Monthly Report), the Servicer shall deliver to the Administrative Agent a
certificate and evidence to the reasonable satisfaction of the Administrative Agent (which
evidence may consist solely of a certificate from the Servicer) that the Seller shall have
sufficient funds on the related Optional Sale Date to effect the contemplated Optional Sale
in accordance with this Agreement. In effecting an Optional Sale, the Seller may use the
Proceeds of sales of the Collateral;

     (iv) After giving effect to the Optional Sale on any Optional Sale Date, (a) the
remaining Advances Outstanding shall not exceed the lesser of the Facility Amount and the
Maximum Availability, (b) the representations and warranties contained in Section
4.1 hereof shall continue to be correct in all material respects, except to the extent
relating to an earlier date, (c) the eligibility of any Asset remaining as part of the
Collateral after the Optional Sale will be redetermined as of the Optional Sale Date, (d)

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the Pool Concentration Criteria will be redetermined as of the Optional Sale Date, and
(e) neither an Unmatured Termination Event nor a Termination Event shall have resulted;

     (v) On the related Optional Sale Date, the Administrative Agent, each Purchaser Agent,
on behalf of the applicable Purchaser and the Hedge Counterparties, shall have received, as
applicable, in immediately available funds, an amount equal to the sum of (a) the portion of
the Advances Outstanding to be prepaid plus (b) an amount equal to all unpaid
Interest to the extent reasonably determined by the Administrative Agent and the Purchaser
Agents to be attributable to that portion of the Advances Outstanding to be paid in
connection with the Optional Sale plus (c) an aggregate amount equal to the sum of
all other amounts due and owing to the Administrative Agent, the Collateral Custodian, the
Backup Servicer, the Purchaser Agents, the applicable Purchaser, the Affected Parties and
the Hedge Counterparties, as applicable, under this Agreement and the other Transaction
Documents, to the extent accrued to such date and to accrue thereafter (including, without
limitation, Breakage Costs, Hedge Breakage Costs and any other payments owing to the
applicable Hedge Counterparty in respect of the termination of any Hedge Transaction);
provided, that the Administrative Agent and each Purchaser Agent shall have the right to
determine whether the amount paid (or proposed to be paid) by the Seller on the Optional
Sale Date is sufficient to satisfy the requirements of clauses (iii), (iv)
and (v) of this Section 2.19(a) and is sufficient to reduce the Advances
Outstanding to the extent requested by the Seller in connection with the Optional Sale;

     (vi) On or prior to each Optional Sale Date, the Seller shall have delivered to the
Administrative Agent a list specifying all Assets to be sold and assigned pursuant to such
Optional Sale; and

     (vii) No selection procedure adverse to the interests of the Administrative Agent, the
Purchaser Agents or the Secured Parties was utilized by the Seller or Originator in the
selection of Assets for inclusion in any Optional Sale.

     (b) In connection with any Optional Sale, following receipt by the Purchaser Agents of the
amounts referred to in clause (a)(v) above, the portion of the Collateral subject to the
Optional Sale shall be released from the Lien of this Agreement (subject to the requirements of
clause (a)(iv) above).

     (c) The Seller hereby agrees to pay the reasonable legal fees and expenses of the
Administrative Agent, each Purchaser Agent and the Secured Parties in connection with any Optional
Sale (including, but not limited to, expenses incurred in connection with the release of the Lien
of the Administrative Agent, the Secured Parties and any other party having an interest in the
Collateral in connection with such Optional Sale).

     (d) In connection with any Optional Sale, on the related Optional Sale Date, the
Administrative Agent, on behalf of the Secured Parties, shall, at the expense of the Seller (i)
execute such instruments of release with respect to the portion of the Collateral subject to the
Optional Sale, in recordable form if necessary, in favor of the Seller as the Seller may reasonably
request, (ii) deliver any portion of the Collateral subject to the Optional Sale to the Seller in
its

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possession to the Seller and (iii) otherwise take such actions, and cause or permit the
Collateral Custodian to take such actions, as are necessary and appropriate to release the Lien of
the Administrative Agent and the Secured Parties on the portion of the Collateral subject to the
Optional Sale to the Seller and release and deliver to the Seller such portion of the Collateral
subject to the Optional Sale.

     Section 2.20 Discretionary Sales.

     (a) Prior to the occurrence of an Unmatured Termination Event or a Termination Event, on any
Discretionary Sale Date, the Seller shall have the right to prepay all or a portion of the Advances
Outstanding in connection with the transfer and assignment by the Seller (and related release of
security interest by the Administrative Agent, on behalf of the Secured Parties), of the specified
portion of Collateral (each, a “Discretionary Sale”), subject to the following terms and
conditions:

     (i) At least one Business Day prior to each Discretionary Sale Date, the Servicer, on
behalf of the Seller, shall have given the Administrative Agent and each Hedge Counterparty
written notice of its intent to effect a Discretionary Sale (each such notice a
“Discretionary Sale Notice”), specifying the Discretionary Sale Date and including a list of
all Assets to be sold and assigned pursuant to such Discretionary Sale, and a revised
Borrowing Base Certificate;

     (ii) Any Discretionary Sale shall be made by the Servicer, on behalf of the Seller, to
an unaffiliated third party purchaser in a transaction (i) reflecting arms-length market
terms and (ii) in which the Seller makes no representations, warranties or covenants and
provides no indemnification for the benefit of any other party to the Discretionary Sale;

     (iii) After giving effect to the Discretionary Sale on any Discretionary Sale Date, (a)
the Availability is greater than or equal to zero, (b) the representations and warranties
contained in Section 4.1 hereof shall continue to be correct in all material
respects, except to the extent relating to an earlier date and (c) neither an Unmatured
Termination Event nor a Termination Event shall have resulted;

     (iv) On the related Discretionary Sale Date, the Administrative Agent, each Purchaser
Agent, on behalf of the applicable Purchaser, the Hedge Counterparties, the Collateral
Custodian and the Backup Servicer, as applicable, shall have received, as applicable, in
immediately available funds, an amount equal to the sum of (a) an amount sufficient to
reduce the Advances Outstanding such that, after giving effect to the transfer of the Assets
that are the subject of such Discretionary Sale, the Availability will be equal to or
greater than $0 plus (b) an amount equal to all unpaid Interest to the extent reasonably
determined by the Administrative Agent and the Purchaser Agents to be attributable to that
portion of the Advances Outstanding to be repaid in connection with the Discretionary Sale
plus (c) an aggregate amount equal to the sum of all other Aggregate Unpaids due and owing
to the Administrative Agent, the Purchaser Agents, each applicable Purchaser, the Affected
Parties, the Indemnified Parties and the Hedge Counterparties, as applicable, under this
Agreement and the other Transaction

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Documents, to the extent accrued to such date; provided that, the Administrative Agent
and each Purchaser Agent shall have the right to determine whether the amount paid (or
proposed to be paid) by the Seller on the Discretionary Sale Date is sufficient to satisfy
the requirements of clauses (a) through (c) of this clause (iv) and
is sufficient to reduce the Advances Outstanding to the extent requested by the Seller in
connection with the Discretionary Sale;

     (v) The Outstanding Asset Balance of the Asset(s) which are the subject of the proposed
Discretionary Sale, together with the Outstanding Asset Balance of the Asset(s) sold in all
other Discretionary Sales made in the preceding 12 month period, shall not exceed 20% of the
Facility Amount; and

     (vi) On the related Discretionary Sale Date, the proceeds from such Discretionary Sale
have been sent directly into the Collection Account.

     (vii) The consideration for any Discretionary Sale occurring during the Amortization
Period shall be no less than the sum of the Outstanding Asset Balances of the Assets subject
to such Discretionary Sale unless otherwise consented to in writing by the Administrative
Agent.

     Section 2.21 Loans Originated by Affiliates of CapitalSource Inc. Other than the
Originator.

     On or before the date of the initial sale or transfer of any Asset originated by an Affiliate
of CapitalSource Inc. (other than CapitalSource Finance) and acquired by CapitalSource Finance from
such Affiliate, the Servicer shall deliver to the Administrative Agent (1) a form of assignment
approved in writing by the Administrative Agent, (2) a Servicing Guaranty executed by such
Affiliate in form and substance satisfactory to the Administrative Agent and (3) a legal opinion
concerning Assets originated by such Affiliate and acquired from time to time by CapitalSource
Finance from such Affiliate pursuant to an assignment in such form.

ARTICLE III

CONDITIONS TO ADVANCES

     Section 3.1 Conditions to Closing and Initial Advance.

     The Purchasers shall not be obligated to make any Advance hereunder on the occasion of the
Initial Advance, nor shall any Purchaser, Administrative Agent, the Purchaser Agents, the Backup
Servicer and the Collateral Custodian be obligated to take, fulfill or perform any other action
hereunder, until the following conditions have been satisfied, in the sole discretion of, or waived
in writing by, the Administrative Agent and each Purchaser Agent:

     (a) Each Transaction Document shall have been duly executed by, and delivered to, the parties
thereto, and the Administrative Agent and each Purchaser Agent shall have received such other
documents, instruments, agreements and legal opinions as the Administrative Agent and each
Purchaser Agent shall reasonably request in connection with the transactions contemplated by this
Agreement, including, without limitation, all those specified in the

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Schedule of Documents attached hereto as Schedule I, each in form and substance
satisfactory to the Administrative Agent and each Purchaser Agent;

     (b) The Administrative Agent and each Purchaser Agent shall have received (i) satisfactory
evidence that the Seller and the Servicer have obtained all required consents and approvals of all
Persons, including all requisite Governmental Authorities, to the execution, delivery and
performance of this Agreement and the other Transaction Documents to which each is a party and the
consummation of the transactions contemplated hereby or thereby or (ii) an Officer’s Certificate
from each of the Seller and the Servicer in form and substance reasonably satisfactory to the
Administrative Agent and each Purchaser Agent affirming that no such consents or approvals are
required; it being understood that the acceptance of such evidence or officer’s certificate shall
in no way limit the recourse of the Administrative Agent, each Purchaser Agent or any Secured Party
against the Originator or the Seller for a breach of the Originator’s and the Seller’s
representation or warranty that all such consents and approvals have, in fact, been obtained;

     (c) The Seller, the Servicer and the Originator shall each be in compliance in all material
respects with all Applicable Laws and shall have delivered to the Administrative Agent and each
Purchaser Agent as to this and other closing matters certification in the form of
Exhibits F-1 and F-2;

     (d) The Seller and the Servicer shall have delivered to the Administrative Agent and each
Purchaser Agent duly executed Powers of Attorney in the form of Exhibits G-1 and
G-2; and

     (e) The Seller and the Servicer shall each have delivered to the Administrative Agent and each
Purchaser Agent a certificate as to Solvency in the form of Exhibits E-1 and E-2
and a perfection certificate in form reasonably acceptable to the Administrative Agent.

     Section 3.2 Conditions Precedent to All Advances.

     Each Advance to the Seller by the applicable Purchaser (each, a “Transaction”) shall
be subject to the further conditions precedent that:

     (a) (i) With respect to any Advance (including the Initial Advance), the Servicer shall have
delivered to the Administrative Agent and each Purchaser Agent (with a copy to the Collateral
Custodian and the Backup Servicer), in the case of an Advance, no later than 2:00 p.m. (Charlotte,
North Carolina time), one Business Day prior to the related Funding Date (or no later than 2:00
p.m. on the Business Day of the proposed Funding Date in the case of a same-day funding pursuant to
Section 2.3(a)), in a form and substance satisfactory to the Administrative Agent and each
Purchaser Agent, (1) a Borrowing Notice (Exhibit A-1), Borrowing Base Certificate
(Exhibit A-3), Asset List and Monthly Report, if applicable, and (2) a Certificate of
Assignment (Exhibit A to the Sale Agreement including Schedule I, thereto) and
containing such additional information as may be reasonably requested by the Administrative Agent
and each Purchaser Agent, and (ii) with respect to any reduction in Advances Outstanding pursuant
to Section 2.4(b) or any reinvestment of Principal Collections permitted by Section
2.9(b), the Servicer shall have delivered to the Administrative Agent and each Purchaser Agent
(with a copy

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to the Backup Servicer) at least one Business Day prior to any reduction of Advances
Outstanding or same day notice no later than 2:00 p.m. (Charlotte, North Carolina time) on such day
for any reinvestment of Principal Collections a Borrowing Notice (Exhibit A-2) and a
Borrowing Base Certificate (Exhibit A-3) executed by the Servicer and the Seller;

     (b) On the date of such Transaction the following statements shall be true, and the Seller
shall be deemed to have certified that:

     (i) The representations and warranties contained in Section 4.1, Section
4.2 and Section 4.3 are true and correct on and as of such day as though made on
and as of such day and shall be deemed to have been made on such day;

     (ii) No event has occurred and is continuing, or would result from such Transaction,
that constitutes a Termination Event or Unmatured Termination Event;

     (iii) On and as of such day, after giving effect to such Transaction, the Advances
Outstanding shall not exceed the lesser of (x) the Facility Amount and (y) the Maximum
Availability, and, if such Transaction involves an Advance funded on a same-day basis
pursuant to Section 2.3(a), the aggregate amount of such Advances outstanding funded on such
a basis does not exceed $15,000,000;

     (iv) After giving effect to such Advance, reduction of Advances Outstanding or
reinvestment of Principal Collections, there is not and will be no deficiency in the Minimum
Overcollateralization Amount;

     (v) On and as of such day, the Seller and the Servicer each has performed all of the
covenants and agreements contained in this Agreement to be performed by such person at or
prior to such day; and

     (vi) No law or regulation shall prohibit, and no order, judgment or decree of any
federal, state or local court or governmental body, agency or instrumentality shall prohibit
or enjoin, the making of such Advance, or incremental Advance by the Purchaser in accordance
with the provisions hereof, the reduction of Advances Outstanding, the reinvestment of
Principal Collections or any other transaction contemplated herein;

     (c) The Seller shall have delivered to the Collateral Custodian (with a copy to the Backup
Servicer and the Administrative Agent) (i) in the case of an Advance to be funded on a same-day
basis pursuant to Section 2.3(a), no later than 2:00 p.m. (Charlotte, North Carolina time)
on the related Funding Date and (ii) in the case of all other Advances, no later than 2:00 p.m.
(Charlotte, North Carolina time) one Business Day prior to any Funding Date, a faxed copy of the
duly executed original promissory notes, master purchase agreement and purchase statements or a
copy of the Loan Register, as applicable, for the Loans and, if any Assets are closed in escrow, a
certificate (in the form of Exhibit L) from the counsel to the Originator or the Obligor of
such Assets certifying the possession of the Required Asset Documents, provided, however,
notwithstanding the foregoing, the Required Asset Documents (including any UCCs included in the
Required Asset Documents) shall be in the possession of the Collateral Custodian within two
Business Days of any related Funding Date as to any Additional Assets;

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     (d) The Termination Date shall not have occurred;

     (e) On the date of such Transaction, the Administrative Agent and each Purchaser Agent shall
have received such other approvals, opinions or documents as the Administrative Agent and each
Purchaser Agent may reasonably require;

     (f) The Administrative Agent shall have received from the Seller all hedging confirms related
to any Hedging Agreement required by this Agreement;

     (g) The Seller and Servicer shall have delivered to the Administrative Agent and each
Purchaser Agent all reports required to be delivered as of the date of such Transaction including,
without limitation, all deliveries required by Section 2.3, as applicable;

     (h) [Reserved];

     (i) The Seller shall have paid all fees required to be paid, including all fees required
hereunder and under the Purchaser Fee Letters and any Additional Agent Fee Letter and shall have
reimbursed the Purchasers, the Administrative Agent and each Purchaser Agent for all fees, costs
and expenses of closing the transactions contemplated hereunder and under the other Transaction
Documents, including the reasonable attorney fees and any other legal and document preparation
costs incurred by the Purchasers, the Administrative Agent and each Purchaser Agent;

     (j) [Reserved]; and

     (k) The Seller shall have delivered to the Administrative Agent and each Purchaser Agent an
Officer’s Certificate (which may be part of the Borrowing Notice) in form and substance reasonably
satisfactory to the Administrative Agent and each Purchaser Agent certifying that each of the
foregoing conditions precedent has been satisfied.

     The failure of the Seller to satisfy any of the foregoing conditions precedent in respect of
any Advance shall give rise to a right of the Administrative Agent and the applicable Purchaser
Agent, which right may be exercised at any time on the demand of the applicable Purchaser Agent, to
rescind the related Advance and direct the Seller to pay to the Administrative Agent for the
benefit of the applicable Purchaser an amount equal to the Advances made during any such time that
any of the foregoing conditions precedent were not satisfied.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.1 Representations and Warranties of the Seller.

     The Seller represents and warrants as follows:

     (a) Organization and Good Standing. The Seller has been duly organized, and is
validly existing as a limited liability company in good standing, under the laws of the State of
Delaware, with all requisite company power and authority to own or lease its properties and

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conduct its business as such business is presently conducted, and had at all relevant times,
and now has all necessary power, authority and legal right to acquire, own, pledge and sell the
Collateral.

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

     (c) Power and Authority; Due Authorization; Execution and Delivery. The Seller (i)
has all necessary power, authority and legal right to (a) execute and deliver this Agreement and
the other Transaction Documents to which it is a party, (b) carry out the terms of the Transaction
Documents to which it is a party, (c) grant a security interest in the Collateral, and (d) receive
Advances and grant a security interest in the Collateral on the terms and conditions provided
herein and (ii) has duly authorized by all necessary company action the execution, delivery and
performance of this Agreement and the other Transaction Documents to which it is a party and the
grant and assignment of a security interest in the Collateral on the terms and conditions herein
provided. This Agreement and each other Transaction Document to which the Seller is a party have
been duly executed and delivered by the Seller.

     (d) Binding Obligation. This Agreement and each other Transaction Document to which
the Seller is a party constitutes a legal, valid and binding obligation of the Seller enforceable
against the Seller in accordance with its respective terms, except as such enforceability may be
limited by Insolvency Laws and by general principles of equity (whether considered in a suit at law
or in equity).

     (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the other Transaction Documents to which it is a party and the fulfillment of the terms hereof
and thereof will not (i) conflict with, result in any breach of any of the terms and provisions of,
or constitute (with or without notice or lapse of time or both) a default under, the Seller’s
operating agreement or any Contractual Obligation of the Seller, (ii) result in the creation or
imposition of any Lien (other than Permitted Liens) upon any of the Seller’s properties pursuant to
the terms of any such Contractual Obligation, other than this Agreement, or (iii) violate any
Applicable Law.

     (f) No Proceedings. There is no litigation, proceeding or investigation pending or,
to the best knowledge of the Seller, threatened against the Seller, before any Governmental
Authority (i) asserting the invalidity of this Agreement or any other Transaction Document to which
the Seller is a party, (ii) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or any other Transaction Document to which the Seller is a party or
(iii) seeking any determination or ruling that could reasonably be expected to have Material
Adverse Effect.

     (g) All Consents Required. All approvals, authorizations, consents, orders or other
actions of any Person or of any Governmental Authority (if any) required for the due execution,
delivery and performance by the Seller of this Agreement and any other Transaction Document to
which the Seller is a party have been obtained.

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     (h) Bulk Sales. The execution, delivery and performance of this Agreement and the
transactions contemplated hereby do not require compliance with any “bulk sales” act or similar law
by Seller.

     (i) Solvency. The Seller is not the subject of any Insolvency Proceedings or
Insolvency Event. The transactions under this Agreement and any other Transaction Document to
which the Seller is a party do not and will not render the Seller not Solvent and the Seller shall
deliver to the Administrative Agent and each Purchaser Agent on the Closing Date a certification in
the form of Exhibit E-1.

     (j) Selection Procedures. No procedures believed by the Seller to be adverse to the
interests of the Purchaser were utilized by the Seller in identifying and/or selecting the Assets
in the Collateral. In addition, each Asset shall have been underwritten in accordance with and
satisfy the standards of any Credit and Collection Policy that has been established by the Seller
or the Originator and is then in effect.

     (k) Taxes. The Seller has filed or caused to be filed all tax returns that are
required to be filed by it. The Seller has paid or made adequate provisions for the payment of all
Taxes and all assessments made against it or any of its property (other than any amount of Tax the
validity of which is currently being contested in good faith by appropriate proceedings and with
respect to which reserves in accordance with GAAP have been provided on the books of the Seller),
and no tax lien has been filed and, to the Seller’s knowledge, no claim is being asserted, with
respect to any such Tax, fee or other charge.

     (l) Exchange Act Compliance; Regulations T, U and X. None of the transactions
contemplated herein will violate or result in a violation of Section 7 of the Securities Exchange
Act, or any regulations issued pursuant thereto, including, without limitation, Regulations T, U
and X of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. The Seller
does not own or intend to carry or purchase, and no proceeds from the Advances will be used to
carry or purchase, any “margin stock” within the meaning of Regulation U or to extend “purpose
credit” within the meaning of Regulation U.

     (m) Security Interest.

     (i) This Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Collateral in favor of the Administrative Agent, on behalf of the
Secured Parties, which security interest is prior to all other Liens (except for Permitted
Liens), and is enforceable as such against creditors of and purchasers from the Seller;

     (ii) the Asset, along with the related Asset Files, constitute a “general intangible,”
an “instrument,” an “account,” or “chattel paper” within the meaning of the applicable UCC;

     (iii) the Seller owns and has good and marketable title to the Collateral free and
clear of any Lien (other than Permitted Liens), claim or encumbrance of any Person;

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     (iv) the Seller has received all consents and approvals required by the terms of any
Asset to the sale and granting of a security interest in the Assets hereunder to the
Administrative Agent, on behalf of the Secured Parties;

     (v) the Seller has caused the filing of all appropriate financing statements in the
proper filing office in the appropriate jurisdictions under Applicable Law in order to
perfect the security interest in the Collateral granted to the Administrative Agent, on
behalf of the Secured Parties, under this Agreement;

     (vi) other than the security interest granted to the Administrative Agent, on behalf of
the Secured Parties, pursuant to this Agreement, the Seller has not pledged, assigned, sold,
granted a security interest in or otherwise conveyed any of the Collateral. The Seller has
not authorized the filing of and is not aware of any financing statements against the Seller
that include a description of collateral covering the Collateral other than any financing
statement (A) relating to the security interest granted to the Seller under the Sale
Agreement, or (B) that has been terminated. The Seller is not aware of the filing of any
judgment or tax lien filings against the Seller;

     (vii) all original executed copies of each underlying promissory note or copies of each
Loan Register, as applicable, that constitute or evidence each Loan has been, or subject to
the delivery requirements contained herein, will be delivered to the Collateral Custodian;

     (viii) the Seller has received a written acknowledgment from the Collateral Custodian
that the Collateral Custodian or its bailee is holding the underlying promissory notes (if
any), the copies of the Loan Registers that constitute or evidence the Assets solely on
behalf of and for the benefit of the Secured Parties provided, however, notwithstanding the
foregoing, with respect to any Asset to be funded with the proceeds of an Advance funded on
a same-day basis pursuant to Section 2.3(a), the Seller shall have received a written
acknowledgment from the Collateral Custodian (A) that the Collateral Custodian has received
a faxed copy of the applicable underlying promissory note or Loan Register, as applicable
and (B) within two Business Days after such Funding Date, that the Collateral Custodian or
its bailee is holding the applicable underlying promissory note or Loan Register, as
applicable, that constitute or evidence the Assets included in the Collateral solely on
behalf of, and for the benefit of, the Secured Parties;

     (ix) none of the underlying promissory notes or Loan Registers, as applicable, that
constitute or evidence the Assets has any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Administrative Agent,
on behalf of the Secured Parties; and

     (n) Reports Accurate. All Monthly Reports (if prepared by the Seller, or to the
extent that information contained therein is supplied by the Seller), information, exhibits,
financial statements, documents, books, records or reports furnished or to be furnished by the
Seller to the Administrative Agent, each Purchaser Agent or any Purchaser in connection with this
Agreement are true, complete and correct.

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     (o) Location of Offices. The Seller’s location (within the meaning of Article 9 of
the UCC) is Delaware. The office where the Seller keeps all the Records is at the address of the
Seller referred to in Section 13.2 hereof (or at such other locations as to which the
notice and other requirements specified in Section 5.2(g) shall have been satisfied). The
Seller’s Federal Employee Identification Number is 20-0878666. The Seller has not changed its
name, whether by amendment of its certificate of formation, by reorganization or otherwise, and has
not changed its location within the four months preceding the Closing Date.

     (p) Lock-Boxes. The names and addresses of all the Lock-Box Banks, together with the
account numbers of the Lock-Box Accounts of the Seller at such Lock-Box Banks and the names,
addresses and account numbers of all accounts to which Collections of the Collateral outstanding
before the Initial Advance hereunder have been sent, are specified in Schedule II (which
shall be deemed to be amended in respect of terminating or adding any Lock-Box Account or Lock-Box
Bank upon satisfaction of the notice and other requirements specified in Section 5.2(k)).
The Seller has not granted any Person other than the Administrative Agent and Collateral Custodian
an interest in any Lock-Box Account at a future time or upon the occurrence of a future event.

     (q) Tradenames. The Seller has no trade names, fictitious names, assumed names or
“doing business as” names or other names under which it has done or is doing business.

     (r) Sale Agreement. The Sale Agreement is the only agreement pursuant to which the
Seller purchases Collateral.

     (s) Value Given. The Seller shall have given reasonably equivalent value to the
Originator in consideration for the transfer to the Seller of the Collateral under the Sale
Agreement, no such transfer shall have been made for or on account of an antecedent debt owed by
the Originator to the Seller, and no such transfer is or may be voidable or subject to avoidance
under any section of the Bankruptcy Code.

