Document:

exv10w8

 

Exhibit 10.8

 

 

CREDIT AGREEMENT

among

CAPITALSOURCE INC.

as the Initial Borrower

THE GUARANTORS LISTED HEREIN,

THE LENDERS LISTED HEREIN,

WACHOVIA BANK, NATIONAL ASSOCIATION,

as the Administrative Agent, Swingline Lender, and Issuing Lender

BANK OF AMERICA, N.A.,

as Issuing Lender

 

WACHOVIA CAPITAL MARKETS, LLC,

as Sole Bookrunner and as Lead Arranger

BANK OF MONTREAL,

BARCLAYS BANK PLC,

and

SUNTRUST BANK,

as Co-Documentation Agents

 

 

 

March 14, 2006

(Composite Version; Reflects All Amendments through December 19, 2007)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I     DEFINITIONS	 	 	1	 
	Section 1.1.
	 	Defined Terms	 	 	1	 
	Section 1.2.
	 	Other Definitional Provisions	 	 	27	 
	Section 1.3.
	 	Accounting Terms	 	 	27	 
	Section 1.4.
	 	Computation of Time Periods	 	 	28	 
	Section 1.5.
	 	Currencies Generally	 	 	28	 
	ARTICLE II     THE LOANS; AMOUNT AND TERMS	 	 	29	 
	Section 2.1.
	 	Revolving Loans	 	 	29	 
	Section 2.2.
	 	Increase of the Commitments	 	 	31	 
	Section 2.3.
	 	Letter of Credit Subfacility	 	 	33	 
	Section 2.4.
	 	Swingline Loan Subfacility	 	 	37	 
	Section 2.5.
	 	Fees	 	 	39	 
	Section 2.6.
	 	Commitment Reductions	 	 	40	 
	Section 2.7.
	 	Prepayments	 	 	40	 
	Section 2.8.
	 	Minimum Principal Amounts	 	 	42	 
	Section 2.9.
	 	Default Rate and Payment Dates	 	 	42	 
	Section 2.10.
	 	Conversion Options	 	 	43	 
	Section 2.11.
	 	Computation of Interest and Fees	 	 	44	 
	Section 2.12.
	 	Pro Rata Treatment and Payments	 	 	45	 
	Section 2.13.
	 	Non-Receipt of Funds by the Administrative Agent	 	 	47	 
	Section 2.14.
	 	Inability to Determine Interest Rate	 	 	48	 
	Section 2.15.
	 	Illegality	 	 	48	 
	Section 2.16.
	 	Requirements of Law	 	 	49	 
	Section 2.17.
	 	Indemnity	 	 	50	 
	Section 2.18.
	 	Taxes	 	 	51	 
	Section 2.19.
	 	Indemnification; Nature of Issuing Lender’s Duties	 	 	53	 
	Section 2.20.
	 	Extension of Commitment Termination Date	 	 	54	 
	Section 2.21.
	 	Replacement of Lenders	 	 	55	 
	Section 2.22.
	 	Additional Limitations on CSF as Borrower	 	 	55	 
	Section 2.23.
	 	Several Liability of the Borrowers	 	 	55	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 2.24.
	 	Currency Conversion of Loans	 	 	55	 
	ARTICLE III     CONDITIONS PRECEDENT	 	 	55	 
	Section 3.1.
	 	Conditions to Closing.	 	 	55	 
	Section 3.2.
	 	Conditions to All Extensions of Credit	 	 	58	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	 	 	59	 
	Section 4.1.
	 	Existence and Power	 	 	59	 
	Section 4.2.
	 	Organizational and Governmental Authorization; No Contravention	 	 	59	 
	Section 4.3.
	 	Binding Effect	 	 	59	 
	Section 4.4.
	 	Financial Information	 	 	60	 
	Section 4.5.
	 	Litigation	 	 	60	 
	Section 4.6.
	 	Compliance with ERISA	 	 	60	 
	Section 4.7.
	 	Taxes	 	 	60	 
	Section 4.8.
	 	Subsidiaries	 	 	61	 
	Section 4.9.
	 	Investment Company Act	 	 	61	 
	Section 4.10.
	 	[Reserved]	 	 	61	 
	Section 4.11.
	 	Ownership of Property	 	 	61	 
	Section 4.12.
	 	No Default	 	 	61	 
	Section 4.13.
	 	Full Disclosure	 	 	61	 
	Section 4.14.
	 	Environmental Matters	 	 	62	 
	Section 4.15.
	 	Compliance with Laws	 	 	62	 
	Section 4.16.
	 	Capital Stock	 	 	62	 
	Section 4.17.
	 	Margin Stock	 	 	62	 
	Section 4.18.
	 	Insolvency	 	 	63	 
	Section 4.19.
	 	Available Unpledged Assets	 	 	63	 
	Section 4.20.
	 	Labor Matters	 	 	63	 
	Section 4.21.
	 	Patents, Trademarks, Etc.	 	 	63	 
	Section 4.22.
	 	Tax Shelter Regulations	 	 	63	 
	Section 4.23.
	 	All Consents Required	 	 	64	 
	Section 4.24.
	 	Selection Procedures	 	 	64	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 4.25.
	 	[Reserved]	 	 	64	 
	Section 4.26.
	 	Credit and Collection Policy; Residential Mortgage Policies and Procedures	 	 	64	 
	Section 4.27.
	 	Compliance with OFAC Rules and Regulations	 	 	64	 
	Section 4.28.
	 	REIT Status	 	 	64	 
	ARTICLE V     COVENANTS	 	 	65	 
	Section 5.1.
