Document:

EX-10.1

 

Exhibit 10.1

 

 

JAG
Media Holdings, Inc.

6865 S.W. 18th Street, Suite B13

Boca Raton, FL 33433

April 20, 2007

Cryptometrics, Inc.
 73
Main Street

Tuckahoe, NY 10707

Re: Agreement Amending Merger Agreement Among JAG Media Holdings, Inc.
(“JAG Media”), Cryptometrics Acquisition, Inc. (“Cryptometrics Acquisition”),
Cryptometrics, Inc. (“Cryptometrics ”), Robert Barra,
Michael Vitale, Karlen & Stolzar,
Thomas J. Mazzarisi and Stephen J. Schoepfer (collectively, the
“Parties”) dated as of
January 24, 2007, as Further Amended by those Certain Agreements Among the Parties dated as
of February 26, 2007 and April 2, 2007 (“Merger Agreement Amendment”)

Gentlemen:

This will confirm our understanding regarding the following changes to the Merger Agreement
Amendment, which have been authorized by the directors of JAG Media, Cryptometrics Acquisition and
Cryptometrics:

1. The Automatic Termination Date of April 20, 2007 set forth in the first sentence of
paragraph 9 of the Merger Agreement Amendment is hereby changed to May 11, 2007.

All defined terms used in this agreement, which are not otherwise defined herein shall have
the meaning ascribed to them in the Merger Agreement Amendment, Except as otherwise set forth in
this agreement, the Merger Agreement Amendment and the Merger Agreement shall remain unchanged and
in full force and effect.

If the foregoing accurately reflects your understanding of our agreement regarding the above
matter, please indicate your agreement and acceptance by signing in the appropriate space below and
returning a fully executed and dated copy of this agreement to the
undersigned.

[SIGNATURES APPEAR ON NEXT PAGE]

 

 

Cryptometrics, Inc.

April 20, 2007

Page -2-

	 	 	 	 	 	 	 	 	 	 	 
	Sincerely yours,	 	 	 	AGREED AND ACCEPTED:	 	 
	JAG MEDIA HOLDINGS, INC.	 	 	 	CRYPTOMETRICS ACQUISITION, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Thomas J. Mazzarisi	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 

	 	Name: Thomas J. Mazzarisi
	 	 	 	By:	 	/s/ Thomas J. Mazzarisi	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Title: Chairman & CEO
	 	 	 	 	 	Name: Thomas J. Mazzarisi	 	 
	 

	 	Date: April 20, 2007
	 	 	 	 	 	Title: President	 	 
	 

	 	 	 	 	 	 	 	Date: April 20, 2007	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	AGREED AND ACCEPTED: 

CRYPTOMETRICS, INC.	 	 	 	The undersigned is signing this agreement solely in its
capacity as “Escrow Agent” pursuant to the provisions
of paragraph 10
of the Merger Agreement Amendment	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	KARLEN & STOLZAR, LLP	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Robert Barra	 	 	 	 	 	 	 	 
	 

	 	 

Name: Robert Barra
	 	 	 	 	 	 	 	 
	 

	 	Title: Co-CEO	 	 	 	 	 	 	 	 
	 

	 	Date: April 20, 2007
	 	 	 	By:	 	/s/ Michael I. Stolzar	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name: Michael I. Stolzar	 	 
	 

	 	 	 	 	 	 	 	Title: Partner	 	 
	 

	 	 	 	 	 	 	 	Date: April 20, 2007	 	 

	 	 	 	 	 	 	 	 	 
	/s/ Robert Barra	 	 	 	The undersigned are signing this agreement only with
respect to their obligations set forth
in paragraph 12 of the Merger Agreement Amendment
	 	 	 	 	 	 	 
	Robert

	 	Barra	 	 	 	 	 	 
	Dated:

	 	April 20, 2007	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	/s/
Thomas J. Mazzarisi

	 

	 	 	 	 	 	 	 	Thomas J. Mazzarisi
	 

	 	 	 	 	 	 	 	Dated: April 20, 2007
	 
	 	 	 	 	 	 	 	 
	/s/
Michael Vitale
	 	 	 	 	 	/s/
Stephen J. Schoepfer

	Michael

	 	Vitale
	 	 	 	 	 	Stephen J. Schoepfer
	Dated:

	 	April 20, 2007	 	 	 	 	 	Dated: April 20, 2007EX-10.2

 

Exhibit 10.2

 

 

JAG Media Holdings, Inc.

6865 S.W. 18th STREET, SUITE B13     

BOCA RATON, FL 33433

April 20, 2007

Cornell Capital Partners, LP

101 Hudson Street

Suite 3700

Jersey City, NJ 07302

-and-

Cryptometrics, Inc.

73 Main Street

Tuckahoe, NY 10707

Re:
Agreement dated as of January 24, 2007 Among JAG Media Holdings,
Inc. (“JAG Media”),
Cornell Capital Partners, L.P. (“Cornell Capital”), Cryptometrics, Inc., Robert Barra
and Michael Vitale, as amended (“Cornell Agreement”)

Gentlemen:

This will confirm our understanding that the automatic termination date of April 20, 2007, set
forth in the last sentence of paragraph 1 of the Cornell Agreement, is hereby changed to May
11, 2007.

Except as otherwise set forth in this agreement, the Cornell Agreement shall remain
unchanged and in full force and effect.

If the foregoing accurately reflects your understanding of our agreement regarding the above
matter, please indicate your agreement and acceptance by signing in the appropriate space
below and returning a fully executed and dated copy of this
agreement to the undersigned.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

 

Cornell
Capital Partners, LP 

April 20, 2007

Page -2-

Sincerely yours,

JAG Media Holdings, Inc.

	 	 	 	 	 
	By:
	 	/s/ Thomas J. Mazzarisi	 	 
	 

	 	 

Name: Thomas J. Mazzarisi
	 	 
	 

	 	Title: Chairman & CEO	 	 
	 

	 	Date: April 20, 2007	 	 

	 	 	 	 	 	 	 
	 

	 	AGREED AND ACCEPTED:
	 	 	 	The undersigned parties
are
	 

	 	Cornell Capital Partners, LP
	 	 	 	signing
	 

	 	 	 	 	 	this agreement only with respect to
	 

	 	By: Yorkville Advisors, LLC
	 	 	 	the obligations in Paragraph 5 of
	 

	 	Its: General Partner
	 	 	 	the Cornell Agreement
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	/s/ Robert Barra
	By:

	 	/s/ Mark Angelo	 	 	 	Robert Barra
	 

	 	 	 	 	 	 
	 

	 	Mark Angelo, Portfolio Manager
	 	 	 	Date: April 20, 2007
	 

	 	Date: April 20, 2007	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	/s/ Michael Vitale
	 

	 	 	 	 	 	Michael Vitale
	 

	 	 	 	 	 	Date: April 20, 2007
	 
	 	 	 	 	 	 
	 

	 	Cryptometrics, Inc.	 	 	 	 

	 	 	 	 	 	 	 
	By:
	 	/s/ Robert Barra	 	 	 	 
			 

				
	 

	 	Name: Robert Barra	 	 	 	 
	 

	 	Title: Co-CEO	 	 	 	 
	 

	 	Date: April 20, 2007exv10w08

 

Exhibit 10.08

T. Rowe Price Group, Inc.

Schedule of Non-Employee Director Compensation

As amended April 12, 2007

Cash fees are paid semiannually, on the last business days of June and December, or at the
beginning of the following year if payment is deferred pursuant to the Outside Directors Deferred
Compensation Plan.

	 	 	 	 	 
	Annual Retainer Fee
	 	$	75,000	 
	Committee Meeting Fees, per meeting
	 	$	1,500	 
	Committee Annual Retainer Fees:
	 	 	 	 
	Audit Committee Chairperson
	 	$	10,000	 
	Audit Committee Member
	 	$	5,000	 
	Executive Compensation Committee Chairperson
	 	$	5,000	 
	Nominating and Corporate Governance Committee Chairperson
	 	$	5,000	 

Under our 2007 Non-Employee Director Equity Plan, each non-employee director is entitled to make
certain elections regarding the form of his or her equity compensation.

	 	 	 
	Event	 	Non-Employee
Director’s Alternatives
	 
	 	 
	Initial election or appointment
to the Board

	 	4,000 restricted shares or

4,000 stock units
	 
	 	 
	Semiannual grants

	 	4,000 options or

1,200 restricted shares or

1,200 stock units

The initial grant will be made at the close of business on the first business day after the first
regular meeting of our Board of Directors held on or after that director’s election or appointment.
Semiannual grants will be made as of the close of business on the third business day after our
earnings release for the first and third fiscal quarters of each year. Non-employee directors will
not be entitled to semiannual grants in the calendar year in which they receive an initial grant.
All awards will be subject to adjustment by our Nominating and Corporate Governance Committee and
upon certain capitalization and change-in-control events.

Options

All options will have an exercise price per share equal to the fair market value per share of our
common stock on the grant date, and will vest one year after the grant date or, if earlier, upon
the director’s death. Unvested options will terminate when the non-employee director ceases to be
a member of the Board for any reason other than death. Vested options will terminate 10 years
after the grant date or, if earlier, five years after the director leaves the Board for any reason.

Restricted Shares

Restricted shares vest and generally become transferable one year after the grant date if the
non-employee director is then a member of our Board or, if earlier, upon the director’s death. All
regular cash dividends payable with respect to restricted shares will be paid in cash directly to
the non-employee director even if the restricted shares remain unvested. If and when a
non-employee director ceases to be a member of the Board for any reason other than death, all
unvested restricted shares will be forfeited to the company without consideration.

Stock Units

Stock units vest one year after the grant date if the non-employee director is then a member of the
Board or, if earlier, upon the director’s death. If and when the non-employee director ceases to
be a member of the Board for any reason other than death, all unvested stock units will be
forfeited to the company without consideration. All vested stock units will be settled upon
separation from service, as defined by Section 409A of the Internal Revenue Code. If and when we
declare a cash dividend payable to our common stockholders, non-employee directors holding stock
units will be credited with additional, vested stock units equal to the number of shares of our
common stock that could be purchased on the dividend payment date with the aggregate amount of
dividends that would have been received if the stock units had been outstanding shares.exv4w19

 

Exhibit 4.19

Execution Copy

 

INDENTURE

BETWEEN

CAPITALSOURCE FUNDING VII TRUST

AS ISSUER,

AND

WELLS FARGO BANK, NATIONAL ASSOCIATION

AS INDENTURE TRUSTEE

DATED AS OF APRIL 19, 2007

CAPITALSOURCE FUNDING VII TRUST

COMMERCIAL LOAN BACKED NOTES

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	2	 
	Section 1.02 Rules of Construction
	 	 	7	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	GENERAL PROVISIONS WITH RESPECT TO THE NOTES
	 	 	 	 
	 
	 	 	 	 
	Section 2.01 Method of Issuance and Form of Notes
	 	 	7	 
	Section 2.02 Execution, Authentication, Delivery and Dating
	 	 	8	 
	Section 2.03 Registration; Registration of Transfer and Exchange
	 	 	8	 
	Section 2.04 Mutilated, Destroyed, Lost or Stolen Notes
	 	 	9	 
	Section 2.05 Persons Deemed Noteholders
	 	 	10	 
	Section 2.06 Payment of Principal and/or Interest; Defaulted Interest
	 	 	10	 
	Section 2.07 Cancellation
	 	 	11	 
	Section 2.08 Conditions Precedent to the Authentication of the Notes
	 	 	11	 
	Section 2.09 Release of Collateral
	 	 	13	 
	Section 2.10 Additional Note Principal Balance
	 	 	13	 
	Section 2.11 Tax Treatment
	 	 	14	 
	Section 2.12 Limitations on Transfer of the Notes
	 	 	14	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 
	Section 3.01 Payment of Principal and/or Interest
	 	 	15	 
	Section 3.02 Maintenance of Office or Agency
	 	 	15	 
	Section 3.03 Money for Payments to Be Held in Trust
	 	 	15	 
	Section 3.04 Existence
	 	 	16	 
	Section 3.05 Protection of Collateral
	 	 	17	 
	Section 3.06 Negative Covenants
	 	 	17	 
	Section 3.07 Performance of Obligations; Servicing of Loans
	 	 	18	 
	Section 3.08 Reserved
	 	 	20	 
	Section 3.09 Annual Statement as to Compliance
	 	 	20	 
	Section 3.10 Covenants of the Issuer
	 	 	20	 
	Section 3.11 Servicer’s Obligations
	 	 	20	 
	Section 3.12 Restricted Payments
	 	 	20	 
	Section 3.13 Treatment of Notes as Debt for All Purposes
	 	 	21	 
	Section 3.14 Notice of Events of Default
	 	 	21	 
	Section 3.15 Further Instruments and Acts
	 	 	21	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	SATISFACTION AND DISCHARGE
	 	 	 	 
	 
	 	 	 	 
	Section 4.01 Satisfaction and Discharge of Indenture
	 	 	21	 
	Section 4.02 Application of Trust Money
	 	 	22	 
	Section 4.03 Repayment of Moneys Held by Paying Agent
	 	 	22	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	REMEDIES
	 	 	 	 
	 
	 	 	 	 
	Section 5.01 Events of Default
	 	 	23	 
	Section 5.02 Acceleration of Maturity; Rescission and Annulment
	 	 	25	 
	Section 5.03 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee

	 	 	25	 
	Section 5.04 Remedies; Priorities
	 	 	27	 
	Section 5.05 Optional Preservation of the Collateral
	 	 	29	 
	Section 5.06 Limitation of Suits
	 	 	29	 
	Section 5.07 Unconditional Rights of Noteholders to Receive Principal and/or Interest
	 	 	30	 
	Section 5.08 Restoration of Rights and Remedies
	 	 	30	 
	Section 5.09 Rights and Remedies Cumulative
	 	 	30	 
	Section 5.10 Delay or Omission Not a Waiver
	 	 	31	 
	Section 5.11 Control by Noteholders
	 	 	31	 
	Section 5.12 Waiver of Past Defaults
	 	 	31	 
	Section 5.13 Undertaking for Costs
	 	 	32	 
	Section 5.14 Waiver of Stay or Extension Laws
	 	 	32	 
	Section 5.15 Action on Notes
	 	 	32	 
	Section 5.16 Performance and Enforcement of Certain Obligations
	 	 	33	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	THE INDENTURE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 6.01 Duties of Indenture Trustee
	 	 	33	 
	Section 6.02 Rights of Indenture Trustee
	 	 	35	 
	Section 6.03 Individual Rights of Indenture Trustee
	 	 	35	 
	Section 6.04 Indenture Trustee’s Disclaimer
	 	 	35	 
	Section 6.05 Notices of Default
	 	 	35	 
	Section 6.06 Reports by Paying Agent to Holders
	 	 	36	 
	Section 6.07 Compensation and Indemnity
	 	 	36	 
	Section 6.08 Replacement of Indenture Trustee
	 	 	36	 
	Section 6.09 Successor Indenture Trustee by Merger
	 	 	37	 
	Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee.
	 	 	38	 
	Section 6.11 Eligibility
	 	 	39	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	NOTEHOLDERS LISTS AND REPORTS
	 	 	 	 
	 
	 	 	 	 
	Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders
	 	 	39	 
	Section 7.02 Preservation of Information
	 	 	39	 
	Section 7.03 144A Information
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	ACCOUNTS, DISBURSEMENTS AND RELEASES
	 	 	 	 
	 
	 	 	 	 
	Section 8.01 Collection of Money. General
	 	 	40	 
	Section 8.02 Trust Accounts; Distributions
	 	 	40	 
	Section 8.03 General Provisions Regarding Trust Accounts
	 	 	40	 
	Section 8.04 The Paying Agent
	 	 	40	 
	Section 8.05 Release of Collateral
	 	 	41	 
	Section 8.06 Opinion of Counsel
	 	 	41	 
	 