     (t) Accounting. The Seller accounts for the transfers to it from the Originator of
interests in Collateral under the Sale Agreement as financings of such Collateral for tax and
consolidated accounting purposes (with a notation that it is treating the transfers as a sale for
legal and all other purposes on its books, records and financial statements, in each case
consistent with GAAP and with the requirements set forth herein).

     (u) Special Purpose Entity. The Seller has not and shall not:

     (i) engage in any business or activity other than the purchase and receipt of
Collateral and related assets from the Originator under the Sale Agreement, the sale of
Collateral under the Transaction Documents, and such other activities as are incidental
thereto;

     (ii) acquire or own any material assets other than (a) the Collateral and related
assets from the Originator under the Sale Agreement and (b) incidental property as may be
necessary for the operation of the Seller;

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     (iii) merge into or consolidate with any Person or dissolve, terminate or liquidate in
whole or in part, transfer or otherwise dispose of all or substantially all of its assets or
change its legal structure, without in each case first obtaining the consent of the
Administrative Agent and each Purchaser Agent;

     (iv) fail to preserve its existence as an entity duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization or formation, or
without the prior written consent of the Administrative Agent and each Purchaser Agent,
amend, modify, terminate or fail to comply with the provisions of its operating agreement,
or fail to observe limited liability company formalities;

     (v) own any Subsidiary or make any investment in any Person without the consent of the
Administrative Agent and each Purchaser Agent;

     (vi) except as permitted by this Agreement and the Lock-Box Agreement, commingle its
assets with the assets of any of its Affiliates, or of any other Person;

     (vii) incur any debt, secured or unsecured, direct or contingent (including
guaranteeing any obligation), other than indebtedness to the Secured Parties hereunder or in
conjunction with a repayment of all Advances owed to the Purchasers, except for trade
payables in the ordinary course of its business; provided, that such debt is not evidenced
by a note and is paid when due;

     (viii) become insolvent or fail to pay its debts and liabilities from its assets as the
same shall become due;

     (ix) fail to maintain its records, books of account and bank accounts separate and
apart from those of any other Person;

     (x) enter into any contract or agreement with any Person, except upon terms and
conditions that are commercially reasonable and intrinsically fair and substantially similar
to those that would be available on an arms-length basis with third parties other than such
Person;

     (xi) seek its dissolution or winding up in whole or in part;

     (xii) fail to correct any known misunderstandings regarding the separate identity of
Seller and the Originator or any principal or Affiliate thereof or any other Person;

     (xiii) guarantee, become obligated for, or hold itself out to be responsible for the
debt of another Person;

     (xiv) make any loan or advances to any third party, including any principal or
Affiliate, or hold evidence of indebtedness issued by any other Person (other than cash and
investment-grade securities);

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     (xv) fail to file its own separate tax return, or file a consolidated federal income
tax return with any other Person, except as may be required by the Internal Revenue Code and
regulations;

     (xvi) fail either to hold itself out to the public as a legal entity separate and
distinct from any other Person or to conduct its business solely in its own name in order
not (a) to mislead others as to the identity with which such other party is transacting
business, or (b) to suggest that it is responsible for the debts of any third party
(including any of its principals or Affiliates);

     (xvii) fail to maintain adequate capital for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its contemplated
business operations;

     (xviii) file or consent to the filing of any petition, either voluntary or involuntary,
to take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization
statute, or make an assignment for the benefit of creditors;

     (xix) except as may be required by the Internal Revenue Code and regulations, share any
common logo with or hold itself out as or be considered as a department or division of (a)
any of its principals or affiliates, (b) any Affiliate of a principal or (c) any other
Person;

     (xx) permit any transfer (whether in one or more transactions) of any direct or
indirect ownership interest in the Seller to the extent it has the ability to control the
same, unless the Seller delivers to the Administrative Agent and each Purchaser Agent an
acceptable non-consolidation opinion and the Administrative Agent consents to such transfer;

     (xxi) fail to maintain separate financial statements, showing its assets and
liabilities separate and apart from those of any other Person;

     (xxii) fail to pay its own liabilities and expenses only out of its own funds;

     (xxiii) fail to pay the salaries of its own employees in light of its contemplated
business operations;

     (xxiv) acquire the obligations or securities of its Affiliates or stockholders;

     (xxv) fail to allocate fairly and reasonably any overhead expenses that are shared with
an Affiliate, including paying for office space and services performed by any employee of an
Affiliate;

     (xxvi) fail to use separate invoices and bank accounts;

     (xxvii) pledge its assets for the benefit of any other Person, other than with respect
to payment of the indebtedness to the Secured Parties hereunder;

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     (xxviii) fail at any time to have at least one independent director (an
“Independent Director”) who is not and has not been for at least five years a
director, officer, employee, trade credit or shareholder (or spouse, parent, sibling or
child of the foregoing) of (a) the Servicer, (b) the Seller, (c) any principal of the
Servicer, (d) any Affiliate of the Servicer, or (e) any Affiliate of any principal of the
Servicer; provided, however, such Independent Director may be an independent director of
another special purpose entity affiliated with the Servicer or fail to ensure that all
limited liability company action relating to the selection, maintenance or replacement of
the Independent Director are duly authorized by the unanimous vote of the board of directors
(including the Independent Director);

     (xxix) to provide that the unanimous consent of all directors (including the consent of
the Independent Director) is required for the Seller to (a) dissolve or liquidate, in whole
or part, or institute proceedings to be adjudicated bankrupt or insolvent, (b) institute or
consent to the institution of bankruptcy or insolvency proceedings against it, (c) file a
petition seeking or consent to reorganization or relief under any applicable federal or
state law relating to bankruptcy or insolvency, (d) seek or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for
the Seller, (e) make any assignment for the benefit of the Seller’s creditors, (f) admit in
writing its inability to pay its debts generally as they become due, or (g) take any action
in furtherance of any of the foregoing; and

     (xxx) take or refrain from taking, as applicable, each of the activities specified in
the non-consolidation opinion of Patton Boggs LLP, dated as of the date hereof, upon which
the conclusions expressed therein are based.

     (v) Confirmation from the Originator. The Seller has received in writing from the
Originator confirmation that the Originator will not cause the Seller to file a voluntary petition
under the Bankruptcy Code or Insolvency Laws. Each of the Seller and the Originator is aware that
in light of the circumstances described in the preceding sentence and other relevant facts, the
filing of a voluntary petition under the Bankruptcy Code for the purpose of making any Collateral
or any other assets of the Seller available to satisfy claims of the creditors of the Originator
would not result in making such assets available to satisfy such creditors under the Bankruptcy
Code.

     (w) Investment Company Act. The Seller is not, and is not controlled by, an
“investment company” within the meaning of the 40 Act, as amended, or is exempt from the provisions
of the 40 Act.

     (x) ERISA. The present value of all benefits vested under all “employee pension
benefit plans,” as such term is defined in Section 3 of ERISA, maintained by the Seller, or in
which employees of the Seller are entitled to participate, as from time to time in effect (herein
called the “Pension Plans”), does not exceed the value of the assets of the Pension Plan
allocable to such vested benefits (based on the value of such assets as of the last annual
valuation date). No prohibited transactions, accumulated funding deficiencies, withdrawals or
reportable events have occurred with respect to any Pension Plans that, in the aggregate, could
subject the Seller to any material tax, penalty or other liability. No notice of intent to
terminate a Pension Plan has been billed, nor has any Pension Plan been terminated under Section
4041(f) of ERISA, nor has

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the Pension Benefit Guaranty Corporation instituted proceedings to terminate, or appoint a
trustee to administer a Pension Plan and no event has occurred or condition exists that might
constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan.

     (y) [Reserved].

     (z) Compliance with Law. The Seller has complied in all respects with all Applicable
Laws to which it may be subject, and no item of Collateral contravenes any Applicable Laws
(including, without limitation, all applicable predatory and abusive lending laws and all laws,
rules and regulations relating to licensing, truth in lending, fair credit billing, fair credit
reporting, equal credit opportunity, fair debt collection practices, and privacy).

     (aa) Credit and Collection Policy. The Seller has complied in all material respects
with the Credit and Collection Policy with respect to all of the Collateral.

     (bb) Collections. The Seller acknowledges that all Collections received by it or its
Affiliates with respect to the Collateral are held and shall be held in trust for the benefit of
the Secured Parties until deposited into the Collection Account within two Business Days from
receipt as required herein.

     (cc) Set-Off, etc. No Collateral has been compromised, adjusted, extended, satisfied,
subordinated (other than Subordinated Loans), rescinded, set-off or modified by the Seller, the
Originator or the Obligor thereof, and no Collateral is subject to compromise, adjustment,
extension, satisfaction, subordination (other than Subordinated Loans), rescission, set-off,
counterclaim, defense, abatement, suspension, deferment, deduction, reduction, termination or
modification, whether arising out of transactions concerning the Collateral or otherwise, by the
Seller, the Originator or the Obligor with respect thereto, except for amendments to such
Collateral otherwise permitted under Section 6.4(a) of this Agreement and in accordance
with the Credit and Collection Policy.

     (dd) Full Payment. The Seller has no knowledge of any fact which should lead it to
expect that any Collateral will not be paid in full.

     (ee) Accuracy of Representations and Warranties. Each representation or warranty by
the Seller contained herein or in any certificate or other document furnished by the Seller
pursuant hereto or in connection herewith is true and correct in all material respects.

     (ff) Representations and Warranties in Sale Agreement. The representations and
warranties made by the Originator to the Seller in the Sale Agreement are hereby remade by the
Seller on each date to which they speak in the Sale Agreement as if such representations and
warranties were set forth herein. For purposes of this Section 4.1(ff), such
representations and warranties are incorporated herein by reference as if made by the Seller to the
Administrative Agent, each Purchaser Agent and each of the Secured Parties under the terms hereof
mutatis mutandis.

     (gg) Reaffirmation of Representations and Warranties by the Seller. On each day that
any Advance is made hereunder, the Seller shall be deemed to have certified that all

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representations and warranties described in Section 4.1 hereof are correct on and as
of such day as though made on and as of such day.

     (hh) Participation, Acquired and Assigned Loans. The participations created with
respect to the Participation Loans and the sale to the Originator with respect to the Assigned
Loans do not violate any provisions of the underlying Required Asset Documents and such documents
do not contain any express or implied prohibitions on participations or sales of such Loans.

     (ii) Environmental.

     (i) Each item of the Related Property is in compliance with all applicable
Environmental Laws, and there is no violation of any Environmental Law with respect to such
Related Property and there are no conditions relating to such Related Property that could
give rise to liability under any applicable Environmental Laws.

     (ii) None of the Related Property contains, or has previously contained, any Materials
of Environmental Concern at, on or under the Related Property in amounts or concentrations
that constitute or constituted a violation of, or could give rise to liability under,
Environmental Laws.

     (iii) None of the Seller, the Originator nor the Servicer has received any written or
verbal notice of, or inquiry from any Governmental Authority regarding, any violation,
alleged violation, non-compliance, liability or potential liability regarding environmental
matters or compliance with Environmental Laws with regard to any of the Related Property,
nor does any such Person have knowledge or reason to believe that any such notice will be
received or is being threatened.

     (iv) Materials of Environmental Concern have not been transported or disposed of from
the Related Property, or generated, treated, stored or disposed of at, on or under any of
the Related Property or any other location, in each case by or on behalf of the Seller, the
Originator and/or the Servicer in violation of, or in a manner that would be reasonably
likely to give rise to liability under, any applicable Environmental Law.

     (v) No judicial proceeding or governmental or administrative action is pending or, to
the best knowledge of the Seller, the Originator and/or the Servicer, threatened, under any
Environmental Law to which any of the Seller, the Originator and/or the Servicer is or will
be named as a party, nor are there any consent decrees or other decrees, consent orders,
administrative orders or other orders, or other administrative or judicial requirements,
outstanding under any Environmental Law with respect to any of the Seller, the Originator,
the Servicer or the Related Property.

     (vi) There has been no release or threat of release of Materials of Environmental
Concern at or from any of the Related Property, or arising from or related to the operations
(including, without limitation, disposal) of any of the Seller, the Originator and/or the
Servicer in connection with the Related Property in violation of or in amounts or in a
manner that could give rise to liability under Environmental Laws.

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     (jj) USA PATRIOT Act. Neither the Seller nor any Affiliate of the Seller is (i) a
country, territory, organization, person or entity named on an Office of Foreign Asset Control
(OFAC) list, (ii) a Person that resides or has a place of business in a country or territory named
on such lists or which is designated as a “Non-Cooperative Jurisdiction” by the Financial Action
Task Force on Money Laundering, or whose subscription funds are transferred from or through such a
jurisdiction; (iii) a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act, i.e., a
foreign bank that does not have a physical presence in any country and that is not affiliated with
a bank that has a physical presence and an acceptable level of regulation and supervision; or (iv)
a person or entity that resides in or is organized under the laws of a jurisdiction designated by
the United States Secretary of the Treasury under Sections 311 or 312 of the USA PATRIOT Act as
warranting special measures due to money laundering concerns.

     The representations and warranties in Section 4.1(m) shall survive the termination of
this Agreement and such representations and warranties may not be waived by any party hereto.

     Section 4.2 Representations and Warranties of the Seller Relating to the Agreement and the
Collateral.

     The Seller hereby represents and warrants, as of the Closing Date and as of each Addition
Date:

     (a) Binding Obligation, Valid Security Interest.

     (i) This Agreement and each other Transaction Document to which the Seller is a party
each constitute a legal, valid and binding obligation of the Seller, enforceable against the
Seller in accordance with its respective terms, except as such enforceability may be limited
by Insolvency Laws and except as such enforceability may be limited by general principles of
equity (whether considered in a suit at law or in equity).

     (ii) This Agreement constitutes a grant of a security interest in all of the Collateral
to the Administrative Agent, as agent for the Secured Parties, which upon the delivery of
the Required Asset Documents to the Collateral Custodian and the filing of the financing
statements described in Section 4.1(m) and, in the case of Additional Assets on the
applicable Addition Date, shall be a first priority perfected security interest in all
Collateral, subject only to Permitted Liens. Neither the Seller nor any Person claiming
through or under Seller shall have any claim to or interest in the Collection Account,
except for the interest of Seller in such property as a debtor for purposes of the UCC.

     (b) Eligibility of Collateral. As of the Closing Date and each Addition Date, (i) the
Asset List and the information contained in the Borrowing Notice delivered pursuant to Section
2.3 is an accurate and complete listing in all material respects of all Collateral as of the
Cut-Off Date and the information contained therein with respect to the identity of such Collateral
and the amounts owing thereunder is true and correct in all material respects as of the related
Cut-Off Date, (ii) each such Asset that is part of the Borrowing Base is an Eligible Asset as of
such date, (iii) each such item of Collateral is free and clear of any Lien of any Person (other
than Permitted Liens) and in compliance with all Applicable Laws, (iv) with respect to each such
item of Collateral, all consents, licenses, approvals or authorizations of or registrations or
declarations of

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any Governmental Authority required to be obtained, effected or given by the Seller in
connection with the grant of a security interest in such Collateral to the Administrative Agent as
agent for the Secured Parties have been duly obtained, effected or given and are in full force and
effect, and (v) the representations and warranties set forth in Section 4.2(a) are true and
correct with respect to each item of Collateral.

     (c) No Fraud. Each Asset was originated without any fraud or material
misrepresentation by the Originator or, to the best of the Seller’s knowledge, on the part of the
Obligor.

     (d) Loans Secured by Real Property. Less than 45% of the Aggregate Outstanding Asset
Balance of the Collateral as of the Closing Date consists of Loans principally secured by real
property, and less than 45% of the Aggregate Outstanding Asset Balance of the Collateral as of each
Addition Date shall consist of Loans principally secured by real property.

     Section 4.3 Representations and Warranties of the Servicer.

     The Servicer represents and warrants as follows:

     (a) Organization and Good Standing. The Servicer has been duly organized and is
validly existing as a limited liability company in good standing under the laws of the State of
Delaware, with all requisite company power and authority to own or lease its properties and to
conduct its business as such business is presently conducted and to enter into and perform its
obligations pursuant to this Agreement.

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

     (c) Power and Authority; Due Authorization; Execution and Delivery. The Servicer (i)
has all necessary power, authority and legal right to (a) execute and deliver this Agreement and
the other Transaction Documents to which it is a party, (b) carry out the terms of the Transaction
Documents to which it is a party, and (ii) has duly authorized by all necessary company action the
execution, delivery and performance of this Agreement and the other Transaction Documents to which
it is a party. This Agreement and each other Transaction Document to which the Servicer is a party
have been duly executed and delivered by the Servicer.

     (d) Binding Obligation. This Agreement and each other Transaction Document to which
the Servicer is a party constitutes a legal, valid and binding obligation of the Servicer
enforceable against the Servicer in accordance with its respective terms, except as such
enforceability may be limited by Insolvency Laws and general principles of equity (whether
considered in a suit at law or in equity).

     (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the other Transaction Documents to which it is a party and the fulfillment of the terms hereof
and thereof will not (i) conflict with, result in any breach of any of the terms and

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provisions of, or constitute (with or without notice or lapse of time or both) a default
under, the Servicer’s operating agreement or any Contractual Obligation of the Servicer, (ii)
result in the creation or imposition of any Lien upon any of the Servicer’s properties pursuant to
the terms of any such Contractual Obligation, other than this Agreement, or (iii) violate any
Applicable Law.

     (f) No Proceedings. There is no litigation, proceedings or investigations pending or,
to the best knowledge of the Servicer, threatened against the Servicer, before any Governmental
Authority (i) asserting the invalidity of this Agreement or any other Transaction Document to which
the Servicer is a party, (ii) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or any other Transaction Document to which the Servicer is a party
or (iii) seeking any determination or ruling that could reasonably be expected to have Material
Adverse Effect.

     (g) All Consents Required. All approvals, authorizations, consents, orders, licenses
or other actions of any Person or of any Governmental Authority (if any) required for the due
execution, delivery and performance by the Servicer of this Agreement and any other Transaction
Document to which the Servicer is a party have been obtained.

     (h) Reports Accurate. All Servicer Certificates and other written and electronic
information, exhibits, financial statements, documents, books, records or reports furnished by the
Servicer to the Administrative Agent, each Purchaser Agent or any Purchaser in connection with this
Agreement are accurate, true and correct.

     (i) Credit and Collection Policy. The Servicer has complied in all material respects
with the Credit and Collection Policy with regard to the origination, underwriting and servicing of
the Assets.

     (j) Collections. The Servicer acknowledges that all Collections received by it or its
Affiliates with respect to the Collateral are held and shall be held in trust for the benefit of
the Secured Parties until deposited into the Collection Account within two Business Days from
receipt as required herein.

     (k) Bulk Sales. The execution, delivery and performance of this Agreement do not
require compliance with any “bulk sales” act or similar law by the Servicer.

     (l) Solvency. The Servicer is not the subject of any Insolvency Proceedings or
Insolvency Event. The transactions under this Agreement and any other Transaction Document to
which the Servicer is a party do not and will not render the Servicer not Solvent and the Servicer
shall deliver to the Administrative Agent and each Purchaser Agent on the Closing Date a
certification in the form of Exhibit E-2.

     (m) Taxes. The Servicer has filed or caused to be filed all tax returns that are
required to be filed by it. The Servicer has paid or made adequate provisions for the payment of
all Taxes and all assessments made against it or any of its property (other than any amount of Tax
the validity of which is currently being contested in good faith by appropriate proceedings and
with respect to which reserves in accordance with GAAP have been provided on the books of the
Servicer), and no tax lien has been filed and, to the Servicer’s knowledge, no claim is being
asserted, with respect to any such Tax, fee or other charge.

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     (n) Exchange Act Compliance; Regulations T, U and X. None of the transactions
contemplated herein will violate or result in a violation of Section 7 of the Securities Exchange
Act, or any regulations issued pursuant thereto, including, without limitation, Regulations T, U
and X of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. The Servicer
does not own or intend to carry or purchase, and no proceeds from the Advances will be used to
carry or purchase, any “margin stock” within the meaning of Regulation U or to extend “purpose
credit” within the meaning of Regulation U.

     (o) Security Interest. The Servicer will take all steps necessary to ensure that the
Seller has granted a security interest (as defined in the UCC) to the Administrative Agent, as
agent for the Secured Parties, in the Collateral, which is enforceable in accordance with
Applicable Law upon execution and delivery of this Agreement. Upon the filing of UCC-1 financing
statements naming the Administrative Agent as secured party and the Seller as debtor, the
Administrative Agent, as agent for the Secured Parties, shall have a first priority perfected
security interest in the Collateral (except for any Permitted Liens). All filings (including,
without limitation, such UCC filings) as are necessary for the perfection of the Secured Parties’
security interest in the Collateral have been (or prior to the date of the applicable Advance will
be) made.

     (p) ERISA. The present value of all benefits vested under all “employee pension
benefit plans,” as such term is defined in Section 3 of ERISA, maintained by the Servicer, or in
which employees of the Servicer are entitled to participate, as from time to time in effect (herein
called the “Pension Plans”), does not exceed the value of the assets of the Pension Plan
allocable to such vested benefits (based on the value of such assets as of the last annual
valuation date). No prohibited transactions, accumulated funding deficiencies, withdrawals or
reportable events have occurred with respect to any Pension Plans that, in the aggregate, could
subject the Servicer to any material tax, penalty or other liability. No notice of intent to
terminate a Pension Plan has been billed, nor has any Pension Plan been terminated under Section
4041(f) of ERISA, nor has the Pension Benefit Guaranty Corporation instituted proceedings to
terminate, or appoint a trustee to administer, a Pension Plan and no event has occurred or
condition exists that might constitute grounds under Section 4042 of ERISA for the termination of,
or the appointment of a trustee to administer, any Pension Plan.

     (q) Investment Company Act. The Servicer is not, and is not controlled by, an
“investment company” within the meaning of the 40 Act, as amended, or is exempt from the provisions
of the 40 Act.

     (r) USA PATRIOT Act. Neither the Servicer nor any Affiliate of the Servicer is:
(i) a country, territory, organization, person or entity named on an OFAC list; (ii) a Person that
resides or has a place of business in a country or territory named on such lists or which is
designated as a “Non-Cooperative Jurisdiction” by the Financial Action Task Force on Money
Laundering, or whose subscription funds are transferred from or through such a jurisdiction;
(iii) a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act, i.e., a foreign bank that
does not have a physical presence in any country and that is not affiliated with a bank that has a
physical presence and an acceptable level of regulation and supervision; or (iv) a person or entity
that resides in or is organized under the laws of a jurisdiction designated by the United

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States Secretary of the Treasury under Sections 311 or 312 of the USA PATRIOT Act as
warranting special measures due to money laundering concerns.

     Section 4.4 Representations and Warranties of the Backup Servicer.

     The Backup Servicer in its individual capacity and as Backup Servicer represents and warrants
as follows:

     (a) Organization and Corporate Power. It is a duly organized and validly existing
national banking association in good standing under the laws of the United States. It has full
corporate power, authority and legal right to execute, deliver and perform its obligations as
Backup Servicer under this Agreement.

     (b) Due Authorization. The execution and delivery of this Agreement and the
consummation of the transactions provided for herein have been duly authorized by all necessary
association action on its part, either in its individual capacity or as Backup Servicer, as the
case may be.

     (c) No Conflict. The execution and delivery of this Agreement, the performance of the
transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with,
result in any breach of any of the material terms and provisions of, or constitute (with or without
notice or lapse of time or both) a default under any indenture, contract, agreement, mortgage, deed
of trust, or other instrument to which the Backup Servicer is a party or by which it or any of its
property is bound.

     (d) No Violation. The execution and delivery of this Agreement, the performance of
the transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with
or violate, in any material respect, any Applicable Law.

     (e) All Consents Required. All approvals, authorizations, consents, orders or other
actions of any Person or Governmental Authority applicable to the Backup Servicer, required in
connection with the execution and delivery of this Agreement, the performance by the Backup
Servicer of the transactions contemplated hereby and the fulfillment by the Backup Servicer of the
terms hereof have been obtained.

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

     Section 4.5 Representations and Warranties of the Collateral Custodian.

     The Collateral Custodian in its individual capacity and as Collateral Custodian represents and
warrants as follows:

     (a) Organization and Corporate Power. It is a duly organized and validly existing
national banking association in good standing under the laws of the United States. It has full

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corporate power, authority and legal right to execute, deliver and perform its obligations as
Collateral Custodian under this Agreement.

     (b) Due Authorization. The execution and delivery of this Agreement and the
consummation of the transactions provided for herein have been duly authorized by all necessary
association action on its part, either in its individual capacity or as Collateral Custodian, as
the case may be.

     (c) No Conflict. The execution and delivery of this Agreement, the performance of the
transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with,
result in any breach of any of the material terms and provisions of, or constitute (with or without
notice or lapse of time or both) a default under any indenture, contract, agreement, mortgage, deed
of trust, or other instrument to which the Collateral Custodian is a party or by which it or any of
its property is bound.

     (d) No Violation. The execution and delivery of this Agreement, the performance of
the Transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with
or violate, in any material respect, any Applicable Law.

     (e) All Consents Required. All approvals, authorizations, consents, orders or other
actions of any Person or Governmental Authority applicable to the Collateral Custodian, required in
connection with the execution and delivery of this Agreement, the performance by the Collateral
Custodian of the transactions contemplated hereby and the fulfillment by the Collateral Custodian
of the terms hereof have been obtained.

     (f) Validity, Etc. The Agreement constitutes the legal, valid and binding obligation
of the Collateral Custodian, enforceable against the Collateral Custodian in accordance with its
terms, except as such enforceability may be limited by applicable Insolvency Laws and general
principles of equity (whether considered in a suit at law or in equity).