	 	Financial Statements	 	 	65	 
	Section 5.2.
	 	Certificates; Other Information	 	 	66	 
	Section 5.3.
	 	Payment of Taxes and Other Obligations	 	 	66	 
	Section 5.4.
	 	Notices	 	 	67	 
	Section 5.5.
	 	Inspection of Property, Books and Records	 	 	67	 
	Section 5.6.
	 	Acquisitions	 	 	68	 
	Section 5.7.
	 	Restricted Payments	 	 	68	 
	Section 5.8.
	 	Capital Expenditures	 	 	68	 
	Section 5.9.
	 	Additional Guarantors	 	 	69	 
	Section 5.10.
	 	Maintenance of Unsecured Debt Rating	 	 	69	 
	Section 5.11.
	 	Ownership of Credit Parties; Restrictions	 	 	69	 
	Section 5.12.
	 	Maintenance of Existence	 	 	69	 
	Section 5.13.
	 	Dissolution	 	 	69	 
	Section 5.14.
	 	Consolidations, Mergers and Sales of Assets	 	 	70	 
	Section 5.15.
	 	Use of Proceeds	 	 	70	 
	Section 5.16.
	 	Compliance with Laws	 	 	71	 
	Section 5.17.
	 	Insurance	 	 	71	 
	Section 5.18.
	 	Change in Fiscal Year	 	 	71	 
	Section 5.19.
	 	Maintenance of Property	 	 	71	 
	Section 5.20.
	 	Environmental Laws	 	 	71	 
	Section 5.21.
	 	[Reserved]	 	 	72	 
	Section 5.22.
	 	[Reserved]	 	 	72	 
	Section 5.23.
	 	Compliance with Material Contracts	 	 	72	 
	Section 5.24.
	 	Transactions with Affiliates	 	 	72	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 5.25.
	 	[Reserved]	 	 	72	 
	Section 5.26.
	 	No Restrictive Agreement	 	 	72	 
	Section 5.27.
	 	Costs and Expenses	 	 	72	 
	Section 5.28.
	 	Additional Debt	 	 	73	 
	Section 5.29.
	 	[Reserved]	 	 	73	 
	Section 5.30.
	 	Credit and Collection Policy	 	 	73	 
	Section 5.31.
	 	REIT Status	 	 	73	 
	Section 5.32.
	 	Financial Covenants	 	 	73	 
	Section 5.33.
	 	Other	 	 	74	 
	ARTICLE VI     [RESERVED]	 	 	74	 
	ARTICLE VI     IEVENTS OF DEFAULT	 	 	74	 
	Section 7.1.
	 	Events of Default	 	 	74	 
	Section 7.2.
	 	Acceleration; Remedies	 	 	77	 
	ARTICLE VIII     THE ADMINISTRATIVE AGENT	 	 	78	 
	Section 8.1.
	 	Appointment	 	 	78	 
	Section 8.2.
	 	Delegation of Duties	 	 	78	 
	Section 8.3.
	 	Exculpatory Provisions	 	 	78	 
	Section 8.4.
	 	Reliance by Administrative Agent	 	 	79	 
	Section 8.5.
	 	Notice of Default	 	 	79	 
	Section 8.6.
	 	Non-Reliance on Administrative Agent and Other Lenders	 	 	79	 
	Section 8.7.
	 	Indemnification	 	 	80	 
	Section 8.8.
	 	The Administrative Agent in Its Individual Capacity	 	 	80	 
	Section 8.9.
	 	Successor Administrative Agent	 	 	81	 
	Section 8.10.
	 	Other Agents	 	 	81	 
	ARTICLE IX     MISCELLANEOUS	 	 	82	 
	Section 9.1.
	 	Amendments, Waivers and Release of Collateral	 	 	82	 
	Section 9.2.
	 	Notices	 	 	84	 
	Section 9.3.
	 	No Waiver; Cumulative Remedies	 	 	86	 
	Section 9.4.
	 	[Reserved]	 	 	86	 
	Section 9.5.
	 	Payment of Expenses and Taxes; Indemnification	 	 	86	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 9.6.
	 	Successors and Assigns; Participations; Purchasing Lenders	 	 	87	 
	Section 9.7.
	 	Set-off	 	 	90	 
	Section 9.8.
	 	Table of Contents and Section Headings	 	 	91	 
	Section 9.9.
	 	Counterparts	 	 	91	 
	Section 9.10.
	 	Effectiveness	 	 	91	 
	Section 9.11.
	 	Severability	 	 	91	 
	Section 9.12.
	 	Integration	 	 	92	 
	Section 9.13.
	 	Governing Law	 	 	92	 
	Section 9.14.
	 	Consent to Jurisdiction and Service of Process	 	 	92	 
	Section 9.15.
	 	Confidentiality	 	 	92	 
	Section 9.16.
	 	Acknowledgments	 	 	93	 
	Section 9.17.
	 	Waivers of Jury Trial; Waiver of Consequential Damages	 	 	93	 
	Section 9.18.
	 	Patriot Act Notice	 	 	94	 
	Section 9.19.
	 	Judgment Shortfall	 	 	94	 
	ARTICLE X     GUARANTY	 	 	94	 
	Section 10.1.
	 	The Guaranty	 	 	94	 
	Section 10.2.
	 	Bankruptcy	 	 	95	 
	Section 10.3.
	 	Nature of Liability	 	 	96	 
	Section 10.4.
	 	Independent Obligation	 	 	96	 
	Section 10.5.
	 	Authorization	 	 	96	 
	Section 10.6.
	 	Reliance	 	 	96	 
	Section 10.7.
	 	Waiver	 	 	96	 
	Section 10.8.
	 	Limitation on Enforcement	 	 	98	 
	Section 10.9.
	 	Confirmation of Payment	 	 	98	 
	Section 10.10.
	 	Limitation of Guaranty of CSF	 	 	98	 