	 	 	 	 
	ARTICLE IX 
	 	 	 	 
	 
	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	 	 
	 
	 	 	 	 
	Section 9.02 Supplemental Indentures with Consent of Noteholders
	 	 	42	 
	Section 9.03 Execution of Supplemental Indentures
	 	 	44	 
	Section 9.04 Effect of Supplemental Indentures
	 	 	44	 
	Section 9.05 Reference in Notes to Supplemental Indentures
	 	 	44	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 
	REDEMPTION OF NOTES; PUT OPTION
	 	 	 	 
	 
	 	 	 	 
	Section 10.01 Redemption
	 	 	44	 
	Section 10.02 Form of Redemption Notice
	 	 	44	 
	Section 10.03 Notes Payable on Redemption Date
	 	 	45	 
	 
	 	 	 	 
	ARTICLE XI
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	Section 11.01 Compliance Certificates and Opinions, etc.
	 	 	45	 
	Section 11.02 Form of Documents Delivered to Indenture Trustee
	 	 	46	 
	Section 11.03 Acts of Noteholders
	 	 	47	 
	Section 11.04 Notices, etc., to Indenture Trustee and Issuer
	 	 	47	 
	Section 11.05 Notices to Noteholders; Waiver
	 	 	48	 
	Section 11.06 Effect of Headings and Table of Contents
	 	 	48	 
	Section 11.07 Successors and Assigns
	 	 	48	 
	Section 11.08 Severability
	 	 	48	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	Section 11.09 Benefits of Indenture
	 	 	48	 
	Section 11.10 Legal Holidays
	 	 	48	 
	Section 11.11 GOVERNING LAW
	 	 	49	 
	Section 11.12 Counterparts
	 	 	49	 
	Section 11.13 Recording of Indenture
	 	 	49	 
	Section 11.14 Trust Obligation
	 	 	49	 
	Section 11.15 No Petition
	 	 	49	 
	Section 11.16 Inspection
	 	 	50	 
	Section 11.17 Limitation on Liability
	 	 	50	 

EXHIBITS

	 	 	 	 	 
	EXHIBIT A

	 	-
	 	Form of Notes
	EXHIBIT B-1

	 	-
	 	Form of Transferor Affidavit (144A)
	EXHIBIT B-2

	 	-
	 	Form of Transferee Affidavit (Accredited Investor)
	EXHIBIT B-3

	 	-
	 	Form of Transfer Affidavit
	EXHIBIT C

	 	-
	 	Form of Securities Legend

iv

 

INDENTURE

          INDENTURE dated as of April 19, 2007 (this “Indenture”), between CapitalSource Funding VII
Trust, a Delaware statutory trust, as Issuer (the “Issuer”) and Wells Fargo Bank, National
Association, as Indenture Trustee (the “Indenture Trustee”).

W I T N E S S E T H  T H A T:

          In consideration of the mutual covenants herein contained, the Issuer has duly authorized the
execution and delivery of this Indenture to provide for the issuance of Notes, issuable as provided
in this Indenture. All covenants and agreements made by the Issuer herein are for the benefit and
security of the Noteholders.

GRANTING CLAUSE

          Subject to the terms of this Indenture, the Issuer hereby Grants on the Closing Date, to the
Indenture Trustee, as Indenture Trustee for the benefit of the Noteholders, all of the Issuer’s
right, title and interest, whether now owned or hereafter acquired, in and to: (i) such Eligible
Loans as from time to time are subject to the Sale and Servicing Agreement as listed in the Loan
Schedule, as the same may be amended or supplemented on each Transfer Date and by the removal of
Deleted Loans, repurchased Loans and Unqualified Loans and by the addition of Qualified Substitute
Loans, together with the Servicer’s Loan Files and the Custodial Loan Files relating thereto and
all proceeds thereof, (ii) the Mortgages and security interests in the Mortgaged Properties, (iii)
all payments in respect of interest and principal with respect to each Eligible Loan received on or
after the related Transfer Date, (iv) such assets as from time to time are identified as
Foreclosure Property, (v) such assets and funds (other than Excluded Amounts) as are from time to
time deposited in the Distribution Account, the Principal Collections Account and the Collection
Account, including, without limitation, amounts on deposit in such accounts that are invested in
Permitted Investments, (vi) lenders’ rights to any Insurance Proceeds, (vii) Net Proceeds, (viii)
all right, title and interest of each of the Depositor, the Loan Originator and the Issuer in and
under the Basic Documents including, without limitation, the obligations of the Loan Originator
under the Loan Sale Agreement, and all proceeds of any of the foregoing, (ix) all right, title and
interest of the Issuer in and to the Sale and Servicing Agreement, (including the Issuer’s right to
cause the Loan Originator to repurchase Loans from the Issuer under certain circumstances described
therein), (x) all other property of the Issuer from time to time and (xi) all present and future
claims, demands, causes of action and choses in action in respect of any or all of the foregoing
and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any
or all of the foregoing, including all proceeds of the conversion thereof, voluntary or
involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable,
notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of obligations and
receivables, instruments and other property which at any time constitute all or part of or are
included in the proceeds of any of the foregoing (collectively, the “Collateral”).

          The foregoing Grant is made in trust to secure the payment of principal of and interest on,
and any other amounts owing in respect of, the Notes, and to secure compliance with the provisions
of this Indenture, all as provided in this Indenture.

 

 

          The Indenture Trustee, as Indenture Trustee on behalf of the Noteholders, acknowledges such
Grant, accepts the trusts hereunder and agrees to perform its duties required in this Indenture to
the best of its ability to the end that the interests of the Noteholders may adequately and
effectively be protected.

ARTICLE I

DEFINITIONS

          Section 1.01 Definitions. (a) Except as otherwise specified herein, the following
terms have the respective meanings set forth below for all purposes of this Indenture.

          “Act” has the meaning specified in Section 11.03(a) hereof.

          “Administration Agreement” means the Administration Agreement dated as of April 19,
2007.

          “Administrator” means CapitalSource Finance LLC, in its capacity as Administrator, or
any successor Administrator under the Administration Agreement.

          “Authorized Officer” means, with respect to the Issuer, any officer of the Owner
Trustee who is authorized to act for the Owner Trustee in matters relating to the Issuer and who is
identified on the list of Authorized Officers delivered by the Owner Trustee to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from time to time
thereafter) and, so long as the Administration Agreement is in effect, any Vice President or more
senior officer of the Administrator who is authorized to act for the Administrator in matters
relating to the Issuer and to be acted upon by the Administrator pursuant to the Administration
Agreement and who is identified on the list of Authorized Officers delivered by the Administrator
to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from
time to time thereafter).

          “Certificate of Trust” means the certificate of trust of the Issuer substantially in
the form of Exhibit B to the Trust Agreement.

          “Change of Control” has the meaning specified in the Sale and Servicing Agreement.

          “Closing Date” means April 19, 2007.

          “Collateral” has the meaning specified in the Granting Clause of this Indenture.

          “Commission” means the Securities and Exchange Commission.

          “Corporate Trust Office” means the principal office of the Indenture Trustee at which
at any particular time its corporate trust business shall be administered, which office at date of
execution of this Indenture is located, for note transfer purposes, at MAC N9311-61, Sixth Street
and Marquette Avenue, Minneapolis, MN 55479, telecopy number: (612) 667-3539,

- 2 -

 

or at such other address as the Indenture Trustee may designate from time to time by notice to
the Noteholders and the Issuer, or the principal corporate trust office of any successor Indenture
Trustee at the address designated by such successor Indenture Trustee by notice to the Noteholders
and the Issuer.

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

          “Depositor” shall mean CS Funding VII Depositor LLC, a Delaware limited liability
company; in its capacity as depositor under the Sale and Servicing Agreement, or any successor in
interest thereto.

          “Depository Institution” means any depository institution or trust company, including
the Indenture Trustee, that (a) is incorporated under the laws of the United States of America or
any State thereof, (b) is subject to supervision and examination by federal or state banking
authorities and (c) has outstanding unsecured commercial paper or other short-term unsecured debt
obligations that are rated at a rating to which the Majority Noteholders consent in writing.

          “Event of Default” has the meaning specified in Section 5.01 hereof.

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

          “Executive Officer” means, with respect to (i) the Depositor, the Servicer, the Loan
Originator or any Affiliate of any of them, the President, any Vice President or the Treasurer of
such Person; with respect to any partnership, any general partner thereof and with respect to any
limited liability company, any managing member thereof, (ii) the Note Registrar, any Responsible
Officer of the Indenture Trustee, (iii) any other corporation, the Chief Executive Officer, Chief
Operating Officer, Chief Financial Officer, President, Executive Vice President, any Vice
President, the Secretary or the Treasurer of such entity and (iv) any partnership, any general
partner thereof.

          “Grant” means mortgage, pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create and grant a lien upon and a security interest in and right of
set-off against, deposit, set over and confirm pursuant to this Indenture. A Grant of the
Collateral or of any other agreement or instrument shall include all rights, powers and options
(but none of the obligations) of the granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal and interest
payments in respect of the Collateral and all other moneys payable thereunder, to give and receive
notices and other communications, to make waivers or other agreements, to exercise all rights and
options, to bring Proceedings in the name of the granting party or otherwise, and generally to do
and receive anything that the granting party is or may be entitled to do or receive thereunder or
with respect thereto.

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

- 3 -

 

          “ICA Owner” means “beneficial owner” as such term is used in Section 3(c)(1) of the
Investment Company Act of 1940, as amended (other than any persons who are excluded from such term
or from the 100-beneficial owner test of Section 3(c)(1) by law or regulations adopted by the
Commission).

          “Indenture” means this Indenture and any amendments hereto.

          “Indenture Trustee” means Wells Fargo Bank, National Association, a national banking
association, as Indenture Trustee under this Indenture, or any successor Indenture Trustee
hereunder.

          “Issuer” means CapitalSource Funding VII Trust, a Delaware statutory trust.

          “Issuer Order” and “Issuer Request” mean a written order or request signed in
the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.

          “Loan Originator” means CapitalSource Finance LLC, a Delaware limited liability
company.

          “Majority Certificateholders” has the meaning specified in the Trust Agreement.

          “Maximum Note Principal Balance” has the meaning specified in the Note Purchase
Agreement.

          “Note” means any Note authorized by and authenticated and delivered under this
Indenture.

          “Note Interest Rate” means for each Accrual Period, a per annum interest rate equal to
One-Month LIBOR for the related LIBOR Determination Date plus the LIBOR Margin for such Accrual
Period.

          “Note Purchase Agreement” means the Note Purchase Agreement dated as of April 19,
2007, among the Issuer, the Depositor and the Purchaser as the same may be amended or supplemented
from time to time.

          “Note Register” and “Note Registrar” have the respective meanings specified in
Section 2.03 hereof.

          “Noteholder” means the Person in whose name a Note is registered on the Note Register.

          “Officer’s Certificate” means a certificate signed by any Authorized Officer of the
Issuer or the Administrator, under the circumstances described in, and otherwise complying with,
the applicable requirements of Section 11.01 hereof, and delivered to the Indenture
Trustee. Unless otherwise specified, any reference in this Indenture to an Officer’s Certificate
shall be to an Officer’s Certificate of any Authorized Officer of the Issuer or the Administrator.

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          “Opinion of Counsel” means one or more written opinions of counsel who may, except as
otherwise expressly provided in this Indenture, be an employee of or counsel to the Issuer, and
which opinion or opinions shall be addressed to the Indenture Trustee, as Indenture Trustee, and
shall comply with any applicable requirements of Section 11.01 hereof and shall be in form
and substance satisfactory to the Initial Noteholder.

          “Outstanding” means, with respect to any Note and as of the date of determination, any
Note theretofore authenticated and delivered under this Indenture except:

     (i) Notes theretofore canceled by the Note Registrar or delivered to the Note Registrar
for cancellation;

     (ii) Notes or portions thereof the payment for which money in the necessary amount has
theretofore been deposited with the Indenture Trustee or any Paying Agent in trust for the
Noteholders (provided, however, that if such Notes are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision for such notice
satisfactory to the Indenture Trustee has been made) and the commitment to purchase
Additional Note Principal Balances has been terminated; and

     (iii) Notes in exchange for or in lieu of which other Notes have been authenticated and
delivered pursuant to this Indenture unless proof satisfactory to the Indenture Trustee is
presented that any such Notes are held by a bona fide purchaser; provided, however, that in
determining whether the Noteholders representing the requisite Percentage Interests of the
Outstanding Notes have given any request, demand, authorization, direction, notice, consent
or waiver hereunder or under any Basic Document, Notes owned by the Issuer, any other
obligor upon the Notes, the Depositor or any Affiliate of any of the foregoing Persons shall
be disregarded and deemed not to be Outstanding, except that, in determining whether the
Indenture Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Notes that the Indenture Trustee
actually knows to be owned in such manner shall be disregarded. Notes owned in such manner
that have been pledged in good faith may be regarded as Outstanding if the pledgee certifies
to the Indenture Trustee (y) that the pledgee has the right so to act with respect to such
Notes and (z) that the pledgee is not the Issuer, any other obligor upon the Notes, the
Depositor or any Affiliate of any of the foregoing Persons.

          “Owner Trustee means Wilmington Trust Company, acting not in its individual capacity,
but solely as Owner Trustee under the Trust Agreement.

          “Paying Agent” means a Person that meets the eligibility standards for the Indenture
Trustee specified in Section 3.03 hereof and is authorized by the Issuer to make payments
to and distributions from the Distribution Account, including payment of principal of or interest
on the Notes on behalf of the Issuer. The initial Paying Agent shall be the Indenture Trustee
until another Paying Agent is appointed by the Initial Noteholder pursuant to Section 8.04
herein.

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          “Percentage Interest” means, with respect to any Note and as of any date of
determination, the percentage equal to a fraction, the numerator of which is the principal balance
of such Note as of such date of determination and the denominator of which is the Note Principal
Balance.

          “Predecessor Note” means, with respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for
the purpose of this definition, any Note authenticated and delivered under Section 2.04
hereof in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same
debt as the mutilated, lost, destroyed or stolen Note.

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

          “Purchaser” means Citigroup Global Markets Realty Corp. together with its successors
and assigns

          “Redemption Date” means in the case of a redemption of the Notes pursuant to
Section 10.01 hereof, the Payment Date specified by the Servicer pursuant to such
Section 10.01.

          “Registered Holder” means the Person in the name of which a Note is registered on the
Note Register on the applicable Record Date.

          “Sale Agent” has the meaning assigned to such term in Section 5.11 hereof.

          “Sale and Servicing Agreement” means the Sale and Servicing Agreement dated as of
April 19, 2007, among the Issuer, the Depositor, the Servicer, the Loan Originator and the
Indenture Trustee on behalf of the Noteholders as the same may be amended and supplemented from
time to time.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Servicer” shall mean Capital Source Finance LLC, in its capacity as servicer under
the Sale and Servicing Agreement, and any successor servicer thereunder.

          “State” means any one of the States of the United States of America or the District of
Columbia.

          “Termination Date” has the meaning specified in the Sale and Servicing Agreement.

          “Trust Agreement” means the Amended and Restated Trust Agreement dated as of April 19,
2007, between the Depositor and the Owner Trustee as the same may be amended and supplemented from
time to time.

          “Trust Certificate” has the meaning assigned to such term in Section 1.1 of
the Trust Agreement.

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          “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force on the date
hereof, unless otherwise specifically provided.

          (b) Except as otherwise specified herein or as the context may otherwise require, capitalized
terms used but not otherwise defined herein have the respective meanings set forth in the Sale and
Servicing Agreement for all purposes of this Indenture.

          Section 1.02 Rules of Construction. Unless the context otherwise requires:

     (i) a term has the meaning assigned to it;

     (ii) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (iii) “or” is not exclusive;

     (iv) “including” means including without limitation;

     (v) words in the singular include the plural and words in the plural include the
singular; and

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

ARTICLE II

GENERAL PROVISIONS WITH RESPECT TO THE NOTES

          Section 2.01 Method of Issuance and Form of Notes.

