Document:

exv10w5w2

EXHIBIT
10.5.2

     SECOND AMENDMENT, dated as of August 20, 2008 (“Second Amendment”), to the Sale and Servicing
Agreement dated as of May 8, 2008 (as amended, restated or otherwise modified, the “Agreement”), by
and among CS Funding VII Depositor LLC, as the seller (the “Seller”), CapitalSource Finance LLC, as
the originator (the “Originator”), and as the servicer (the “Servicer”), each of the Issuers from
time to time party thereto (collectively, the “Issuers”), each of the Liquidity Banks from time to
time party thereto (collectively, the “Liquidity Banks”), Citicorp North America, Inc., as the
administrative agent for the Issuers and Liquidity Banks thereunder (the “Administrative Agent”);
and Wells Fargo Bank, National Association, not in its individual capacity but as the backup
servicer (the “Backup Servicer”), and not in its individual capacity but as the collateral
custodian (the “Collateral Custodian”). Terms not otherwise defined in this Second Amendment shall
have the meanings set forth in the Agreement.

     The parties hereto desire to amend the Agreement as set forth below.

     Accordingly, for good and valuable consideration, the receipt of which is hereby acknowledged,
the parties hereto agree as follows:

     Section 1. Amendments to the Agreement. Effective as of the Effective Date (as
defined below), the Agreement is hereby amended as follows:

     (i) The definition of “Citibank Facilities” set forth in Section 1.1 of the Agreement
is hereby amended by (x) deleting clause (ii) thereof in its entirety and (y) changing the
designation of clause (iii) from “(iii)“to “(ii)”.

     (ii) The definition of “Combined Commitment Amount” set forth in Section 1.1 of the
Agreement is hereby amended and restated in its entirety to read as follows:

     “Combined Commitment Amount”: As of any day, the lesser of (x) the aggregate
Commitments outstanding hereunder plus the “Class A Commitment” outstanding under
the CREL 2007-A Facility, and (y) $750,000,000.

     (iii) The definitions of “Combined Threshold Amount” and “Combined Voluntary
Reductions” set forth in Section 1.1 of the Agreement are hereby deleted in their entirety.

     (iv) The definition of “Commitment” set forth in Section 1.1 of the Agreement is hereby
amended by replacing the dollar amount “$400,000,000” appearing in the third line thereof
with the dollar amount “$285,000,000”.

     (v) The definition of “Facility Amount” set forth in Section 1.1 of the Agreement is
hereby amended by replacing the dollar amount “$400,000,000” appearing in the second line
thereof with the dollar amount “$285,000,000”.

     (vi) The definition of “Issuer Purchase Limit” set forth in Section 1.1 of the
Agreement is hereby amended by replacing the dollar amount “$400,000,000” appearing in the
first line thereof with the dollar amount “$285,000,000”.

     (vii) Section 2.1(b) of the Agreement is hereby amended by (x) inserting “and”
immediately before clause (ii) in the second sentence thereof and (y) deleting clause (iii)
in such sentence in its entirety.

 

 

     Section 2. Representations and Warranties of the Seller and the Servicer.

     Each of the Seller and the Servicer, jointly and severally, hereby represents and warrants as
of the date hereof as follows (which representations and warranties shall survive the execution and
delivery of this Second Amendment):

     (i) The representations and warranties of each of the Seller and the Servicer set forth
in the Agreement are true and correct on and as of such date, after giving effect to this
Second Amendment, as though made on and as of such date;

     (ii) Following the effectiveness of this Second Amendment, no event has occurred and is
continuing which constitutes a Termination Event or Unmatured Termination Event;

     (iii) Each of the Seller and the Servicer is in compliance with each of its covenants
and agreements set forth in the Transaction Documents; and

     (iv) This Second Amendment has been duly executed and delivered by the Seller and the
Servicer and constitutes the legal, valid and binding obligation of the Seller and Servicer,
and is enforceable in accordance with its terms subject (x) as to enforcement of remedies,
to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting the enforcement of creditors’ rights generally, from time to time in effect, and
(y) to general principles of equity.

     Section 3. Effective Date; Continued Effectiveness; Governing Law; Counterparts.

     (a) This Second Amendment shall become effective as of the time and date (the “Effective
Date”) when the Administrative Agent shall have received a counterpart of (i) this Second
Amendment, duly executed and delivered on behalf of each of the parties hereto, (ii) the Second
Amendment to the CREL 2007-A Facility, dated as of the date of this Second Amendment, duly executed
and delivered on behalf of each of the parties thereto, and (iii) the Collateral Repurchase
Agreement, dated as of the date of this Second Amendment, relating to that certain Second Amended
and Restated Sale and Servicing Agreement, dated as of May 8, 2008, among CSE QRS Funding II LLC,
CSE Mortgage LLC, each of the Issuers and Liquidity Banks from time to time party thereto, Citicorp
North America, Inc., as the Administrative Agent and Wells Fargo Bank, National Association, as the
Backup Servicer and as the Collateral Custodian.