     Section 4.6 Breach of Certain Representations and Warranties.

     If on any day an Asset is (or becomes) a Warranty Asset, no later than two Business Days
following the earlier of knowledge by the Seller of such Asset becoming a Warranty Asset or receipt
by the Seller from the Administrative Agent or the Servicer of written notice thereof, the Seller
shall either: (a) make a deposit to the Collection Account (for allocation pursuant to Section
2.9 or Section 2.10, as applicable) in immediately available funds in an amount equal
to the sum of (i) the amount which, if deposited to the Collection Account on such date, would
cause the Availability as of such date (after giving effect to such Warranty Asset) to be greater
than or equal to zero, (ii) any outstanding Servicer Advances thereon, (iii) any accrued and unpaid
interest, (iv) all Hedge Breakage Costs owed to the relevant Hedge Counterparty for any termination
of one or more Hedge Transactions, in whole or in part, as required by the terms of any Hedging
Agreement and (v) in the case of a Loan, any costs and damages incurred in connection with any
violation by such Loan of any predatory- or abusive-lending law; or (b) subject to the satisfaction
of the conditions in Section 2.18, substitute for such Warranty Asset a Substitute Asset.
In either of the foregoing instances, each such Warranty Asset and any Related Security may be
released from the Collateral (in the Seller’s discretion) and the Borrowing Base

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shall be reduced by the Outstanding Asset Balance of each such Warranty Asset and, if
applicable, increased by the Outstanding Asset Balance of each Substitute Asset. Upon confirmation
of the deposit of such Retransfer Price into the Collection Account or the delivery by the Seller
of a Substitute Asset for each Warranty Asset (the “Retransfer Date”), such Warranty Asset
shall not be included in the Borrowing Base (and, if and when the Seller elects to accept the
retransfer of such Warranty Asset, the Collateral) and, as applicable, the Substitute Asset shall
be included in the Collateral. Upon the Retransfer Date of each Warranty Asset, the Administrative
Agent, as agent for the Secured Parties, shall (if and when the Seller elects to accept the
retransfer of such Warranty Asset) automatically and without further action be deemed to release to
the Seller, without recourse, representation or warranty, the security interest of the
Administrative Agent, as agent for the Secured Parties in, to and under such Warranty Asset and all
future monies due or to become due with respect thereto, the Related Security, all Proceeds of such
Warranty Asset, Recoveries and Insurance Proceeds relating thereto, all rights to security for any
such Warranty Asset, and all Proceeds and products of the foregoing. The Administrative Agent, as
agent for the Secured Parties, shall (if and when the Seller elects to accept the release of such
Warranty Asset), at the sole expense of the Servicer, execute such documents and instruments as may
be prepared by the Servicer on behalf of the Seller and take other such actions as shall reasonably
be requested by the Seller to effect the release of such Warranty Asset pursuant to this
Section 4.6.

ARTICLE V

GENERAL COVENANTS

     Section 5.1 Affirmative Covenants of the Seller.

     From the date hereof until the Collection Date:

     (a) Compliance with Laws. The Seller will comply in all material respects with all
Applicable Laws, including those with respect to the Collateral or any part thereof.

     (b) Preservation of Company Existence. The Seller will preserve and maintain its
company existence, rights, franchises and privileges in the jurisdiction of its formation, and
qualify and remain qualified in good standing as a limited liability company in each jurisdiction
where the failure to preserve and maintain such existence, rights, franchises, privileges and
qualification has had, or could reasonably be expected to have, a Material Adverse Effect.

     (c) Performance and Compliance with Collateral. The Seller will, at its expense,
timely and fully perform and comply (or cause the Originator to perform and comply pursuant to the
Sale Agreement) with all provisions, covenants and other promises required to be observed by it
under the Collateral and all other agreements related to such Collateral.

     (d) Keeping of Records and Books of Account. The Seller will maintain and implement
administrative and operating procedures (including, without limitation, an ability to recreate
records evidencing the Collateral in the event of the destruction of the originals thereof), and
keep and maintain all documents, books, records and other information reasonably necessary or
advisable for the collection of all or any portion of the Collateral.

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     (e) Originator’s Collateral. With respect to the Collateral acquired by the Seller,
the Seller will (i) acquire such Collateral pursuant to and in accordance with the terms of the
Sale Agreement, (ii) (at the Servicer’s expense) take all action necessary to perfect, protect and
more fully evidence the Seller’s ownership of such Collateral free and clear of any Lien other than
the Lien created hereunder and Permitted Liens, including, without limitation, (a) filing and
maintaining (at the Servicer’s expense), effective financing statements against the Originator in
all necessary or appropriate filing offices, and filing continuation statements, amendments or
assignments with respect thereto in such filing offices, and (b) executing or causing to be
executed such other instruments or notices as may be necessary or appropriate, (iii) permit the
Administrative Agent, each Purchaser Agent or their respective agents or representatives to visit
the offices of the Seller during normal office hours and upon reasonable notice examine and make
copies of all documents, books, records and other information concerning the Collateral and discuss
matters related thereto with any of the officers or employees of the Seller having knowledge of
such matters, and (iv) take all additional action that the Administrative Agent or any Purchaser
Agent may reasonably request to perfect, protect and more fully evidence the respective interests
of the parties to this Agreement in the Collateral.

     (f) Delivery of Collections. The Seller will pay to the Servicer promptly (but in no
event later than two Business Days after receipt) all Collections received by Seller in respect of
the Collateral and cause the same to be promptly deposited into the Collection Account by the
Servicer in accordance with Section 5.4(k).

     (g) Separate Limited Liability Company Existence. The Seller shall be in compliance
with the Special Purpose Entity requirements set forth in Section 4.1(u).

     (h) Credit and Collection Policy. The Seller will (a) comply in all material respects
with the Credit and Collection Policy in regard to the Collateral, and (b) furnish to the
Administrative Agent and each Purchaser Agent, prior to its effective date, prompt notice of any
material changes in the Credit and Collection Policy. The Seller may agree to or otherwise permit
to occur changes in the Credit and Collection Policy which would not impair the collectibility of
any of the Collateral or otherwise adversely affect the interests or remedies of the Administrative
Agent or the Secured Parties under this Agreement or any other Transaction Document. The Seller
may not agree to or otherwise permit to occur changes in the Credit and Collection Policy which
would impair the collectibility of any of the Collateral or otherwise adversely affect the
interests or remedies of the Administrative Agent or the Secured Parties under this Agreement or
any other Transaction Document, without the prior written consent of the Administrative Agent and
each Purchaser Agent; provided that the prior written consent will not be required if any
amendment, modification or change was mandated by any regulatory authority having jurisdiction over
either of the Originator and the Servicer.

     (i) Termination Events. The Seller will provide the Administrative Agent and each
Purchaser Agent with immediate written notice of the occurrence of each Termination Event and each
Unmatured Termination Event of which the Seller has knowledge or has received notice. In addition,
no later than two Business Days following the Seller’s knowledge or notice of the occurrence of any
Termination Event or Unmatured Termination Event, the Seller will provide to the Administrative
Agent and each Purchaser Agent a written statement of the chief financial

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officer or chief accounting officer of Seller setting forth the details of such event and the
action that the Seller proposes to take with respect thereto.

     (j) Taxes. The Seller will file and pay any and all Taxes required to meet the
obligations of the Transaction Documents.

     (k) Use of Proceeds. The Seller will use the proceeds of the Advances only to acquire
Collateral or to make distributions to its members in accordance with the terms hereof.

     (l) Obligor Notification Forms. The Seller shall furnish the Administrative Agent
with an appropriate power of attorney to send (at the Administrative Agent’s discretion after the
occurrence of a Termination Event or an Unmatured Termination Event) Obligor notification forms to
give notice to the Obligors of the Secured Parties’ interest in the Collateral and the obligation
to make payments as directed by the Administrative Agent.

     (m) Adverse Claims. The Seller will not create, or participate in the creation of, or
permit to exist, any Liens in relation to each Lock-Box Account other than as disclosed to the
Administrative Agent and each Purchaser Agent.

     (n) Seller’s Collateral. With respect to each item of Collateral, the Seller will (i)
take all action necessary to perfect, protect and more fully evidence the Secured Parties’ security
interest in such Collateral, including, without limitation, (a) filing and maintaining (at the
Servicer’s expense), effective financing statements against the Seller in all necessary or
appropriate filing offices, and filing continuation statements, amendments or assignments with
respect thereto in such filing offices, and (b) executing or causing to be executed such other
instruments or notices as may be necessary or appropriate and (ii) take all additional action that
the Administrative Agent may reasonably request to perfect, protect and more fully evidence the
respective interests of the parties to this Agreement in such Collateral.

     (o) Notices. The Seller will furnish to the Administrative Agent and each Purchaser
Agent:

     (i) Income Tax Liability. Within ten Business Days after the receipt of
revenue agent reports or other written proposals, determinations or assessments of the
Internal Revenue Service or any other taxing authority which propose, determine or otherwise
set forth positive adjustments to the Tax liability of any Affiliated group (within the
meaning of Section 1504(a)(l) of the Internal Revenue Code of 1986 (as amended from time to
time)) which equal or exceed $1,000,000 in the aggregate, telephonic, telex or telecopy
notice (confirmed in writing within five Business Days) specifying the nature of the items
giving rise to such adjustments and the amounts thereof;

     (ii) Auditors’ Management Letters. Promptly after the receipt thereof, any
auditors’ management letters are received by the Seller or by its accountants;

     (iii) Representations. Forthwith upon receiving knowledge of same, the Seller
shall notify the Administrative Agent and each Purchaser Agent if any representation or
warranty set forth in Section 4.1 was incorrect at the time it was given or deemed
to have

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been given and at the same time deliver to the Administrative Agent and each Purchaser
Agent a written notice setting forth in reasonable detail the nature of such facts and
circumstances. In particular, but without limiting the foregoing, the Seller shall notify
the Administrative Agent and each Purchaser Agent in the manner set forth in the preceding
sentence before any Funding Date of any facts or circumstances within the knowledge of the
Seller which would render any of the said representations and warranties untrue at the date
when such representations and warranties were made or deemed to have been made;

     (iv) ERISA. Promptly after receiving notice of any “reportable event” (as
defined in Title IV of ERISA) with respect to the Seller (or any ERISA Affiliate thereof), a
copy of such notice;

     (v) Proceedings. As soon as possible and in any event within three Business
Days after any executive officer of the Seller receives notice or obtains knowledge thereof,
of any settlement of, material judgment (including a material judgment with respect to the
liability phase of a bifurcated trial) in or commencement of any material labor controversy,
material litigation, material action, material suit or material proceeding before any court
or governmental department, commission, board, bureau, agency or instrumentality, domestic
or foreign, affecting the Collateral, the Transaction Documents, the Secured Parties’
interest in the Collateral, or the Seller, the Servicer or the Originator or any of their
Affiliates; provided, however, notwithstanding the foregoing, any settlement, judgment,
labor controversy, litigation, action, suit or proceeding affecting the Collateral, the
Transaction Documents, the Secured Parties’ interest in the Collateral, or the Seller, the
Servicer or the Originator or any of their Affiliates in excess of $2,500,000 or more shall
be deemed to be material for purposes of this Section 5.1(o); and

     (vi) Notice of Material Events. Promptly upon becoming aware thereof, notice
of any other event or circumstances that, in the reasonable judgment of the Seller, is
likely to have a Material Adverse Effect.

     (p) Other. The Seller will furnish to the Administrative Agent and each Purchaser
Agent promptly, from time to time, such other information, documents, records or reports respecting
the Collateral or the condition or operations, financial or otherwise, of Seller or Originator as
the Administrative Agent and each Purchaser Agent may from time to time reasonably request in order
to protect the interests of the Administrative Agent, each Purchaser Agent or the Secured Parties
under or as contemplated by this Agreement.

     Section 5.2 Negative Covenants of the Seller.

     From the date hereof until the Collection Date:

     (a) Other Business. Seller will not (i) engage in any business other than the
transactions contemplated by the Transaction Documents, (ii) incur any Indebtedness, obligation,
liability or contingent obligation of any kind other than pursuant to this Agreement or under any
Hedging Agreement required by Section 5.3(a), or (iii) form any Subsidiary or make any
Investments in any other Person.

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     (b) Collateral Not to be Evidenced by Instruments. The Seller will take no action to
cause any Collateral that is not, as of the Closing Date or the related Addition Date, as the case
may be, evidenced by an Instrument, to be so evidenced except in connection with the enforcement or
collection of such Collateral.

     (c) Security Interests. Except as otherwise permitted herein and in respect of any
Optional Sale and Permitted Securitization, the Seller will not sell, pledge, assign or transfer to
any other Person, or grant, create, incur, assume or suffer to exist any Lien on any Collateral,
whether now existing or hereafter transferred hereunder, or any interest therein, and the Seller
will not sell, pledge, assign or suffer to exist any Lien on its interest, if any, hereunder. The
Seller will promptly notify the Administrative Agent and each Purchaser Agent of the existence of
any Lien on any Collateral and the Seller shall defend the right, title and interest of the
Administrative Agent as agent for the Secured Parties in, to and under the Collateral against all
claims of third parties; provided, however, that nothing in this Section 5.2(c) shall
prevent or be deemed to prohibit the Seller from suffering to exist Permitted Liens upon any of the
Collateral.

     (d) Mergers, Acquisitions, Sales, etc. The Seller will not be a party to any merger
or consolidation, or purchase or otherwise acquire any of the assets or any stock of any class of,
or any partnership or joint venture interest in, any other Person, or sell, transfer, convey or
lease any of its assets, or sell or assign with or without recourse any Collateral or any interest
therein (other than pursuant hereto or to the Sale Agreement).

     (e) Deposits to Special Accounts. Except as otherwise provided in the Lock-Box
Agreement, the Seller will not deposit or otherwise credit, or cause or permit to be so deposited
or credited, to any Lock-Box Account cash or cash proceeds other than Collections in respect of the
Collateral.

     (f) Restricted Payments. The Seller shall not make any Restricted Junior Payment,
except that, so long as no Termination Event or Unmatured Termination Event has occurred and is
continuing or would result therefrom, the Seller may declare and make distributions to its members
on their membership interests.

     (g) Change of Name or Location of Loan Files. The Seller shall not (x) change its
name, move the location of its principal place of business and chief executive office, change the
offices where it keeps the records from the location referred to in Section 13.2, or change
the jurisdiction of its formation, or (y) move, or consent to the Collateral Custodian or Servicer
moving, the Required Asset Documents and the Asset Files from the location thereof on the Closing
Date, unless the Seller has given at least thirty (30) days’ written notice to the Administrative
Agent and has taken all actions required under the UCC of each relevant jurisdiction in order to
continue the first priority perfected security interest of the Administrative Agent, as agent for
the Secured Parties, in the Collateral.

     (h) Accounting of Purchases. Other than for tax and consolidated accounting purposes,
the Seller will not account for or treat (whether in financial statements or otherwise) the
transactions contemplated by the Sale Agreement in any manner other than as a sale of the
Collateral by the Originator to the Seller.

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     (i) ERISA Matters. The Seller will not (a) engage or permit any ERISA Affiliate to
engage in any prohibited transaction for which an exemption is not available or has not previously
been obtained from the United States Department of Labor, (b) permit to exist any accumulated
funding deficiency, as defined in Section 302(a) of ERISA and Section 412(a) of the Code, or
funding deficiency with respect to any Benefit Plan other than a Multiemployer Plan, (c) fail to
make any payments to a Multiemployer Plan that the Seller or any ERISA Affiliate may be required to
make under the agreement relating to such Multiemployer Plan or any law pertaining thereto, (d)
terminate any Benefit Plan so as to result in any liability, or (e) permit to exist any occurrence
of any reportable event described in Title IV of ERISA.

     (j) Operating Agreement; Sale Agreement. The Seller will not amend, modify, waive or
terminate any provision of its operating agreement or the Sale Agreement without the prior written
consent of the Administrative Agent and each Purchaser Agent.

     (k) Changes in Payment Instructions to Obligors. The Seller will not add or terminate
any bank as a Lock-Box Bank or any Lock-Box Account from those listed in Schedule II or
make any change, or permit Servicer to make any change, in its instructions to Obligors regarding
payments representing Collections to be made to Seller or Servicer or payments representing
Collections to be made to any Lock-Box Bank, unless the Administrative Agent has consented to such
addition, termination or change (which consent shall not be unreasonably withheld) and has received
duly executed copies of Lock-Box Agreements with each new Lock-Box Bank or with respect to each new
Lock-Box Account, as the case may be.

     (l) Extension or Amendment of Collateral. The Seller will not, except as otherwise
permitted in Section 6.4(a), waive, extend, amend or otherwise modify, or permit the
Servicer to extend, amend or otherwise modify, the terms of any Collateral (including the Related
Security) provided, however, that no waiver, extension, modification or alteration otherwise
permitted under Section 6.4(a) shall (i) alter the status of any Asset as a Delinquent
Asset or Charged-Off Asset, (ii) in the reasonable judgment of the Administrative Agent, prevent or
delay any Asset from becoming a Delinquent Asset or Charged-Off Asset, or (iii) limit and/or impair
the rights of the Administrative Agent or the Secured Parties under this Agreement.

     (m) Credit and Collection Policy. The Seller will not agree to or otherwise permit to
occur changes in the Credit and Collection Policy which would impair the collectibility of any of
the Collateral or otherwise adversely affect the interests or remedies of the Administrative Agent
or the Secured Parties under this Agreement or any other Transaction Document, without the prior
written consent of the Administrative Agent and each Purchaser Agent; provided that the prior
written consent will not be required if any amendment, modification or change was mandated by any
regulatory authority having jurisdiction over either of the Originator and the Servicer.

     Section 5.3 Covenants of the Seller Relating to the Hedging of Assets.

     (a) On or prior to each Funding Date, the Seller shall enter into one or more Hedge
Transactions for that Advance; provided, that each such Hedge Transaction shall:

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     (i) be entered into with a Hedge Counterparty and governed by a Hedging Agreement;

     (ii) have a schedule of monthly calculation periods the first of which commences on the
Funding Date of that Advance and the last of which ends on the last Scheduled Payment due to
occur under or with respect to the Assets included in the Aggregate Outstanding Asset
Balance to which that Advance relates;

     (iii) have an amortizing notional amount such that the Hedge Notional Amount shall be
at least equal to the product of the Hedge Percentage and the portion of the Hedge Amount
represented by such Advance; and

     (iv) provide for two series of monthly payments to be netted against each other, one
such series being payments to be made by the Seller to a Hedge Counterparty (solely on a net
basis) by reference to a fixed rate for that Advance, and the other such series being
payments to be made by such Hedge Counterparty to the Administrative Agent (solely on a net
basis) at a floating rate equal to “USD-LIBOR-BBA” (as defined in the ISDA Definitions), the
net amount of which shall be paid into the Collection Account (if payable by such Hedge
Counterparty) or from the Collection Account to the extent funds are available under
Section 2.9(a)(i) and Section 2.10(a)(i) of this Agreement (if payable by
the Seller).

     (b) As additional security hereunder, Seller hereby assigns to the Administrative Agent, as
agent for the Secured Parties, all right, title and interest but none of the obligations of the
Seller in each Hedging Agreement, each Hedge Transaction, and all present and future amounts
payable by a Hedge Counterparty to Seller under or in connection with the respective Hedging
Agreement and Hedge Transaction(s) with that Hedge Counterparty (“Hedge Collateral”), and
grants a security interest to the Administrative Agent, as agent for the Secured Parties, in the
Hedge Collateral. Seller acknowledges that, as a result of that assignment, Seller may not,
without the prior written consent of the Administrative Agent, exercise any rights under any
Hedging Agreement or Hedge Transaction, except for Seller’s right under any Hedging Agreement to
enter into Hedge Transactions in order to meet the Seller’s obligations under Section
5.3(a) hereof. Nothing herein shall have the effect of releasing the Seller from any of its
obligations under any Hedging Agreement or any Hedge Transaction, nor be construed as requiring the
consent of the Administrative Agent or any Secured Party for the performance by Seller of any such
obligations.

     Section 5.4 Affirmative Covenants of the Servicer.

     From the date hereof until the Collection Date:

     (a) Compliance with Law. The Servicer will comply in all material respects with all
Applicable Laws, including those with respect to the Collateral or any part thereof.

     (b) Preservation of Company Existence. The Servicer will preserve and maintain its
company existence, rights, franchises and privileges in the jurisdiction of its formation, and
qualify and remain qualified in good standing as a limited liability company in each jurisdiction

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where the failure to preserve and maintain such existence, rights, franchises, privileges and
qualification has had, or could reasonably be expected to have, a Material Adverse Effect.

     (c) Obligations and Compliance with Collateral. The Servicer will duly fulfill and
comply with all obligations on the part of the Seller to be fulfilled or complied with under or in
connection with each Collateral and will do nothing to impair the rights of the Administrative
Agent, as agent for the Secured Parties, or of the Secured Parties in, to and under the Collateral.

     (d) Keeping of Records and Books of Account.

     (i) The Servicer will maintain and implement administrative and operating procedures
(including without limitation, an ability to recreate records evidencing Collateral in the
event of the destruction of the originals thereof), and keep and maintain all documents,
books, records and other information reasonably necessary or advisable for the collection of
all Collateral and the identification of the Collateral.

     (ii) The Servicer shall permit the Administrative Agent, each Purchaser Agent or their
respective agents or representatives, to visit the offices of the Servicer during normal
office hours and upon reasonable notice and examine and make copies of all documents, books,
records and other information concerning the Collateral and discuss matters related thereto
with any of the officers or employees of the Servicer having knowledge of such matters.

     (iii) The Servicer will on or prior to the date hereof, mark its master data processing
records and other books and records relating to the Collateral with a legend, acceptable to
the Administrative Agent and each Purchaser Agent, describing the sale of the Collateral
from the Originator to the Seller.

     (e) Preservation of Security Interest. The Servicer (at its own expense) will execute
and file such financing and continuation statements and any other documents that may be required by
any law or regulation of any Governmental Authority to preserve and protect fully the security
interest of the Administrative Agent as agent for the Secured Parties in, to and under the
Collateral.

     (f) Credit and Collection Policy. The Servicer will (a) comply in all material
respects with the Credit and Collection Policy in regard to the Collateral, and (b) furnish to the
Administrative Agent and each Purchaser Agent, prior to its effective date, prompt notice of any
material changes in the Credit and Collection Policy. The Servicer may agree to or otherwise
permit to occur changes in the Credit and Collection Policy which would not impair the
collectibility of any of the Collateral or otherwise adversely affect the interests or remedies of
the Administrative Agent or the Secured Parties under this Agreement or any other Transaction
Document. The Servicer may not agree to or otherwise permit to occur changes in the Credit and
Collection Policy which would impair the collectibility of any of the Collateral or otherwise
adversely affect the interests or remedies of the Administrative Agent or the Secured Parties under
this Agreement or any other Transaction Document, without the prior written consent of the
Administrative Agent and each Purchaser Agent; provided that the prior written consent will

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not be required if any amendment, modification or change was mandated by any regulatory
authority having jurisdiction over either of the Originator and the Servicer.

     (g) Termination Events. The Servicer will provide the Administrative Agent and each
Purchaser Agent with immediate written notice of the occurrence of each Termination Event and each
Unmatured Termination Event of which the Servicer has knowledge or has received notice. In
addition, no later than two Business Days following the Servicer’s knowledge or notice of the
occurrence of any Termination Event or Unmatured Termination Event, the Servicer will provide to
the Administrative Agent and each Purchaser Agent a written statement of the chief financial
officer or chief accounting officer of the Servicer setting forth the details of such event and the
action that the Servicer proposes to take with respect thereto.

     (h) Taxes. The Servicer will file and pay any and all Taxes required to meet the
obligations of the Seller and the Servicer under the Transaction Documents.

     (i) Other. The Servicer will promptly furnish to the Administrative Agent and each
Purchaser Agent such other information, documents, records or reports respecting the Collateral or
the condition or operations, financial or otherwise, of the Seller or the Servicer as the
Administrative Agent and each Purchaser Agent may from time to time reasonably request in order to
protect the interests of the Administrative Agent, each Purchaser Agent or Secured Parties under or
as contemplated by this Agreement.

     (j) Proceedings. As soon as possible and in any event within three Business Days
after any executive officer of the Servicer receives notice or obtains knowledge thereof, of any
settlement of, material judgment (including a material judgment with respect to the liability phase
of a bifurcated trial) in or commencement of any material labor controversy material litigation,
material action, material suit or material proceeding before any court or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, affecting the
Collateral, the Transaction Documents, the Secured Parties’ interest in the Collateral, or the
Seller, the Servicer or the Originator or any of their Affiliates; provided, however,
notwithstanding the foregoing, any settlement, judgment, labor controversy, litigation, action,
suit or proceeding affecting the Collateral, the Transaction Documents, the Secured Parties’
interest in the Collateral, or the Seller, the Servicer or the Originator or any of their
Affiliates in excess of $2,500,000 or more shall be deemed to be material for purposes of this
Section 5.4(j).

     (k) Deposit of Collections. The Servicer shall promptly (but in no event later than
two Business Days after receipt) deposit into the Collection Account any and all Collections
received by the Seller, the Servicer or any of their Affiliates.

     (l) Servicing of Participation, Acquired and Assigned Loans. With respect to
Participation Loans and Assigned Loans, the Servicer shall: (i) segregate all Loan Files with
respect to such Loans; (ii) keep separate records with respect to such Loans; and (iii) identify
each such Type of Loan on the Servicing Reports required hereunder with respect to such Loans.

     (m) Change-in-Control. Upon the occurrence of a Change-in-Control (including any
merger or consolidation of the Originator or transfer of substantially all of its assets and its
business), the Servicer shall provide the Administrative Agent, each Purchaser Agent and the

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Hedge Counterparties with notice of such Change-in-Control within thirty (30) days after
completion of the same.