          The Notes shall be designated generally as the “CapitalSource Funding VII Trust Commercial
Loan Backed Notes” of the Issuer. Each Note shall bear upon its face the designation so selected
for the Notes. All Notes shall be identical in all respects except for the denominations thereof.
All Notes issued under this Indenture shall be in all respects equally and ratably entitled to the
benefits thereof without preference, priority or distinction on account of the actual time or times
of authentication and delivery, all in accordance with the terms and provisions of this Indenture.

          The Notes may be typewritten, printed, lithographed or engraved or produced by any combination
of these methods, all as determined by the officers executing such Notes, as evidenced by their
execution of such Notes.

          Each Note shall be dated the date of its authentication.

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          The terms of the Notes shall be set forth in this Indenture.

          The Notes shall be in definitive form and shall bear a legend substantially in the form of
Exhibit C attached hereto.

          Section 2.02 Execution, Authentication, Delivery and Dating. The Notes shall be
executed on behalf of the Issuer by an Authorized Officer of the Owner Trustee or the
Administrator. The signature of any such Authorized Officer on the Notes may be manual or
facsimile.

          Notes bearing the manual or facsimile signature of individuals who were at any time Authorized
Officers of the Owner Trustee or the Administrator shall bind the Issuer, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Notes or did not hold such offices at the date of such Notes.

          Subject to the satisfaction of the conditions set forth in Section 2.08 hereof, the
Indenture Trustee shall upon Issuer Order authenticate and deliver the Notes.

          The Notes that are authenticated and delivered by the Indenture Trustee to or upon the order
of the Issuer on the Closing Date shall be dated as of such Closing Date. All other Notes that are
authenticated after the Closing Date for any other purpose under the Indenture shall be dated the
date of their authentication. The Notes shall be issued in such denominations as may be agreed by
the Issuer and the Noteholders.

          No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose, unless there appears on such Note a certificate of authentication substantially in the
form provided for herein executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be conclusive evidence, and the
only evidence, that such Note has been duly authenticated and delivered hereunder.

          Section 2.03 Registration; Registration of Transfer and Exchange. The Issuer shall
cause to be kept a register (the “Note Register”) in which, subject to such reasonable
regulations as it may prescribe, the Issuer shall provide for the registration of Notes and the
registration of transfers of Notes. The Indenture Trustee initially shall be the “Note
Registrar” for the purpose of registering Notes and transfers of Notes as herein provided.
Upon any resignation of any Note Registrar, the Issuer shall promptly appoint a successor or, if it
elects not to make such an appointment, assume the duties of the Note Registrar.

          If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the
Issuer will give the Indenture Trustee prompt written notice of the appointment of such Note
Registrar and of the location, and any change in the location, of the Note Register, and the
Indenture Trustee shall have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to rely upon a certificate
executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and
addresses of the Noteholders and the principal amounts and number of the Notes.

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          Upon surrender for registration of transfer of any Note at the office or agency of the Issuer
to be maintained as provided in Section 3.02 hereof, the Issuer shall execute, and the
Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, in
the name of the designated transferee or transferees, one or more new Notes in any authorized
denominations, of a like aggregate Note Principal Balance.

          At the option of the Holder, Notes may be exchanged for other Notes in any authorized
denominations, of a like aggregate principal amount, upon surrender of the Notes to be exchanged at
such office or agency. Whenever any Notes are so surrendered for exchange, the Issuer shall
execute, and the Indenture Trustee shall authenticate and the Noteholder shall obtain from the
Indenture Trustee, the Notes which the Noteholder making the exchange is entitled to receive.

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

          Every Note presented or surrendered for registration of transfer or exchange shall be duly
endorsed by, or be accompanied by a written instrument of transfer in the form attached to the form
of Note attached as Exhibit A hereto duly executed by the Holder thereof or such Holder’s attorney
duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Securities Transfer Agents’ Medallion Program (“STAMP”).

          No service charge shall be made to a Noteholder for any registration of transfer or exchange
of Notes, but the Issuer may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of Notes, other than exchanges pursuant to Section 9.05 hereof not involving any transfer.

          The preceding provisions of this Section 2.03 notwithstanding, the Issuer shall not be
required to make, and the Note Registrar need not register, transfers or exchanges of Notes
selected for redemption or of any Note for a period of 15 days preceding the due date for any
payment with respect to such Note.

          Section 2.04 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any mutilated Note is
surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its
satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the
Issuer and Indenture Trustee such security or indemnity as may reasonably be required by it to hold
the Issuer and the Indenture Trustee, as applicable, harmless, then, in the absence of notice to
the Issuer, the Note Registrar or the Indenture Trustee that such Note has been acquired by a bona
fide purchaser, an Authorized Officer of the Owner Trustee or the Administrator on behalf of the
Issuer shall execute, and upon its written request the Indenture Trustee shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a
replacement Note; provided, however, that if any such destroyed, lost or stolen Note, but not a
mutilated Note, shall have become or within seven days shall be due and payable, or shall have

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been called for redemption, instead of issuing a replacement Note, the Issuer may pay such
destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without surrender
thereof. If, after the delivery of such replacement Note or payment of a destroyed, lost or stolen
Note pursuant to the proviso to the preceding sentence, a bona fide purchaser of the original Note
in lieu of which such replacement Note was issued presents for payment such original Note, the
Issuer shall be entitled to recover such replacement Note (or such payment) from the Person to
which it was delivered or any Person taking such replacement Note from such Person to which such
replacement Note was delivered or any assignee of such Person, except a bona fide purchaser, and
the Issuer and the Indenture Trustee shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by the Issuer or the
Indenture Trustee in connection therewith.

          Upon the issuance of any replacement Note under this Section 2.04, the Issuer may
require the payment by the Holder of such Note of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other reasonable expenses
(including the fees and expenses of the Indenture Trustee) connected therewith.

          Every replacement Note issued pursuant to this Section 2.04 in replacement of any
mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual
obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at
any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Notes duly issued hereunder.

          The provisions of this Section 2.04 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes.

          Section 2.05 Persons Deemed Noteholders. Prior to due presentment for registration of
transfer of any Note, the Issuer, the Paying Agent, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee may treat the Person in the name of which any Note is registered
(as of the day of determination) as the Noteholder for the purpose of receiving payments of
principal of and interest, if any, on such Note and for all other purposes whatsoever, whether or
not such Note be overdue, and none of the Issuer, the Paying Agent, the Indenture Trustee or any
agent of the Issuer, the Paying Agent, or the Indenture Trustee shall be affected by notice to the
contrary.

          Section 2.06 Payment of Principal and/or Interest; Defaulted Interest.

          (a) The Notes shall accrue interest at the Note Interest Rate, and such interest shall be
payable on each Payment Date, subject to Section 3.01 hereof. Any installment of interest
or principal, if any, payable on any Note that is punctually paid or duly provided for by the
Issuer on the applicable Payment Date shall be paid to the Person in the name of which such Note
(or one or more Predecessor Notes) is registered on the next preceding Record Date based on the
Percentage Interest represented by its respective Note, without preference or priority of any kind,
and, except as otherwise provided in the next succeeding sentence, shall be made by wire transfer
of immediately available funds to the account of such Noteholder, if such

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Noteholder shall have so notified the Paying Agent and the Indenture Trustee, and otherwise by
check mailed to the address of such Noteholder appearing in the Note Register no less than five
days preceding the related Record Date. The final installment of principal payable with respect to
such Note shall be payable as provided in Section 2.06(b) below. The funds represented by
any such checks returned undelivered shall be held in accordance with Section 3.03 hereof.

          (b) The principal of each Note shall be payable in installments on each Payment Date as
provided in Sections 5.01 and 5.02 of the Sale and Servicing Agreement and Section 5.04(b) hereof.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes shall be due and
payable, if not previously paid, on the earlier of (i) the Termination Date, (ii) the Redemption
Date and (iii) the date on which an Event of Default shall have occurred and be continuing, if the
Indenture Trustee or the Majority Noteholders shall have declared the Notes to be immediately due
and payable in the manner provided in Section 5.02 hereof.

          All principal payments on the Notes shall be made pro rata to the Noteholders based on their
respective Percentage Interests. The Paying Agent shall notify the Person in the name of which a
Note is registered at the close of business on the Record Date preceding the Payment Date on which
the Issuer expects that the final installment of principal of and interest on such Note will be
paid. Such notice shall be mailed or transmitted by facsimile prior to such final Payment Date and
shall specify that such final installment will be payable only upon presentation and surrender of
such Note and shall specify the place where such Note may be presented and surrendered for payment
of such installment. Notices in connection with redemptions of Notes shall be provided to
Noteholders as set forth in Section 10.02 hereof.

          Section 2.07 Cancellation. All Notes surrendered for payment, registration of
transfer, exchange or redemption shall, if surrendered to any Person other than the Indenture
Trustee, be delivered to the Indenture Trustee and shall promptly be canceled by the Indenture
Trustee. The Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes
previously authenticated and delivered hereunder which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall promptly be canceled by the Indenture Trustee. No
Notes shall be authenticated in lieu of or in exchange for any Notes canceled as provided in this
Section 2.07, except as expressly permitted by this Indenture. All canceled Notes may be
held or disposed of by the Indenture Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer Order that they be
destroyed or returned to it; provided, however, that such Issuer Order is timely and the Notes have
not been previously disposed of by the Indenture Trustee.

          Section 2.08 Conditions Precedent to the Authentication of the Notes. The Notes may
be authenticated by the Indenture Trustee upon receipt by the Indenture Trustee of the following:

          (a) An Issuer Order authorizing authentication of such Notes by the Indenture Trustee;

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          (b) All of the items of Collateral which are to be delivered pursuant to the Basic Documents
to the Indenture Trustee or its designee by the related Closing Date shall have been delivered;

          (c) An executed counterpart of each Basic Document;

          (d) One or more Opinions of Counsel addressed to the Indenture Trustee to the effect that:

     (i) the Owner Trustee has power and authority to execute, deliver and perform its
obligations under the Trust Agreement;

     (ii) the Issuer has been duly formed, is validly existing as a statutory trust under
the laws of the State of Delaware, 12 Del. C. Section 3801 et seq., and has power, authority
and legal right to execute and deliver this Indenture, the Note Purchase Agreement and the
Sale and Servicing Agreement;

     (iii) assuming due authorization, execution and delivery hereof by the Indenture
Trustee, the Indenture is a valid, legal and binding obligation of the Issuer, enforceable
in accordance with its terms, subject to bankruptcy, insolvency, reorganization,
arrangement, moratorium, fraudulent or preferential conveyance and other similar laws of
general application affecting the rights of creditors generally and to general principles of
equity (regardless of whether such enforcement is considered in a Proceeding in equity or at
law);

     (iv) the Notes, when executed and authenticated as provided herein and delivered
against payment therefor, will be the valid, legal and binding obligations of the Issuer
pursuant to the terms of this Indenture, entitled to the benefits of this Indenture, and
will be enforceable in accordance with their terms, subject to bankruptcy, insolvency,
reorganization, arrangement, moratorium, fraudulent or preferential conveyance and other
similar laws of general application affecting the rights of creditors generally and to
general principles of equity (regardless of whether such enforcement is considered in a
Proceeding in equity or at law);

     (v) this Indenture is not required to be qualified under the Trust Indenture Act;

     (vi) no authorization, approval or consent of any governmental body having jurisdiction
over the Issuer or its assets which has not been obtained by the Issuer is required to be
obtained by the Issuer for the valid issuance and delivery of the Notes, except that no
opinion need be expressed with respect to any such authorizations, approvals or consents as
may be required under any state securities or “blue sky” laws; and

     (vii) any other matters that the Indenture Trustee may reasonably request.

          (e) An Officer’s Certificate complying with the requirements of Section 11.01
hereof and stating that:

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     (i) the Issuer is not in Default under this Indenture and the issuance of the Notes
applied for will not result in any breach of any of the terms, conditions or provisions of,
or constitute a default under, the Trust Agreement, any indenture, mortgage, deed of trust
or other agreement or instrument to which the Issuer is a party or by which it is bound, or
any order of any court or administrative agency entered in any Proceeding to which the
Issuer is a party or by which it may be bound or to which it may be subject, and that all
conditions precedent provided in this Indenture relating to the authentication and delivery
of the Notes applied for have been complied with;

     (ii) the Issuer is the owner of all of the Loans, the Issuer has not assigned any
interest or participation in any of the Eligible Loans (or, if any such interest or
participation has been assigned, it has been released) and the Issuer has the right to Grant
all of the Loans, to the Indenture Trustee; and

     (iii) the Issuer has Granted to the Indenture Trustee all of its right, title and
interest in and to the Collateral, and has delivered or caused the same to be delivered to
the Indenture Trustee.

          Section 2.09 Release of Collateral. (a) Except as otherwise provided by the terms of
the Basic Documents, the Indenture Trustee shall release the Collateral from the lien of this
Indenture only upon receipt of an Issuer Request accompanied by the written instructions furnished
by the Noteholders or by the Indenture Trustee on behalf of the Noteholders. To the extent it
deems necessary, the Indenture Trustee may seek direction from the Noteholders with regard to the
release of Collateral other than the Custodial Loan File.

          (b) The Indenture Trustee shall, if requested by the Servicer, temporarily release to the
Servicer the Custodial Loan File for purposes of facilitating the servicing or administration of a
Loan; provided, however, that the Collateral Custodian’s records shall indicate the Issuer’s pledge
to the Indenture Trustee under the Indenture.

          Section 2.10 Additional Note Principal Balance. In the event of payment of Additional
Note Principal Balance by the Noteholders as provided in Section 2.01(c) of the Sale and
Servicing Agreement, each Noteholder shall, and is hereby authorized to, record on the schedule
attached to its Note the date and amount of any Additional Note Principal Balance advanced by it,
and each repayment thereof; provided that failure to make any such recordation on such schedule or
any error in such schedule shall not adversely affect any Noteholder’s rights with respect to its
Additional Note Principal Balance and its right to receive interest payments in respect of the
Additional Note Principal Balance held by such Noteholder. The Noteholders shall give written
notice to the Indenture Trustee and the Paying Agent of any Additional Note Principal Balance.

          Absent manifest error, the Note Principal Balance of each Note as set forth in the notations
made by the Initial Noteholder on such Note shall be binding upon the Indenture Trustee and the
Issuer; provided that failure by the Initial Noteholder to make such recordation on its Note or any
error in such notation shall not adversely affect any Noteholder’s rights with

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respect to its Note Principal Balance and its right to receive principal and interest payments
in respect thereof.

          Section 2.11 Tax Treatment. The Issuer has entered into this Indenture, and the Notes
will be issued, with the intention that for all purposes, including federal, state and local
income, single business and franchise tax purposes, the Notes will qualify as indebtedness of the
Issuer secured by the Collateral. The Issuer, by entering into this Indenture, and each
Noteholder, by its acceptance of a Note, agree to treat the Notes for all purposes, including
federal, state and local income, single business and franchise tax purposes, as indebtedness of the
Issuer. The Indenture Trustee will have no responsibility for filing or preparing any tax returns.

          Section 2.12 Limitations on Transfer of the Notes.

          (a) The Notes have not been and will not be registered under the Securities Act and will not
be listed on any exchange. No transfer of a Note shall be made unless such transfer is made
pursuant to an effective registration statement under the Securities Act and all applicable state
securities laws or is exempt from the registration requirements under the Securities Act and such
state securities laws. In order to assure compliance with the Securities Act and state securities
laws, any transfer of a Note shall be made (A) in reliance on Rule 144A under the Securities Act,
in which case, the Indenture Trustee shall require that the transferor deliver a certification
substantially in the form of Exhibit B-1 hereto and that the transferee deliver a
certification substantially in the form of Exhibit B-3 hereto, or (B) to an institutional
“accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under
the Securities Act that is not a “qualified institutional buyer,” in which case the Indenture
Trustee shall require that the transferee deliver a certification substantially in the form of
Exhibit B-2 hereto. The Indenture Trustee shall not make any transfer or re-registration
of the Notes if after such transfer or re-registration, there would be more than five (5)
Noteholders. Each Noteholder shall, by its acceptance of a Note, be deemed to have represented and
warranted that the number of ICA Owners with respect to all of its Notes shall not exceed four (4).