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SCHEDULES

	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 
	Schedule 1.1(a)

	 	Residential Mortgage Policies and Procedures	 	 
	Schedule 1.1(b)

	 	Risk Rating Levels	 	 
	Schedule 2.1(a)

	 	Commitment Percentage	 	 
	Schedule 2.3(i)

	 	Existing Letters of Credit	 	 
	Schedule 4.8

	 	List of Subsidiaries	 	 
	Schedule 4.16

	 	List of Liens	 	 
	Schedule 4.26

	 	Credit and Collection Policy	 	 
	Schedule 5.26

	 	Permitted Transaction	 	 
	Schedule 5.28

	 	Existing Debt on Closing Date	 	 
	Schedule 9.2

	 	Lenders’ Lending Offices	 	 
	 
	 	 	 	 
	 

	 	EXHIBITS	 	 
	 
	 	 	 	 
	Exhibit A

	 	Form of Notice of Borrowing	 	 
	Exhibit B

	 	Form of Revolving Note	 	 
	Exhibit C

	 	Form of Notice of Conversion	 	 
	Exhibit D

	 	Form of Secretary’s Certificate	 	 
	Exhibit E

	 	Form of Notice of Swingline Borrowing	 	 
	Exhibit F

	 	Form of Swingline Note	 	 
	Exhibit G

	 	Form of Solvency Certificate	 	 
	Exhibit H

	 	Form of Officer’s Compliance Certificate	 	 
	Exhibit I

	 	Form of Monthly Report	 	 
	Exhibit J

	 	Form of Commitment Transfer Supplement	 	 
	Exhibit K

	 	Form of Borrower Information Certificate	 	 
	Exhibit L

	 	Form of 2.18 Certificate	 	 
	Exhibit M

	 	Form of Facility Extension Request	 	 
	Exhibit N

	 	Form of Joinder Agreement	 	 
	Exhibit O

	 	Mandatory Cost Rate Formula	 	 

-i-

 

     CREDIT AGREEMENT, dated as of March 14, 2006 and as amended through December 19, 2007 (this
“Credit Agreement”), among CAPITALSOURCE INC., a Delaware corporation, CAPITALSOURCE TRS
INC., a Delaware corporation (“TRS”), CAPITALSOURCE FINANCE LLC, a Delaware limited
liability company (“CSF”), CSE MORTGAGE LLC, a Delaware limited liability company
(“CSM”), and CAPITALSOURCE SF TRS INC., a Delaware corporation (“SFTRS” and,
together with TRS, CSF and CSM, and any other Subsidiary of the Borrower that becomes a party to
this Credit Agreement, collectively the “Guarantors” and individually a
“Guarantor”), the several banks and other financial institutions from time to time parties
to this Credit Agreement (collectively the “Lenders” and individually a “Lender”),
WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent for
the Lenders hereunder (in such capacity, the “Administrative Agent” or the
“Agent”), Swingline Lender, and Issuing Lender, and BANK OF AMERICA, N.A., as Issuing
Lender.