     (n) Loan Register.

     (i) The Servicer shall maintain with respect to each Noteless Loan a register (each, a
“Loan Register”) in which it will record (v) the amount of such Loan, (w) the amount
of any principal or interest due and payable or to become due and payable from the Obligor
thereunder, (x) the amount of any sum in respect of such Loan received from the Obligor and
each Purchaser’s share thereof, (y) the date of origination of such Loan and (z) the
maturity date of such Loan. The entries made in each Loan Register maintained pursuant to
this Section 5.04(n) shall be prima facie evidence of the existence and amounts of
the obligations therein recorded; provided, however, that the failure of the Servicer to
maintain any such Loan Register or any error therein shall not in any manner affect the
obligations of the Obligor to repay the related Loans in accordance with their terms or any
Purchaser’s interest therein.

     (ii) At any time a Noteless Loan is included as part of the Collateral pursuant to this
Agreement, the Servicer shall deliver to the Collateral Custodian a copy of the related Loan
Register, together with a certificate of a Responsible Officer of the Servicer certifying to
the accuracy of such Loan Register as of the date such Loan is included as part of the
Collateral.

     Section 5.5 Negative Covenants of the Servicer.

     From the date hereof until the Collection Date.

     (a) Deposits to Special Accounts. Except as otherwise provided in the Lock-Box
Agreement, the Servicer will not deposit or otherwise credit, or cause or permit to be so deposited
or credited, to any Lock-Box Account cash or cash proceeds other than Collections in respect of the
Collateral.

     (b) Mergers, Acquisition, Sales, etc. The Servicer will not consolidate with or merge
into any other Person or convey or transfer its properties and assets substantially as an entirety
to any Person, unless the Servicer is the surviving entity and unless:

     (i) the Servicer has delivered to the Administrative Agent and each Purchaser Agent an
Officer’s Certificate and an Opinion of Counsel each stating that any consolidation, merger,
conveyance or transfer and such supplemental agreement comply with this Section 5.5
and that all conditions precedent herein provided for relating to such transaction have been
complied with and, in the case of the Opinion of Counsel, that such supplemental agreement
is legal, valid and binding with respect to the Servicer and such other matters as the
Administrative Agent may reasonably request;

     (ii) the Servicer shall have delivered notice of such consolidation, merger, conveyance
or transfer to the Administrative Agent and each Purchaser Agent;

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     (iii) after giving effect thereto, no Termination Event or Servicer Default or event
that with notice or lapse of time would constitute either a Termination Event or a Servicer
Default shall have occurred; and

     (iv) the Administrative Agent and each Purchaser Agent have consented in writing to
such consolidation, merger, conveyance or transfer.

     (c) Change of Name or Location of Loan Files. The Servicer shall not (x) change its
name, move the location of its principal place of business and chief executive office, change the
offices where it keeps records concerning the Collateral from the location referred to in
Section 13.2, or change the jurisdiction of its formation, or (y) move, or consent to the
Collateral Custodian moving, the Required Asset Documents and Asset Files from the location thereof
on the Closing Date, unless the Servicer has given at least thirty (30) days’ written notice to the
Administrative Agent and has taken all actions required under the UCC of each relevant jurisdiction
in order to continue the first priority perfected security interest of the Administrative Agent as
agent for the Secured Parties in the Collateral.

     (d) Change in Payment Instructions to Obligors. The Servicer will not add or
terminate any bank as a Lock-Box Bank or any Lock-Box Account from those listed in Schedule
II or make any change in its instructions to Obligors regarding payments to be made to the
Seller or the Servicer or payments to be made to any Lock-Box Bank, unless the Administrative Agent
has consented to such addition, termination or change (which consent shall not be unreasonably
withheld) and has received duly executed copies of Lock-Box Agreements with each new Lock-Box Bank
or with respect to each new Lock-Box Account, as the case may be.

     (e) Extension or Amendment of Assets. The Servicer will not, except as otherwise
permitted in Section 6.4(a), extend, amend or otherwise modify the terms of any Assets;
provided, however, that no waiver, extension, modification or alteration otherwise permitted under
Section 6.4(a) shall (i) alter the status of any Asset as a Delinquent Asset or Charged-Off
Asset, (ii) in the reasonable judgment of the Administrative Agent, prevent or delay any Asset from
becoming a Delinquent Asset or Charged-Off Asset, or (iii) limit and/or impair the rights of the
Administrative Agent or the Secured Parties under this Agreement.

     Section 5.6 Affirmative Covenants of the Backup Servicer.

     From the date hereof until the Collection Date:

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

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

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     Section 5.7 Negative Covenants of the Backup Servicer.

     From the date hereof until the Collection Date:

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

     Section 5.8 Affirmative Covenants of the Collateral Custodian.

     From the date hereof until the Collection Date:

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

     (b) Preservation of Existence. The Collateral Custodian will preserve and maintain
its existence, rights, franchises and privileges in the jurisdiction of its formation and qualify
and remain qualified in good standing in each jurisdiction where failure to preserve and maintain
such existence, rights, franchises, privileges and qualification has had, or could reasonably be
expected to have, a Material Adverse Effect.

     (c) Location of Required Asset Documents. The Required Asset Documents shall remain
at all times in the possession of the Collateral Custodian at the address set forth herein unless
notice of a different address is given in accordance with the terms hereof or unless the
Administrative Agent agrees to allow certain Required Asset Documents to be released to the
Servicer on a temporary basis in accordance with the terms hereof.

     Section 5.9 Negative Covenants of the Collateral Custodian.

     From the date hereof until the Collection Date:

     (a) Required Asset Documents. The Collateral Custodian will not dispose of any
documents constituting the Required Asset Documents in any manner that is inconsistent with the
performance of its obligations as the Collateral Custodian pursuant to this Agreement and will not
dispose of any Collateral except as contemplated by this Agreement.

     (b) No Changes in Collateral Custodian Fee. The Collateral Custodian will not make
any changes to the Collateral Custodian Fee set forth in the Collateral Custodian Fee Letter
without the prior written approval of the Administrative Agent and each Purchaser Agent.

ARTICLE VI

ADMINISTRATION AND SERVICING OF CONTRACTS

     Section 6.1 Designation of the Servicer.

     (a) Initial Servicer. The servicing, administering and collection of the Collateral
shall be conducted by the Person designated as the Servicer hereunder from time to time in
accordance

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with this Section 6.1. Until the Administrative Agent gives to the Originator a
Servicer Termination Notice, the Originator is hereby designated as, and hereby agrees to perform
the duties and responsibilities of, the Servicer pursuant to the terms hereof.

     (b) Successor Servicer. Upon the Servicer’s receipt of a Servicer Termination Notice
(with a copy to the Backup Servicer) from the Administrative Agent pursuant to the terms of
Section 6.15, the Servicer agrees that it will terminate its activities as Servicer
hereunder in a manner that the Administrative Agent reasonably believes will facilitate the
transition of the performance of such activities to a successor Servicer, and the successor
Servicer shall assume each and all of the Servicer’s obligations to service and administer the
Collateral, on the terms and subject to the conditions herein set forth, and the Servicer shall use
its best reasonable efforts to assist the successor Servicer in assuming such obligations.

     (c) Subcontracts. The Servicer may, with the prior consent of the Administrative
Agent, subcontract with any other Person for servicing, administering or collecting the Collateral;
provided, however, that the Servicer shall remain liable for the performance of the duties and
obligations of the Servicer pursuant to the terms hereof and that any such subcontract may be
terminated upon the occurrence of a Servicer Default.

     (d) Servicing Programs. In the event that the Servicer uses any software program in
servicing the Collateral that it licenses from a third party, the Servicer shall use its best
reasonable efforts to obtain, either before the Closing Date or as soon as possible thereafter,
whatever licenses or approvals are necessary to allow the Administrative Agent or the Servicer to
use such program.

     Section 6.2 Duties of the Servicer.

     (a) Appointment. The Seller hereby appoints the Servicer as its agent, as from time
to time designated pursuant to Section 6.1, to service the Collateral and enforce its
respective rights in and under such Collateral. The Servicer hereby accepts such appointment and
agrees to perform the duties and obligations with respect thereto as set forth herein. The
Servicer and the Seller hereby acknowledge that the Administrative Agent, each Purchaser Agent and
the Secured Parties are third party beneficiaries of the obligations undertaken by the Servicer
hereunder.

     (b) Duties. The Servicer shall take or cause to be taken all such actions as may be
necessary or advisable to collect on the Collateral from time to time, all in accordance with
Applicable Laws, with reasonable care and diligence, and in accordance with the Credit and
Collection Policy. Without limiting the foregoing, the duties of the Servicer shall include the
following:

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

     (ii) maintaining all necessary servicing records with respect to the Collateral and
providing such reports to the Administrative Agent and each Purchaser Agent in respect of
the servicing of the Collateral (including information relating to its performance under
this Agreement) as may be required hereunder or as the Administrative Agent and each
Purchaser Agent may reasonably request;

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     (iii) maintaining and implementing administrative and operating procedures (including,
without limitation, an ability to recreate servicing records evidencing the Collateral in
the event of the destruction of the originals thereof) and keeping and maintaining all
documents, books, records and other information reasonably necessary or advisable for the
collection of the Collateral;

     (iv) promptly delivering to the Administrative Agent, each Purchaser Agent or the
Collateral Custodian, from time to time, such information and servicing records (including
information relating to its performance under this Agreement) as the Administrative Agent,
each Purchaser Agent or the Collateral Custodian may from time to time reasonably request;

     (v) identifying each Asset clearly and unambiguously in its servicing records to
reflect that such Asset is owned by the Seller and pledged to the Secured Parties pursuant
to this Agreement;

     (vi) notifying the Administrative Agent and each Purchaser Agent of any material
action, suit, proceeding, dispute, offset, deduction, defense or counterclaim (1) that is or
is threatened to be asserted by an Obligor with respect to any Asset (or portion thereof) of
which it has knowledge or has received notice; or (2) that is reasonably expected to have a
Material Adverse Effect;

     (vii) notifying the Administrative Agent and each Purchaser Agent of any proposed
change in the Credit and Collection Policy that could have an adverse effect on the
collectibility of the Collateral, on the Seller or on the interests of the Administrative
Agent, each Purchaser Agent or any Secured Party;

     (viii) using its reasonable best efforts to maintain the perfected security interest of
the Administrative Agent, as agent for the Secured Parties, in the Collateral;

     (ix) maintaining in the same manner as the Collateral Custodian holds the Required
Asset Documents, the Asset File (other than Required Asset Documents) with respect to each
Asset included as part of the Collateral; and

     (x) the Servicer shall make payments pursuant to the terms of the Monthly Report in
accordance with Section 2.9 and Section 2.10.

     (c) Notwithstanding anything to the contrary contained herein, the exercise by the
Administrative Agent, each Purchaser Agent and the Secured Parties of their rights hereunder shall
not release the Servicer, the Originator or the Seller from any of their duties or responsibilities
with respect to the Collateral. The Secured Parties, the Administrative Agent, each Purchaser
Agent and the Collateral Custodian (except in the role of Backup Servicer) shall not have any
obligation or liability with respect to any Collateral, nor shall any of them be obligated to
perform any of the obligations of the Servicer hereunder.

     (d) Any payment by an Obligor in respect of any Indebtedness owed by it to the Originator or
the Seller shall, except as otherwise specified by such Obligor or otherwise required by contract
or law and unless otherwise instructed by the Administrative Agent, be

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applied as a Collection of an item of Collateral of such Obligor (starting with the oldest
such Collateral) to the extent of any amounts then due and payable thereunder before being applied
to any other receivable or other obligation of such Obligor.

     Section 6.3 Authorization of the Servicer.

     (a) Each of the Seller, the Administrative Agent, each Purchaser Agent, each Purchaser and
each Hedge Counterparty hereby authorizes the Servicer (including any successor thereto) to take
any and all reasonable steps in its name and on its behalf necessary or desirable, in the
determination of the Servicer, to collect all amounts due under any and all Collateral, including,
without limitation, endorsing any of their names on checks and other instruments representing
Collections, executing and delivering any and all instruments of satisfaction or cancellation, or
of partial or full release or discharge, and all other comparable instruments, with respect to the
Collateral and, after the delinquency of any Collateral and to the extent permitted under and in
compliance with Applicable Law, to commence proceedings with respect to enforcing payment thereof,
to the same extent as the Originator could have done if it had continued to own such Collateral.
The Originator, the Seller and the Administrative Agent on behalf of the Secured Parties and each
Hedge Counterparty shall furnish the Servicer (and any successors thereto) with any powers of
attorney and other documents necessary or appropriate to enable the Servicer to carry out its
servicing and administrative duties hereunder, and shall cooperate with the Servicer to the fullest
extent in order to ensure the collectibility of the Collateral. In no event shall the Servicer be
entitled to make the Secured Parties, any Hedge Counterparty, the Collateral Custodian, the
Administrative Agent or the Purchaser Agents a party to any litigation without such party’s express
prior written consent, or to make the Seller a party to any litigation (other than any routine
foreclosure or similar collection procedure) without the Administrative Agent’s and each Purchaser
Agent’s consent.

     (b) After a Termination Event has occurred and is continuing, at the direction the
Administrative Agent, the Servicer shall take such action as the Administrative Agent may deem
necessary or advisable to enforce collection of the Collateral; provided, however, that the
Administrative Agent may, at any time that a Termination Event or Unmatured Termination Event has
occurred and is continuing, notify any Obligor with respect to any Collateral of the assignment of
such Collateral to the Administrative Agent and direct that payments of all amounts due or to
become due be made directly to the Administrative Agent and each Purchaser Agent or any servicer,
collection agent or lock-box or other account designated by the Administrative Agent and each
Purchaser Agent and, upon such notification and at the expense of the Seller, the Administrative
Agent may enforce collection of any such Collateral, and adjust, settle or compromise the amount or
payment thereof.

     Section 6.4 Collection of Payments.

     (a) Collection Efforts, Modification of Collateral. The Servicer will use its
reasonable best efforts to collect all payments called for under the terms and provisions of the
Assets included in the Collateral as and when the same become due in accordance with the Credit and
Collection Policy, and will follow those collection procedures that it follows with respect to all
comparable Collateral that it services for itself or others. The Servicer may not waive, modify or
otherwise vary any provision of an item of Collateral in a manner that, in its

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reasonable judgment, would impair the collectibility of the Collateral or in any manner
contrary to the Credit and Collection Policy.

     (b) Prepaid Asset. Prior to a Termination Event, upon any Asset becoming a Prepaid
Asset, the Servicer shall either (x) provide a Substitute Asset in accordance with Section
2.18 or (y) deposit to the Collection Account (in addition to all amounts received from the
related Obligor upon the prepayment of such Asset) an amount equal to the excess, if any, of the
sum of (a) the Outstanding Asset Balance on the date of such payment, (b) any outstanding Servicer
Advances thereon, (c) any accrued and unpaid interest, and (d) all Hedge Breakage Costs owing to
the relevant Hedge Counterparty for any termination of one or more Hedge Transactions, in whole or
in part, as required by the terms of any Hedging Agreement as the result of any such Asset becoming
a Prepaid Asset, over the amount received from the related Obligor upon such prepayment (such
excess, the “Prepayment Amount”), in each case, only to the extent necessary to cause the
Availability as of such date (after giving effect to such substitution or deposit, as applicable)
to be greater than or equal to zero. After a Termination Event has occurred, upon any Asset
becoming a Prepaid Asset, the Servicer shall deposit to the Collection Account all amounts received
from the related Obligor upon the prepayment of such Asset plus the Prepayment Amount, if any.

     (c) Acceleration. If required by the Credit and Collection Policy, the Servicer shall
accelerate the maturity of all or any Scheduled Payments and other amounts due under any Asset in
which a default under the terms thereof has occurred and is continuing (after the lapse of any
applicable grace period) promptly after such Asset becomes a Charged-Off Asset.

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

     (e) Payments to Lock-Box Account. Subject to Section 5.1(p), on or before the
applicable Cut-Off Date, the Servicer shall have instructed all Obligors (or, with respect to
Assigned Loans, the applicable agent) to make all payments in respect of the Collateral to the
Lock-Box or directly to the Lock-Box Account.

     (f) Establishment of the Collection Account. The Servicer shall cause to be
established, on or before the Closing Date, with the Collateral Custodian, and maintained in the
name of the Administrative Agent as agent for the Secured Parties, with an office or branch of a
depository institution or trust company a segregated corporate trust account entitled Collection
Account for Wachovia Capital Markets, LLC, as Administrative Agent for the Secured Parties (the
“Collection Account”), and the Servicer shall further maintain a subaccount within the
Collection Account for the purpose of segregating, within two Business Days of the receipt of any
Collections, Principal Collections (the “Principal Collections Account”), over which the
Collateral Custodian as agent for the Secured Parties shall have control and from which neither the
Originator, Servicer nor the Seller shall have any right of withdrawal except in accordance with
Section 2.9(b); provided, however, that at all times such depository institution or trust
company shall be acceptable to the Administrative Agent and a depository institution organized
under the laws of the United States of America or any one of the States thereof or the District of

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Columbia (or any domestic branch of a foreign bank), (i) (a) that has either (1) a long-term
unsecured debt rating of “A” or better by S&P and “A2” or better by Moody’s or (2) a short-term
unsecured debt rating or certificate of deposit rating of “A-1” or better by S&P or “P-1” or better
by Moody’s, (b) the parent corporation of which has either (1) a long-term unsecured debt rating of
“A” or better by S&P and “A2” or better by Moody’s or (2) a short-term unsecured debt rating or
certificate of deposit rating of “A-1” or better by S&P and “P-1” or better by Moody’s or (c) is
otherwise acceptable to the Administrative Agent and (ii) whose deposits are insured by the Federal
Deposit Insurance Corporation (any such depository institution or trust company, a “Qualified
Institution”).

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

     Section 6.5 Servicer Advances.

     For each Collection Period, if the Servicer determines that any Scheduled Payment (or portion
thereof) that was due and payable pursuant to an Asset during such Collection Period was not
received prior to the last day of such Collection Period, the Servicer may (in its sole and
absolute discretion) make an advance in an amount up to the amount of such delinquent Scheduled
Payment (or portion thereof). The Servicer will deposit any Servicer Advances into the Collection
Account on or prior to 9:00 a.m. (Charlotte, North Carolina time) on the Business Day prior to the
related Payment Date, in immediately available funds. Notwithstanding anything to the contrary
contained herein, no Successor Servicer shall have any responsibility to make Servicer Advances.

     Section 6.6 Realization Upon Charged-Off Assets.

     The Servicer will use reasonable efforts to repossess or otherwise comparably convert the
ownership of any Related Property relating to a Charged-Off Asset and will act as sales and
processing agent for Related Property that it repossesses. The Servicer will follow such other
practices and procedures as it deems necessary or advisable and as are customary and usual in its
servicing of contracts and other actions by the Servicer in order to realize upon such Related
Property, which practices and procedures may include reasonable efforts to enforce all obligations
of Obligors and repossessing and selling such Related Property at public or private sale in
circumstances other than those described in the preceding sentence. Without limiting the
generality of the foregoing, unless the Administrative Agent has specifically given instruction to
the contrary, the Servicer may sell any such Related Property to the Servicer or its Affiliates for
a purchase price equal to the then fair market value thereof, any such sale to be evidenced by a
certificate of a Responsible Officer of the Servicer delivered to the Administrative Agent setting
forth the Asset, the Related Property, the sale price of the Related Property and certifying that
such sale price is the fair market value of such Related Property. In any case in which any such

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Related Property has suffered damage, the Servicer will not expend funds in connection with
any repair or toward the repossession of such Related Property unless it reasonably determines that
such repair and/or repossession will increase the Recoveries by an amount greater than the amount
of such expenses. The Servicer will remit to the Collection Account the Recoveries received in
connection with the sale or disposition of Related Property relating to a Charged-Off Asset.

     Section 6.7 Maintenance of Insurance Policies.

     The Servicer will use its reasonable best efforts to ensure that each Obligor maintains an
Insurance Policy with respect to any Related Property (other than accounts receivable) in an amount
at least equal to the Servicer’s good faith and commercially reasonable estimate of the value of
the real property, inventory, and/or equipment constituting such Related Property and shall ensure
that each such Insurance Policy names the Servicer as loss payee and as an insured thereunder and
all of the Seller’s right, title and interest therein is fully assigned to the Administrative
Agent, as agent for the Secured Parties. Additionally, the Servicer will require that each Obligor
maintain property damage liability insurance during the term of each Asset in amounts and against
risks customarily insured against by the Obligor on property owned by it. If an Obligor fails to
maintain property damage insurance, the Servicer may in its discretion purchase and maintain such
insurance on behalf of, and at the expense of, the Obligor. In connection with its activities as
Servicer, the Servicer agrees to present, on behalf of the Administrative Agent, claims to the
insurer under each Insurance Policy and any such liability policy, and to settle, adjust and
compromise such claims, in each case, consistent with the terms of each Asset. The Servicer’s
Insurance Policies with respect to the Related Property will insure against liability for physical
damage relating to such Related Property in accordance with the requirements of the Credit and
Collection Policy. The Servicer hereby disclaims any and all right, title and interest in and to
any Insurance Policy and Insurance Proceeds with respect to any Related Property, including any
Insurance Policy with respect to which it is named as loss payee and as an insured, and agrees that
it has no equitable, beneficial or other interest in the Insurance Polices and Insurance Proceeds
other than being named as loss payee and as an insured. The Servicer acknowledges that with
respect to the Insurance Policies and Insurance Proceeds thereof that it is acting solely in the
capacity as agent for the Administrative Agent, as agent for the Secured Parties.

     Section 6.8 Servicing Compensation.

     As compensation for its servicing activities hereunder and reimbursement for its expenses, the
Servicer shall be entitled to receive the Servicing Fee and the Subordinated Servicing Fee to the
extent of funds available therefor pursuant to the provisions of Section 2.9(a)(iii),
Section 2.10(a)(iii), Section 2.9(a)(vii) or Section 2.10(a)(viii), as
applicable.

     Section 6.9 Payment of Certain Expenses by Servicer.

     The Servicer will be required to pay all expenses incurred by it in connection with its
activities under this Agreement, including fees and disbursements of independent accountants, Taxes
imposed on the Servicer, expenses incurred in connection with payments and reports pursuant to this
Agreement, and all other fees and expenses not expressly stated under this

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Agreement for the account of the Seller, but excluding Liquidation Expenses incurred as a
result of activities contemplated by Section 6.6; provided, however, for avoidance of
doubt, to the extent Liquidation Expenses relate to a Loan and a Retained Interest such Liquidation
Expenses shall be allocated pro rata. The Servicer will be required to pay all reasonable fees and
expenses owing to any bank or trust company in connection with the maintenance of the Collection
Account and the Lock-Box Account. The Servicer shall be required to pay such expenses for its own
account and shall not be entitled to any payment therefor other than the Servicing Fee and the
Subordinated Servicing Fee.

     Section 6.10 Reports.

     (a) Borrowing Notice. On each Funding Date, on each reduction of Advances Outstanding
pursuant to Section 2.4(b) and on each reinvestment of Principal Collections pursuant to
Section 2.9(b), the Seller (and the Servicer on its behalf) will provide a Borrowing
Notice, updated as of such date, to the Administrative Agent and each Purchaser Agent (with a copy
to the Collateral Custodian).

     (b) Monthly Report. On each Reporting Date, the Servicer will provide to the Seller,
the Administrative Agent, each Purchaser Agent, the Backup Servicer and any Liquidity Bank, a
monthly statement including a Borrowing Base calculated as of the most recent Determination Date (a
“Monthly Report”), with respect to the related Collection Period, signed by a Responsible
Officer of the Servicer and the Seller and substantially in the form of Exhibit C.

     (c) Servicer’s Certificate. Together with each Monthly Report, the Servicer shall
submit to the Administrative Agent, each Purchaser Agent and any Liquidity Bank a certificate (a
“Servicer’s Certificate”), signed by a Responsible Officer of the Servicer and
substantially in the form of Exhibit J.

     (d) Financial Statements. The Servicer will submit to the Administrative Agent, each
Purchaser Agent, each Purchaser, the Backup Servicer and any Liquidity Bank, (i) within forty-five
(45) days after the end of each of its first three fiscal quarters, commencing with the fiscal
quarter ending March 31, 2004, a copy of the quarterly report on Form 10-Q of CapitalSource Inc.
for the most recent fiscal quarter, and (ii) on or before March 31 following the end of each fiscal
year, commencing with the fiscal year ended December 31, 2003, a copy of the annual report on Form
10-K of CapitalSource Inc., in each case in the form as filed with the Securities and Exchange
Commission.

     (e) Tax Returns. Upon demand by the Administrative Agent, each Purchaser Agent and
any Liquidity Bank, copies of all federal, state and local Tax returns and reports filed by the
Seller and Servicer, or in which the Seller or Servicer was included on a consolidated or combined
basis (excluding sales, use and like taxes).

     Section 6.11 Annual Statement as to Compliance.

     The Servicer will provide to the Administrative Agent and each Purchaser Agent, within ninety
(90) days following the end of each fiscal year of the Servicer, commencing with the fiscal year
ending on December 31, 2004, a fiscal report signed by a Responsible Officer of the Servicer
certifying that (a) a review of the activities of the Servicer, and the Servicer’s

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performance pursuant to this Agreement, for the fiscal period ending on the last day of such
fiscal year has been made under such Person’s supervision and (b) the Servicer has performed or has
caused to be performed in all material respects all of its obligations under this Agreement
throughout such year and no Servicer Default has occurred and is continuing.