          (b) The Note Registrar shall not register the transfer of any Note unless the Indenture
Trustee has received a certificate from the transferee to the effect that either (i) the transferee
is not an employee benefit plan or other retirement plan or arrangement subject to Title I of the
Employee Retirement Income Security Act of 1974, as amended, or Section 4975 of the Internal
Revenue Code of 1986, as amended (each, a “Plan”), and is not acting on behalf of or investing the
assets of a Plan or (ii) if the transferee is a Plan or is acting on behalf of or investing the
assets of a Plan, the conditions for exemptive relief under at least one of the following
prohibited transaction class exemptions have been satisfied: Prohibited Transaction Class Exemption
(“PTCE”) 96-23 (relating to transactions effected by an “in-house asset manager”), PTCE 95-60
(relating to transactions involving insurance company general accounts), PTCE 91-38 (relating to
transactions involving bank collective investment funds), PTCE 90-1 (relating to transactions
involving insurance company pooled separate accounts) and PTCE 84-14 (relating to transactions
effected by a “qualified professional asset manager”).

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ARTICLE III

COVENANTS

          Section 3.01 Payment of Principal and/or Interest. The Issuer will duly and
punctually pay (or will cause to be paid duly and punctually) the principal of and interest on the
Notes in accordance with the terms of the Notes, this Indenture and the Sale and Servicing
Agreement. The Paying Agent shall notify the Person in the name of which a Note is registered and
the Indenture Trustee at the close of business on the Record Date preceding the Payment date on
which the Issuer expects that the final installment of principal of and interest on such Note will
be paid. Amounts properly withheld under the Code by any Person from a payment to any of the
Noteholders of interest and/or principal shall be considered as having been paid by the Issuer to
such Noteholder for all purposes of this Indenture. The Notes shall be non-recourse obligations of
the Issuer and shall be limited in right of payment to amounts available from the Collateral, as
provided in this Indenture. The Issuer shall not otherwise be liable for payments on the Notes.
If any other provision of this Indenture shall be deemed to conflict with the provisions of this
Section 3.01, the provisions of this Section 3.01 shall control.

          Section 3.02 Maintenance of Office or Agency. The Indenture Trustee shall maintain at
the Corporate Trust Office an office or agency where Notes may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Issuer in respect of the Notes
and this Indenture may be served. The Indenture Trustee shall give prompt written notice to the
Issuer of the location, and of any change in the location, of any such office or agency.

          Section 3.03 Money for Payments to Be Held in Trust. As provided in Section
8.02(a) and (b) hereof, all payments of amounts due and payable with respect to any
Notes that are to be made from amounts withdrawn from the Distribution Account pursuant to
Section 8.02(c) hereof shall be made on behalf of the Issuer by the Indenture Trustee or by
the Paying Agent, as applicable, and no amounts so withdrawn from the Distribution Account for
payments of Notes shall be paid over to the Issuer except as provided in this Section 3.03.

          Any Paying Agent shall be appointed by the Issuer, with the consent of the Majority
Noteholders with written notice thereof to the Indenture Trustee. The initial Paying Agent shall
be the Indenture Trustee. The Issuer shall not appoint any Paying Agent (other than the Indenture
Trustee) which is not, at the time of such appointment, a Depository Institution.

          The Issuer will cause each Paying Agent other than the Indenture Trustee to execute and
deliver to the Indenture Trustee an instrument in which such Paying Agent shall agree with the
Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject
to the provisions of this Section 3.03, that such Paying Agent will:

     (i) hold all sums held by it for the payment of amounts due with respect to the Notes
in trust for the benefit of the Persons entitled thereto until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and pay such sums to such Persons
as herein provided;

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     (ii) give the Indenture Trustee notice of any Default by the Issuer (or any other
obligor upon the Notes) of which it has actual knowledge in the making of any payment
required to be made with respect to the Notes;

     (iii) at any time during the continuance of any such Default, upon the written request
of the Majority Noteholders or the Indenture Trustee, forthwith pay to the Indenture Trustee
all sums so held in trust by such Paying Agent;

     (iv) immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee
all sums held by it in trust for the payment of Notes if at any time it ceases to meet the
standards required to be met by a Paying Agent at the time of its appointment; and

     (v) comply with all requirements of the Code with respect to the withholding from any
payments made by it on any Notes of any applicable withholding taxes imposed thereon and
with respect to any applicable reporting requirements in connection therewith; provided,
however, that with respect to withholding and reporting requirements applicable to original
issue discount (if any) on the Notes, the Issuer shall have first provided the calculations
pertaining thereto to the Indenture Trustee.

          Subject to applicable laws with respect to escheat of funds or abandoned property, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of any amount due with
respect to any Note and remaining unclaimed for two years after such amount has become due and
payable shall be discharged from such trust and be paid to the Issuer on Issuer Request; and the
Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the Issuer), and all liability of
the Indenture Trustee or such Paying Agent with respect to such trust money shall thereupon cease;
provided, however, that the Indenture Trustee or such Paying Agent, before being required to make
any such repayment, shall at the expense and direction of the Issuer cause to be published, once in
a newspaper of general circulation in the City of New York customarily published in the English
language on each Business Day, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid to the Issuer. The Indenture Trustee
shall also adopt and employ any other reasonable means of notification of such repayment
(including, but not limited to, mailing notice of such repayment to Noteholders whose Notes have
been called but have not been surrendered for redemption or whose right to or interest in moneys
due and payable but not claimed at the last address of record for each such Noteholder determinable
from the records of the Indenture Trustee or of any Paying Agent). Any costs and expenses of the
Indenture Trustee and the Paying Agent incurred in the holding of such funds shall be charged
against such funds. Monies so held shall not bear interest.

          Section 3.04 Existence. (a) Subject to subparagraph (b) of this Section 3.04,
the Issuer will keep in full effect its existence, rights and franchises as a statutory trust under
the laws of the State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other State or of the United States of America, in

- 16 -

 

which case the Issuer will keep in full effect its existence, rights and franchises under the
laws of such other jurisdiction) and will obtain and preserve its qualification to do business in
each jurisdiction in which such qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes and the Collateral. The Issuer shall comply in all
respects with the covenants contained in the Trust Agreement, including without limitation, the
“special purpose entity” covenants set forth in Section 4.1 thereof.

          (b) Any successor to the Owner Trustee appointed pursuant to Section 10.2 of the Trust
Agreement shall be the successor Owner Trustee under this Indenture without the execution or filing
of any paper, instrument or further act to be done on the part of the parties hereto.

          (c) Upon any consolidation or merger of or other succession to the Owner Trustee, the Person
succeeding to the Owner Trustee under the Trust Agreement may exercise every right and power of the
Owner Trustee under this Indenture with the same effect as if such Person had been named as the
Owner Trustee herein.

          Section 3.05 Protection of Collateral. The Issuer shall from time to time execute
and deliver all such reasonable supplements and amendments hereto and all such financing
statements, continuation statements, instruments of further assurance and other instruments, and
will take such other action necessary or advisable to:

     (i) provide further assurance with respect to the Grant of all or any portion of the
Collateral;

     (ii) maintain or preserve the lien and security interest (and the priority thereof) of
this Indenture or carry out more effectively the purposes hereof;

     (iii) perfect, publish notice of or protect the validity of any Grant made or to be
made by this Indenture;

     (iv) enforce any rights with respect to the Collateral; and

     (v) preserve and defend title to the Collateral and the rights of the Indenture Trustee
and the Noteholders in such Collateral against the claims of all Persons and parties.

The Issuer hereby designates the Administrator, its agent and attorney-in-fact to execute any
financing statement, continuation statement or other instrument required to be executed pursuant to
this Section 3.05.

          Section 3.06 Negative Covenants. Without the written consent of the Majority
Noteholders, so long as any Notes are Outstanding, the Issuer shall not:

     (i) except as expressly permitted by the Basic Documents, sell, transfer, exchange or
otherwise dispose of any of its properties or assets, including those included

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in any part of the Owner Trust Estate (as defined in the Trust Agreement), unless
directed to do so by the Noteholders as permitted herein;

     (ii) claim any credit on, or make any deduction from the principal or interest payable
in respect of, the Notes (other than amounts properly withheld from such payments under the
Code) or assert any claim against any present or former Noteholder by reason of the payment
of the taxes levied or assessed upon any part of the Owner Trust Estate;

     (iii) engage in any business or activity other than as expressly permitted by this
Indenture and the other Basic Documents, other than in connection with, or relating to, the
issuance of Notes pursuant to this Indenture, or amend this Indenture as in effect on the
Closing Date other than in accordance with Article IX hereof;

     (iv) issue any debt obligations except under this Indenture;

     (v) incur or assume any indebtedness or guaranty any indebtedness of any Person, except
for such indebtedness as may be incurred by the Issuer in connection with the issuance of
the Notes pursuant to this Indenture;

     (vi) dissolve or liquidate in whole or in part or merge or consolidate with any other
Person;

     (vii) (A) permit the validity or effectiveness of this Indenture to be impaired, or
permit the lien of this Indenture to be amended, hypothecated, subordinated, terminated or
discharged, or permit any Person to be released from any covenants or obligations with
respect to the Notes except as may expressly be permitted hereby, (B) except as provided in
the Basic Documents, permit any lien, charge, excise, claim, security interest, mortgage or
other encumbrance to be created on or extend to or otherwise arise upon or burden the Trust
Estate or any part thereof or any interest therein or the proceeds thereof (other than, tax
liens, mechanics’ liens and other liens that arise by operation of law, in each case, on any
Mortgaged Property and arising solely as a result of an action or omission of the related
Borrowers) or (C) except as provided in the Basic Documents, permit any Person other than
itself, the Owner Trustee and the Noteholders to have any right, title or interest in the
Trust Estate;

     (viii) remove the Administrator without the prior written consent of the Majority
Noteholders; or

     (ix) take any other action or fail to take any action which may cause the Issuer to be
taxable as (a) an association pursuant to Section 7701 of the Code and the corresponding
regulations, or (b) as a taxable mortgage pool pursuant to Section 7701(i) of the Code.

          Section 3.07 Performance of Obligations; Servicing of Loans. (a) The Issuer shall not
take any action and will use its commercially reasonable efforts not to permit any action to be
taken by others that would release any Person from any of such Person’s material

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covenants or obligations under any instrument or agreement included in the Collateral or that
would result in the amendment, hypothecation, subordination, termination or discharge of, or impair
the validity or effectiveness of, any such instrument or agreement, except as expressly provided in
the Basic Documents or such other instrument or agreement.

          (b) The Issuer may contract with or otherwise obtain the assistance of other Persons
(including, without limitation, the Administrator under the Administration Agreement) to assist it
in performing its duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be deemed to be
action taken by the Issuer. Initially, the Issuer has contracted with the Servicer to assist the
Issuer in performing its duties under this Indenture.

          (c) The Issuer will punctually perform and observe all of its obligations and agreements
contained in this Indenture, in the Basic Documents and in the instruments and agreements included
in the Collateral, including but not limited to (i) filing or causing to be filed all UCC financing
statements and continuation statements required to be filed by the terms of this Indenture and the
Sale and Servicing Agreement and (ii) recording or causing to be recorded all Mortgages,
Assignments of Mortgage, all intervening Assignments of Mortgage and all assumption and
modification agreements required to be recorded by the terms of the Sale and Servicing Agreement,
in accordance with and within the time periods provided for in this Indenture and/or the Sale and
Servicing Agreement, as applicable. Except as otherwise expressly provided therein, the Issuer
shall not waive, amend, modify, supplement or terminate any Basic Document or any provision thereof
without the consent of the Indenture Trustee and the Majority Noteholders.

          (d) If the Issuer shall have knowledge of the occurrence and continuance of a Servicer Event
of Default, the Issuer shall promptly notify the Indenture Trustee and the Majority Noteholder
thereof, and shall specify in such notice the action, if any, the Issuer is taking with respect to
such default. If a Servicer Event of Default shall be continuing due to the failure of the
Servicer to perform any of its duties or obligations under the Sale and Servicing Agreement with
respect to the Eligible Loans, the Issuer shall take all reasonable steps available to it to remedy
such failure.

          (e) Upon any termination of the Servicer’s rights and powers pursuant to the Sale and
Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee. As soon as a
successor servicer is appointed, the Issuer shall notify the Indenture Trustee of such appointment,
specifying in such notice the name and address of such successor servicer.

          (f) Without derogating from the absolute nature of the assignment granted to the Indenture
Trustee under this Indenture or the rights of the Indenture Trustee hereunder, the Issuer agrees
(i) that it will not, without the prior written consent of the Indenture Trustee, amend, modify,
waive, supplement, terminate or surrender, or agree to any amendment, modification, supplement,
termination, waiver or surrender of, the terms of any Collateral (except to the extent otherwise
permitted by the Sale and Servicing Agreement) or the Basic Documents, or waive timely performance
or observance by the Servicer or the Depositor under the Sale and Servicing Agreement; and (ii)
that any such amendment shall not (A) increase or

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reduce in any manner the amount of, or accelerate or delay the timing of, distributions that
are required to be made for the benefit of the Noteholders or (B) reduce the aforesaid percentage
of the Notes that is required to consent to any such amendment, without the consent of Noteholders
evidencing 100% Percentage Interests of the Outstanding Notes. If any such amendment,
modification, supplement or waiver shall so be consented to by the Indenture Trustee, the Issuer
agrees, promptly following a request by the Indenture Trustee to do so, to execute and deliver, in
its own name and at its own expense, such agreements, instruments, consents and other documents as
the Indenture Trustee may deem necessary or appropriate in the circumstances.

          Section 3.08 Reserved.

          Section 3.09 Annual Statement as to Compliance. So long as the Notes are Outstanding,
the Issuer will deliver to the Indenture Trustee, within 30 days after the 90th day
following the Closing Date, an Officer’s Certificate stating, as to the Authorized Officer signing
such Officer’s Certificate, that:

     (i) a review of the activities of the Issuer during such period and of its performance
under this Indenture has been made under such Authorized Officer’s supervision; and

     (ii) to the best of such Authorized Officer’s knowledge, based on such review, the
Issuer has materially complied with all conditions and covenants under this Indenture
throughout such period, or, if there has been a default in its compliance with any such
condition or covenant, specifying each such default known to such Authorized Officer and the
nature and status thereof.

          Section 3.10 Covenants of the Issuer. All covenants of the Issuer in this Indenture
are covenants of the Issuer and are not covenants of the Owner Trustee. The Owner Trustee is, and
any successor Owner Trustee under the Trust Agreement will be, entering into this Indenture solely
as Owner Trustee under the Trust Agreement and not in its respective individual capacity, and in no
case whatsoever shall the Owner Trustee or any such successor Owner Trustee be personally liable
on, or for any loss in respect of, any of the statements, representations, warranties or
obligations of the Issuer hereunder, as to all of which the parties hereto agree to look solely to
the property of the Issuer.

          Section 3.11 Servicer’s Obligations. The Issuer shall cause the Servicer to comply
with the Sale and Servicing Agreement.

          Section 3.12 Restricted Payments. The Issuer shall not, directly or indirectly, (i)
pay any dividend or make any distribution (by reduction of capital or otherwise), whether in cash,
property, securities or a combination thereof, to the Owner Trustee or any owner of a beneficial
interest in the Issuer or otherwise with respect to any ownership or equity interest or security in
or of the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value
any such ownership or equity interest or security or (iii) set aside or otherwise segregate any
amounts for any such purpose; provided, however, that the Issuer may make, or cause to be made
distributions to the Servicer, the Indenture Trustee, the Owner Trustee and the

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Noteholders and the holders of the Trust Certificates as contemplated by, and to the extent
funds are available for such purpose under, the Sale and Servicing Agreement or the Trust
Agreement. The Issuer will not, directly or indirectly, make or cause to be made payments to or
distributions from the Distribution Account except in accordance with this Indenture and the Basic
Documents.