WITNESSETH:

     WHEREAS, the Borrower has requested, and the Lenders have agreed, to extend certain credit
facilities to the Borrower on the terms and conditions set forth herein;

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

ARTICLE I

DEFINITIONS

     Section 1.1. Defined Terms.

     As used in this Credit Agreement, terms defined in the preamble to this Credit Agreement have
the meanings therein indicated, and the following terms have the following meanings:

     “ABR Default Rate” shall have the meaning set forth in Section 2.9.

     “Acquisition” means the acquisition of (i) a controlling equity interest in another
Person (including the purchase of an option, warrant or convertible or similar type security to
acquire such a controlling interest at the time it becomes exercisable by the holder thereof),
whether by purchase of such equity interest or upon exercise of an option or warrant for, or
conversion of securities into, such equity interest, or (ii) assets of another Person which
constitute all or any material part of the assets of such Person or of a line or lines of business
conducted by such Person; provided, however, the term “Acquisition” shall exclude a
Portfolio Investment.

     “Additional Credit Party” shall mean each Person that becomes a Guarantor by execution
of a Joinder Agreement in accordance with Section 5.9.

     “Advances Outstanding” means on any day, the aggregate outstanding principal amount of
all Revolving Loans, Swingline Loans and LOC Obligations.

-1-

 

     “Affiliate” of any Person means (i) any other Person which directly, or indirectly
through one or more intermediaries, controls such Person, (ii) any other Person which directly, or
indirectly through one or more intermediaries, is controlled by or is under common control with
such Person, or (iii) any other Person of which such Person owns, directly or indirectly, 20% or
more of the common stock or equivalent equity interests. As used herein, the term “control” means
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ownership of voting securities, by contract or
otherwise; provided, however, the term “Affiliate” shall not include any Person
that constitutes Investments in Equity Instruments.

     “Agreement” or “Credit Agreement” shall mean this Credit Agreement, as
amended, modified or supplemented from time to time in accordance with its terms.

     “Agreement Currency” shall have the meaning set forth in Section 9.19(b).

     “Alternate Base Rate” shall mean, for any day, a rate per annum equal to (a) in the
case of amounts denominated in Dollars, the greater of (i) the Prime Rate in effect on such day,
and (ii) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%, (b) in the case of
amounts denominated in Euro, the “main refinancing rate” as set by the European Central Bank in
effect on such day plus 1/2 of 1% plus the Applicable Percentage, (c) in the case
of amounts denominated in Pounds Sterling, the base rate as set by the Monetary Policy Committee of
the Bank of England in effect on such day plus 1/2 of 1% plus the Applicable
Percentage and (d) in the case of amounts denominated in any other Alternative Currency, the rate
determined by the Administrative Agent, according to comparable financial benchmarks, in its
reasonable discretion on such day. For purposes hereof: “Prime Rate” shall mean, at any
time, the rate of interest per annum publicly announced or otherwise identified from time to time
by Wachovia at its principal office in Charlotte, North Carolina as its prime rate. The parties
hereto acknowledge that the rate announced publicly by Wachovia as its Prime Rate is an index or
base rate and shall not necessarily be its lowest or best rate charged to its customers or other
banks; and “Federal Funds Effective Rate” shall mean, for any day, the weighted average of
the rates on overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published on the next succeeding Business Day,
the average of the quotations for the day of such transactions received by the Administrative Agent
from three (3) federal funds brokers of recognized standing selected by it. If for any reason the
Administrative Agent shall have determined (which determination shall be conclusive in the absence
of manifest error) that it is unable to ascertain the Federal Funds Effective Rate, for any reason,
including the inability or failure of the Administrative Agent to obtain sufficient quotations in
accordance with the terms thereof, the Alternate Base Rate shall be determined without regard to
clause (a)(ii) of the first sentence of this definition, as appropriate, until the circumstances
giving rise to such inability no longer exist. Any change in the Alternate Base Rate due to a
change in the Prime Rate, the Federal Funds Effective Rate, the “main refinancing rate” as set by
the European Central Bank or the base rate as set by the Monetary Policy Committee of the Bank of
England shall be effective on the opening of business on the date of such change.

-2-

 

     “Alternate Base Rate Loans” shall mean Loans that bear interest at an interest rate
based on the Alternate Base Rate.