     Section 6.12 Annual Independent Public Accountant’s Servicing Reports.

     The Servicer will cause a firm of nationally recognized independent public accountants (who
may also render other services to the Servicer) to furnish to the Administrative Agent, each
Purchaser Agent, the Collateral Custodian and the Backup Servicer, within ninety (90) days
following the end of each fiscal year of the Servicer, commencing with the fiscal year ending on
December 31, 2004: (i) a report relating to such fiscal year to the effect that (a) such firm has
reviewed certain documents and records relating to the servicing of the Collateral, and (b) based
on such examination, such firm is of the opinion that the Monthly Reports for such year were
prepared in compliance with this Agreement, except for such exceptions as it believes to be
immaterial and such other exceptions as will be set forth in such firm’s report and (ii) a report
covering such fiscal year to the effect that such accountants have applied certain agreed-upon
procedures (which procedures shall have been approved by the Administrative Agent and each
Purchaser Agent) to certain documents and records relating to the Collateral under any Transaction
Document, compared the information contained in the Monthly Reports and the Servicer’s Certificates
delivered during the period covered by such report with such documents and records and that no
matters came to the attention of such accountants that caused them to believe that such servicing
was not conducted in compliance with this Article VI of this Agreement, except for such
exceptions as such accountants shall believe to be immaterial and such other exception as shall be
set forth in such statement.

     Section 6.13 Limitation on Liability of the Servicer and Others

     Except as provided herein, the Servicer shall not be under any liability to the Administrative
Agent, each Purchaser Agent, the Secured Parties or any other Person for any action taken or for
refraining from the taking of any action pursuant to this Agreement whether arising from express or
implied duties under this Agreement; provided, however, notwithstanding anything to the contrary
contained herein nothing shall protect the Servicer against any liability that would otherwise be
imposed by reason of its willful misfeasance, bad faith or negligence in the performance of duties
or by reason of its willful misconduct hereunder.

     Section 6.14 The Servicer Not to Resign.

     The Servicer shall not resign from the obligations and duties hereby imposed on it except upon
the Servicer’s determination that (i) the performance of its duties hereunder is or becomes
impermissible under Applicable Law and (ii) there is no reasonable action that the Servicer could
take to make the performance of its duties hereunder permissible under Applicable Law. Any such
determination permitting the resignation of the Servicer shall be evidenced as to clause
(i) above by an Opinion of Counsel to such effect delivered to the Administrative Agent, each
Purchaser Agent and the Backup Servicer. No such resignation shall become effective until a
Successor Servicer shall have assumed the responsibilities and obligations of the Servicer in
accordance with Section 6.2.

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     Section 6.15 Servicer Defaults.

     If any one of the following events (a “Servicer Default”) shall occur and be
continuing:

     (a) any failure by the Servicer to make any payment, transfer or deposit (including without
limitation with respect to Collections) as required by this Agreement which continues unremedied
for a period of one Business Day;

     (b) any failure by the Servicer to give instructions or notice to the Administrative Agent and
each Purchaser Agent as required by this Agreement, or to deliver any required Monthly Report or
other Required Reports hereunder on or before the date occurring two Business Days after the date
such instruction, notice or report is required to be made or given, as the case may be, under the
terms of this Agreement;

     (c) any failure on the part of the Servicer duly to observe or perform in any material respect
any other covenants or agreements of the Servicer set forth in this Agreement or the other
Transaction Documents to which the Servicer is a party and the same continues unremedied for a
period of thirty (30) days after the earlier to occur of (i) the date on which written notice of
such failure requiring the same to be remedied shall have been given to the Servicer by the
Administrative Agent and each Purchaser Agent and (ii) the date on which the Servicer becomes aware
thereof;

     (d) any representation, warranty or certification made by the Servicer in any Transaction
Document or in any certificate delivered pursuant to any Transaction Document shall prove to have
been incorrect when made, which has a Material Adverse Effect on the Administrative Agent, any
Purchaser Agent or the Secured Parties and which continues to be unremedied for a period of thirty
(30) days after the earlier to occur of (i) the date on which written notice of such incorrectness
requiring the same to be remedied shall have been given to the Servicer by the Administrative Agent
or any Purchaser Agent and (ii) the date on which the Servicer becomes aware thereof;

     (e) an Insolvency Event shall occur with respect to the Servicer;

     (f) any material delegation of the Servicer’s duties that is not permitted by
Section 6.1;

     (g) any financial or other information reasonably requested by the Administrative Agent, any
Purchaser Agent or any Purchaser is not provided as requested within a reasonable amount of time
following such request;

     (h) the rendering against the Servicer of one or more final judgments, decrees or orders for
the payment of money in excess of $10,000,000, individually or in the aggregate, and the
continuance of such judgment, decree or order unsatisfied and in effect for any period of more than
sixty (60) consecutive days without a stay of execution;

     (i) the failure of the Servicer to make any payment due with respect to any recourse debt or
other obligations, which debt or other obligations are in excess of $10,000,000,

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individually or in the aggregate, or the occurrence of any event or condition that would at
such time permit acceleration of such recourse debt or other obligations;

     (j) CapitalSource Inc.’s Consolidated Tangible Net Worth is less than (i) $1,015,000,000, plus
(ii) 70% of the cumulative Net Proceeds of Capital Stock/Conversion of Debt received at any time
since December 31, 2005 (other than the period commencing on January 1, 2008 and ending on
September 30, 2008), plus (iii) 30% of the cumulative Net Proceeds of Capital Stock/Conversion of
Debt received at any time during the period commencing on January 1, 2008 and ending on September
30, 2008;

     (k) [Reserved];

     (l) the Servicer fails in any material respect to comply with the Credit and Collection Policy
regarding the servicing of the Collateral;

     (m) the Servicer consents or agrees to, or otherwise permits to occur, any amendment,
modification, change, supplement or rescission of or to the Credit and Collection Policy (after the
adoption of same) in whole or in part that could be reasonably expected to have a Material Adverse
Effect upon the Collateral, the Administrative Agent, any Purchaser Agent or the Secured Parties,
without the prior written consent of the Administrative Agent and each Purchaser Agent; or

     (n) CapitalSource Finance ceases to be the Servicer;

then notwithstanding anything herein to the contrary, so long as any such Servicer Default shall
not have been remedied within any applicable cure period prior to the date of the Servicer
Termination Notice (defined below), the Administrative Agent, by written notice to the Servicer
(with a copy to the Backup Servicer) (a “Servicer Termination Notice”), may terminate all
of the rights and obligations of the Servicer as Servicer under this Agreement.

     Section 6.16 Appointment of Successor Servicer.

     (a) On and after the receipt by the Servicer of a Servicer Termination Notice pursuant to
Section 6.15, the Servicer shall continue to perform all servicing functions under this
Agreement until the date specified in the Servicer Termination Notice or otherwise specified by the
Administrative Agent in writing or, if no such date is specified in such Servicer Termination
Notice or otherwise specified by the Administrative Agent, until a date mutually agreed upon by the
Servicer and the Administrative Agent. The Administrative Agent may at the time described in the
immediately preceding sentence in its sole discretion, appoint the Backup Servicer as the Servicer
hereunder, and the Backup Servicer shall on such date assume all obligations of the Servicer
hereunder, and all authority and power of the Servicer under this Agreement shall pass to and be
vested in the Backup Servicer. As compensation therefor, the Backup Servicer shall be entitled to
the Servicing Fee and the Subordinated Servicing Fee, together with other servicing compensation in
the form of assumption fees, late payment charges or otherwise as provided herein; including,
without limitation, Transition Expenses. In the event that the Administrative Agent does not so
appoint the Backup Servicer, there is no Backup Servicer or the Backup Servicer is unable to assume
such obligations on such date, the Administrative Agent shall as promptly as possible appoint a
successor servicer (the “Successor Servicer”), and such Successor

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Servicer shall accept its appointment by a written assumption in a form acceptable to the
Administrative Agent and each Purchaser Agent. In the event that a Successor Servicer has not
accepted its appointment at the time when the Servicer ceases to act as Servicer, the
Administrative Agent shall petition a court of competent jurisdiction to appoint any established
financial institution, having a net worth of not less than $50,000,000 and whose regular business
includes the servicing of Collateral, as the Successor Servicer hereunder.

     (b) Upon its appointment, the Backup Servicer (subject to Section 6.16(a)) or the
Successor Servicer, as applicable, shall be the successor in all respects to the Servicer with
respect to servicing functions under this Agreement and shall be subject to all the
responsibilities, duties and liabilities relating thereto placed on the Servicer by the terms and
provisions hereof, and all references in this Agreement to the Servicer shall be deemed to refer to
the Backup Servicer or the Successor Servicer, as applicable; provided, 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 Servicer indemnification obligations
of any prior Servicer, including the original Servicer. The indemnification obligations of the
Backup Servicer or the Successor Servicer, as applicable, upon becoming a Successor Servicer, are
expressly limited to those arising on account of its failure to act in good faith and with
reasonable care under the circumstances. In addition, the Backup Servicer or Successor Servicer,
as applicable, shall have no liability relating to the representations and warranties of the
Servicer contained in Article IV. Further, for so long as the Backup Servicer shall be the
Successor Servicer, the provisions of Section 2.15, Section 2.16(b) and Section
2.16(e) of this Agreement shall not apply to it in its capacity as Servicer.

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

     (d) Upon the Backup Servicer receiving notice that it is required to serve as the Servicer
hereunder pursuant to the foregoing provisions of this Section 6.16, the Backup Servicer
will promptly begin the transition to its role as Servicer. Notwithstanding the foregoing, the
Backup Servicer may, in its discretion, appoint, or petition a court of competent jurisdiction to
appoint, any established servicing institution as the successor to the Servicer hereunder in the
assumption of all or any part of the responsibilities, duties or liabilities of the Servicer
hereunder. As compensation, any Successor Servicer (including, without limitation, the
Administrative

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Agent) so appointed shall be entitled to receive the Servicing Fee and the Subordinated
Servicing Fee, together with any other servicing compensation in the form of assumption fees, late
payment charges or otherwise as provided herein that accrued prior thereto, including, without
limitation, Transition Expenses. In the event the Backup Servicer is required to solicit bids as
provided herein, the Backup Servicer shall solicit, by public announcement, bids from banks and
mortgage servicing institutions meeting the qualifications set forth in Section 6.16(a)
above. Such public announcement shall specify that the Successor Servicer shall be entitled to the
full amount of the Servicing Fee and the Subordinated Servicing Fee as servicing compensation,
together with the other servicing compensation in the form of assumption fees, late payment charges
or otherwise that accrued prior thereto. Within thirty (30) days after any such public
announcement, the Backup Servicer shall negotiate and effect the sale, transfer and assignment of
the servicing rights and responsibilities hereunder to the qualified party submitting the highest
qualifying bid. The Backup Servicer shall deduct from any sum received by the Backup Servicer from
the successor to the Servicer in respect of such sale, transfer and assignment all costs and
expenses of any public announcement and of any sale, transfer and assignment of the servicing
rights and responsibilities hereunder and the amount of any unreimbursed Servicing Advances. After
such deductions, the remainder of such sum shall be paid by the Backup Servicer to the Servicer at
the time of such sale, transfer and assignment to the Servicer’s successor. The Backup Servicer
and such successor shall take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession. No appointment of a successor to the Servicer hereunder shall be
effective until written notice of such proposed appointment shall have been provided by the Backup
Servicer to the Administrative Agent and each Purchaser Agent and the Backup Servicer shall have
consented thereto. The Backup Servicer shall not resign as servicer until a Successor Servicer has
been appointed and accepted such appointment. Notwithstanding anything to the contrary contained
herein, in no event shall Wells Fargo, in any capacity, be liable for any Servicing Fee,
Subordinated Servicing Fee or for any differential in the amount of the Servicing Fee or
Subordinated 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.

ARTICLE VII

THE BACKUP SERVICER

     Section 7.1 Designation of the Backup Servicer.

     (a) Initial Backup Servicer. The backup servicing role with respect to the Collateral
shall be conducted by the Person designated as Backup Servicer hereunder from time to time in
accordance with this Section 7.1. Until the Administrative Agent shall give to Wells Fargo
a Backup Servicer Termination Notice, Wells Fargo is hereby designated as, and hereby agrees to
perform the duties and obligations of, a Backup Servicer pursuant to the terms hereof.

     (b) Successor Backup Servicer. Upon the Backup Servicer’s receipt of Backup Servicer
Termination Notice from the Administrative Agent of the designation of a replacement Backup
Servicer pursuant to the provisions of Section 7.5, the Backup Servicer agrees that it will
terminate its activities as Backup Servicer hereunder.

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     Section 7.2 Duties of the Backup Servicer.

     (a) Appointment. The Seller and the Administrative Agent, as agent for the Secured
Parties, each hereby appoints Wells Fargo to act as Backup Servicer, for the benefit of the
Administrative Agent, each Purchaser Agent and the Secured Parties, as from time to time designated
pursuant to Section 7.1. The Backup Servicer hereby accepts such appointment and agrees to
perform the duties and obligations with respect thereto set forth herein.

     (b) Duties. On or before the initial Funding Date, and until its removal pursuant to
Section 7.5, the Backup Servicer shall perform, on behalf of the Administrative Agent and
the Secured Parties, the following duties and obligations:

     (i) On or before the Closing Date, the Backup Servicer shall accept from the Servicer
delivery of the information required to be set forth in the Monthly Reports (if any) in hard
copy and on computer tape; provided, however, the computer tape is in an MS DOS, PC readable
ASCII format or other format to be agreed upon by the Backup Servicer and the Servicer on or
prior to closing.

     (ii) Not later than 12:00 noon Charlotte, North Carolina time on each Reporting Date,
the Servicer shall deliver to the Backup Servicer the asset tape, which shall include but
not be limited to the following information: (x) for each Asset, the name and number of the
related Obligor, the collection status, the loan or lease status, the date of each Scheduled
Payment and the Outstanding Asset Balance, (y) the Borrowing Base and (z) the Aggregate
Outstanding Asset Balance (the “Tape”). The Backup Servicer shall accept delivery
of the Tape.

     (iii) Prior to the related Payment Date, the Backup Servicer shall review the Monthly
Report to ensure that it is complete on its face and that the following items in such
Monthly Report have been accurately calculated, if applicable, and reported: (A) the
Borrowing Base, (B) the Backup Servicing Fee, (C) the Assets that are current and not past
due, (D) the Assets that are 1 — 30 days past due, (E) the Assets that are 31 — 60 days past
due, (F) the Assets that are 61 — 90 days past due, (G) the Assets that are 90+ days past
due, (H) the Pool Charged-Off Ratio, and (I) the Aggregate Outstanding Asset Balance. The
Backup Servicer by a separate written report shall notify the Administrative Agent and the
Servicer of any disagreements with the Monthly Report based on such review not later than
the Business Day preceding such Payment Date to such Persons.

     (iv) If the Servicer disagrees with the report provided under clause (iii)
above by the Backup Servicer or if the Servicer or any subservicer has not reconciled such
discrepancy, the Backup Servicer agrees to confer with the Servicer to resolve such
disagreement on or prior to the next succeeding Determination Date and shall settle such
discrepancy with the Servicer if possible, and notify the Administrative Agent of the
resolution thereof. The Servicer hereby agrees to cooperate at its own expense with the
Backup Servicer in reconciling any discrepancies herein. If within twenty (20) days after
the delivery of the report provided under clause (iii) above by the Backup Servicer,
such discrepancy is not resolved, the Backup Servicer shall promptly notify the
Administrative

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Agent of the continued existence of such discrepancy. Following receipt of such notice
by the Administrative Agent, the Servicer shall deliver to the Administrative Agent, the
Secured Parties and the Backup Servicer no later than the related Payment Date a certificate
describing the nature and amount of such discrepancies and the actions the Servicer proposes
to take with respect thereto.

     (c) Reliance on Tape. With respect to the duties described in Section 7.2(b),
the Backup Servicer, is entitled to rely conclusively, and shall be fully protected in so relying,
on the contents of each Tape, including, but not limited to, the completeness and accuracy thereof,
provided by the Servicer.

     Section 7.3 Merger or Consolidation.

     Any Person (i) into which the Backup Servicer may be merged or consolidated, (ii) that may
result from any merger or consolidation to which the Backup Servicer shall be a party, or (iii)
that may succeed to the properties and assets of the Backup Servicer substantially as a whole,
which Person in any of the foregoing cases executes an agreement of assumption to perform every
obligation of the Backup Servicer hereunder, shall be the successor to the Backup Servicer under
this Agreement without further act on the part of any of the parties to this Agreement provided
such Person is organized under the laws of the United States of America or any one of the States
thereof or the District of Columbia (or any domestic branch of a foreign bank), (i) (a) that has
either (1) a long-term unsecured debt rating of “A” or better by S&P and “A2” or better by Moody’s
or (2) a short-term unsecured debt rating or certificate of deposit rating of “A-1” or better by
S&P or “P-1” or better by Moody’s, (b) the parent corporation which has either (1) a long-term
unsecured debt rating of “A” or better by S&P and “A2” or better by Moody’s or (2) a short-term
unsecured debt rating or certificate of deposit rating of “A-1” or better by S&P and “P-1” or
better by Moody’s or (c) is otherwise acceptable to the Administrative Agent.

     Section 7.4 Backup Servicing Compensation.

     As compensation for its back-up servicing activities hereunder, the Backup Servicer shall be
entitled to receive the Backup Servicing Fee from the Servicer. To the extent that such Backup
Servicing Fee is not paid by the Servicer, the Backup Servicer shall be entitled to receive the
unpaid balance of its Backup Servicing Fee to the extent of funds available therefor pursuant to
Section 2.9(a)(iv) and Section 2.10(a)(iv), as applicable. The Backup Servicer’s
entitlement to receive the Backup Servicing Fee shall cease (excluding any unpaid outstanding
amounts as of that date) on the earliest to occur of: (i) it becoming the Successor Servicer, (ii)
its removal as Backup Servicer pursuant to Section 7.5, or (iii) the termination of this
Agreement. Upon becoming Successor Servicer pursuant to Section 6.16, the Backup Servicer
shall be entitled to the Servicing Fee and the Subordinated Servicing Fee.

     Section 7.5 Backup Servicer Removal.

     The Backup Servicer may be removed, with or without cause, by the Administrative Agent by
notice given in writing to the Backup Servicer (the “Backup Servicer Termination 

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Notice”). In the event of any such removal, a replacement Backup Servicer may be
appointed by the Administrative Agent.

     Section 7.6 Limitation on Liability.

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

     (b) The Backup Servicer shall not be liable for any obligation of the Servicer contained in
this Agreement or for any errors of the Servicer contained in any computer tape, certificate or
other data or document delivered to the Backup Servicer hereunder or on which the Backup Servicer
must rely in order to perform its obligations hereunder, and the Secured Parties, the
Administrative Agent and the Collateral Custodian each agree to look only to the Servicer to
perform such obligations. The Backup Servicer shall have no responsibility and shall not be in
default hereunder or incur any liability for any failure, error, malfunction or any delay in
carrying out any of its duties under this Agreement if such failure or delay results from the
Backup Servicer acting in accordance with information prepared or supplied by a Person other than
the Backup Servicer or the failure of any such other Person to prepare or provide such information.
The Backup Servicer shall have no responsibility, shall not be in default and shall incur no
liability for (i) any act or failure to act of any third party, including the Servicer, (ii) any
inaccuracy or omission in a notice or communication received by the Backup Servicer from any third
party, (iii) the invalidity or unenforceability of any Collateral under Applicable Law, (iv) the
breach or inaccuracy of any representation or warranty made with respect to any Collateral, or (v)
the acts or omissions of any successor Backup Servicer.

     Section 7.7 The Backup Servicer Not to Resign.

     The Backup Servicer shall not resign (except with prior consent of the Administrative Agent
which consent shall not be unreasonably withheld) from the obligations and duties hereby imposed on
it except upon the Backup Servicer’s determination that (i) the performance of its duties hereunder
is or becomes impermissible under Applicable Law and (ii) there is no reasonable action that the
Backup Servicer could take to make the performance of its duties hereunder permissible under
Applicable Law. Any such determination permitting the resignation of the Backup Servicer shall be
evidenced as to clause (i) above by an Opinion of Counsel to such effect delivered to the
Administrative Agent and each Purchaser Agent. No such

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resignation shall become effective until a successor Backup Servicer shall have assumed the
responsibilities and obligations of the Backup Servicer hereunder.

ARTICLE VIII

THE COLLATERAL CUSTODIAN

     Section 8.1 Designation of Collateral Custodian.

     (a) Initial Collateral Custodian. The role of collateral custodian with respect to
the Required Asset Documents shall be conducted by the Person designated as Collateral Custodian
hereunder from time to time in accordance with this Section 8.1. Until the Administrative
Agent shall give to Wells Fargo a Collateral Custodian Termination Notice, Wells Fargo is hereby
designated as, and hereby agrees to perform the duties and obligations of, Collateral Custodian
pursuant to the terms hereof.

     (b) Successor Collateral Custodian. Upon the Collateral Custodian’s receipt of a
Collateral Custodian Termination Notice from the Administrative Agent of the designation of a
successor Collateral Custodian pursuant to the provisions of Section 8.5, the Collateral
Custodian agrees that it will terminate its activities as Collateral Custodian hereunder.

     Section 8.2 Duties of Collateral Custodian.

     (a) Appointment. The Seller and the Administrative Agent each hereby appoints Wells
Fargo to act as Collateral Custodian, for the benefit of the Administrative Agent, as agent for the
Secured Parties. The Collateral Custodian hereby accepts such appointment and agrees to perform
the duties and obligation with respect thereto set forth herein.

     (b) Duties. On or before the initial Funding Date, and until its removal pursuant to
Section 8.5, the Collateral Custodian shall perform on behalf of the Administrative Agent
and the Secured Parties, the following duties and obligations:

     (i) The Collateral Custodian shall take and retain custody of the Required Asset
Documents delivered by the Seller pursuant to Section 3.2 hereof in accordance with
the terms and conditions of this Agreement, all for the benefit of the Secured Parties and
subject to the Lien thereon in favor of the Administrative Agent as agent for the Secured
Parties. Within five Business Days of its receipt of any Required Asset Documents, the
Collateral Custodian shall review the related Collateral and Required Asset Documents to
confirm that (A) such Collateral has been properly executed and has no missing or mutilated
pages, (B) any UCC and other filings (as set forth on the Asset Checklists) have been made,
(C) an Insurance Policy exists with respect to any real or personal property constituting
the Related Property, and (D) confirming the related Outstanding Asset Balance, Asset number
and Obligor name with respect to such Asset is referenced on the related Asset List and is
not a duplicate Asset (collectively, the “Review Criteria”). In order to facilitate
the foregoing review by the Collateral Custodian, in connection with each delivery of
Required Asset Documents hereunder to the Collateral Custodian, the Servicer shall provide
to the Collateral Custodian an electronic file (in EXCEL or a comparable format) that
contains the related Asset List or

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that otherwise contains the Asset identification number and the name of the Obligor
with respect to each related Asset. If, at the conclusion of such review, the Collateral
Custodian shall determine that (i) the Outstanding Asset Balances of the Collateral it has
received Required Asset Documents with respect to is less than as set forth on the
electronic file, the Collateral Custodian shall immediately notify the Administrative Agent
of such discrepancy, and (ii) any Review Criteria is not satisfied, the Collateral Custodian
shall within one Business Day notify the Servicer of such determination and provide the
Servicer with a list of the non-complying Assets and the applicable Review Criteria that
they fail to satisfy. The Servicer shall have five Business Days to correct any
non-compliance with a Review Criteria. If after the conclusion of such time period the
Servicer has still not cured any non-compliance by an Asset with a Review Criteria, the
Collateral Custodian shall promptly notify the Seller and the Administrative Agent of such
determination by providing a written report to such persons identifying, with particularity,
each Asset and each of the applicable Review Criteria that such Asset fails to satisfy. In
addition, if requested in writing by the Servicer and approved by the Administrative Agent
within ten Business Days of the Collateral Custodian’s delivery of such report, the
Collateral Custodian shall return any Asset which fails to satisfy a Review Criteria to the
Seller. Other than the foregoing, the Collateral Custodian shall not have any
responsibility for reviewing any Required Asset Documents.

     (ii) In taking and retaining custody of the Required Asset Documents, the Collateral
Custodian shall be deemed to be acting as the agent of the Administrative Agent and the
Secured Parties; provided, however that the Collateral Custodian makes no representations as
to the existence, perfection or priority of any Lien on the Required Asset Documents or the
instruments therein; and provided, further, that the Collateral Custodian’s duties as agent
shall be limited to those expressly contemplated herein.

     (iii) All Required Asset Document shall be kept in fire resistant vaults, rooms or
cabinets at the locations specified on Schedule III attached hereto, or at such
other office as shall be specified to the Administrative Agent by the Collateral Custodian
in a written notice delivered at least forty-five (45) days prior to such change. All
Required Asset Documents shall be placed together with an appropriate identifying label and
maintained in such a manner so as to permit retrieval and access. All Required Asset
Documents shall be clearly segregated from any other documents or instruments maintained by
the Collateral Custodian.

     (iv) The Collateral Custodian shall make payments pursuant to the terms of the Monthly
Report in accordance with Section 2.9 and Section 2.10 (the “Payment
Duties”).

     (v) On each Reporting Date, the Collateral Custodian shall provide a written report to
the Administrative Agent and the Servicer (in a form acceptable to the Administrative Agent)
identifying each Asset for which it holds Required Asset Documents, the non-complying Assets
and the applicable Review Criteria that any non-complying Asset fails to satisfy.

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     (vi) In performing its duties, the Collateral Custodian shall use the same degree of
care and attention as it employs with respect to similar Collateral that it holds as
Collateral Custodian.