          Section 3.13 Treatment of Notes as Debt for All Purposes. The Issuer shall, and shall
cause the Administrator to, treat the Notes as indebtedness for all purposes.

          Section 3.14 Notice of Events of Default. The Issuer shall give the Indenture Trustee
and the Noteholders prompt written notice of each Event of Default hereunder and each default on
the part of the Servicer or the Loan Originator of their respective obligations under any of the
Basic Documents.

          Section 3.15 Further Instruments and Acts. Upon request of the Indenture Trustee, the
Issuer will execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of this Indenture.

ARTICLE IV

SATISFACTION AND DISCHARGE

          Section 4.01 Satisfaction and Discharge of Indenture. This Indenture shall cease to
be of further effect with respect to the Notes (except as to (i) rights of registration of transfer
and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of principal thereof and interest thereon, (iv) Sections 3.03,
3.04 and 3.10 hereof, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the rights of the Indenture Trustee under Section 6.07 hereof
and the obligations of the Indenture Trustee under Section 4.02 hereof) and (vi) the rights
of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture
Trustee payable to all or any of them), and the Indenture Trustee, on demand of and at the expense
of the Issuer, shall execute proper instruments satisfactory to it, and prepared and delivered to
it by the Issuer, acknowledging satisfaction and discharge of this Indenture with respect to the
Notes, when all of the following have occurred:

	 	(A)	 	either
	 
	 	(1)	 	all Notes theretofore authenticated and delivered (other than
(i) Notes that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 2.04 hereof and (ii) Notes for the
payment of which money has theretofore been deposited in trust or segregated
and held in trust by the Issuer and thereafter repaid to the Issuer or
discharged from such trust, as provided in Section 3.03 hereof) shall
have been delivered to the Indenture Trustee for cancellation; or

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	 	(2)	 	all Notes not theretofore delivered to the Indenture Trustee
for cancellation

	 	a.	 	shall have become due and payable, or
	 
	 	b.	 	are to be called for redemption within one year
under arrangements satisfactory to the Indenture Trustee for the giving
of notice of redemption by the Indenture Trustee in the name, and at
the expense, of the Issuer,
	 
	 	c.	 	and the Issuer, in the case of clause a. or b.
above, has irrevocably deposited or caused irrevocably to be deposited
with the Indenture Trustee cash or direct obligations of or obligations
guaranteed by the United States of America (which will mature prior to
the date such amounts are payable), in trust for such purpose, in an
amount sufficient to pay and discharge the entire indebtedness on such
Notes not theretofore delivered to the Indenture Trustee for
cancellation when due to the applicable Termination Date or the
Redemption Date (if Notes shall have been called for redemption
pursuant to Section 10.01 hereof), as the case may be; and

          (B) the latest of (a) the payment in full of all outstanding obligations under the Notes, (b)
the payment in full of all unpaid Trust Fees and Expenses and (c) the date on which the Issuer has
paid or caused to be paid all other sums payable hereunder by the Issuer; and

          (C) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate and an
Opinion of Counsel, each meeting the applicable requirements of Section 11.01 hereof and,
subject to Section 11.02 hereof, each stating that all conditions precedent herein provided
for, relating to the satisfaction and discharge of this Indenture with respect to the Notes, have
been complied with.

          Section 4.02 Application of Trust Money. All moneys deposited with the Indenture
Trustee pursuant to Sections 3.03 and 4.01 hereof shall be held in trust and applied by it,
in accordance with the provisions of the Notes and this Indenture, to the payment, either directly
or through any Paying Agent, as the Indenture Trustee may determine, to the Noteholders for the
payment or redemption of which such moneys have been deposited with the Indenture Trustee, of all
sums due and to become due thereon for principal and/or interest; but such moneys need not be
segregated from other funds except to the extent required herein or in the Sale and Servicing
Agreement or required by law.

          Section 4.03 Repayment of Moneys Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to the Notes, all moneys then held by any
Paying Agent other than the Indenture Trustee under the provisions of this Indenture with respect
to such Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and
applied according to Section 3.03 hereof and thereupon such Paying Agent shall be released
from all further liability with respect to such moneys.

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ARTICLE V

REMEDIES

          Section 5.01 Events of Default. “Event of Default,” wherever used herein,
means any one of the following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any administrative or governmental
body):

          (a) notwithstanding any insufficiency of funds in the Distribution Account for payment thereof
on the related Payment Date, default in the payment of any interest on any Note within one (1)
Business Day of when the same becomes due and payable; or

          (b) notwithstanding any insufficiency of funds in the Distribution Account for payment thereof
on the related Payment Date, default in the payment of any installment of the principal required to
be made pursuant to the Sale and Servicing Agreement or a shortfall with respect to the Required
Overcollateralization Amount of any Note (i) on any Payment Date or (ii) on the Termination Date,
or, to the extent that there are funds available in the Distribution Account therefor, default in
the payment of any installment of the principal of any Note from such available funds, as a result
of the occurrence of a Trigger Event; or

          (c) the occurrence of a Servicer Event of Default; or

          (d) default in the observance or performance of any covenant or agreement of the Issuer made
in any Basic Document to which it is a party (other than a covenant or agreement, a default in the
observance or performance of which is elsewhere in this Section 5.01 specifically dealt
with), or any representation or warranty of the Issuer made in any Basic Document to which it is a
party or in any certificate or other writing delivered pursuant thereto or in connection therewith
proving to have been incorrect in any material respect as of the time when the same shall have been
made, and such default shall continue or not be cured, or the circumstance or condition in respect
of which such misrepresentation or warranty was incorrect shall not have been eliminated or
otherwise cured, for a period of 30 days after there shall have been given, by registered or
certified mail, to the Issuer by the Indenture Trustee, or to the Issuer, the Depositor and the
Indenture Trustee by Noteholders evidencing at least 25% Percentage Interests of the Outstanding
Notes, a written notice specifying such default or incorrect representation or warranty and
requiring it to be remedied and stating that such notice is a notice of Default hereunder; or

          (e) default in the observance or performance of any covenant or agreement of the Depositor
made in any Basic Document to which it is a party or any representation or warranty of the
Depositor (except as otherwise expressly provided in the Basic Documents with respect to
representations and warranties regarding the Loans) or Loan Originator made in any Basic Document
to which they are a party, proving to have been incorrect in any material respect as of the time
when the same shall have been made, and such default shall continue or not be cured, or the
circumstance or condition in respect of which such misrepresentation or warranty

- 23 -

 

was incorrect shall not have been eliminated or otherwise cured, for a period of 30 days after
there shall have been given, by registered or certified mail, to the Issuer and the Depositor by
the Indenture Trustee, or to the Issuer, the Depositor and the Indenture Trustee by Noteholders
evidencing at least 25% Percentage Interests of the Outstanding Notes, a written notice specifying
such Default or incorrect representation or warranty and requiring it to be remedied and stating
that such notice is a notice of Default hereunder; or

          (f) default in the observance or performance of any covenant or agreement of the Loan
Originator made in any repurchase agreement, loan and security agreement or other similar credit
facility agreement entered into by the Loan Originator and any third party for borrowed funds in
excess of $10,000,000, it being understood that a default under another agreement shall constitute
an Event of Default hereunder only when and if the lender or counterparty under the other agreement
is presently entitled to exercise default remedies by the terms of that other agreement; or

          (g) the filing of a decree or order for relief by a court having jurisdiction over the Issuer,
the Depositor or the Loan Originator or all or substantially all of the Collateral in an
involuntary case under any applicable federal or state bankruptcy, insolvency or other similar law
now or hereafter in effect, or the appointing of a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official of the Issuer, the Depositor or the Loan Originator or
for all or substantially all of the Collateral, or the ordering of the winding-up or liquidation of
the affairs of the Issuer, the Depositor or the Loan Originator, and such decree or order shall
remain unstayed and in effect for a period of sixty (60) consecutive days; or

          (h) the commencement by the Issuer, the Depositor or the Loan Originator of a voluntary case
under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter
in effect, or the consent by the Issuer, the Depositor or the Loan Originator to the entry of an
order for relief in an involuntary case under any such law, or the consent by the Issuer to the
appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Issuer, the Depositor or the Loan Originator or for any
substantial part of the Collateral, or the making by the Issuer, the Depositor or the Loan
Originator of any general assignment for the benefit of creditors, or the failure by the Issuer,
the Depositor or the Loan Originator generally to pay its respective debts as such debts become
due, or the taking of any action by the Issuer, the Depositor or the Loan Originator in furtherance
of any of the foregoing; or

          (i) the Notes shall be Outstanding on the day after the end of the Revolving Period.

          The Issuer shall deliver to the Indenture Trustee, within five days after the occurrence
thereof, written notice in the form of an Officer’s Certificate of any event which with the giving
of notice and the lapse of time would become an Event of Default under clause (d) above, the status
of such event and what action the Issuer is taking or proposes to take with respect thereto.

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          Section 5.02 Acceleration of Maturity; Rescission and Annulment. If an Event of
Default should occur and be continuing, then and in every such case the Indenture Trustee, at the
direction or upon the prior written consent of the Majority Noteholders, may declare all the Notes
to be immediately due and payable, by a notice in writing to the Issuer (and to the Indenture
Trustee if given by Noteholders), and upon any such declaration, the unpaid principal amount of
such Notes, together with accrued and unpaid interest thereon through the date of acceleration,
shall become immediately due and payable.

          At any time after such declaration of acceleration of maturity has been made and before a
judgment or decree for payment of the moneys due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, the Majority Noteholders, by written notice to the
Issuer and the Indenture Trustee, may rescind and annul such declaration and its consequences if:

            (a) the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:

	 	1.	all payments of principal of and/or interest on all Notes and all other amounts
that would then be due hereunder or upon such Notes if the Event of Default giving rise
to such acceleration had not occurred; and
	 
	 	2.	all sums paid or advanced by the Indenture Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and its
agents and counsel; and

          (b) all Events of Default, other than the nonpayment of the principal of the Notes that has
become due solely by such acceleration, have been cured or waived as provided in Section
5.12 hereof. No such rescission shall affect any subsequent default or impair any right
consequent thereto.

          Section 5.03 Collection of Indebtedness and Suits for Enforcement by Indenture
Trustee. (a) The Issuer covenants that if (i) default is made in the payment of any interest
on any Note when the same becomes due and payable, and such default continues for a period of five
days, or (ii) default is made in the payment of the principal of or any installment of the
principal of any Note when the same becomes due and payable, the Issuer will, upon demand of the
Indenture Trustee, pay to the Indenture Trustee, for the benefit of the Noteholders, the whole
amount then due and payable on such Notes for principal and/or interest, with interest upon the
overdue principal and, to the extent payment at such rate of interest shall be legally enforceable,
upon overdue installments of interest at the rate borne by the Notes and in addition thereto such
further amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its
agents and counsel.

          (b) In case the Issuer shall fail forthwith to pay such amounts upon such demand, the
Indenture Trustee shall at the direction of the Majority Noteholders, subject to Section
5.06(c) institute a Proceeding for the collection of the sums so due and unpaid, and may

- 25 -

 

prosecute such Proceeding to judgment or final decree, and may enforce the same against the
Issuer or other obligor upon such Notes and collect in the manner provided by law out of the
property of the Issuer or other obligor upon such Notes, wherever situated, the moneys adjudged or
decreed to be payable.

          (c) If an Event of Default occurs and is continuing, the Indenture Trustee shall at the
direction of the Majority Noteholders, as more particularly provided in Section 5.04
hereof, subject to Section 5.06(c) hereof, proceed to protect and enforce its rights and
the rights of the Noteholders by such appropriate Proceedings as the Indenture Trustee shall deem
most effective to protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or
to enforce any other proper remedy or legal or equitable right vested in the Indenture Trustee by
this Indenture or by law.

          (d) In case there shall be pending, relative to the Issuer or any other obligor upon the Notes
or any Person having or claiming an ownership interest in the Collateral, Proceedings under Title
11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or
other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or taken possession of
the Issuer or its property or such other obligor or Person, or in case of any other comparable
judicial Proceedings relative to the Issuer or other obligor upon the Notes, or to the creditors or
property of the Issuer or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to
the provisions of this Section 5.03, shall be entitled and empowered by intervention in
such Proceedings or otherwise:

     (i) to file and prove a claim or claims for the whole amount of principal and/or
interest owing and unpaid in respect of the Notes and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Indenture Trustee
(including any claim for reasonable compensation to the Indenture Trustee, each predecessor
Indenture Trustee, and its agents, attorneys and counsel, and for reimbursement of all
expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee, except as a result of negligence or bad faith) and of the
Noteholders allowed in such Proceedings;

     (ii) unless prohibited by applicable law and regulations, to vote on behalf of the
Noteholders in any election of a trustee, a standby trustee or Person performing similar
functions in any such Proceedings;

     (iii) to collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute all amounts received with respect to the claims of the
Noteholders and the Indenture Trustee on their behalf; and

     (iv) to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee or the

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Noteholders allowed in any judicial proceedings relative to the Issuer its creditors
and its property; and any trustee, receiver, liquidator, custodian or other similar official
in any such Proceeding is hereby authorized by each of such Noteholders to make payments to
the Indenture Trustee and, in the event that the Indenture Trustee shall consent to the
making of payments directly to such Noteholders, to pay to the Indenture Trustee such
amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee,
each predecessor Indenture Trustee and their respective agents, attorneys and counsel, and
all other expenses and liabilities incurred and all advances made by the Indenture Trustee
and each predecessor Indenture Trustee except as a result of negligence or bad faith.

          (e) Nothing herein contained shall be deemed to authorize the Indenture Trustee to authorize
or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof or to authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar Person.

          (f) All rights of action and of asserting claims under this Indenture, or under any of the
Notes, may be enforced by the Indenture Trustee without the possession of any of the Notes or the
production thereof in any trial or other Proceedings relative thereto, and any such action or
Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements
and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective
agents, attorneys and counsel, shall be for the ratable benefit of the Noteholders.

          (g) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving
the interpretation of any provision of this Indenture to which the Indenture Trustee shall be a
party), the Indenture Trustee shall be held to represent all the Noteholders, and it shall not be
necessary to make any Noteholder a party to any such Proceedings.

          Section 5.04 Remedies; Priorities. (a) If an Event of Default shall have occurred and
be continuing, the Indenture Trustee, at the direction of the Majority Noteholders shall, subject
to 5.06(c), do one or more of the following (subject to Section 5.05 hereof):

     (i) institute Proceedings in its own name and as trustee of an express trust for the
collection of all amounts then payable on the Notes or under this Indenture with respect
thereto, whether by declaration or otherwise, enforce any judgment obtained, and collect
from the Issuer and any other obligor upon such Notes moneys adjudged due;

     (ii) institute Proceedings from time to time for the complete or partial foreclosure of
this Indenture with respect to the Collateral;

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     (iii) exercise any remedies of a secured party under the UCC and take any other
appropriate action to protect and enforce the rights and remedies of the Indenture Trustee
or the Noteholders; and

     (iv) sell the Collateral or any portion thereof or rights or interest therein in a
commercially reasonable manner, at one or more public or private sales called and conducted
in any manner permitted by law; provided, however, that the Indenture Trustee may not sell
or otherwise liquidate the Collateral following an Event of Default, unless (A) the Holders
of 100% Percentage Interests of the Outstanding Notes consent thereto, (B) the proceeds of
such sale or liquidation distributable to the Noteholders are sufficient to discharge in
full all amounts then due and unpaid upon such Notes for principal and/or interest or (C)
the Indenture Trustee determines that the Collateral will not continue to provide sufficient
funds for the payment of principal of and interest on the Notes as they would have become
due if the Notes had not been declared due and payable, and the Indenture Trustee obtains
the consent of Holders of not less than 66-2/3% Percentage Interests of the Outstanding
Notes. In determining such sufficiency or insufficiency with respect to clause (B) and (C)
of this subsection (a)(iv), the Indenture Trustee may, but need not, obtain and rely upon an
opinion of an Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the Collateral for such
purpose.