     “Alternative Currency” shall mean, at any time, any of Pounds Sterling, Euro and, with
the agreement of each Lender, any other Foreign Currency, so long as, in respect of any such
Foreign Currency, at such time, (a) such Foreign Currency is dealt with in the London interbank
deposit market, (b) such Foreign Currency is freely transferable and convertible into Dollars in
the London foreign exchange market and (c) no central bank or other governmental authorization in
the country of issue of such Foreign Currency (including, in the case of Euro, any authorization by
the European Central Bank) is required to permit use of such Foreign Currency by any Lender for
making a Loan hereunder or to permit the Borrower to borrow and repay the principal thereof and to
pay the interest thereon, unless such authorization has been obtained and is in full force and
effect.

     “Alternative Currency Sub-Limit” shall have the meaning set forth in Section
2.1(a).

     “Applicable Creditor” shall have the meaning set forth in Section 9.19(b).

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

     “Applicable Percentage” shall mean, for Alternate Base Rate Loans denominated in any
Alternative Currency, EURIBOR/LIBOR Rate Loans and LMIR Loans, the percentage set forth below
opposite the Initial Borrower’s applicable senior unsecured debt rating in the column labeled
“Alternative Currency Alternate Base Rate Loans, EURIBOR/LIBOR Rate Loans and LMIR Loans” and for
the Commitment Fee, the percentage set forth below opposite the Initial Borrower’s applicable
senior unsecured debt rating in the column labeled “Commitment Fee,” as applicable;
provided that if the senior unsecured debt ratings from S&P, Moody’s and Fitch are
different, and (a) two ratings are equal and higher than the third, the higher rating will apply,
(b) two ratings are equal and lower than the third, the lower rating will apply, or (c) no ratings
are equal, the intermediate rating will apply. In the event that the Initial Borrower shall
maintain ratings from only two of Moody’s, Fitch and S&P and the Initial Borrower is split-rated
and (i) the ratings differential is one level, the higher rating will apply, or (ii) the ratings
differential is two levels or more, the rating immediately below the highest rating will apply. In
the event that the Initial Borrower shall maintain ratings from only one of Moody’s, Fitch and S&P,
the one rating shall apply.

-3-

 

	 	 	 	 	 	 	 	 	 
	 	 	Alternative Currency	 	 
	 	 	Alternate Base Rate Loans,	 	 
	 	 	EURIBOR/LIBOR Rate	 	 
	Rating (S&P/Moody’s/Fitch)	 	Loans and LMIR Loans	 	Commitment Fee
	A-/A3/A-
	 	 	0.75	%	 	 	0.10	%
	BBB+/Baa1/BBB+
	 	 	0.875	%	 	 	0.125	%
	BBB/Baa2/BBB
	 	 	1.00	%	 	 	0.15	%
	BBB—/Baa3/BBB—
	 	 	1.125	%	 	 	0.20	%
	BB+/Ba1/BB+
	 	 	1.25	%	 	 	0.25	%
	BB/Ba2/BB
	 	 	1.50	%	 	 	0.30	%
	< BB/Ba2/BB
	 	 	1.75	%	 	 	0.35	%

The Applicable Percentage for Alternate Base Rate Loans denominated in any Alternative Currency,
EURIBOR/LIBOR Rate Loans, LMIR Loans and the Commitment Fee shall be adjusted within three (3)
Business Days of (A) Initial Borrower’s receipt of senior unsecured debt ratings from S&P and
Moody’s (in addition to Initial Borrower’s current senior unsecured debt rating from Fitch), and
(B) a change in such senior unsecured debt ratings.

     “Asset Based Loans” shall mean any revolving loan that is secured by a first priority
security interest in the related Obligor’s accounts receivable, inventory or equipment, and
provides the related Obligor with the option to receive additional borrowings thereunder based on
the value of its eligible accounts receivable, inventory or equipment.

     “Assuming Lender” shall have the meaning set forth in Section 2.2(a).

     “Available Asset Coverage Ratio” shall mean the ratio of (a) the sum of the Initial
Borrower’s and its Consolidated Subsidiaries (i) unencumbered and unrestricted cash and Cash
Equivalents, and (ii) Qualified Available Unpledged Assets to (b) Senior Unsecured Debt of the
Initial Borrower and its Consolidated Subsidiaries.