     (b) Nothing herein shall be deemed to be a waiver of any covenant, or agreement contained in,
or any Termination Event or Unmatured Termination Event under the Agreement and each of the parties
hereto agrees that all other covenants and agreements and other provisions contained in the
Agreement and the other Transaction Documents as modified by this Second Amendment shall remain in
full force and effect from and after the date of this Second Amendment.

     (c) THIS SECOND AMENDMENT, AND THE AGREEMENT AS AMENDED BY THE SECOND AMENDMENT, SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING
EFFECT TO ANY CHOICE OF LAW PROVISIONS THEREOF (OTHER THAN SECTIONS

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5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

     (d) This Second Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts (including by facsimile or by electronic mail in portable
document format (pdf)), each of which when so executed shall be deemed to be an original and all of
which when taken together shall constitute one and the same agreement.

[Remainder of Page Intentionally Left Blank.]

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

	 	 	 	 	 	 	 
	THE SELLER:	 	CS FUNDING VII DEPOSITOR LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ JEFFREY A. LIPSON	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jeffrey A. Lipson	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	THE ORIGINATOR AND
SERVICER:	 	CAPITALSOURCE FINANCE LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ JEFFREY A. LIPSON	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jeffrey A. Lipson	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 

[Signatures Continued on the Following Page]

 

 

	 	 	 	 	 	 	 
	ISSUER:	 	CHARTA, LLC,

in its capacity as an Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Citicorp North America, Inc.,

as Attorney-in-Fact	 	 

	 	 	 	 	 	 	 

	 

	 	By:
	 	/S/ GERALD F. KEEFE	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Gerald F. Keefe	 	 
	 

	 	Title:
	 	 Vice President	 	 
	 
	 	 	 	 	 	 
	LIQUIDITY BANK:	 	CITIBANK, N.A.,

in its capacity as a Liquidity Bank	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ GERALD F. KEEFE	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Gerald F. Keefe	 	 
	 

	 	Title:
	 	 Vice President	 	 
	 
	 	 	 	 	 	 
	THE ADMINISTRATIVE AGENT	 	CITICORP NORTH AMERICA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ GERALD F. KEEFE	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Gerald F. Keefe	 	 
	 

	 	Title:
	 	 Vice Presidentexv10w6

Exhibit 10.6

RELOCATION AGREEMENT

     This
Relocation Agreement (“Agreement”) is entered into on this
22nd day of August 2008 by and
between CapitalSource Inc. (“Company”) and Steven A. Museles (“Employee”).

RECITALS

     WHEREAS, CapitalSource Bank, a California Industrial Bank and an indirect wholly owned
subsidiary of the Company, has purchased certain assets of Fremont Bank located in California (the
“Transaction”);

     WHEREAS, upon the close of the Transaction, at the request of Company, Employee became a dual
employee of both the Company and CapitalSource Bank;

     WHEREAS, Employee shall be an employee of CapitalSource Bank for an initial period of 12
months commencing July 25, 2008, unless terminated sooner pursuant to the Letter Agreement (the
“Bank Employment Period”);

     WHEREAS, the headquarters of CapitalSource Bank shall be located in downtown Los Angeles,
California and Employee shall temporarily relocate his primary residence from Bethesda, Maryland to
the Los Angeles, California metropolitan area during the Bank Employment Period;

     ACCORDINGLY, for good and valuable consideration, including, but not limited to, Employee’s
agreement to relocate his primary residence and accept employment with CapitalSource Bank during
the Bank Employment Period, the Company agrees to provide Employee with the following relocation
benefits:

     1. Moving of Household Goods/Packing. Company shall pay for the assistance of a relocation
company, as well as the packing, transporting, and delivering of household items and automobiles
(i) from Employee’s residence in Bethesda, Maryland to a location selected by Employee as his
primary residence in the Los Angeles, California metropolitan area, and (ii) from Employee’s
residence in Los Angeles to Bethesda, Maryland upon Employee’s determination to relocate back to
Bethesda, Maryland during or upon expiration of the Bank Employment Period.

     2. Housing. Company shall pay (or reimburse) Employee’s rent, utilities, and security deposit
while Employee resides in the Los Angeles metropolitan area during the Bank Employment Period.