          (b) If the Indenture Trustee or Paying Agent collects any money or property pursuant to this
Article V, it shall pay out the money or property in the following order:

     FIRST: to the Hedge Counterparty, payment of any amounts due and payable to the Hedge
Counterparty pursuant to the terms of an Interest Rate Hedge Agreement (including, without
limitation, any amounts set forth in the confirmation of any Interest Rate Hedge Agreement),
plus any other amounts then due and owing to the Hedge Counterparty pursuant to any Interest
Rate Hedge Agreement (including, without limitation, any breakage fee payable in accordance
with any such agreement), plus any past due amounts not previously paid;

     SECOND: in the following order of priority: (a) to the Indenture Trustee, an amount
equal to all unreimbursed Indenture Trustee Fees and indemnities and any other amounts
payable to the Indenture Trustee pursuant to the Basic Documents, including amounts owed to
it in connection with the appointment of a successor servicer and in its role as successor
servicer, and to the Indenture Trustee or Sale Agents, as applicable, all reasonable fees
and expenses incurred by them and their agents and representatives in connection with the
enforcement of the remedies provided for in this Article V, (b) to the Collateral
Custodian, an amount equal to all unpaid fees of the Collateral Custodian and indemnities
and any other amounts payable to the Collateral Custodian pursuant to the Basic Documents,
(c) to the Servicer, an amount equal to (i) all unreimbursed Servicing Compensation (only if
CapitalSource or an Affiliate thereof is not the Servicer and such amounts were not
previously retained by the Servicer) and (ii) all unreimbursed Nonrecoverable Servicing
Advances (only if CapitalSource or an Affiliate thereof is not the Servicer and such amounts
were not previously retained by the Servicer), and (d) to

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the Servicer, in trust for the Owner Trustee, an amount equal to the Owner Trustee Fee
and all unpaid Owner Trustee Fees and indemnities and any other amounts payable to the Owner
Trustee pursuant to the Basic Documents;

     THIRD: to the Noteholders pro rata, all amounts in respect of interest due and
owing under the Notes;

     FOURTH: to the Noteholders pro rata, all amounts in respect of unpaid principal
of the Notes;

     FIFTH: to the Purchaser and each other Indemnified Party (as each such term is defined
in the Note Purchase Agreement), amounts in respect of Issuer/Depositor Indemnities (as
defined in the Trust Agreement) until such amounts are paid in full;

     SIXTH: if CapitalSource or an Affiliate thereof is the Servicer, an amount equal to (i)
all unpaid Servicing Compensation and (ii) all unreimbursed Nonrecoverable Servicer
Advances;

     SEVENTH: to the Paying Agent, for any amounts to be distributed pro rata to the holders
of the Trust Certificates pursuant to the Trust Agreement.

          The Indenture Trustee may fix a record date and payment date for any payment to be made to the
Noteholders pursuant to this Section 5.04. At least 15 days before such record date, the
Indenture Trustee shall mail to each Noteholder and the Issuer a notice that states the record
date, the payment date and the amount to be paid.

          Section 5.05 Optional Preservation of the Collateral. If the Notes have been declared
to be due and payable under Section 5.02 hereof following an Event of Default and such
declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may,
but need not, elect to maintain possession of the Collateral. It is the desire of the parties
hereto and the Noteholders that there be at all times sufficient funds for the payment of principal
of and interest on the Notes, and the Indenture Trustee shall take such desire into account when
determining whether or not to maintain possession of the Collateral. In determining whether to
maintain possession of the Collateral, the Indenture Trustee may, but need not, obtain and rely
upon an opinion of an Independent investment banking or accounting firm of national reputation as
to the feasibility of such proposed action and as to the sufficiency of the Collateral for such
purpose.

          Section 5.06 Limitation of Suits. No Noteholder shall have any right to institute any
Proceeding, judicial or otherwise, with respect to this Indenture or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless:

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

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          (b) the Noteholders evidencing not less than 25% Percentage Interests of the Outstanding Notes
have made written request to the Indenture Trustee to institute such Proceeding in respect of such
Event of Default in its own name as Indenture Trustee hereunder;

          (c) such Noteholder or Noteholders have offered to the Indenture Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in complying with such request;

          (d) the Indenture Trustee for thirty (30) days after its receipt of such notice, request and
offer of reasonable indemnity has failed to institute such Proceeding; and

          (e) no direction inconsistent with such written request has been given to the Indenture
Trustee during such thirty (30) day period by the Majority Noteholders.

          It is understood and intended that no one or more Noteholders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other Noteholders or to obtain or to seek to obtain priority or
preference over any other Noteholders or to enforce any right under this Indenture, except in the
manner herein provided.

          In the event the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Noteholders, neither of which evidences Percentage Interests
of the Outstanding Notes greater than 50%, the Indenture Trustee in its sole discretion may
determine what action, if any, shall be taken, notwithstanding any other provisions of this
Indenture and shall have no obligation or liability to any such group of Noteholders for such
action or inaction.

          Section 5.07 Unconditional Rights of Noteholders to Receive Principal and/or Interest.
Notwithstanding any other provisions in this Indenture, any Noteholder shall have the right, which
is absolute and unconditional, to receive payment of the principal of and interest, if any, on such
Note on or after the applicable Termination Date thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) and to institute suit
for the enforcement of any such payment, and such right shall not be impaired without the consent
of such Noteholder.

          Section 5.08 Restoration of Rights and Remedies. If the Indenture Trustee or any
Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture and
such Proceeding has been discontinued or abandoned for any reason or has been determined adversely
to the Indenture Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and thereafter all rights
and remedies of the Indenture Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.

          Section 5.09 Rights and Remedies Cumulative. No right or remedy herein conferred upon
or reserved to the Indenture Trustee or to the Noteholders is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted

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by law, be cumulative and in addition to every other right and remedy given hereunder or now
or hereafter existing at law or in equity or otherwise. The assertion or employment of any right
or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

          Section 5.10 Delay or Omission Not a Waiver. No delay or omission of the Indenture
Trustee or any Noteholder to exercise any right or remedy accruing upon any Default or Event of
Default shall impair any such right or remedy or constitute a waiver of any such Default or Event
of Default or an acquiescence therein. Every right and remedy given by this Article V or by law to
the Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may
be deemed expedient, by the Indenture Trustee or by the Noteholders, as the case may be.

          Section 5.11 Control by Noteholders. The Majority Noteholders shall have the right to
direct the time, method and place of conducting any Proceeding for any remedy available to the
Indenture Trustee with respect to the Notes or the Collateral or exercising any trust or power
conferred on the Indenture Trustee; provided, however, that:

          (a) such direction shall not be in conflict with any rule of law or with this Indenture;

          (b) subject to the express terms of Section 5.04(a)(iv) hereof, any direction to the
Indenture Trustee to sell or liquidate the Collateral shall be by Holders of Notes representing
Percentage Interests of the Outstanding Notes of not less than 100%;

          (c) if the conditions set forth in Section 5.05 hereof have been satisfied and the
Indenture Trustee elects to retain the Collateral pursuant to such Section, then any direction to
the Indenture Trustee by Holders of Notes representing Percentage Interests of the Outstanding
Notes of less than 100% to sell or liquidate the Collateral shall be of no force and effect; and

          (d) the Indenture Trustee may take any other action deemed proper by the Indenture Trustee
that is not inconsistent with such direction.

          In connection with any sale of the Collateral in accordance with paragraph (c) above, the
Majority Noteholders may, in their sole discretion appoint agents to effect the sale of the
Collateral (such agents, “Sale Agents”), which Sale Agents may be Affiliates of any
Noteholder. The Sale Agents shall be entitled to reasonable compensation in connection with such
activities from the proceeds of such sale.

          Notwithstanding the rights of the Noteholders set forth in this Section 5.11, subject
to Section 6.01 hereof, the Indenture Trustee need not take any action that it determines
might involve it in liability or might materially adversely affect the rights of any Noteholders
not consenting to such action.

          Section 5.12 Waiver of Past Defaults. The Majority Noteholders may waive any past
Default or Event of Default and its consequences, except a Default (a) in the payment of

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principal of or interest on any of the Notes or (b) in respect of a covenant or provision
hereof that cannot be modified or amended without the consent of each Noteholder. In the case of
any such waiver, the Issuer, the Indenture Trustee and Noteholders shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereto.

          Upon any such waiver, such Default shall cease to exist and be deemed to have been cured and
not to have occurred, and any Event of Default arising therefrom shall be deemed to have been cured
and not to have occurred, for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Default or Event of Default or impair any right consequent thereto.

          Section 5.13 Undertaking for Costs. All parties to this Indenture agree, and each
Noteholder by such Noteholder’s acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or omitted
by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant; but the provisions
of this Section 5.13 shall not apply to (a) any suit instituted by the Indenture Trustee,
(b) any suit instituted by any Noteholder, or group of Noteholders, in each case holding in the
aggregate Percentage Interests of the Outstanding Notes of more than 10% or (c) any suit instituted
by any Noteholder for the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture (or, in the case of
redemption, on or after the Redemption Date).

          Section 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, or plead or in any manner
whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Indenture Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

          Section 5.15 Action on Notes. The Indenture Trustee’s right to seek and recover
judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or
application of any other relief under or with respect to this Indenture. Neither the lien of this
Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired
by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Collateral or upon any of the assets of the
Issuer. Any money or property collected by the Indenture Trustee shall be applied in accordance
with Section 5.04(b) hereof.

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          Section 5.16 Performance and Enforcement of Certain Obligations.

          (a) Promptly following a request from the Indenture Trustee to do so, the Issuer shall take
all such lawful action as the Indenture Trustee may request to compel or secure the performance and
observance by the Loan Originator and the Servicer, as applicable, of each of their obligations to
the Issuer under or in connection with the Sale and Servicing Agreement or the Loan Sale Agreement,
and to exercise any and all rights, remedies, powers and privileges lawfully available to the
Issuer under or in connection with the Sale and Servicing Agreement to the extent and in the manner
directed by the Indenture Trustee, including the transmission of notices of default on the part of
the Loan Originator or the Servicer thereunder and the institution of legal or administrative
actions or proceedings to compel or secure performance by the Loan Originator or the Servicer of
each of their obligations under the Sale and Servicing Agreement and the Loan Sale Agreement.

          (a) If an Event of Default has occurred and is continuing, the Indenture Trustee may, and at
the direction (which direction shall be in writing or by telephone, confirmed in writing promptly
thereafter) of the Majority Noteholders shall, subject to Section 5.06(c) exercise all
rights, remedies, powers, privileges and claims of the Issuer against the Loan Originator or the
Servicer under or in connection with the Sale and Servicing Agreement or the Loan Sale Agreement,
including the right or power to take any action to compel or secure performance or observance by
the Loan Originator or the Servicer, as the case may be, of each of their obligations to the Issuer
thereunder and to give any consent, request, notice, direction, approval, extension, or waiver
under the Sale and Servicing Agreement, and any right of the Issuer to take such action shall be
suspended.

ARTICLE VI

THE INDENTURE TRUSTEE

          Section 6.01 Duties of Indenture Trustee. (a) If an Event of Default has occurred and
is continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture 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.

     (b) Except during the continuance of an Event of Default:

     (i) the Indenture Trustee shall undertake to perform such duties and only such duties
as are specifically set forth in this Indenture and no implied covenants or obligations
shall be read into this Indenture against the Indenture Trustee; and

     (ii) in the absence of bad faith on its part, the Indenture Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Indenture Trustee and conforming to
the requirements of this Indenture; provided, however, that the Indenture Trustee shall
examine the certificates and opinions to determine whether or not they conform to the
requirements of this Indenture to the extent specifically set forth herein.

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          (c) The Indenture Trustee may not be relieved from liability for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that:

     (i) this paragraph does not limit the effect of paragraph (b) of this Section
6.01;

     (ii) the Indenture Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer unless it is proved that the Indenture Trustee was negligent
in ascertaining the pertinent facts;

     (iii) the Indenture Trustee shall not be liable with respect to any action it takes or
omits to take in good faith in accordance with a direction received by it pursuant to
Section 5.11 hereof; and

          (d) The Indenture Trustee shall not be liable for interest on any money received by it and
held in a Trust Account except as may be provided in the Sale and Servicing Agreement or as the
Indenture Trustee may agree in writing with the Issuer.

          (e) Money held in trust by the Indenture Trustee shall be segregated from other funds except
to the extent permitted by law or the terms of this Indenture or the Sale and Servicing Agreement.

          (f) No provision of this Indenture shall require the Indenture Trustee to expend or risk its
own funds or otherwise incur financial liability in the performance of any of its duties hereunder
or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe
that repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it; provided, however, that nothing in this Section 6.01(f) shall be construed
to limit the exercise by the Indenture Trustee of any right or remedy permitted under this
Indenture or otherwise in the event of the Issuer’s failure to pay the Indenture Trustee’s fees and
expenses pursuant to Section 6.07 hereof.

          (g) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Indenture Trustee shall be subject to the provisions of this
Section 6.01.

          (h) The Indenture Trustee shall not be required to take notice or be deemed to have notice or
knowledge of any Event of Default (other than an Event of Default pursuant to Section
5.01(a) or (b) hereof) unless a Responsible Officer of the Indenture Trustee shall have
received written notice thereof or otherwise shall have actual knowledge thereof. In the absence of
receipt of notice or such knowledge, the Indenture Trustee may conclusively assume that there is no
Event of Default.

          (i) The Indenture Trustee shall be under no obligation to institute any suit, or to take any
remedial Proceeding under this Indenture, or to enter any appearance or in any way defend in any
suit in which it may be made defendant, or to take any steps in the execution of the trusts hereby
created or in the enforcement of any rights and powers hereunder until it shall be indemnified to
its satisfaction against any and all costs and expenses, outlays and counsel fees

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and other reasonable disbursements and against all liability, except liability that is
adjudicated, in connection with any action so taken.

          Section 6.02 Rights of Indenture Trustee. (a) The Indenture Trustee may rely on any
document believed by it to be genuine and to have been signed or presented by the proper person.
The Indenture Trustee need not investigate any fact or matter stated in the document.

          (b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate or an Opinion of Counsel. The Indenture Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on an Officer’s Certificate or Opinion of Counsel.

          (c) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys or a custodian or nominee.

          (d) The Indenture Trustee shall not be liable for (i) any action it takes or omits to take in
good faith which it believes to be authorized or within its rights or powers; provided, however,
that such action or omission by the Indenture Trustee does not constitute willful misconduct,
negligence or bad faith; or (ii) any action or inaction on the part of the Collateral Custodian.

          (e) The Indenture Trustee may consult with counsel, and the advice or opinion of counsel with
respect to legal matters relating to this Indenture and the Notes shall be full and complete
authorization and protection from liability in respect to any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such counsel.

          Section 6.03 Individual Rights of Indenture Trustee. The Indenture Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal
with the Issuer or its Affiliates with the same rights it would have if it were not Indenture
Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the same with
like rights. However, the Indenture Trustee must comply with Section 6.11 hereof.

          Section 6.04 Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of this Indenture or the
Notes, shall not be accountable for the Issuer’s use of the proceeds from the Notes, or responsible
for any statement of the Issuer in the Indenture or in any document issued in connection with the
sale of the Notes or in the Notes other than the Indenture Trustee’s certificate of authentication.

          Section 6.05 Notices of Default. If a Default occurs and is continuing and if it is
actually known to a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail
to each Noteholder a notice of the Default within two (2) Business Days after it receives actual
notice of such occurrence.

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          Section 6.06 Reports by Paying Agent to Holders. The Paying Agent shall deliver to
each Noteholder and the Indenture Trustee such information specifically requested by each
Noteholder and the Indenture Trustee and in the Paying Agent’s possession and as may be reasonably
required to enable such Noteholder to prepare its federal and state income tax returns.