     “Available Unpledged Assets” means an amount equal to (without duplication) the sum of
the Book Value (or in the case of Real Property Owned the Fair Market Value) of each of the
following unencumbered assets:

               (a) 100% of Investment Loans that are a Risk Rated 1 Investment Loan to a Risk
Rated 5 Investment Loan; plus

               (b) 50% of Investment Loans which are Real Estate Loans or Asset Based Loans
that are a Risk Rated 6 Investment Loan; plus

               (c) 100% of CapitalSource Securitization Notes; plus

               (d) 70% of Investment Grade rated debt securities excluding securities issued
by the Borrower, any Subsidiary or any Unrestricted Subsidiary; plus

               (e) 80% of Real Property Owned; plus

               (f) 50% of OREO Property; plus

-4-

 

               (g) 50% of Investments in Equity Instruments to entities that are not
Affiliates of any Credit Party; plus

               (h) 50% of the Fannie Mae Servicing Strips.

     “Average Portfolio Charged-Off Ratio” means the percentage equivalent of a fraction
(a) the numerator of which is equal to the sum of the portion of the outstanding balance of all
Investment Loans of the Initial Borrower and its Consolidated Subsidiaries that became Charged-Off
Investment Loans (net of recoveries) during the preceding 12 months, and (b) the denominator of
which is equal to a fraction the numerator of which is the sum of the outstanding balance of all
Investment Loans at the beginning of each of the preceding 12 months, and the denominator of which
is twelve; provided, that, Liquid Real Estate Assets shall not be included in the
calculation of the Average Portfolio Charged-Off Ratio.

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

     “Bank Subsidiary” means a Subsidiary that is a regulated depository institution and is
so designated by the Initial Borrower in writing to the Administrative Agent.

     “Big 4 Accounting Firm” shall mean any of the following: PriceWaterhouseCoopers LLP;
Deloitte & Touche LLP; Ernst & Young LLP; or KPMG LLP.

     “Book Value” means with respect to any asset, the value thereof as the same would be
reflected on a consolidated balance sheet of the Initial Borrower and its Consolidated Subsidiaries
as at such time in accordance with GAAP; provided, that, the Book Value of the
Fannie Mae Servicing Strips shall in no event exceed 5.0 times the gross expected servicing strip
over the next twelve-month period.

     “Borrower” means each of the Initial Borrower and CSF. If at any time there are
Advances Outstanding from both the Initial Borrower and CSF, then the term “Borrower” shall mean
the singular and the collective reference to each or all entities constituting or comprising
Borrower, as the context may require.

     “Borrowing Date” shall mean, in respect of any Loan, the date such Loan is made.

     “Business Day” shall mean a day other than a Saturday, Sunday or other day on which
commercial banks in Charlotte, North Carolina or New York, New York are authorized or required by
law to close; provided, however, that (a) when used in connection with a rate
determination, borrowing or payment in respect of any EURIBOR/LIBOR Rate Loan, LMIR Loan or
Alternate Base Rate Loan denominated in an Alternative Currency, the term “Business Day” shall also
exclude any day on which banks in London, England are not open for dealings in deposits of Dollars
or Alternative Currencies, as applicable, in the London interbank market; and (b) when used in
connection with a rate determination, borrowing or payment in any Alternative Currency, the term
“Business Day” shall also exclude any day on which banks are not open for foreign exchange dealings
between banks in the exchange of the home country of such Alternative Currency.

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     “Capital Expenditures” means for any period the sum of all capital expenditures
incurred during such period by the Initial Borrower and its Consolidated Subsidiaries, as
determined in accordance with GAAP.

     “Capital Lease” shall mean any lease of property, real or personal, the obligations
with respect to which are required to be capitalized on a balance sheet of the lessee in accordance
with GAAP.

     “CapitalSource Securitization Notes” shall mean any security or note rated at least
“BB-” by S&P and “Ba3” by Moody’s and/or “BB-” by Fitch issued by CapitalSource Finance LLC, CSE
Mortgage LLC or any subsidiary thereof, pursuant to a Securitization Transaction and which has been
retained by such issuer or affiliate thereof.

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

     “Cash Equivalents” means: (i) marketable securities (A) issued or directly and
unconditionally guaranteed as to interest and principal by the United States government or (B)
issued by any agency of the United States government the obligations of which are backed by the
full faith and credit of the United States, in each case maturing within one (1) year after
acquisition thereof; (ii) marketable direct obligations issued by any state of the United States or
any political subdivision of any such state or any public instrumentality thereof, in each case
maturing within one year after acquisition thereof and having, at the time of acquisition, a rating
of at least A-1 from S&P or at least P-1 from Moody’s; (iii) commercial paper maturing no more than
one year from the date of acquisition and, at the time of acquisition, having a rating of at least
A-1 from S&P or at least P-1 from Moody’s; (iv) certificates of deposit or bankers’ acceptances
issued or accepted by any Lender or by any commercial bank organized under the laws of the United
States or any state thereof or the District of Columbia that is (A) “adequately capitalized” (as
defined in the regulations of its primary Federal banking regulator) and (B) has Tier 1 capital (as
defined in such regulations) of not less than $250,000,000, in each case maturing within one year
after issuance or acceptance thereof; and (v) shares of any money market mutual or similar funds
that (A) has substantially all of its assets invested continuously in the types of investments
referred to in clauses (i) through (iv) above, (B) has net assets of not less than $500,000,000 and
(C) has the highest rating obtainable from either S&P or Moody’s.