     Section 8.3 Merger or Consolidation.

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

     Section 8.4 Collateral Custodian Compensation.

     As compensation for its collateral custodian activities hereunder, the Collateral Custodian
shall be entitled to a Collateral Custodian Fee (the “Collateral Custodian Fee”) from the
Servicer. To the extent that such Collateral Custodian Fee is not paid by the Servicer, the
Collateral Custodian shall be entitled to receive the unpaid balance of its Collateral Custodian
Fee to the extent of funds available therefor pursuant to the provision of Section
2.9(a)(iv) or Section 2.10(a)(iv), as applicable. The Collateral Custodian’s
entitlement to receive the Collateral Custodian Fee shall cease on the earlier to occur of: (i)
its removal as Collateral Custodian pursuant to Section 8.5 or (ii) the termination of this
Agreement.

     Section 8.5 Collateral Custodian Removal.

     The Collateral Custodian may be removed, with or without cause, by the Administrative Agent by
notice given in writing to the Collateral Custodian (the “Collateral Custodian Termination
Notice”); provided, however, notwithstanding its receipt of a Collateral Custodian Termination
Notice, the Collateral Custodian shall continue to act in such capacity until a successor
Collateral Custodian has been appointed, has agreed to act as Collateral Custodian hereunder, and
has received all Required Asset Documents held by the previous Collateral Custodian.

     Section 8.6 Limitation on Liability.

     (a) The Collateral Custodian may conclusively rely on and shall be fully protected in acting
upon any certificate, instrument, opinion, notice, letter, telegram or other document delivered to
it and that in good faith it reasonably believes to be genuine and that has been signed by the
proper party or parties. The Collateral Custodian may rely conclusively on and shall be fully
protected in acting upon (1) the written instructions of any designated officer of the
Administrative Agent or (2) the verbal instructions of the Administrative Agent.

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

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     (c) The Collateral Custodian shall not be liable for any error of judgment, or for any act
done or step taken or omitted by it, in good faith, or for any mistakes of fact or law, or for
anything that it may do or refrain from doing in connection herewith except in the case of its
willful misconduct or grossly negligent performance or omission of its duties and in the case of
the negligent performance of its Payment Duties and in the case of its negligent performance of its
duties in taking and retaining custody of the Required Asset Documents.

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

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

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

     (g) It is expressly agreed and acknowledged that the Collateral Custodian is not guaranteeing
performance of or assuming any liability for the obligations of the other parties hereto or any
parties to the Collateral.

     Section 8.7 The Collateral Custodian Not to Resign.

     The Collateral Custodian shall not resign from the obligations and duties hereby imposed on it
except upon the Collateral Custodian’s determination that (i) the performance of its duties
hereunder is or becomes impermissible under Applicable Law and (ii) there is no reasonable action
that the Collateral Custodian could take to make the performance of its duties hereunder
permissible under Applicable Law. Any such determination permitting the resignation of the
Collateral Custodian shall be evidenced as to clause (i) above by an Opinion of Counsel to
such effect delivered to the Administrative Agent and each Purchaser Agent. No such resignation
shall become effective until a successor Collateral Custodian shall have assumed the
responsibilities and obligations of the Collateral Custodian hereunder.

     Section 8.8 Release of Documents.

     (a) Release for Servicing. From time to time and as appropriate for the enforcement
or servicing any of the Collateral, the Collateral Custodian is hereby authorized (unless and until
such authorization is revoked by the Administrative Agent), upon written receipt from the Servicer
of a request for release of documents and receipt in the form annexed hereto as Exhibit L,
to release to the Servicer the related Required Asset Documents or the documents set forth in such
request and receipt to the Servicer. All documents so released to the Servicer shall be held by
the Servicer in trust for the benefit of the Administrative Agent in accordance with the

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terms of this Agreement. The Servicer shall return to the Collateral Custodian the Required
Asset Documents or other such documents (i) immediately upon the request of the Administrative
Agent, or (ii) when the Servicer’s need therefor in connection with such foreclosure or servicing
no longer exists, unless the Asset shall be liquidated, in which case, upon receipt of an
additional request for release of documents and receipt certifying such liquidation from the
Servicer to the Collateral Custodian in the form annexed hereto as Exhibit H, the
Servicer’s request and receipt submitted pursuant to the first sentence of this subsection shall be
released by the Collateral Custodian to the Servicer.

     (b) Limitation on Release. The foregoing provision respecting release to the Servicer
of the Required Asset Documents and documents by the Collateral Custodian upon request by the
Servicer shall be operative only to the extent that at any time the Collateral Custodian shall not
have released to the Servicer active Required Asset Documents (including those requested)
pertaining to more than fifteen (15) Assets at the time being serviced by the Servicer under this
Agreement. Any additional Required Asset Documents or documents requested to be released by the
Servicer may be released only upon written authorization of the Administrative Agent. The
limitations of this paragraph shall not apply to the release of Required Asset Documents to the
Servicer pursuant to the immediately succeeding subsection.

     (c) Release for Payment. Upon receipt by the Collateral Custodian of the Servicer’s
request for release of documents and receipt in the form annexed hereto as Exhibit L (which
certification shall include a statement to the effect that all amounts received in connection with
such payment or repurchase have been credited to the Collection Account as provided in this
Agreement), the Collateral Custodian shall promptly release the related Required Asset Documents to
the Servicer.

     Section 8.9 Return of Required Asset Documents.

     The Seller may, with the prior written consent of the Administrative Agent (such consent not
to be unreasonably withheld), require that the Collateral Custodian return each Required Asset
Document (a) delivered to the Collateral Custodian in error, (b) for which a Substitute Asset has
been substituted in accordance with Section 2.18, (c) as to which the lien on the Related
Property has been so released pursuant to Section 9.2, (d) that has been repaid by the
Seller pursuant to Section 4.6 or (e) that is required to be redelivered to the Seller in
connection with the termination of this Agreement, in each case by submitting to the Collateral
Custodian and the Administrative Agent a written request in the form of Exhibit H hereto
(signed by both the Seller and the Administrative Agent) specifying the Collateral to be so
returned and reciting that the conditions to such release have been met (and specifying the Section
or Sections of this Agreement being relied upon for such release). The Collateral Custodian shall
upon its receipt of each such request for return executed by the Seller and the Administrative
Agent promptly, but in any event within five Business Days, return the Required Asset Documents so
requested to the Seller.

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     Section 8.10 Access to Certain Documentation and Information Regarding the Collateral;
Audits.

     The Collateral Custodian shall provide to the Administrative Agent and each Purchaser Agent
access to the Required Asset Documents and all other documentation regarding the Collateral
including in such cases where the Administrative Agent and each Purchaser Agent is required in
connection with the enforcement of the rights or interests of the Secured Parties, or by applicable
statutes or regulations, to review such documentation, such access being afforded without charge
but only (i) upon two Business Days prior written request, (ii) during normal business hours and
(iii) subject to the Servicer’s and Collateral Custodian’s normal security and confidentiality
procedures. Prior to the Closing Date and periodically thereafter at the discretion of the
Administrative Agent and each Purchaser Agent, the Administrative Agent and each Purchaser Agent
may review the Servicer’s collection and administration of the Collateral in order to assess
compliance by the Servicer with the Credit and Collection Policy, as well as with this Agreement
and may conduct an audit of the Collateral, Required Asset Documents in conjunction with such a
review. Such review shall be reasonable in scope and shall be completed in a reasonable period of
time. Without limiting the foregoing provisions of this Section 8.10, from time to time on
request of the Administrative Agent, the Collateral Custodian shall permit certified public
accountants or other auditors acceptable to the Administrative Agent to conduct, at the Servicer’s
expense, a review of the Required Asset Documents and all other documentation regarding the
Collateral.

ARTICLE IX

SECURITY INTEREST

     Section 9.1 Grant of Security Interest.

     The parties hereto intend that this Agreement constitute a security agreement and the
transactions effected hereby constitute secured loans by the applicable Purchasers to the Seller
under Applicable Law. For such purpose, the Seller hereby transfers, conveys, assigns and grants
as of the Closing Date to the Administrative Agent, as agent for the Secured Parties, a lien and
continuing security interest in all of the Seller’s right, title and interest in, to and under (but
none of the obligations under) all Collateral (including any Hedging Agreements), whether now
existing or hereafter arising or acquired by the Seller, and wherever the same may be located, to
secure the prompt, complete and indefeasible payment and performance in full when due, whether by
lapse of time, acceleration or otherwise, of the Aggregate Unpaids of the Seller arising in
connection with this Agreement and each other Transaction Document, whether now or hereafter
existing, due or to become due, direct or indirect, or absolute or contingent, including, without
limitation, all Aggregate Unpaids. The assignment under this Section 9.1 does not
constitute and is not intended to result in a creation or an assumption by the Administrative
Agent, the Purchaser Agents, any Hedge Counterparty, the Liquidity Banks or any of the Secured
Parties of any obligation of the Seller or any other Person in connection with any or all of the
Collateral or under any agreement or instrument relating thereto. Anything herein to the contrary
notwithstanding, (a) the Seller shall remain liable under the Collateral to the extent set forth
therein to perform all of its duties and obligations thereunder to the same extent as if this
Agreement had not been executed, (b) the exercise by the Administrative Agent,

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as agent for the Secured Parties, of any of its rights in the Collateral shall not release the
Seller from any of its duties or obligations under the Collateral, and (c) none of the
Administrative Agent, the Purchaser Agents, any Hedge Counterparty, the Liquidity Banks or any
Secured Party shall have any obligations or liability under the Collateral by reason of this
Agreement, nor shall the Administrative Agent, the Purchaser Agents, any Hedge Counterparty, the
Liquidity Banks or any Secured Party be obligated to perform any of the obligations or duties of
the Seller thereunder or to take any action to collect or enforce any claim for payment assigned
hereunder.

     Section 9.2 Release of Lien on Collateral.

     At the same time as (i) any Collateral expires by its terms and all amounts in respect thereof
have been paid in full by the related Obligor and deposited in the Collection Account, (ii) any
Asset becomes a Prepaid Asset and all amounts in respect thereof have been paid in full by the
related Obligor and deposited in the Collection Account, (iii) such Asset is replaced in accordance
with Section 2.18, (iv) this agreement terminates in accordance with Section 13.6
or (v) such Asset is removed in accordance with Section 2.19 or Section 2.20, the
Administrative Agent as agent for the Secured Parties will, to the extent requested by the
Servicer, release its interest in such Collateral. In connection with any sale of such Related
Property, the Administrative Agent as agent for the Secured Parties will after the deposit by the
Servicer of the Proceeds of such sale into the Collection Account, at the sole expense of the
Servicer, execute and deliver to the Servicer any assignments, bills of sale, termination
statements and any other releases and instruments as the Servicer may reasonably request in order
to effect the release and transfer of such Related Property; provided, that the Administrative
Agent as agent for the Secured Parties will make no representation or warranty, express or implied,
with respect to any such Related Property in connection with such sale or transfer and assignment.
Nothing in this section shall diminish the Servicer’s obligations pursuant to Section 6.6
with respect to the Proceeds of any such sale.

     Section 9.3 Further Assurances.

     The provisions of Section 13.12 shall apply to the security interest granted under
Section 9.1 as well as to the Advances hereunder.

     Section 9.4 Remedies.

     Upon the occurrence of a Termination Event, the Administrative Agent and Secured Parties shall
have, with respect to the Collateral granted pursuant to Section 9.1, and in addition to
all other rights and remedies available to the Administrative Agent and Secured Parties under this
Agreement or other Applicable Law, all rights and remedies of a secured party upon default under
the UCC.

     Section 9.5 Waiver of Certain Laws.

     Each of the Seller and the Servicer agrees, to the full extent that it may lawfully so agree,
that neither it nor anyone claiming through or under it will set up, claim or seek to take
advantage of any appraisement, valuation, stay, extension or redemption law now or hereafter in
force in any locality where any Collateral may be situated in order to prevent, hinder or delay the
enforcement or foreclosure of this Agreement, or the absolute sale of any of the Collateral or any

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part thereof, or the final and absolute putting into possession thereof, immediately after
such sale, of the purchasers thereof, and each of the Seller and the Servicer, for itself and all
who may at any time claim through or under it, hereby waives, to the full extent that it may be
lawful so to do, the benefit of all such laws, and any and all right to have any of the properties
or assets constituting the Collateral marshaled upon any such sale, and agrees that the
Administrative Agent or any court having jurisdiction to foreclose the security interests granted
in this Agreement may sell the Collateral as an entirety or in such parcels as the Administrative
Agent or such court may determine.

     Section 9.6 Power of Attorney.

     Each of the Seller and the Servicer hereby irrevocably appoints the Administrative Agent its
true and lawful attorney (with full power of substitution) in its name, place and stead and at is
expense, in connection with the enforcement of the rights and remedies provided for in this
Agreement, including without limitation the following powers: (a) to give any necessary receipts
or acquittance for amounts collected or received hereunder, (b) to make all necessary transfers of
the Collateral in connection with any such sale or other disposition made pursuant hereto, (c) to
execute and deliver for value all necessary or appropriate bills of sale, assignments and other
instruments in connection with any such sale or other disposition, the Seller and the Servicer
hereby ratifying and confirming all that such attorney (or any substitute) shall lawfully do
hereunder and pursuant hereto, and (d) to sign any agreements, orders or other documents in
connection with or pursuant to any Transaction Document or Hedging Agreement. Nevertheless, if so
requested by the Administrative Agent or a Purchaser Agent, the Seller shall ratify and confirm any
such sale or other disposition by executing and delivering to the Administrative Agent or such
purchaser all proper bills of sale, assignments, releases and other instruments as may be
designated in any such request.

ARTICLE X

TERMINATION EVENTS

     Section 10.1 Termination Events.

     The following events shall be Termination Events (“Termination Events”) hereunder:

     (a) as of any Determination Date, the Average Portfolio Delinquency Ratio exceeds 6.5%; or

     (b) as of any Determination Date, the Average Pool Charged-Off Ratio exceeds 3.0%; or

     (c) as of any Determination Date, the Average Portfolio Charged-Off Ratio exceeds 4.0%; or

     (d) the Advances Outstanding on any day exceeds the lesser of the Facility Amount and Maximum
Availability and the same continues unremedied for two Business Days; provided, however, during the
period of time that such event remains unremedied, no additional

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Advances will be made under this Agreement and any payments required to be made by the
Servicer on a Payment Date shall be made under Section 2.10; or

     (e) a Servicer Default occurs and is continuing; or

     (f) [Reserved]; or

     (g) failure on the part of the Seller or Originator to make any payment or deposit (including
without limitation with respect to Collections) required by the terms of any Transaction Document
on the day such payment or deposit is required to be made and the same continues unremedied for two
Business Days; or

     (h) the occurrence of an Insolvency Event relating to the Originator, the Seller, the Servicer
or any Affiliate of the Originator which is a party to a Permitted Securitization Transaction; or

     (i) the Seller shall become required to register as an “investment company” within the meaning
of the Investment Company Act of 1940, as amended (the “40 Act”) or the arrangements contemplated
by the Transaction Documents shall require registration as an “investment company” within the
meaning of the 40 Act; or

     (j) a regulatory, tax or accounting body has ordered that the activities of the Seller or any
Affiliate of the Seller contemplated hereby be terminated or, as a result of any other event or
circumstance, the activities of the Seller contemplated hereby may reasonably be expected to cause
the Seller or any of its respective Affiliates to suffer materially adverse regulatory, accounting
or tax consequences; or

     (k) there shall exist any event or occurrence that has caused a Material Adverse Effect; or

     (l) the Internal Revenue Service shall file notice of a lien pursuant to Section 6323 of the
Code with regard to any assets of the Seller or the Originator and such lien shall not have been
released within five Business Days, or the Pension Benefit Guaranty Corporation shall file notice
of a lien pursuant to Section 4068 of ERISA with regard to any of the assets of the Seller or the
Originator and such lien shall not have been released within five Business Days; or

     (m) any Change-in-Control shall occur; or

     (n) (i) any Transaction Document, or any lien or security interest granted thereunder, shall
(except in accordance with its terms), in whole or in part, terminate, cease to be effective or
cease to be the legally valid, binding and enforceable obligation of the Seller, the Originator, or
the Servicer,

     (ii) the Seller, the Originator, the Servicer or any other party shall, directly or
indirectly, contest in any manner the effectiveness, validity, binding nature or
enforceability of any Transaction Document or any lien or security interest thereunder, or

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     (iii) any security interest securing any obligation under any Transaction Document
shall, in whole or in part, cease to be a perfected first priority security interest; or

     (o) on any date of determination, the aggregate Hedge Notional Amount in effect for that day
under all Hedge Transactions is less than the product of the Hedge Percentage on such day and the
Hedge Amount on that day, and the same continues unremedied for a period of two Business Days; or

     (p) any failure on the part of the Seller or the Originator duly to observe or perform in any
material respect any other covenants or agreements of the Seller or the Originator set forth in
this Agreement or the other Transaction Documents to which the Seller or the Originator is a party
and the same continues unremedied for a period of thirty (30) days after the earlier to occur of
(i) the date on which written notice of such failure requiring the same to be remedied shall have
been given to the Seller or the Originator by the Administrative Agent and (ii) the date on which
the Seller or the Originator becomes aware thereof; or

     (q) any representation, warranty or certification made by the Seller or the Originator in any
Transaction Document or in any certificate delivered pursuant to any Transaction Document shall
prove to have been incorrect when made, which has a Material Adverse Effect on the Secured Parties
and which continues to be unremedied for a period of thirty (30) days after the earlier to occur of
(i) the date on which written notice of such incorrectness requiring the same to be remedied shall
have been given to the Seller or the Originator by the Administrative Agent and (ii) the date on
which the Seller or the Originator becomes aware thereof; or

     (r) any failure by the Seller to give instructions or notice to the Administrative Agent as
required by this Agreement, or to deliver any required Monthly Report or other Required Reports
hereunder on or before the date occurring two Business Days after the date such instruction, notice
or report is required to be made or given, as the case may be, under the terms of this Agreement;
or

     (s) the failure of the Seller, the Servicer or the Originator to make any payment due with
respect to recourse debt or other obligations, in the case of the Servicer or the Originator, in
excess of $10,000,000, or the occurrence of any event or condition that would at such time permit
acceleration of such recourse debt or other obligations; or

     (t) (1) the rendering of one or more final judgments, decrees or orders by a court or
arbitrator of competent jurisdiction for the payment of money in excess of $10,000,000,
individually or in the aggregate, against the Originator, or $2,000,000 against the Seller,
individually or in the aggregate, and the Originator shall not have either (i) discharged or
provided for the discharge of any such judgment, decree or order in accordance with its terms or
(ii) perfected a timely appeal of such judgment, decree or order and caused the execution of same
to be stayed during the pendency of the appeal or (2) the Originator or the Seller shall have made
payments of amounts in excess of $7,500,000 by the Originator, or $2,000,000 by the Seller, in the
settlement of any litigation, claim or dispute (excluding payments made from insurance proceeds);
or

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     (u) as of any Determination Date, the Pool Yield does not equal or exceed the Minimum Pool
Yield and the same continues unremedied by the following Determination Date; or

     (v) any deficiency exists in the Minimum Overcollateralization Amount on any day and the same
continues unremedied for two Business Days; or

     (w) [Reserved]; or

     (x) as of any Quarterly Determination Date, the Originator’s ratio of Consolidated Funded
Indebtedness to Consolidated Tangible Net Worth is more than 6 to 1; provided that such calculation
shall exclude the effects of any Liquid Real Estate Assets that are acquired and levered by the
Originator solely to satisfy REIT asset and income tests.

     Section 10.2 Remedies.

     (a) Upon the occurrence of a Termination Event (other than a Termination Event described in
Section 10.1(i)), the Administrative Agent shall, at the request of, or may, with the
consent of, any of the Purchasers, by notice to the Seller, declare the Termination Date to have
occurred and the Amortization Period to have commenced.

     (b) Upon the occurrence of a Termination Event described in Section 10.1(i), the
Termination Date shall occur immediately and the Amortization Period shall commence automatically.

     (c) Upon the occurrence of any Termination Event described in Section 10.1 or the
Termination Date (including, without limitation, due to a non-renewal by a Purchaser), (i) no
Advances will thereafter be made, and (ii) all Aggregate Unpaids shall become immediately due and
payable without presentment, demand, protest or further notice of any kind, all of which are
expressly waived by the Seller, and (iii) the Administrative Agent and the Secured Parties shall
have the right to exercise any and all of its other rights and remedies under the UCC of each
applicable jurisdiction and other Applicable Laws, hereunder and under the other Transaction
Documents, which rights and remedies shall be cumulative, and include the right to require the
Seller and Servicer (and the Seller and Servicer hereby agree that they will at the Servicer’s
expense and upon request of the Administrative Agent forthwith) to (1) assemble all or any part of
the Collateral as directed by the Administrative Agent and make the same available to the
Administrative Agent at a place to be designated by the Administrative Agent and (2) without notice
except as specified below, sell the Collateral or any part thereof in one or more parcels at a
public or private sale, at any of the Administrative Agent’s offices or elsewhere, for cash, on
credit or for future delivery, and upon such other terms as the Administrative Agent may deem
commercially reasonable. The Seller agrees that, to the extent notice of sale shall be required by
law, at least ten days’ notice to the Seller of the time and place of any public sale or the time
after which any private sale is to be made shall constitute reasonable notification. The
Administrative Agent shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. The Administrative Agent may adjourn any public or private sale from time
to time by announcement at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned. All cash Proceeds

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received by the Administrative Agent in respect of any sale of, collection from, or other
realization upon, all or any part of the Collateral (after payment of any amounts incurred in
connection with such sale) shall be deposited into the Collection Account and to be applied against
all or any part of the Aggregate Unpaids pursuant to Section 2.10 or otherwise in such
order as the Administrative Agent shall elect in its discretion.

ARTICLE XI

INDEMNIFICATION

     Section 11.1 Indemnities by the Seller.

     (a) Without limiting any other rights that any such Person may have hereunder or under
Applicable Law, the Seller hereby agrees to indemnify the Administrative Agent, the Purchaser
Agents, the Backup Servicer, the Collateral Custodian, the Secured Parties, the Affected Parties
and each of their respective assigns and officers, directors, employees and agents thereof
(collectively, the “Indemnified Parties”), forthwith on demand, from and against any and
all damages, losses, claims, liabilities and related costs and expenses, including attorneys’ fees
and disbursements (all of the foregoing being collectively referred to as the “Indemnified
Amounts”) awarded against or incurred by such Indemnified Party and other non-monetary damages
of any such Indemnified Party or any of them arising out of or as a result of this Agreement or
having an interest in the Collateral or in respect of any Asset included in the Collateral,
excluding, however, (a) Indemnified Amounts to the extent resulting from gross negligence or
willful misconduct on the part of such Indemnified Party or (b) Indemnified Amounts that have the
effect of recourse for non-payment of the Assets included in the Collateral due to credit problems
of the Obligors (except as otherwise specifically provided in this Agreement). If the Seller has
made any indemnity payment pursuant to this Section 11.1 and such payment fully indemnified
the recipient thereof and the recipient thereafter collects any payments from others in respect of
such Indemnified Amounts then, the recipient shall repay to the Seller an amount equal to the
amount it has collected from others in respect of such indemnified amounts. Without limiting the
foregoing, the Seller shall indemnify each Indemnified Party for Indemnified Amounts relating to or
resulting from:

     (i) any representation or warranty made or deemed made by the Seller, the Servicer (if
the Originator or one of its Affiliates is the Servicer) or any of their respective officers
under or in connection with this Agreement or any other Transaction Document, which shall
have been false or incorrect in any material respect when made or deemed made or delivered;

     (ii) the failure by the Seller or the Servicer (if the Originator or one of its
Affiliates is the Servicer) to comply with any term, provision or covenant contained in this
Agreement or any agreement executed in connection with this Agreement, or with any
Applicable Law, with respect to any Collateral or the nonconformity of any Collateral with
any such Applicable Law;

     (iii) the failure to vest and maintain vested in the Administrative Agent, as agent for
the Secured Parties, a first priority security interest in the Collateral, together

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with all Collections, free and clear of any Lien (other than Permitted Liens) whether
existing at the time of any Advance or at any time thereafter;

     (iv) the failure to maintain, as of the close of business on each Business Day prior to
the Termination Date, an amount of Advances Outstanding that is less than or equal to the
lesser of (x) the Facility Amount and (y) the Maximum Availability on such Business Day;

     (v) the failure to file, or any delay in filing, financing statements, continuation
statements or other similar instruments or documents under the UCC of any applicable
jurisdiction or other Applicable Laws with respect to any Collateral, whether at the time of
any Advance or at any subsequent time;

     (vi) any dispute, claim, offset or defense (other than the discharge in bankruptcy of
the Obligor) of the Obligor to the payment with respect to any Collateral (including,
without limitation, a defense based on the Collateral not being a legal, valid and binding
obligation of such Obligor enforceable against it in accordance with its terms), or any
other claim resulting from the sale of the merchandise or services related to such
Collateral or the furnishing or failure to furnish such merchandise or services;

     (vii) any failure of the Seller or the Servicer (if the Originator or one of its
Affiliates is the Servicer) to perform its duties or obligations in accordance with the
provisions of this Agreement or any of the other Transaction Documents to which it is a
party or any failure by the Originator, the Seller or any Affiliate thereof to perform its
respective duties under any Collateral;

     (viii) the failure of any Lock-Box Bank to remit any amounts held in a Lock-Box Account
pursuant to the instructions of the Servicer or the Administrative Agent (to the extent such
Person is entitled to give such instructions in accordance with the terms hereof and of any
applicable Lock-Box Agreement) whether by reason of the exercise of set-off rights or
otherwise;

     (ix) any inability to obtain any judgment in, or utilize the court or other
adjudication system of, any state in which an Obligor may be located as a result of the
failure of the Seller or the Originator to qualify to do business or file any notice or
business activity report or any similar report;

     (x) any action taken by the Seller or the Originator (in its capacity as Servicer) in
the enforcement or collection of any Collateral;

     (xi) any products liability claim or personal injury or property damage suit or other
similar or related claim or action of whatever sort arising out of or in connection with the
Related Property or services that are the subject of any Collateral;

     (xii) any claim, suit or action of any kind arising out of or in connection with
Environmental Laws including any vicarious liability;

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     (xiii) the failure by Seller to pay when due any Taxes for which the Seller is liable,
including without limitation, sales, excise or personal property taxes payable in connection
with the Collateral;

     (xiv) any repayment by the Administrative Agent, the Purchaser Agents or a Secured
Party of any amount previously distributed in reduction of Advances Outstanding or payment
of Interest or any other amount due hereunder or under any Hedging Agreement, in each case
which amount the Administrative Agent, the Purchaser Agents or a Secured Party believes in
good faith is required to be repaid;

     (xv) the commingling of Collections on the Collateral at any time with other funds;

     (xvi) any investigation, litigation or proceeding related to this Agreement or the use
of proceeds of Advances or the security interest in the Collateral;

     (xvii) any failure by the Seller to give reasonably equivalent value to the Originator
in consideration for the transfer by the Originator to the Seller of any item of Collateral
or any attempt by any Person to void or otherwise avoid any such transfer under any
statutory provision or common law or equitable action, including, without limitation, any
provision of the Bankruptcy Code;

     (xviii) the use of the proceeds of any Advance in a manner other than as provided in
this Agreement and the Sale Agreement;

     (xix) the failure of the Seller, the Originator or any of their respective agents or
representatives to remit to the Servicer or the Administrative Agent or the Purchaser
Agents, Collections on the Collateral remitted to the Seller, the Originator, the Servicer
or any such agent or representative; or

     (xx) the failure by the Seller to comply with any of the covenants relating to any
Hedging Agreement in accordance with the Transaction Documents.