          Section 6.07 Compensation and Indemnity. As compensation for its services hereunder,
the Indenture Trustee shall be entitled to receive, on each Payment Date, the Indenture Trustee’s
Fee pursuant to Section 8.02(c) hereof (which compensation shall not be limited by any law
on compensation of a trustee of an express trust) and shall be entitled to reimbursement by the
Servicer for all reasonable out-of-pocket expenses incurred or made by it, including costs of
collection, in addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the Indenture Trustee’s agents,
counsel, accountants and experts. The Issuer agrees to cause the Servicer to indemnify the
Indenture Trustee, the Paying Agent and their officers, directors, employees and agents against any
and all loss, liability or expense (including reasonable attorneys’ fees) incurred by it or them in
connection with the administration of this trust and the performance of its or their duties under
the Basic Documents. The Indenture Trustee shall notify the Issuer and the Servicer promptly of
any claim for which it may seek indemnity. Failure by the Indenture Trustee to so notify the
Issuer and the Servicer shall not relieve the Issuer or the Servicer of its or their obligations
hereunder. The Issuer shall, or shall cause the Servicer to, defend any such claim; provided,
however, that if the defendants with respect to any such claim include the Issuer and/or the
Servicer and the Indenture Trustee, and the Indenture Trustee shall have reasonably concluded that
there may be legal defenses available to it which are different from or in addition to those
defenses available to the Issuer or the Servicer, as the case may be, the Indenture Trustee shall
have the right, at the expense of the Servicer, to select separate counsel to assert such legal
defenses and to otherwise defend itself against such claim. Neither the Issuer nor the Servicer
need reimburse any expense or indemnify against any loss, liability or expense incurred by the
Indenture Trustee through the Indenture Trustee’s own willful misconduct, negligence or bad faith.

          The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section
6.07 shall survive the discharge of this Indenture and the termination or resignation of
the Indenture Trustee. When the Indenture Trustee incurs expenses after the occurrence of a
Default specified in Section 5.01(g) or (h) hereof with respect to the Issuer, the
expenses are intended to constitute expenses of administration under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or similar law.

          Notwithstanding anything in this Section 6.07 to the contrary, all amounts due the
Indenture Trustee hereunder shall be payable in the first instance by the Servicer and, if not paid
by the Servicer within sixty (60) days after payment is requested from the Servicer by the
Indenture Trustee, in accordance with the priorities set forth in Section 5.01 of the Sale and
Servicing Agreement.

          Section 6.08 Replacement of Indenture Trustee. No resignation or removal of the
Indenture Trustee and no appointment of a successor Indenture Trustee shall become effective until
the acceptance of appointment by the successor Indenture Trustee pursuant to this

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Section 6.08. The Indenture Trustee may resign at any time by so notifying the
Issuer. The Majority Noteholders may remove the Indenture Trustee (with the consent of the
Majority Certificateholders, not to be unreasonably withheld) by so notifying the Indenture Trustee
and may appoint a successor Indenture Trustee; provided, that all of the reasonable costs and
expenses incurred by the Indenture Trustee in connection with such removal shall be reimbursed to
it prior to the effectiveness of such removal. The Issuer shall remove the Indenture Trustee if:

          (a) the Indenture Trustee fails to comply with Section 6.11 hereof;

          (b) the Indenture Trustee is adjudged a bankrupt or insolvent;

          (c) a receiver or other public officer takes charge of the Indenture Trustee or its property;
or

          (d) the Indenture Trustee otherwise becomes incapable of acting.

          If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of
Indenture Trustee for any reason (the Indenture Trustee in such event being referred to herein as
the retiring Indenture Trustee), the Issuer shall promptly appoint a successor Indenture Trustee.

          A successor Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuer. Thereupon the resignation or removal of the retiring
Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the Indenture Trustee under this Indenture. The successor Indenture
Trustee shall mail a notice of its succession to Noteholders. The retiring Indenture Trustee shall
promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.

          If a successor Indenture Trustee does not take office within sixty (60) days after the
retiring Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the
Majority Noteholders may petition any court of competent jurisdiction for the appointment of a
successor Indenture Trustee.

          If the Indenture Trustee fails to comply with Section 6.11 hereof, any Noteholder may
petition any court of competent jurisdiction for the removal of the Indenture Trustee and the
appointment of a successor Indenture Trustee.

          Notwithstanding the replacement of the Indenture Trustee pursuant to this Section
6.08, the Issuer’s obligations under Section 6.07 hereof shall continue for the benefit
of the retiring Indenture Trustee.

          Section 6.09 Successor Indenture Trustee by Merger. If the Indenture Trustee
consolidates with, merges or converts into, or transfers all or substantially all its corporate
trust business or assets to, another corporation or banking association, the resulting, surviving
or transferee corporation without any further act shall be the successor Indenture Trustee;
provided, however, that such corporation or banking association shall otherwise be qualified and
eligible

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under Section 6.11 hereof. The Indenture Trustee shall provide the Majority
Noteholders written notice of any such transaction.

          In case at the time such successor or successors by merger, conversion or consolidation to the
Indenture Trustee shall succeed to the trusts created by this Indenture any of the Notes shall have
been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the
certificate of authentication of any predecessor trustee, and deliver such Notes so authenticated;
and in case at that time any of the Notes shall not have been authenticated, any successor to the
Indenture Trustee may authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor to the Indenture Trustee; and in all such cases such certificates shall
have the full force which it is anywhere in the Notes or in this Indenture provided that the
certificate of the Indenture Trustee shall have.

          Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee.

          (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of
meeting any legal requirement of any jurisdiction in which any part of the Collateral may at the
time be located, the Indenture Trustee shall have the power and may execute and deliver all
instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Issuer and to vest in such Person or
Persons, in such capacity and for the benefit of the Noteholders, such title to the Collateral, or
any part hereof, and, subject to the other provisions of this Section 6.10, such powers,
duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or
desirable. No co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.11 hereof and no notice to Noteholders
of the appointment of any co-trustee or separate trustee shall be required under Section
6.08 hereof.

          (b) Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed
and act subject to the following provisions and conditions:

     (i) all rights, powers, duties and obligations conferred or imposed upon the Indenture
Trustee shall be conferred or imposed upon and exercised or performed by the Indenture
Trustee and such separate trustee or co-trustee jointly (it being understood that such
separate trustee or co-trustee is not authorized to act separately without the Indenture
Trustee joining in such act), except to the extent that under any law of any jurisdiction in
which any particular act or acts are to be performed the Indenture Trustee shall be
incompetent or unqualified to perform such act or acts, in which event such rights, powers,
duties and obligations (including the holding of title to the Collateral or any portion
thereof in any such jurisdiction) shall be exercised and performed singly by such separate
trustee or co-trustee, but solely at the direction of the Indenture Trustee;

     (ii) no trustee hereunder shall be personally liable by reason of any act or omission
of any other trustee hereunder; and

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     (iii) the Indenture Trustee may at any time accept the resignation of or remove any
separate trustee or co-trustee.

          (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to
have been given to each of the then separate trustees and co-trustees, as effectively as if given
to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this
Indenture and the conditions of this Article VI. Each separate trustee and co-trustee,
upon its acceptance of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, jointly with the Indenture Trustee, subject to all the provisions
of this Indenture, specifically including every provision of this Indenture relating to the conduct
of, affecting the liability of, or affording protection to, the Indenture Trustee. Every such
instrument shall be filed with the Indenture Trustee.

          (d) Any separate trustee or co-trustee may at any time constitute the Indenture Trustee its
agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do
any lawful act under or in respect of this Indenture on its behalf and in its name. If any
separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be exercised by the
Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor
trustee.

          Section 6.11 Eligibility. The Indenture Trustee shall (i) have a combined capital and
surplus of at least $50,000,000 as set forth in its most recent published annual report of
condition or (ii) otherwise be acceptable in writing to the Majority Noteholders.

ARTICLE VII

NOTEHOLDERS LISTS AND REPORTS

          Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders.
The Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not more than five
(5) days after the earlier of (i) each Record Date and (ii) three (3) months after the last Record
Date, a list, in such form as the Indenture Trustee may reasonably require, of the names and
addresses of the Noteholders as of such Record Date, (b) at such other times as the Indenture
Trustee may request in writing, within thirty (30) days after receipt by the Issuer of any such
request, a list of similar form and content as of a date not more than ten (10) days prior to the
time such list is furnished; provided, however, that so long as the Indenture Trustee is the Note
Registrar, no such list shall be required to be furnished.

          Section 7.02 Preservation of Information. The Indenture Trustee shall preserve, in as
current a form as is reasonably practicable, the names and addresses of the Noteholders contained
in the most recent list furnished to the Indenture Trustee as provided in Section 7.01
hereof and the names and addresses of Noteholders received by the Indenture Trustee in its capacity
as Note Registrar. The Indenture Trustee may destroy any list furnished to it as provided in such
Section 7.01 upon receipt of a new list so furnished.

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          Section 7.03 144A Information. The Indenture Trustee, to the extent it has any such
information in its possession, shall provide to any Noteholder and any prospective transferee
designated by any such Noteholder information regarding the Notes and the Loans and such other
information as shall be necessary to satisfy the condition to eligibility set forth in Rule
144A(d)(4) under the Securities Act for transfer of any such Note without registration thereof
under the Securities Act pursuant to the registration exemption provided by Rule 144A under the
Securities Act.

ARTICLE VIII

ACCOUNTS, DISBURSEMENTS AND RELEASES

          Section 8.01 Collection of Money. General. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and shall receive and
collect, directly and without intervention or assistance of any intermediary, all money and other
property payable to or receivable by the Indenture Trustee pursuant to this Indenture. The
Indenture Trustee shall apply all such money received by it as provided in this Indenture. Except
as otherwise expressly provided in this Indenture, if any default occurs in the making of any
payment or performance under any agreement or instrument that is part of the Collateral, the
Indenture Trustee may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate Proceedings. Any such action
shall be without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V hereof.

          Section 8.02 Trust Accounts; Distributions. (a) On or prior to the Closing Date, the
Issuer shall cause the Servicer to establish and maintain, in the name of the Indenture Trustee for
the benefit of the Noteholders, or on behalf of the Owner Trustee for the benefit of the
Securityholders, the Collection Account and the Principal Collections Account as provided in the
Sale and Servicing Agreement. The Servicer shall deposit amounts into such accounts in accordance
with the terms hereof and the Sale and Servicing Agreement.

          (b) Distribution Account. With respect to the Distribution Account, the Servicer
shall make (i) such deposits as specified in Section 5.01(c)(4) of the Sale and Servicing
Agreement and (ii) the Paying Agent shall make such withdrawals and distributions as specified in
Section 5.01(c)(5) of the Sale and Servicing Agreement in accordance with the terms
thereof.

          Section 8.03 General Provisions Regarding Trust Accounts. (a) All or a portion of the
funds in the Collection Account may be invested in Permitted Investments in accordance with the
provisions of Section 5.03(b) of the Sale and Servicing Agreement.

          (b) Subject to Section 6.01(c) hereof, the Indenture Trustee shall not in any way be
held liable by reason of any insufficiency in the Collection Account or the Principal Collections
Account resulting from any loss on any Permitted Investment included therein.

          Section 8.04 The Paying Agent. The initial Paying Agent shall be the Indenture
Trustee. The Paying Agent may be removed by the Initial Noteholder in its sole discretion at any

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time with written notice to the Indenture Trustee. Upon removal of the Paying Agent, the
Initial Noteholder will appoint a successor Paying Agent within 30 days; provided that the
Indenture Trustee will be the Paying Agent until such successor is appointed. Upon such
termination, the Paying Agent shall immediately transfer all funds in its possession to the
Indenture Trustee or any successor paying agent appointed pursuant to this Indenture. Following
such termination, the Paying Agent shall have no further right to make withdrawals from the
Distribution Account. Upon the direction of the Majority Noteholders, the Indenture Trustee shall
establish a new Distribution Account to which the Paying Agent shall have no access. Unless the
Indenture Trustee is also acting as Paying Agent, the Indenture Trustee shall have no obligation to
oversee or direct the actions of the Paying Agent and the Indenture Trustee shall have no liability
for any of the obligations, warranties or covenants of the Paying Agent hereunder.

          Section 8.05 Release of Collateral. (a) Subject to the payment of its reasonable fees
and expenses pursuant to Section 6.07 hereof, the Indenture Trustee may, and when required
by the provisions of this Indenture shall, execute instruments acceptable to it and prepared and
delivered to it by the Issuer to release property from the lien of this Indenture, or convey the
Indenture Trustee’s interest in the same, without recourse, representation or warranty in a manner
as provided in the Sale and Servicing Agreement and under circumstances that are not inconsistent
with the provisions of this Indenture and the other Basic Documents. No party relying upon an
instrument executed by the Indenture Trustee as provided in this Article VIII shall be
bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any
conditions precedent or see to the application of any moneys.

          (b) The Indenture Trustee shall, at such time as there are no Notes Outstanding and all sums
due to the Noteholders (and their Affiliates), the Initial Noteholder, the Sale Agents, the
Indenture Trustee, the Owner Trustee and the Collateral Custodian under the Basic Documents have
been paid, release any remaining portion of the Collateral that secured the Notes from the lien of
this Indenture and release to the Issuer or any other Person entitled thereto any funds then on
deposit in the Trust Accounts. The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this subsection (b) only upon receipt of an Issuer Request
accompanied by an Officer’s Certificate and an Opinion of Counsel meeting the applicable
requirements of Section 11.01 hereof.

          Section 8.06 Opinion of Counsel. Except to the extent specifically permitted by the
terms of the Basic Documents, the Indenture Trustee shall receive at least seven Business Days’
prior notice when requested by the Issuer to take any action pursuant to Section 8.05(a)
hereof, accompanied by copies of any instruments involved, and the Indenture Trustee may also
require, as a condition to such action, an Opinion of Counsel, in form and substance satisfactory
to the Indenture Trustee, from the Issuer concluding that all conditions precedent to the taking of
such action have been complied with and such action will not materially and adversely impair the
security for the Notes or the rights of the Noteholders in contravention of the provisions of this
Indenture; provided, however, that such Opinion of Counsel shall not be required to express an
opinion as to the fair value of the Collateral. Counsel rendering any such opinion may rely,
without independent investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such action.

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ARTICLE IX

SUPPLEMENTAL INDENTURES

          Supplemental Indentures Without the Consent of the Noteholders. Without the consent
of any Noteholder but with prior notice to the Majority Noteholders, the Issuer and the Indenture
Trustee, at any time and from time to time, may enter into one or more indentures supplemental
hereto, in form satisfactory to the Indenture Trustee, for any of the following purposes:

     (i) to correct or amplify the description of any property at any time subject to the
lien of this Indenture, or better to assure, convey and confirm unto the Indenture Trustee
any property subject or required to be subjected to the lien of this Indenture, or to
subject to the lien of this Indenture additional property;

     (ii) to evidence the succession, in compliance with the applicable provisions hereof,
of another Person to the Issuer, and the assumption by any such successor of the covenants
of the Issuer herein and in the Notes contained;

     (iii) to add to the covenants of the Issuer for the benefit of the Noteholders, or to
surrender any right or power herein conferred upon the Issuer;

     (iv) to convey, transfer, assign, mortgage or pledge any property to or with the
Indenture Trustee;

     (v) to cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture that may be inconsistent with any other provision herein or in any
supplemental indenture or to make any other provisions with respect to matters or questions
arising under this Indenture or in any supplemental indenture; provided, however, that such
action shall not adversely affect the interests of the Noteholders; or

     (vi) to evidence and provide for the acceptance of the appointment hereunder by a
successor trustee with respect to the Notes and to add to or change any of the provisions of
this Indenture as shall be necessary to facilitate the administration of the trusts
hereunder by more than one trustee, pursuant to the requirements of Article VI
hereof.