     “CERCLA” means the Comprehensive Environmental Response Compensation and Liability
Act, 42 U.S.C. §9601 et seq. and its implementing regulations and amendments.

-6-

 

     “CERCLIS” means the Comprehensive Environmental Response Compensation and Liability
Information System established pursuant to CERCLA.

     “Change of Control” shall mean (a) any Person or two or more Persons acting in concert
shall have acquired “beneficial ownership,” directly or indirectly, of, or shall have acquired by
contract or otherwise, or shall have entered into a contract or arrangement that, upon
consummation, will result in its or their acquisition of, or control over, Voting Stock of the
Initial Borrower (or other securities convertible into such Voting Stock) representing 33-1/3% or
more of the combined voting power of all Voting Stock of the Initial Borrower, (b) the replacement
of greater than 50% of the Board of Directors of any Credit Party over a two year period from the
directors who constituted the Board of Directors at the beginning of such period, and such
replacements shall not have been approved or nominated by a vote of at least a majority of the
Board of Directors of such Credit Party then still in office who were either members of such Board
of Directors at the beginning of such period or whose election as a member of such Board of
Directors was previously so approved, (c) the sale, lease, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series of related
transactions, of greater than 50% of the value of the assets of the Initial Borrower and its
Subsidiaries taken as a whole to any “person” (as such term is used in Sections 13(d) and 14(d) of
the Exchange Act), (d) the adoption by the stockholders of a Credit Party of a plan or proposal for
the liquidation or dissolution of such Credit Party, or (e) at any time prior to the satisfaction
of the Release Condition, the Initial Borrower shall fail to own, directly or indirectly, all of
the issued and outstanding Capital Stock of CSF. Notwithstanding the foregoing, solely for the
purpose of determining whether there has been a Change of Control pursuant to clause (a) above, any
purchase by one or more Excluded Persons which increases any of such Excluded Persons’ direct or
indirect ownership interest (whether individually or in the aggregate) in the Voting Stock of the
Initial Borrower shall not constitute a Change of Control even if the amount of Voting Stock
acquired or controlled by such Excluded Person(s) exceeds (whether individually or in the
aggregate) 33-1/3% of the combined voting power of all Voting Stock of the Initial Borrower;
provided, however, that for so long as any of such Excluded Persons’ direct or
indirect ownership interest in the Voting Stock of the Initial Borrower exceeds (individually or in
the aggregate) 33-1/3% of the combined voting power of all Voting Stock of the Initial Borrower,
the initiation by the Initial Borrower of any action intended to terminate or having the effect of
terminating the registration of its securities under Section 12(g) of the Exchange Act or intended
to suspend or having the effect of suspending its obligation to file reports with the U.S.
Securities and Exchange Commission under Sections 13 and 15(d) of the Exchange Act, shall
constitute a Change of Control. “Excluded Person” shall mean each of John Delaney, Jason
Fish, Farallon Capital Management, LLC, and Madison Dearborn Partners, LLC. As used herein,
“beneficial ownership” shall have the meaning provided in Rule 13d-3 of the Securities and Exchange
Commission under the Exchange Act.

     “Charged-Off Investment Loan” means any Investment Loan of the Initial Borrower and
its Consolidated Subsidiaries (or portion thereof deemed to be “charged-off”) as to which any of
the following first occurs: (a) the Initial Borrower has determined in accordance with its Credit
and Collection Policy that such asset is not collectible, or adequate collateral or other source of
payment does not exist to repay the principal due, (b) (i) any principal or interest payments
remain unpaid for at least ninety (90) days from the original due date for such payment, in which
case 50% of the asset balance shall be deemed to be “charged-off”, and (ii) any principal or
interest payments (other than in respect of default rate interest) remain unpaid for at least 180

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days from the original due date for such payment, in which case 100% of the asset balance
shall be deemed to be “charged-off”, or (c) the Obligor is subject to an Insolvency Event, in which
case not less than 50% of the asset balance shall be deemed to be “charged-off”.

     “Closing Date” shall mean the date of this Credit Agreement.

     “Code” means the Internal Revenue Code of 1986, as amended, or any successor Federal
tax code. Any reference to any provision of the Code shall also be deemed to be a reference to any
successor provision or provisions thereof.