     3. Airline Flights. The Company shall reimburse Employee for the cost of airline tickets
between the Los Angeles metropolitan area and Bethesda, Maryland for Employee and his spouse and
children in connection with his relocation to Los Angeles and return to Bethesda, Maryland, as well
as two additional round-trips in the interim. The tickets must be purchased at least 7 days in
advance of traveling, unless otherwise agreed by the parties.

 

 

     4. Relocation Allowance. Upon execution of this Agreement, Company shall pay to Employee a
one-time lump sum in the amount of $10,000 as a relocation allowance.

     5. Car Registration Fees. The Company shall also reimburse Employee for automobile state
license and registration fees and incremental automobile insurance costs that Employee incurs.

     6. Reimbursement for Tax Advice. Some or all of the relocation benefits received by Employee
under this Agreement may be subject to State and Federal income taxes. The Company shall reimburse
Employee for the cost of obtaining expert tax advice to determine the tax consequences resulting
from Employee’s receipt of the benefits and payments under this Agreement, as well as his temporary
relocation to the State of California.

     7. Maintenance Costs of Maryland Residence. The Company shall reimburse Employee for any
actual incremental costs Employee incurs for the oversight and maintenance of Employee’s home in
Bethesda, Maryland during his absence, up to $500 per month. To be reimbursed under this
Agreement, such incremental costs must be incurred by Employee solely because he is not residing in
his Bethesda Maryland home during the Bank Employment Period. For avoidance of any doubt,
reimbursable costs under this paragraph include payments to certain individuals to walk through,
clean and inspect the Bethesda, Maryland home on a weekly basis. Employee shall not be entitled
to reimbursement under this Agreement of routine costs incurred by Employee for the maintenance of
his home in Bethesda, Maryland.

     8. Children Educational Expenses. The Company shall reimburse Employee for any expenses
incurred by Employee in the selection of and application to a school or schools for Employee’s
children to attend in the Los Angeles metropolitan area during the Bank Employment Period. The
Company shall reimburse Employee for any tuition-related payments made to Employee’s children’s
school(s) in and around Bethesda, Maryland, which are forfeited as a result of Employee’s
relocation to the Los Angeles metropolitan area. During the Bank Employment Period, Employee shall
not be required to move his family outside the Los Angeles metropolitan area.

     9. Gross-Up Payment. Company shall pay to Employee a payment (the “Gross-Up Payment”) in an
amount required to fully reimburse Employee for all federal, state, local income and employment
taxes owed on any payment or benefit received by Employee under this Agreement, including any taxes
owed as a result of receiving the Gross-Up Payment.

     10. Termination or Resignation: The benefits and payments set forth in this Agreement are not
conditioned upon Employee remaining employed with CapitalSource Bank through the Bank Employment
Period. All of the benefits and payments in this Agreement shall be due and payable for the Bank
Employment Period notwithstanding termination of Employee’s employment with CapitalSource and/or
CapitalSource Bank, and Employee and his family shall have the right to continue to reside in the
California residence leased by the Company until the end of the lease term without any additional
cost to Employee. Notwithstanding any other provision to the contrary, if Employee is terminated
for Cause pursuant to the terms of his Employment Agreement, Employee’s rights to any future or
unpaid benefits under this

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Agreement shall cease, and Employee shall not be eligible for any unused portion of the
benefits described in this Agreement.

     11. Employment Status. The terms of Employee’s Employment Agreement with CapitalSource shall
supersede any conflicting term herein except that the parties acknowledge that Employee’s temporary
relocation to Los Angeles and employment by CapitalSource Bank in and of themselves shall not
constitute “Good Reason” or result in a breach by either party of the terms of the Employment
Agreement.

     12. Employee Acknowledgement. Employee has read this Agreement and understands the terms. By
signing below, Employee acknowledges that he has read and fully understands the provisions
contained herein. Employee understands that he has a right to consult with an attorney as to the
meaning and legal effect of this Agreement and has been given an opportunity to do so. This
Agreement contains the entire agreement between the parties concerning its subject matter and may
be amended or modified only in writing signed by both parties hereto. This Agreement shall be
construed in accordance with the laws of the State of Maryland.

[SIGNATURE PAGE FOLLOWS]

3

 

	 	 	 	 	 	 	 	 	 
	/s/ STEVEN A. MUSELES 

	 	
 	 	Date:	 	8/22/08 	 	 
	 

Steven A. Museles

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	CapitalSource
Inc. 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/
JOHN K. DELANEY

	 	 	 	Date:	 	8/22/08 	 	 
	John K. Delaney

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