          The Indenture Trustee is hereby authorized to join in the execution of any such supplemental
indenture and to make any further appropriate agreements and stipulations that may be therein
contained.

          Section 9.02 Supplemental Indentures with Consent of Noteholders. The Issuer and the
Indenture Trustee, when authorized by an Issuer Order, also may, with the consent of the Majority
Noteholders, by Act of such Noteholders delivered to the Issuer and the Indenture Trustee, enter
into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in
any manner the rights of any Noteholder under this Indenture; provided,

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however, that no such supplemental indenture shall, without the consent of each Noteholder
affected thereby:

          (a) change to a later date the date of payment of any installment of principal of or interest
on any Note, or reduce the principal balance thereof, the interest rate thereon or the Termination
Price with respect thereto, change the provisions of this Indenture in a manner which has the
effect of reducing the amount of collections received by any Noteholder on, or the proceeds of the
sale of, the Collateral to payment of principal of or interest on the Notes, or change any place of
payment where, or the coin or currency in which, any Note or the interest thereon is payable, or
impair the right to institute suit for the enforcement of the provisions of this Indenture
requiring the application of funds available therefor, as provided in Article V hereof, to
the payment of any such amount due on the Notes on or after the respective due dates thereof (or,
in the case of redemption, on or after the Redemption Date);

          (b) reduce the Percentage Interest, the consent of the Holders of which is required for any
such supplemental indenture, or the consent of the Holders of which is required for any waiver of
compliance with certain provisions of this Indenture or certain defaults hereunder and their
consequences provided for in this Indenture;

          (c) modify or alter the provisions of the definition of the term “Outstanding” or “Percentage
Interest”;

          (d) reduce the Percentage Interest of the Outstanding Notes, the consent of the Holders of
which is required to direct the Indenture Trustee to direct the Issuer to sell or liquidate the
Collateral pursuant to Section 5.04 hereof;

          (e) modify any provision of this Section 9.02 except to increase any percentage
specified herein or to provide that certain additional provisions of this Indenture or the Basic
Documents cannot be modified or waived without the consent of the Holder of each Outstanding Note
affected thereby;

          (f) modify any of the provisions of this Indenture in such manner as to affect the calculation
of the amount of any payment of interest or principal due on any Note on any Payment Date
(including the calculation of any of the individual components of such calculation) or to adversely
affect the rights of the Noteholders to the benefit of any provisions for the mandatory redemption
of the Notes contained herein; or

          (g) permit the creation of any lien ranking prior to or on a parity with the lien of this
Indenture with respect to any part of the Collateral or, except as otherwise permitted or
contemplated herein, terminate the lien of this Indenture on any property at any time subject
hereto or deprive any Noteholder of the security provided by the lien of this Indenture.

          In connection with requesting the consent of the Noteholders pursuant to this Section
9.02, the Indenture Trustee shall mail to the Holders of the Notes to which such amendment or
supplemental indenture relates a notice prepared by the Issuer setting forth in general terms the
substance of such supplemental indenture. It shall not be necessary for any Act

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of Noteholders under this Section 9.02 to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof.

          Section 9.03 Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article IX or
the modification thereby of the trusts created by this Indenture, the Indenture Trustee shall be
entitled to receive, and subject to Sections 6.01 and 6.02 hereof, shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Indenture Trustee may, but shall not
be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s
own rights, duties, liabilities or immunities under this Indenture or otherwise.

          Section 9.04 Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall be and shall be
deemed to be modified and amended in accordance therewith with respect to the Notes affected
thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and
immunities under this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes
shall thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

          Section 9.05 Reference in Notes to Supplemental Indentures. Notes authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article IX
may, and if required by the Indenture Trustee shall, bear a notation in form approved by the
Indenture Trustee as to any matter provided for in such supplemental indenture. If the Issuer or
the Indenture Trustee shall so determine, new Notes so modified as to conform, in the opinion of
the Indenture Trustee and the Issuer, to any such supplemental indenture may be prepared and
executed by the Issuer and authenticated and delivered by the Indenture Trustee in exchange for
Outstanding Notes.

ARTICLE X

REDEMPTION OF NOTES; PUT OPTION

          Section 10.01 Redemption. The Servicer may, at its option, effect an early redemption
of the Notes on any Business Day. The Servicer shall effect such early termination in the manner
specified in and subject to the provisions of Section 12.02 of the Sale and Servicing
Agreement.

          The Servicer shall furnish the Indenture Trustee with notice of any such redemption in order
to facilitate the Indenture Trustee’s compliance with its obligation to notify the Noteholders of
such redemption in accordance with Section 10.02 hereof.

          Section 10.02 Form of Redemption Notice. Notice of redemption under Section
10.01 hereof shall be by first-class mail, postage prepaid, or by facsimile mailed or
transmitted

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not later than 10 days prior to the applicable Redemption Date to each Noteholder, as of the
close of business on the Record Date preceding the applicable Redemption Date, at such Noteholder’s
address or facsimile number appearing in the Note Register.

          All notices of redemption shall state:

     (i) the Redemption Date;

     (ii) that on the Redemption Date Noteholders shall receive the Note Redemption Amount;
and

     (iii) the place where such Notes are to be surrendered for payment of the Termination
Price (which shall be the office or agency of the Issuer to be maintained as provided in
Section 3.02 hereof).

          Notice of redemption of the Notes shall be given by the Indenture Trustee in the name of the
Issuer and at the expense of the Servicer. Failure to give to any Noteholder notice of redemption,
or any defect therein, shall not impair or affect the validity of the redemption of any other Note.

          Section 10.03 Notes Payable on Redemption Date. The Notes to be redeemed shall,
following notice of redemption as required by Section 10.02 hereof (in the case of
redemption pursuant to Section 10.01) hereof, on the Redemption Date become due and payable
at the Note Redemption Amount and (unless the Issuer shall default in the payment of the Note
Redemption Amount) no interest shall accrue thereon for any period after the date to which accrued
interest is calculated for purposes of calculating the Note Redemption Amount. The Issuer may not
redeem the Notes unless all outstanding obligations under the Notes have been paid in full.

ARTICLE XI

MISCELLANEOUS

          Section 11.01 Compliance Certificates and Opinions, etc. Upon any application or
request by the Issuer to the Indenture Trustee to take any action under any provision of this
Indenture (except with respect to the Servicer’s servicing activity in the ordinary course of its
business), the Issuer shall furnish to the Indenture Trustee (i) an Officer’s Certificate stating
that all conditions precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with and (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with.

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

	 	(1)	 	a statement that each signatory of such certificate or opinion
has read or has caused to be read such covenant or condition and the
definitions herein relating thereto;

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	 	(2)	 	a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
	 
	 	(3)	 	a statement that, in the opinion of each such signatory, such
signatory has made such examination or investigation as is necessary to enable
such signatory to express an informed opinion as to whether or not such
covenant or condition has been complied with; and
	 
	 	(4)	 	a statement as to whether, in the opinion of each such
signatory, such condition or covenant has been complied with.

The Officer’s Certificate issued pursuant to this Section 11.01 may be executed on behalf of the
Issuer by the Administrator.

          Section 11.02 Form of Documents Delivered to Indenture Trustee. In any case where
several matters are required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the opinion of, only one
such Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such matters in one or
several documents.

          Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to the matters upon which such officer’s certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of,
or representations by, an officer or officers of the Servicer, the Loan Originator, the Issuer or
the Administrator, stating that the information with respect to such factual matters is in the
possession of the Servicer, the Loan Originator, the Issuer or the Administrator, unless such
counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to such matters are erroneous.

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

          Whenever in this Indenture, in connection with any application or certificate or report to the
Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the
granting of such application, or as evidence of the Issuer’s compliance with any term hereof, it is
intended that the truth and accuracy, at the time of the granting of such application or at the
effective date of such certificate or report (as the case may be), of the facts and opinions stated
in such document shall in such case be conditions precedent to the right of the Issuer to have such
application granted or to the sufficiency of such certificate or report. The

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foregoing shall not, however, be construed to affect the Indenture Trustee’s right to rely
upon the truth and accuracy of any statement or opinion contained in any such document as provided
in Article VI hereof.

          Section 11.03 Acts of Noteholders. (a) Any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Indenture Trustee, and, where it is hereby expressly required, to
the Issuer. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section 6.01 hereof)
conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in this
Section 11.03.

          (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved in any manner that the Indenture Trustee deems sufficient.

          (c) The ownership of Notes shall be proved by the Note Register.

          (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by
any Noteholder shall bind the Holder of every Note issued upon the registration thereof or in
exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done
by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such action
is made upon such Note.

          Section 11.04 Notices, etc., to Indenture Trustee and Issuer. Any request, demand,
authorization, direction, notice, consent, waiver or Act of Noteholders or other documents provided
or permitted by this Indenture shall be in writing and if such request, demand, authorization,
direction, notice, consent, waiver or act of Noteholders is to be made upon, given or furnished to
or filed with:

     (i) the Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing (including by
facsimile) to or with the Indenture Trustee at its Corporate Trust Office, or

     (ii) the Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for
every purpose hereunder if in writing and made, given, furnished, filed or transmitted via
facsimile to the Issuer at: CapitalSource Funding VII Trust, c/o Wilmington Trust Company,
as Owner Trustee, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890,
Attention: Corporate Trust Administration, telecopy number: (302) 636-4140, telephone
number: (302) 651-1000, or at any other address or facsimile number previously furnished in
writing to the Indenture Trustee by

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the Issuer or the Administrator. The Issuer shall promptly transmit any notice
received by it from the Noteholders to the Indenture Trustee.

          Section 11.05 Notices to Noteholders; Waiver. Where this Indenture provides for
notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed, first-class, postage prepaid to each
Noteholder affected by such event, at its address as it appears on the Note Register, not later
than the latest date, and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Noteholders is given by mail, neither the failure to mail such
notice nor any defect in any notice so mailed to any particular Noteholder shall affect the
sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in the
manner herein provided shall conclusively be presumed to have duly been given.

          Where this Indenture provides for notice in any manner, such notice may be waived in writing
by any Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the
Indenture Trustee but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

          In case, by reason of the suspension of regular mail service as a result of a strike, work
stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders
when such notice is required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.

          Section 11.06 Effect of Headings and Table of Contents. The Article and Section
headings herein and the Table of Contents are for convenience only and shall not affect the
construction hereof.

          Section 11.07 Successors and Assigns. All covenants and agreements in this Indenture
and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not.
All agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees
and agents.

          Section 11.08 Severability. In case any provision in this Indenture or in the Notes
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

          Section 11.09 Benefits of Indenture. Nothing in this Indenture or in the Notes,
express or implied, shall give to any Person, other than the parties hereto and their successors
hereunder, and the Noteholders, and any other party secured hereunder, and any other Person with an
ownership interest in any part of the Collateral, any benefit or any legal or equitable right,
remedy or claim under this Indenture. In addition, the Owner Trustee is an intended third party
beneficiary to this Indenture.

          Section 11.10 Legal Holidays. In any case where the date on which any payment is due
shall not be a Business Day, then (notwithstanding any other provision of the Notes or this

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Indenture) payment need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the date on which nominally due, and no
interest shall accrue for the period from and after any such nominal date.

          Section 11.11 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (EXCEPT FOR
SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. THE
ISSUER HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY.

          Section 11.12 Counterparts. This Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

          Section 11.13 Recording of Indenture. If this Indenture is subject to recording in
any appropriate public recording offices, such recording is to be effected by the Issuer and at its
expense accompanied by an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
other counsel reasonably acceptable to the Indenture Trustee; provided, however, that the expense
of such Opinion of Counsel shall in no event be an expense of the Indenture Trustee) to the effect
that such recording is necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the Indenture Trustee
under this Indenture.

          Section 11.14 Trust Obligation. No recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or, except as expressly provided for in Article VI hereof, under this Indenture or
any certificate or other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director,
employee, agent or “control person” within the meaning of the Securities Act and the Exchange Act,
of the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any successor
or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any
such Person may expressly have agreed (it being understood that the Indenture Trustee and the Owner
Trustee have no such obligations in their individual capacity) and except that any such partner,
owner or beneficiary of the Issuer shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. For all purposes of this Indenture, in the performance
of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and
entitled to the benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement.

          Section 11.15 No Petition. The Indenture Trustee, by entering into this Indenture,
and each Noteholder, by accepting a Note, hereby covenant and agree that they will

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not at any time institute against the Issuer, or join in any institution against the Issuer
of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law, in connection with
any obligations relating to the Notes, this Indenture or any of the Basic Documents.

          Section 11.16 Inspection. The Issuer agrees that, on reasonable prior notice, it will
permit any representative of the Indenture Trustee or the Servicer, during the Issuer’s normal
business hours, to examine all the books of account, records, reports and other papers of the
Issuer to make copies and extracts therefrom, to cause such books to be audited by Independent
certified public accountants, and to discuss the Issuer’s affairs, finances and accounts with the
Issuer’s officers, employees, and Independent certified public accountants, all at such reasonable
times and as often as may reasonably be requested and at the expense of the Servicer;
provided that the Indenture Trustee shall notify the Servicer prior to any contact with
such accountants and provide the Servicer with the opportunity to participate in such discussions.
The Indenture Trustee shall and shall cause its representatives to hold in confidence all such
information except to the extent disclosure may be required by law (and all reasonable applications
for confidential treatment are unavailing) and except to the extent that the Indenture Trustee may
reasonably determine that such disclosure is consistent with its obligations hereunder. The
Indenture Trustee shall be under no obligation to make any such inspection.

          Section 11.17 Limitation on Liability. It is expressly understood and agreed by the
parties hereto that (a) this Indenture is executed and delivered by Wilmington Trust Company and
Indenture Trustee, not individually or personally, but solely as Owner Trustee of CapitalSource
Funding VII Trust and Indenture Trustee in the exercise of the powers and authority conferred and
vested in them, (b) each of the representations, undertakings and agreements herein made on the
part of the Issuer or the Indenture Trustee is made and intended not as personal representations,
undertakings and agreements by Wilmington Trust Company or the Indenture Trustee but is made and
intended for the purpose for binding only the Issuer or the Indenture Trustee, (c) nothing herein
contained shall be construed as creating any liability on Wilmington Trust Company or the Indenture
Trustee, individually or personally, to perform any covenant either expressed or implied contained
herein, all such liability, if any, being expressly waived by the parties hereto and by any Person
claiming by, through or under the parties hereto and (d) under no circumstances shall Wilmington
Trust Company or the Indenture Trustee be personally liable for the payment of any indebtedness or
expenses of the Issuer or be liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaken by the Issuer under this Indenture or any other related
documents.

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          IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Indenture to be duly
executed by their respective officers, thereunto duly authorized and duly attested, all as of the
day and year first above written.

	 	 	 	 	 
	 	 	CAPITALSOURCE FUNDING VII TRUST
	 
	 	 	 	 
	 

	 	By:
	 	Wilmington Trust
Company not in its individual
 capacity but solely as
Owner Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ ROBERT J. PERKINS
	 

	 	 	 	 
	 

	 	 	 	Name: Robert J. Perkins
	 

	 	 	 	Title: Sr Financial Services Officer
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ JOE NARDI
	 

	 	 	 	 
	 

	 	 	 	Name: Joe Nardi
	 

	 	 	 	Title: Vice President

 

 

STATE OF Minnesota )

           ) ss.:

COUNTY OF Hennepin )

          BEFORE ME, the undersigned authority, a Notary Public in and for said county and state, on
this day personally appeared Joe Nardi, known to me to be the person and officer
whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the
act of the said Wilmington Trust Company, a Delaware banking corporation, not in its individual
capacity, but solely as Owner Trustee on behalf of CapitalSource Funding VII Trust, a Delaware
statutory trust, and that such person executed the same as the act of said statutory trust for the
purpose and consideration therein expressed, and in the capacities therein stated.

          GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 19 day of April, 2007.

          Notary Public

(Seal) /s/ VIRGININA LOIS NELSON

My commission expires:

Jan 31, 2011

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