     (b) Any amounts subject to the indemnification provisions of this Section 11.1 shall
be paid by the Seller to the Indemnified Party within five Business Days following such Person’s
demand therefor.

     (c) If for any reason the indemnification provided above in this Section 11.1 is
unavailable to the Indemnified Party or is insufficient to hold an Indemnified Party harmless, then
the Seller or the Servicer, as the case may be, shall contribute to the amount paid or payable by
such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as
is appropriate to reflect not only the relative benefits received by such Indemnified Party on the
one hand and the Seller or the Servicer, as the case may be, on the other hand but also the
relative fault of such Indemnified Party as well as any other relevant equitable considerations.

     (d) The obligations of the Seller under this Section 11.1 shall survive the
resignation or removal of the Administrative Agent, the Purchaser Agents, the Servicer, the Backup
Servicer or the Collateral Custodian and the termination of this Agreement.

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     Section 11.2 Indemnities by the Servicer.

     (a) Without limiting any other rights that any such Person may have hereunder or under
Applicable Law, the Servicer hereby agrees to indemnify each Indemnified Party, forthwith on
demand, from and against any and all Indemnified Amounts awarded against or incurred by any such
Indemnified Party by reason of any acts, omissions or alleged acts or omissions of (1) the
Servicer, including, but not limited to (i) any representation or warranty made by the Servicer
under or in connection with any Transaction Document, any Monthly Report, Servicer’s Certificate or
any other information or report delivered by or on behalf of the Servicer pursuant hereto, which
shall have been false, incorrect or misleading in any material respect when made or deemed made,
(ii) the failure by the Servicer to comply with any Applicable Law, (iii) the failure of the
Servicer to comply with its duties or obligations in accordance with the Agreement, (iv) the
failure by the Servicer to comply with any of the covenants relating to any Hedging Agreement in
accordance with the Transaction Documents, or (v) any litigation, proceedings or investigation
against the Servicer and (2) any Affiliate of CapitalSource Inc., including but not limited to in
connection with (i) its actions as collateral agent of the security and payment agent for holders
of Agented Loans and (ii) its origination of Assets and the subsequent transfer of such Assets to
CapitalSource Finance. The provisions of this indemnity shall run directly to and be enforceable
by an injured party subject to the limitations hereof.

     (b) Any amounts subject to the indemnification provisions of this Section 11.2 shall
be paid by the Servicer to the Indemnified Party within five Business Days following such Person’s
demand therefor.

     (c) The Servicer shall have no liability for making indemnification hereunder to the extent
any such indemnification constitutes recourse for uncollectible or uncollected Assets.

     (d) The obligations of the Servicer under this Section 11.2 shall survive the
resignation or removal of the Administrative Agent, the Purchaser Agents, the Backup Servicer or
the Collateral Custodian and the termination of this Agreement.

     (e) Any indemnification pursuant to this Section 11.2 shall not be payable from the
Collateral.

     Section 11.3 After-Tax Basis.

     Indemnification under Section 11.1 and Section 11.2 shall be in an amount
necessary to make the Indemnified Party whole after taking into account any tax consequences to the
Indemnified Party of the receipt of the indemnity provided hereunder, including the effect of such
tax or refund on the amount of tax measured by net income or profits that is or was payable by the
Indemnified Party.

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ARTICLE XII

THE ADMINISTRATIVE AGENT AND PURCHASER AGENTS

     Section 12.1 The Administrative Agent.

     (a) Each Purchaser Agent and each Secured Party hereby appoints and authorizes the
Administrative Agent as its agent and bailee for purposes of perfection pursuant to the applicable
UCC or other Applicable Law and hereby further authorizes the Administrative Agent to appoint
additional agents and bailees to act on its behalf and for the benefit of each of the Purchaser
Agents and each Secured Party. Each of the Purchaser Agents and each Secured Party further
authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such
powers under this Agreement and the other Transaction Documents as are delegated to the
Administrative Agent by the terms hereof and thereof, together with such powers as are reasonably
incidental thereto. In furtherance, and without limiting the generality, of the foregoing, each
Secured Party hereby appoints the Administrative Agent as its agent to execute and deliver all
further instruments and documents, and take all further action that the Administrative Agent may
deem necessary or appropriate or that a Secured Party may reasonably request in order to perfect,
protect or more fully evidence the security interests granted by the Seller hereunder, or to enable
any of them to exercise or enforce any of their respective rights hereunder, including, without
limitation, the execution by the Administrative Agent as secured party/assignee of such financing
or continuation statements, or amendments thereto or assignments thereof, relative to all or any of
the Collateral now existing or hereafter arising, and such other instruments or notices, as may be
necessary or appropriate for the purposes stated hereinabove. The Purchaser Agents and the
Purchasers may direct the Administrative Agent to take any such incidental action hereunder. With
respect to other actions which are incidental to the actions specifically delegated to the
Administrative Agent hereunder, the Administrative Agent shall not be required to take any such
incidental action hereunder, but shall be required to act or to refrain from acting (and shall be
fully protected in acting or refraining from acting) upon the direction of the Purchaser Agents and
the Purchasers; provided, however, that the Administrative Agent shall not be required to take any
action hereunder if the taking of such action, in the reasonable determination of the
Administrative Agent, shall be in violation of any Applicable Law or contrary to any provision of
this Agreement or shall expose the Administrative Agent to liability hereunder or otherwise. In
the event the Administrative Agent requests the consent of a Purchaser Agent or a Purchaser
pursuant to the foregoing provisions and the Administrative Agent does not receive a consent
(either positive or negative) from such Person within ten Business Days of such Person’s receipt of
such request, then such Purchaser Agent or Purchaser shall be deemed to have declined to consent to
the relevant amendments.

     (b) The Administrative Agent shall exercise such rights and powers vested in it by this
Agreement and the other Transaction Documents, and use the same degree of care and skill in their
exercise as a prudent person would exercise or use under the circumstances in the conduct of such
person’s own affairs.

     (c) Administrative Agent’s Reliance, Etc. Neither the Administrative Agent nor any of
its directors, officers, agents or employees shall be liable for any action taken or omitted to be

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taken by it or them as Administrative Agent under or in connection with this Agreement or any
of the other Transaction Documents, except for its or their own gross negligence or willful
misconduct. Without limiting the foregoing, the Administrative Agent: (i) may consult with legal
counsel (including counsel for the Seller or the Originator), independent public accountants and
other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes
no warranty or representation and shall not be responsible for any statements, warranties or
representations made in or in connection with this Agreement; (iii) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement or any of the other Transaction Documents on the part of the Seller,
the Originator, or the Servicer or to inspect the property (including the books and records) of the
Seller, the Originator, or the Servicer; (iv) shall not be responsible for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of this Agreement, any of the
other Transaction Documents or any other instrument or document furnished pursuant hereto or
thereto; and (v) shall incur no liability under or in respect of this Agreement or any of the other
Transaction Documents by acting upon any notice (including notice by telephone), consent,
certificate or other instrument or writing (which may be by telex) believed by it to be genuine and
signed or sent by the proper party or parties.

     (d) Credit Decision with Respect to the Administrative Agent. Each Purchaser Agent
and Secured Party acknowledges that it has, independently and without reliance upon the
Administrative Agent, or any of the Administrative Agent’s Affiliates, and based upon such
documents and information as it has deemed appropriate, made its own evaluation and decision to
enter into this Agreement and the other Transaction Documents to which it is a party. Each
Purchaser Agent and Secured Party also acknowledges that it will, independently and without
reliance upon the Administrative Agent, or any of the Administrative Agent’s Affiliates, and based
on such documents and information as it shall deem appropriate at the time, continue to make its
own decisions in taking or not taking action under this Agreement and the other Transaction
Documents to which it is a party.

     (e) Indemnification of the Administrative Agent. Each Purchaser Agent and Purchaser
agrees to indemnify the Administrative Agent (to the extent not reimbursed by the Seller or the
Servicer), ratably in accordance with its Pro-Rata Share from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted
against the Administrative Agent in any way relating to or arising out of this Agreement or any of
the other Transaction Documents, or any action taken or omitted by the Administrative Agent
hereunder or thereunder; provided, that none of the Purchaser Agents or Purchasers shall be liable
for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the Administrative Agent’s gross negligence
or willful misconduct. Without limitation of the foregoing, each Purchaser Agent and Purchaser
agrees to reimburse the Administrative Agent, ratably in accordance with its Pro-Rata Share
promptly upon demand for any out-of-pocket expenses (including counsel fees) incurred by the
Administrative Agent in connection with the administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement and the other Transaction Documents, to the extent
that such expenses are incurred in the interests of or

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otherwise in respect of the Purchaser Agents, or the Purchasers hereunder and/or thereunder
and to the extent that the Administrative Agent is not reimbursed for such expenses by the Seller
or the Servicer.

     (f) Successor Administrative Agent. The Administrative Agent may resign at any time,
effective upon the appointment and acceptance of a successor Administrative Agent as provided
below, by giving at least five days’ written notice thereof to each Purchaser Agent and the Seller
and may be removed at any time with cause by the Purchaser Agents acting jointly. Upon any such
resignation or removal, the Purchaser Agents acting jointly shall appoint a successor
Administrative Agent. Each of the Purchaser Agents agrees that it shall not unreasonably withhold
or delay its approval of the appointment of a successor Administrative Agent. If no such successor
Administrative Agent shall have been so appointed, and shall have accepted such appointment, within
thirty (30) days after the retiring Administrative Agent’s giving of notice of resignation or the
removal of the retiring Administrative Agent, then the retiring Administrative Agent may, on behalf
of the Secured Parties, appoint a successor Administrative Agent which successor Administrative
Agent shall be either (i) a commercial bank organized under the laws of the United States or of any
state thereof and have a combined capital and surplus of at least $50,000,000 or (ii) an Affiliate
of such a bank. Upon the acceptance of any appointment as Administrative Agent hereunder by a
successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
under this Agreement. After any retiring Administrative Agent’s resignation or removal hereunder
as Administrative Agent, the provisions of this Article XII shall continue to inure to its benefit
as to any actions taken or omitted to be taken by it while it was Administrative Agent under this
Agreement.

     (g) Payments by the Administrative Agent. Unless specifically allocated to a specific
Purchaser Agent pursuant to the terms of this Agreement, all amounts received by the Administrative
Agent on behalf of the Purchaser Agents shall be paid by the Administrative Agent to the Purchaser
Agents in accordance with their respective Pro-Rata Shares in the applicable Advances Outstanding,
or if there are no Advances Outstanding then to the Purchaser Agents in accordance with the most
recent applicable Commitment, on the Business Day received by the Administrative Agent, unless such
amounts are received after 12:00 noon on such Business Day, in which case the Administrative Agent
shall use its reasonable efforts to pay such amounts to each Purchaser Agent on such Business Day,
but, in any event, shall pay such amounts to such Purchaser Agent not later than the following
Business Day.

     Section 12.2 The Purchaser Agents.

     (a) Authorization and Action. Each Purchaser hereby designates and appoints its
applicable Purchaser Agent to act as its agent hereunder and under each other Transaction Document,
and authorizes such Purchaser Agent to take such actions as agent on its behalf and to exercise
such powers as are delegated to such Purchaser Agent by the terms of this Agreement together and
the other Transaction Documents with such powers as are reasonably incidental thereto. Such
Purchaser Agent shall not have any duties or responsibilities, except those expressly set forth
herein, or any fiduciary relationship with its related Purchaser, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities on the part of such

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Purchaser Agent shall be read into this Agreement or any other Transaction Document or
otherwise exist for such Purchaser Agent. In performing its functions and duties hereunder and
under the other Transaction Documents, such Purchaser Agent shall act solely as agent for its
related Purchaser and does not assume nor shall be deemed to have assumed any obligation or
relationship of trust or agency with or for the Seller or any of its successors or assigns. Such
Purchaser Agent shall not be required to take any action that exposes such Purchaser Agent to
personal liability or that is contrary to this Agreement, or any other Transaction Document or
Applicable Law. The appointment and authority of such Purchaser Agent hereunder shall terminate at
the indefeasible payment in full of the Aggregate Unpaids. Each Purchaser Agent, respectively,
hereby authorizes the Administrative Agent to execute each of the UCC Financing Statements on
behalf of such Purchaser (the terms of which shall be binding on such Purchaser).

     (b) Delegation of Duties. Each applicable Purchaser Agent may execute any of its
duties under this Agreement by or through agents or attorneys-in-fact and shall be entitled to
advice of counsel concerning all matters pertaining to such duties. Such Purchaser Agent shall not
be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it
with reasonable care.

     (c) Exculpatory Provisions. Neither any applicable Purchaser Agent nor any of its
directors, officers, agents or employees shall be (i) liable for any action lawfully taken or
omitted to be taken by it or them under or in connection with this Agreement or any other
Transaction Document (except for its, their or such Person’s own gross negligence or willful
misconduct or, in the case of such Purchaser Agent, the breach of its obligations expressly set
forth in this Agreement or any other Transaction Document), or (ii) responsible in any manner to
its related Purchaser for any recitals, statements, representations or warranties made by the
Seller contained in this Agreement or any other Transaction Document, for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement, any other Transaction
Document or any other document furnished in connection herewith, for any failure of the Seller to
perform its obligations hereunder, or for the satisfaction of any condition specified in
Article III. Such Purchaser Agent shall not be under any obligation to its related
Purchaser to ascertain or to inquire as to the observance or performance of any of the agreements
or covenants contained in, or conditions of, this Agreement or any other Transaction Document, or
to inspect the properties, books or records of the Seller. Such Purchaser Agent shall not be
deemed to have knowledge of any Unmatured Termination Event, Termination Event or Servicer Default
unless such Purchaser Agent has received notice from the Seller or a Secured Party.

     (d) Reliance. Such Purchaser Agent shall in all cases be entitled to rely, and shall
be fully protected in relying, upon any document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including, without limitation, counsel to the Seller), independent
accountants and other experts selected by such Purchaser Agent. Such Purchaser Agent shall in all
cases be fully justified in failing or refusing to take any action under this Agreement, any other
Transaction Document or any other document furnished in connection herewith unless it shall first
receive such advice or concurrence of its related Purchaser, as it deems appropriate, or it shall
first be indemnified to its satisfaction by its related Purchaser; provided that unless and until
such Purchaser Agent shall have received such advice, such Purchaser Agent may take or refrain from
taking any action as such Purchaser Agent shall deem advisable and in the best

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interests of its related Purchaser. Such Purchaser Agent shall in all cases be fully
protected in acting, or in refraining from acting, in accordance with a request of its related
Purchaser, and such request and any action taken or failure to act pursuant thereto shall be
binding upon its related Purchaser.

     (e) Non-Reliance on the Purchaser Agent and Other Purchasers. Each applicable
Purchaser, respectively, expressly acknowledges that neither its related Purchaser Agent nor any of
its officers, directors, employees, agents, attorneys-in-fact or affiliates has made any
representations or warranties to it and that no act by such Purchaser Agent hereafter taken,
including, without limitation, any review of the affairs of the Seller, shall be deemed to
constitute any representation or warranty by the such Purchaser Agent. Each applicable Purchaser,
respectively, represents and warrants to its related Purchaser Agent that it has and will,
independently and without reliance upon such Purchaser Agent, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, prospects, financial and other conditions and creditworthiness of
the Seller and made its own decision to enter into this Agreement, the other Transaction Documents
or any Hedging Agreement, as the case may be.

     (f) Purchaser Agents in their Respective Capacities. Each applicable Purchaser Agent,
respectively, and any of its Affiliates may make loans to, accept deposits from and generally
engage in any kind of business with the Seller or any Affiliate of the Seller as though such
Purchaser Agent were not a Purchaser Agent hereunder. With respect to the Advances made pursuant
to this Agreement, such Purchaser Agent and each of its Affiliates shall have the same rights and
powers under this Agreement as any Purchaser and may exercise the same as though it were not a
Purchaser Agent and the terms “Purchaser” and “Purchasers” shall include such Purchaser Agent in
its individual capacity.

     (g) Successor Purchaser Agent. Each applicable Purchaser Agent, respectively, may,
upon five days’ notice to the Seller and its related Purchaser, and such Purchaser Agent will, upon
the direction of its related Purchaser, resign as Purchaser Agent for such Purchaser. If such
Purchaser Agent shall resign, then its related Purchaser, during such five day period, shall
appoint a successor agent. If for any reason no successor Agent is appointed by such Purchaser
during such five day period, then effective upon the expiration of such five day period, the Seller
shall make all payments in respect of the Aggregate Unpaids directly to such Purchaser and for all
purposes shall deal directly with such Purchaser. After any retiring Purchaser Agent’s resignation
hereunder as Purchaser Agent, the provisions of Articles XI and XII shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was a Purchaser Agent under this
Agreement. Notwithstanding the resignation or removal of the Purchaser Agent for WBNA, WBNA, as
Hedge Counterparty, shall continue to be a Secured Party hereunder.

     Section 12.3 Additional Agent.

     (a) Authorization and Action. Each Additional Purchaser hereby designates and appoints
the relevant Additional Agent designated in the related Additional Purchaser Agreement to act as
its agent hereunder and under each other Transaction Document, and authorizes such Additional Agent
to take such actions as agent on its behalf and to exercise such powers as are delegated to the
Additional Agent by the terms of this Agreement and the other Transaction

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Documents together with such powers as are reasonably incidental thereto. No Additional Agent
shall have any duties or responsibilities, except those expressly set forth herein or in any other
Transaction Document, or any fiduciary relationship with such related Additional Purchaser, and no
implied covenants, functions, responsibilities, duties, obligations or liabilities on the part of
such Additional Agent shall be read into this Agreement or any other Transaction Document or
otherwise exist for such Additional Agent. In performing its functions and duties hereunder and
under the other Transaction Documents, each Additional Agent shall act solely as agent for the
related Additional Purchaser and does not assume nor shall be deemed to have assumed any obligation
or relationship of trust or agency with or for the Seller or the Servicer or any of the Seller’s or
the Servicer’s successors or assigns. No Additional Agent shall be required to take any action
that exposes the Additional Agent to personal liability or that is contrary to this Agreement, any
other Transaction Document or Applicable Law. The appointment and authority of each Additional
Agent hereunder shall terminate upon the indefeasible payment in full of all Aggregate Unpaids.
Each Additional Agent hereby authorizes the Administrative Agent to execute each of the UCC
financing statements on behalf of such Additional Agent (the terms of which shall be binding on
such Additional Agent).

     (b) Delegation of Duties. Any of the Additional Agents may execute any of its duties
under this Agreement and each other Transaction Document by or through agents or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No
Additional Agent shall be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

     (c) Exculpatory Provisions. Neither any Additional Agent nor any of its directors,
officers, agents or employees shall be (i) liable for any action lawfully taken or omitted to be
taken by it or them under or in connection with this Agreement or any other Transaction Document
(except for its, their or such Person’s own gross negligence or willful misconduct), or (ii)
responsible in any manner to any Additional Purchaser for any recitals, statements, representations
or warranties made by the Seller or the Servicer contained in Article IV, any other Transaction
Document or any certificate, report, statement or other document referred to or provided for in, or
received under or in connection with, this Agreement or any other Transaction Document, or for the
value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement, any
other Transaction Document or any other document furnished in connection herewith or therewith, or
for any failure of the Seller or the Servicer to perform its obligations hereunder or thereunder,
or for the satisfaction of any condition specified in this Agreement, or for the perfection,
priority, condition, value or sufficiency of any collateral pledged in connection herewith. No
Additional Agent shall be under any obligation to any Additional Purchaser to ascertain or to
inquire as to the observance or performance of any of the agreements or covenants contained in, or
conditions of, this Agreement or any other Transaction Document, or to inspect the properties,
books or records of the Seller or the Servicer. No Additional Agent shall be deemed to have
knowledge of any Termination Event or Unmatured Termination Event unless such Additional Agent has
received notice from the Seller or the related Additional Purchaser.

     (d) Reliance by Additional Agent. Each Additional Agent shall in all cases be
entitled to rely, and shall be fully protected in relying, upon any document or conversation
believed by it to be genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel (including, without

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limitation, counsel to the Seller), independent accountants and other experts selected by such
Additional Agent. Each Additional Agent shall in all cases be fully justified in failing or
refusing to take any action under this Agreement or any other Transaction Document unless it shall
first receive such advice or concurrence of the related Additional Purchaser as it deems
appropriate and it shall first be indemnified to its satisfaction by such Additional Purchaser;
provided, that unless and until such Additional Agent shall have received such advice, the
Additional Agent may take or refrain from taking any action, as the Additional Agent shall deem
advisable and in the best interests of the Related Additional Purchaser. Each Additional Agent
shall in all cases be fully protected in acting, or in refraining from acting, in accordance with a
request of the related Additional Purchaser, and such request and any action taken or failure to
act pursuant thereto shall be binding upon such Additional Purchaser.

     (e) Non-Reliance on Additional Agent. Each Additional Purchaser expressly
acknowledges that neither any Additional Agent, nor any of its officers, directors, employees,
agents, attorneys-in-fact or affiliates has made any representations or warranties to it and that
no act by such Additional Agent hereafter taken, including, without limitation, any review of the
affairs of the Seller or the Servicer, shall be deemed to constitute any representation or warranty
by such Additional Agent. Each Additional Purchaser represents and warrants to the related
Additional Agent that it has and will, independently and without reliance upon such Additional
Agent, such Additional Purchaser and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, operations, property,
prospects, financial and other conditions and creditworthiness of the Seller and made its own
decision to enter into this Agreement, the other Transaction Documents and all other documents
related hereto or thereto.

     (f) Additional Agent in its Individual Capacity. Each Additional Agent and its
Affiliates may make loans to, accept deposits from and generally engage in any kind of business
with the Seller or any Affiliate of the Seller as though such Additional Agent were not an
Additional Agent hereunder. With respect to Advances pursuant to this Agreement, each Additional
Agent shall have the same rights and powers under this Agreement in its individual capacity as any
Purchaser and may exercise the same as though it were not an Additional Agent, and the terms
“Purchaser,” and “Purchasers,” shall include the Additional Agent in its individual capacity.

     (g) Successor Additional Agent. Each Additional Agent may, upon five days’ notice to
the Seller, and the related Additional Purchaser, and such Additional Agent will, upon the
direction of such Additional Purchaser (other than such Additional Agent, in its individual
capacity) resign as Additional Agent. If any Additional Agent shall resign, then the related
Additional Purchaser during such five day period shall appoint a successor agent. If for any
reason no successor Additional Agent is appointed by the related Additional Purchaser during such
five day period, then effective upon the termination of such five day period, and the Seller shall
make all payments in respect of the Aggregate Unpaids directly to such Additional Purchaser, and
for all purposes shall deal directly with such Additional Purchaser. After any retiring Additional
Agent’s resignation hereunder as an Additional Agent, the provisions of Articles XI and
XII shall inure to its benefit with respect to any actions taken or omitted to be taken by
it while it was an Additional Agent under this Agreement.

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ARTICLE XIII

MISCELLANEOUS

     Section 13.1 Amendments and Waivers.

     Except as provided in this Section 13.1, no amendment, waiver or other modification of
any provision of this Agreement (other than Appendix B) shall be effective without the
written agreement of the Seller, the Servicer, the Backup Servicer, the Collateral Custodian, the
Administrative Agent and the Secured Parties; provided, that no such amendment, waiver or
modification adversely affecting the rights or obligations of any Hedge Counterparty shall be
effective without the written agreement of such Person.

     Section 13.2 Notices, Etc.

     All notices, reports and other communications provided for hereunder shall, unless otherwise
stated herein, be in writing (including telex communication and communication by facsimile copy)
and mailed, telexed, transmitted or delivered, as to each party hereto, at its address set forth
under its name on the signature pages hereof or at such other address as shall be designated by
such party in a written notice to the other parties hereto (provided, however, for avoidance of
doubt, Lord Securities Corp. shall not receive notices, reports and other communications provided
pursuant to Article II, and Section 6.10, Section 6.11 and Section 6.12
hereof). All such notices and communications shall be effective, upon receipt, or in the case
of (a) notice by mail, five days after being deposited in the United States mail, first class
postage prepaid, (b) notice by telex, when telexed against receipt of answer back, or (c) notice by
facsimile copy, when verbal communication of receipt is obtained.

     Section 13.3 Ratable Payments.

     If any Secured Party, whether by setoff or otherwise, has payment made to it with respect to
any portion of the Aggregate Unpaids owing to such Secured Party (other than payments received
pursuant to Section 11.1) in a greater proportion than that received by any other Secured
Party, such Secured Party agrees, promptly upon demand, to purchase for cash without recourse or
warranty a portion of the Aggregate Unpaids held by the other Secured Parties so that after such
purchase each Secured Party will hold its ratable proportion of the Aggregate Unpaids; provided,
however, that if all or any portion of such excess amount is thereafter recovered from such Secured
Party, such purchase shall be rescinded and the purchase price restored to the extent of such
recovery, but without interest.

     Section 13.4 No Waiver; Remedies.

     No failure on the part of the Administrative Agent, the Purchaser Agents, the Collateral
Custodian, the Backup Servicer or a Secured Party to exercise, and no delay in exercising, any
right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right or remedy hereunder preclude any other or further exercise thereof or the
exercise of any other right. The rights and remedies herein provided are cumulative and not
exclusive of any rights and remedies provided by law.

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     Section 13.5 Binding Effect; Benefit of Agreement.

     This Agreement shall be binding upon and inure to the benefit of the Seller, the Servicer, the
Administrative Agent, the Purchaser Agents, the Backup Servicer, the Collateral Custodian, the
Secured Parties and their respective successors and permitted assigns and, in addition, the
provisions of Section 2.9(a)(i) and Section 2.10(a)(i) shall inure to the benefit
of each Hedge Counterparty, whether or not that Hedge Counterparty is a Secured Party.

     Section 13.6 Term of this Agreement.

     This Agreement, including, without limitation, the Seller’s representations and covenants set
forth in Articles IV and V, and the Servicer’s representations, covenants and
duties set forth in Articles VI, VII and VIII, create and constitute the
continuing obligation of the parties hereto in accordance with its terms, and shall remain in full
force and effect until the Collection Date; provided, however, that the rights and remedies with
respect to any breach of any representation and warranty made or deemed made by the Seller pursuant
to Articles III and IV the indemnification and payment provisions of Article
XI and the provisions of Section 13.9, Section 13.10 and Section 13.11,
shall be continuing and shall survive any termination of this Agreement.

     Section 13.7 Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue.

     THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK. EACH OF THE PARTIES HERETO AND EACH HEDGE COUNTERPARTY HEREBY AGREES TO THE
NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL COURT LOCATED WITHIN THE STATE OF NEW YORK. EACH OF THE
PARTIES HERETO AND EACH SECURED PARTY HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS,
AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS
AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH
COURT.

     Section 13.8 Waiver of Jury Trial.

     TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO AND EACH HEDGE
COUNTERPARTY HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH,
RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE
RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

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     Section 13.9 Costs, Expenses and Taxes.

     (a) In addition to the rights of indemnification granted to the Administrative Agent, the
Purchaser Agents, the Backup Servicer, the Collateral Custodian, the Secured Parties and its or
their Affiliates and officers, directors, employees and agents thereof under Article XI hereof, the
Seller and Originator agrees to pay on demand all reasonable costs and expenses of the
Administrative Agent, the Purchaser Agents, the Backup Servicer, the Collateral Custodian and the
Secured Parties incurred in connection with the preparation, execution, delivery, administration
(including periodic auditing, which shall be limited to two audits per year prior to the occurrence
of a Termination Event), renewal, amendment or modification of, or any waiver or consent issued in
connection with, this Agreement and the other documents to be delivered hereunder or in connection
herewith (including any Hedging Agreement), including, without limitation, the reasonable fees and
out-of-pocket expenses of counsel for the Administrative Agent, the Purchaser Agents, the Backup
Servicer, the Collateral Custodian and the Secured Parties with respect thereto and with respect to
advising the Administrative Agent, the Purchaser Agents, the Backup Servicer, the Collateral
Custodian and the Secured Parties as to their respective rights and remedies under this Agreement
and the other documents to be delivered hereunder or in connection herewith (including any Hedging
Agreement), and all costs and expenses, if any (including reasonable counsel fees and expenses),
incurred by the Administrative Agent, the Purchaser Agents, the Backup Servicer, the Collateral
Custodian or the Secured Parties in connection with the enforcement of this Agreement and the other
documents to be delivered hereunder or in connection herewith (including any Hedging Agreement).

     (b) The Seller and Originator shall pay on demand any and all stamp, sales, excise and other
taxes and fees payable or determined to be payable in connection with the execution, delivery,
filing and recording of this Agreement, the other documents to be delivered hereunder or any
agreement or other document providing liquidity support, credit enhancement or other similar
support to the Purchasers in connection with this Agreement or the funding or maintenance of
Advances hereunder.

     (c) The Seller and Originator shall pay on demand all other reasonable costs, expenses and
Taxes (excluding income taxes) incurred by the Administrative Agent, the Purchaser Agents, the
Secured Parties (“Other Costs”), including, without limitation, all costs and expenses incurred by
the Administrative Agent and the Purchaser Agents in connection with periodic audits of the
Seller’s or the Servicer’s books and records.

     Section 13.10 No Proceedings.

     (a) Each of the parties hereto (other than a particular Conduit Purchaser) and each Hedge
Counterparty (by accepting the benefits of this Agreement) hereby agrees that it will not institute
against, or join any other Person in instituting against, any Conduit Purchaser, the Administrative
Agent, the related Purchaser Agent or any Liquidity Banks any Insolvency Proceeding so long as any
commercial paper issued by the applicable Conduit Purchaser shall be outstanding and there shall
not have elapsed one year and one day since the last day on which any such commercial paper shall
have been outstanding.

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     (b) Each of the parties hereto (other than a particular Additional Purchaser) hereby agrees
that it will not institute against, or join any other Person in instituting against such Additional
Purchaser, the related Additional Agent or any of its Liquidity Banks any Insolvency Proceeding so
long as any commercial paper issued by such Additional Purchaser shall be outstanding and there
shall not have elapsed one year and one day since the last day on which any such commercial paper
shall have been outstanding.

     (c) Each of the parties hereto (other than the Administrative Agent without the consent of the
Purchaser Agents) hereby agrees that it will not institute against, or join any other Person in
instituting against, the Seller any Insolvency Proceeding so long as there shall not have elapsed
one year and one day since the Collection Date; provided, that nothing in this Section
13.10 shall limit any party’s right to file any claim in or otherwise take any action with
respect to any insolvency proceeding that was instituted by any other Person.

     Section 13.11 Recourse Against Certain Parties.

     (a) No recourse under or with respect to any obligation, covenant or agreement (including,
without limitation, the payment of any fees or any other obligations) of the Administrative Agent,
the Purchaser Agents, or any Secured Party as contained in this Agreement or any other agreement,
instrument or document entered into by it pursuant hereto or in connection herewith shall be had
against any administrator of the Administrative Agent, the Purchaser Agents, or any Secured Party,
or any incorporator, affiliate, stockholder, officer, employee or director of the Administrative
Agent, the Purchaser Agents, or any Secured Party, or of any such administrator, as such, by the
enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or
otherwise; it being expressly agreed and understood that the agreements of the Administrative
Agent, the Purchaser Agents, or any Secured Party contained in this Agreement and all of the other
agreements, instruments and documents entered into by it pursuant hereto or in connection herewith
are, in each case, solely the corporate obligations of the Administrative Agent, the Purchaser
Agents, or any Secured Party, and that no personal liability whatsoever shall attach to or be
incurred by any administrator of the Administrative Agent, the Purchaser Agents, or any Secured
Party or any incorporator, stockholder, affiliate, officer, employee or director of the
Administrative Agent, the Purchaser Agents, or any Secured Party or of any such administrator, as
such, or any other of them, under or by reason of any of the obligations, covenants or agreements
of the Administrative Agent, the Purchaser Agents, or any Secured Party contained in this Agreement
or in any other such instruments, documents or agreements, or that are implied therefrom, and that
any and all personal liability of every such administrator of the Administrative Agent, the
Purchaser Agents, or any Secured Party and each incorporator, stockholder, affiliate, officer,
employee or director of the Administrative Agent, the Purchaser Agents, or any Secured Party or of
any such administrator, or any of them, for breaches by the Administrative Agent, the Purchaser
Agents, or any Secured Party of any such obligations, covenants or agreements, which liability may
arise either at common law or at equity, by statute or constitution, or otherwise, is hereby
expressly waived as a condition of and in consideration for the execution of this Agreement. The
provisions of this Section 13.11 shall survive the termination of this Agreement.

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     (b) Notwithstanding anything in this Agreement to the contrary, no Conduit Purchaser shall
have any obligation to pay any amount required to be paid by it hereunder in excess of any amount
available to such Purchaser or such Additional Purchaser, as applicable, after paying or making
provision for the payment of its Commercial Paper Notes. All payment obligations of each Conduit
Purchaser hereunder are contingent on the availability of funds in excess of the amounts necessary
to pay its Commercial Paper Notes; and each of the other parties hereto agrees that it will not
have a claim under Section 101(5) of the Bankruptcy Code if and to the extent that any such payment
obligation owed to it by a Conduit Purchaser exceeds the amount available to such Conduit Purchaser
to pay such amount after paying or making provision for the payment of its Commercial Paper Notes.

     (c) Notwithstanding any contrary provision set forth herein, no claim may be made by the
Seller, the Originator or the Servicer or any other Person against the Administrative Agent and the
Secured Parties or their respective Affiliates, directors, officers, employees, attorneys or agents
for any special, indirect, consequential or punitive damages in respect to any claim for breach of
contract or any other theory of liability arising out of or related to the transactions
contemplated by this Agreement, or any act, omission or event occurring in connection therewith;
and the Seller, the Originator and the Servicer each hereby waives, releases, and agrees not to sue
upon any claim for any such damages, whether or not accrued and whether or not known or suspected.

     (d) No obligation or liability to any Obligor under any of the Assets is intended to be
assumed by the Administrative Agent and the Secured Parties under or as a result of this Agreement
and the transactions contemplated hereby

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

     (a) The Servicer shall cause this Agreement, all amendments hereto and/or all financing
statements and continuation statements and any other necessary documents covering the right, title
and interest of the Administrative Agent as agent for the Secured Parties and of the Secured
Parties to the Collateral to be promptly recorded, registered and filed, and at all times to be
kept recorded, registered and filed, all in such manner and in such places as may be required by
law fully to preserve and protect the right, title and interest of the Administrative Agent as
agent for the Secured Parties hereunder to all property comprising the Collateral. The Servicer
shall deliver to the Administrative Agent file-stamped copies of, or filing receipts for, any
document recorded, registered or filed as provided above, as soon as available following such
recording, registration or filing. The Seller shall cooperate fully with the Servicer in
connection with the obligations set forth above and will execute any and all documents reasonably
required to fulfill the intent of this Section 13.12(a).

     (b) The Seller agrees that from time to time, at its expense, it will promptly execute and
deliver all instruments and documents, and take all actions, that the Administrative Agent may
reasonably request in order to perfect, protect or more fully evidence the Advances hereunder and
the security interest granted in the Collateral, or to enable the Administrative Agent or the
Secured Parties to exercise and enforce their rights and remedies hereunder or under any
Transaction Document.

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     (c) If the Seller or the Servicer fails to perform any of its obligations hereunder, the
Administrative Agent or any Secured Party may (but shall not be required to) perform, or cause
performance of, such obligation; and the Administrative Agent’s or such Secured Party’s costs and
expenses incurred in connection therewith shall be payable by the Seller as provided in Article
XI. The Seller irrevocably authorizes the Administrative Agent and appoints the Administrative
Agent as its attorney-in-fact to act on behalf of the Seller (i) to execute on behalf of the Seller
as debtor and to file financing statements necessary or desirable in the Administrative Agent’s
sole discretion to perfect and to maintain the perfection and priority of the interest of the
Secured Parties in the Collateral and (ii) to file a carbon, photographic or other reproduction of
this Agreement or any financing statement with respect to the Collateral as a financing statement
in such offices as the Administrative Agent in its sole discretion deems necessary or desirable to
perfect and to maintain the perfection and priority of the interests of the Secured Parties in the
Collateral. This appointment is coupled with an interest and is irrevocable.

     (d) Without limiting the generality of the foregoing, Seller will, not earlier than six months
and not later than three months prior to the fifth anniversary of the date of filing of the
financing statement referred to in Section 3.1 or any other financing statement filed
pursuant to this Agreement or in connection with any Advance hereunder, unless the Collection Date
shall have occurred:

     (i) execute and deliver and file or cause to be filed an appropriate continuation
statement with respect to such financing statement; and

     (ii) deliver or cause to be delivered to the Administrative Agent an opinion of the
counsel for Seller, in form and substance reasonably satisfactory to the Administrative
Agent, confirming and updating the opinion delivered pursuant to Section 3.1 with
respect to perfection and otherwise to the effect that the security interest hereunder
continues to be an enforceable and perfected security interest, subject to no other Liens of
record except as provided herein or otherwise permitted hereunder, which opinion may contain
usual and customary assumptions, limitations and exceptions.

     Section 13.13 Confidentiality

     (a) Each of the Administrative Agent, the Purchaser Agents, the Secured Parties, the Servicer,
the Collateral Custodian, the Backup Servicer and the Seller shall maintain and shall cause each of
its employees and officers to maintain the confidentiality of the Agreement and all information
with respect to the other parties, including all information regarding the business of the Seller
and the Servicer hereto and their respective businesses obtained by it or them in connection with
the structuring, negotiating and execution of the transactions contemplated herein or related to
any of the underlying Obligors, except that each such party and its officers and employees may (i)
disclose such information to its external accountants, attorneys, rating agencies, investors,
potential investors, parties that provide or may in the future provide first loss or credit
enhancement to such Person and the agents of such Persons (“Excepted Persons”), (ii)
disclose the existence of the Agreement, but not the financial terms thereof, (iii) disclose such
information as is required by Applicable Law and (iv) disclose the Agreement and such information
in any suit, action, proceeding or investigation (whether in law or in equity or

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pursuant to arbitration) involving any of the Transaction Documents or any Hedging Agreement
for the purpose of defending itself, reducing its liability, or protecting or exercising any of its
claims, rights, remedies, or interests under or in connection with any of the Transaction Documents
or any Hedging Agreement. It is understood that the financial terms that may not be disclosed
except in compliance with this Section 13.13(a) include, without limitation, all fees and
other pricing terms, and all Termination Events, Servicer Defaults, and priority of payment
provisions. Each of the Administrative Agent, the Purchaser Agents, the Secured Parties, the
Collateral Custodian and the Backup Servicer will not use any such information referenced in this
clause (a) regarding the business of the Seller and the Servicer hereto and their
respective businesses related to any of the underlying Obligors for the purpose of their own (or
their Affiliates) business development with such underlying Obligor without the prior written
consent of the Seller and the Servicer (provided that such consent shall not be unreasonably
withheld).

     (b) Anything herein to the contrary notwithstanding, the Seller and the Servicer each hereby
consents to the disclosure of any nonpublic information with respect to it (i) to the
Administrative Agent, the Purchaser Agents, the Collateral Custodian, the Backup Servicer or the
Secured Parties by each other, (ii) by the Administrative Agent, the Purchaser Agents, the
Collateral Custodian, the Backup Servicer and the Secured Parties to any prospective or actual
assignee or participant of any of them provided such Person agrees to hold such information
confidential, or (iii) by the Administrative Agent, the Purchaser Agents, and the Secured Parties
to any commercial paper dealer or provider of a surety, guaranty or credit or liquidity enhancement
to any Purchaser, as applicable, and to any officers, directors, employees, outside accountants and
attorneys of any of the foregoing, provided each such Person is informed of the confidential nature
of such information. In addition, the Secured Parties, the Administrative Agent and the Purchaser
Agents, may disclose any such nonpublic information as required pursuant to any law, rule,
regulation, direction, request or order of any judicial, administrative or regulatory authority or
proceedings (whether or not having the force or effect of law).

     (c) Notwithstanding anything herein to the contrary, the foregoing shall not be construed to
prohibit (i) disclosure of any and all information that is or becomes publicly known; (ii)
disclosure of any and all information (a) if required to do so by any applicable statute, law, rule
or regulation, (b) to any government agency or regulatory body having or claiming authority to
regulate or oversee any respects of the Administrative Agents’, the Purchaser Agents’, the Secured
Parties’, the Collateral Custodian’s or the Backup Servicer’s business or that of their affiliates,
(c) pursuant to any subpoena, civil investigative demand or similar demand or request of any court,
regulatory authority, arbitrator or arbitration to which the Administrative Agent, the Purchaser
Agents, the Secured Parties, the Collateral Custodian or the Backup Servicer or an officer,
director, employer, shareholder or affiliate of any of the foregoing is a party, (d) in any
preliminary or final offering circular, registration statement or contract or other document
approved in advance by the Seller, the Servicer or the Originator or (e) to any affiliate,
independent or internal auditor, agent, employee or attorney of the Collateral Custodian or Backup
Servicer having a need to know the same, provided, that the Collateral Custodian or
Backup Servicer advises such recipient of the confidential nature of the information being
disclosed; or (iii) any other disclosure authorized by the Seller, Servicer or Originator.

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     Section 13.14 Execution in Counterparts; Severability; Integration.

     This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts (including by facsimile), each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one and the same agreement.
In case any provision in or obligation under this Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not
in any way be affected or impaired thereby. This Agreement and any agreements or letters
(including fee letters) executed in connection herewith contains the final and complete integration
of all prior expressions by the parties hereto with respect to the subject matter hereof and shall
constitute the entire agreement among the parties hereto with respect to the subject matter hereof,
superseding all prior oral or written understandings other than any fee letter delivered by the
Originator to the Administrative Agent, the Purchaser Agents, and the Secured Parties.

     Section 13.15 Waiver of Setoff.

     (a) Each of the parties hereto (other than any one of the Purchasers) hereby waives any right
of setoff it may have or to which it may be entitled under this Agreement from time to time against
such Purchaser or its assets.

     (b) Each of the parties hereto (other than any one of the Additional Purchasers) hereby waives
any right of setoff it may have or to which it may be entitled under this Agreement from time to
time against such Additional Purchaser or its assets.

     Section 13.16 Assignments.

     (a) Each Purchaser may at any time assign, or grant a security interest or sell a
participation interest in, any Advance (or portion thereof) to any Person; provided, that in the
case of an assignment of a Variable Funding Note or Additional Purchaser Variable Funding Note, the
assignee (other than any assignee that is a Liquidity Bank) shall execute and deliver to the
Servicer and the Administrative Agent a Transferee Letter substantially in the form of Exhibit
K hereto (the “Transferee Letter”). The parties to any such assignment, grant or sale
of participation interest shall execute and deliver to the Purchaser Agent or the related
Additional Agent, as applicable, for its acceptance and recording in its books and records, such
agreement or document as may be satisfactory to such parties and the Purchaser Agent or such
Additional Agent, as applicable. The Seller shall not assign or delegate, or grant any interest
in, or permit any Lien to exist upon, any of the Seller’s rights, obligations or duties under this
Agreement without the prior written consent of the Administrative Agent and each Hedge
Counterparty.

     (b) The Originator may, with the written consent of the Administrative Agent and each
Purchaser, add additional Persons as an Additional Purchaser or an Additional Agent or cause an
existing Purchaser to increase its Commitment; provided, however, that the Commitment of any
Purchaser may only be increased with the prior written consent of such Purchaser and the
Administrative Agent. Each new Additional Purchaser and Additional Agent shall become a party
hereto by executing and delivering to the Administrative Agent and the

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Originators an Assumption Agreement substantially in the form of Exhibit M hereto (the
“Assumption Agreement”).

     Section 13.17 Heading and Exhibits.

     The headings herein are for purposes of references only and shall not otherwise affect the
meaning or interpretation of any provision hereof. The schedules and exhibits attached hereto and
referred to herein shall constitute a part of this Agreement and are incorporated into this
Agreement for all purposes.

     Section 13.18 Loans Subject to Retained Interest Provisions.

     (a) With respect to any Loan included in the Collateral subject to the Retained Interest
provisions of this Agreement, the Seller will own only the principal portion of such Loans
outstanding as of the applicable Cut-Off Date. Principal Collections received by the Seller or the
Servicer on any Revolving Loans will be allocated first to the portion of such Revolving Loan owned
by the Seller, until the principal amount of such portion is reduced to zero, and then to the
portion not owned by the Seller; provided, however, if (i) a payment default occurs with respect to
any of the related Loans, (ii) a Liquidity Factor Reduction Event occurs and continues, (iii) the
Originator has determined in its sole discretion that an Obligor’s credit has deteriorated or the
Originator has determined in its sole discretion to reduce its commitment to an Obligor, or (iv) an
Allocation Adjustment Event occurs, then Principal Collections received on (x) the applicable Loan
(in the case of clauses (i) or (iii) above or during the time that a Liquidity
Factor Reduction Event exists and continues in the case of clause (ii) above) or (y) all
the Revolving Loans (in the case of clause (iv) above) will be allocated between the
portion owned by the Seller and the portion not owned by the Seller, pro rata based upon the
outstanding principal amount of each such portion.

     (b) With respect to any Term Loans included in the Collateral subject to the Retained Interest
provisions of this Agreement, Principal Collections and Interest Collections received by the
Servicer will be allocated between the portion owned by the Seller and to the portion not owned by
the Seller (if any) on a pro rata basis according to the outstanding principal amount of such
portion.

     Section 13.19 Tax Treatment of Advances.

     It is the intention of the Seller and the Purchasers that, for U.S. federal, state and local
income and franchise tax purposes only, the Advances made hereunder will be treated as indebtedness
secured by the Collateral. The Seller, by entering into this Agreement, and the Purchasers, by
making the Advances described herein, agree to treat the Advances for U.S. federal, state and local
income and franchise tax purposes as indebtedness. The provisions of this Agreement and all
related Transaction Documents shall be construed to further these intentions of the parties.

[Remainder of Page Intentionally Left Blank.]

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

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	THE SELLER:	 	CAPITALSOURCE FUNDING III LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/S/ JEFFREY A. LIPSON
 

Jeffrey A. Lipson
	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	CapitalSource Funding III LLC	 	 
	 	 	4445 Willard Avenue, 12th Floor	 	 
	 	 	Chevy Chase, Maryland 20815	 	 
	 	 	Attention: Treasury	 	 
	 	 	Facsimile No.: (301) 841-2307	 	 
	 	 	Confirmation No.: (301) 841-2779	 	 
	 
	 	 	 	 	 	 
	THE ORIGINATOR 

AND SERVICER:	 	CAPITALSOURCE FINANCE LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/S/ JEFFREY A. LIPSON
 

Jeffrey A. Lipson
	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	CapitalSource Finance LLC	 	 
	 	 	4445 Willard Avenue, 12th Floor	 	 
	 	 	Chevy Chase, Maryland 20815	 	 
	 	 	Attention: Treasury	 	 
	 	 	Facsimile No.: (301) 841-2307	 	 
	 	 	Confirmation No.: (301) 841-2779	 	 

[Signatures Continued on the Following Page]

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	WBNA:	 	WACHOVIA BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	Commitment:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	$90,000,000
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/S/ RAJ SHAH
 

Raj Shah
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	Wachovia Bank, National Association	 	 
	 	 	One Wachovia Center, NC0602	 	 
	 	 	Charlotte, North Carolina 28288	 	 
	 	 	Attention: Paul Burkhart	 	 
	 	 	Facsimile No.: (704) 715-0067	 	 
	 	 	Confirmation No.: (704) 383-3766	 	 
	 
	 	 	 	 	 	 
	THE ADMINISTRATIVE AGENT 

AND THE WBNA AGENT	 	WACHOVIA CAPITAL MARKETS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/S/ MARY KATHERINE DUBORE
 

Mary Katherine DuBore
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	Wachovia Capital Markets, LLC	 	 
	 	 	One Wachovia Center, Mail Code: NC0600	 	 
	 	 	Charlotte, North Carolina 28288	 	 
	 	 	Attention: Paul Burkhart	 	 
	 	 	Facsimile No.: (704) 715-0067	 	 
	 	 	Confirmation No.: (704) 383-3766	 	 

[Signatures Continued on the Following Page]

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	THE BACKUP SERVICER: 

AND THE COLLATERAL 

CUSTODIAN:	 	WELLS FARGO BANK, NATIONAL

ASSOCIATION, not in its individual capacity but

solely as Backup Servicer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/S/ JEANINE C. CASEY
 

Jeanine C. Casey
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Wells Fargo Bank, National Association	 	 
	 	 	Sixth Street and Marquette Avenue	 	 
	 	 	MAC N9311-161	 	 
	 	 	Minneapolis, Minnesota 55479	 	 
	 	 	Attention:              Corporate Trust Services	 	 
	 

	 	 	 	                Collateral-Backed Administration	 	 
	 	 	Facsimile No.:       (612) 667-3539	 	 
	 	 	Confirmation No.: (612) 667-8058	 	 

[Signatures Continued on the Following Page]

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