     “Commitment” shall mean, with respect to each Lender, the commitment of such Lender to
make Revolving Loans in an aggregate principal amount at any time outstanding up to an amount equal
to such Lender’s Commitment Percentage of the Committed Amount as specified in Schedule
2.1(a) or in the Register, as such amount may be reduced or increased from time to time in
accordance with the provisions hereof.

     “Commitment Fee” shall have the meaning set forth in Section 2.5(a).

     “Commitment Increase” shall have the meaning set forth in Section 2.2(a).

     “Commitment Increase Date” shall have the meaning set forth in Section 2.2(a).

     “Commitment Percentage” shall mean, for each Lender, the percentage identified as its
Commitment Percentage on Schedule 2.1(a) or in the Register, as such percentage may be
modified in connection with any assignment made in accordance with the provisions of Section
9.6(c), or any Commitment Increase made in accordance with the provisions of Section
2.2.

     “Commitment Termination Date” shall mean March 13, 2009, as it may be extended
pursuant to Section 2.20 hereto.

     “Commitment Transfer Supplement” shall mean a Commitment Transfer Supplement, in
substantially the form of Exhibit J.

     “Committed Amount” shall have the meaning set forth in Section 2.1(a).

     “Commonly Controlled Entity” shall mean an entity, whether or not incorporated, which
is under common control with the Borrower within the meaning of Section 4001 of ERISA or is part of
a group which includes the Borrower and which is treated as a single employer under Section 414 of
the Code.

     “Compliance Certificate” shall have the meaning set forth in Section 5.2(a).

     “Consolidated Debt” shall mean as of the date of any determination thereof, the
aggregate unpaid amount of all Debt of the Initial Borrower and its Consolidated Subsidiaries
determined on a consolidated basis in accordance with GAAP.

     “Consolidated EBIT” means for a given period of the Initial Borrower and its
Consolidated Subsidiaries determined on a consolidated basis in accordance with GAAP, (a) Net

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Income, plus (b) Interest Expense, plus (c) income tax payments minus
(d) gains (and plus the losses) from discontinued operations.

     “Consolidated Subsidiary” means at any date any Subsidiary the accounts of which, in
accordance with GAAP, would be consolidated with those of the Initial Borrower in its consolidated
and consolidating financial statements as of such date.

     “Consolidated Tangible Net Worth” means, as of any date of determination, the assets
less the liabilities of the Initial Borrower and its Consolidated Subsidiaries, less intangible
assets (including goodwill), less loans or advances to stockholders, directors, officers or
employees, all determined in accordance with GAAP.

     “Contractual Obligation” shall mean, as to any Person, any provision of any security
issued by such Person or of any agreement, instrument or undertaking to which such Person is a
party or by which it or any of its property is bound.

     “Controlled Group” means all members of a controlled group of corporations and all
trades or businesses (whether or not incorporated) under common control which, together with the
Borrower, are treated as a single employer under Section 414 of the Code.

     “Credit and Collection Policy” means the written credit policies and procedures manual
of the Initial Borrower (which policies shall include without limitation policies on loss reserves,
due diligence format, underwriting parameters and credit approval procedures) in the form provided
to the Lenders prior to the Closing Date and attached hereto as Schedule 4.26, as it may be
amended or supplemented from time to time in accordance with Section 5.30.

     “Credit Documents” shall mean this Credit Agreement, each of the Notes, the Letters of
Credit, the LOC Documents, the Guaranty Agreement and all other agreements, documents, certificates
and instruments delivered to the Administrative Agent or any Lender by any Credit Party in
connection therewith (other than any agreement, document, certificate or instrument related to a
Hedging Agreement).

     “Credit Party” shall mean any of the Borrower or Guarantors, and “Credit
Parties” shall mean the Borrower and Guarantors collectively.

     “Credit Party Obligations” means all loans, advances, debts, liabilities and
obligations, for monetary amounts owing by any Credit Party to the Lenders (including the Issuing
Lender) and Administrative Agent, whenever arising, or any of their assigns, as the case may be,
whether due or to become due, matured or unmatured, liquidated or unliquidated, contingent or
non-contingent, and all covenants and duties regarding such amounts, of any kind or nature, present
or future, arising under or in respect of any of this Credit Agreement, the Letters of Credit, the
Notes, any fee letter (including, without limitation, any commitment letter) delivered in
connection with this Credit Agreement or any Credit Document, as amended or supplemented from time
to time, whether or not evidenced by any separate note, agreement or other instrument. The term
Credit Party Obligations includes, without limitation, all Advances Outstanding, interest
(including interest that accrues after the commencement against any Credit Party of any action
under the Bankruptcy Code), breakage costs, fees, including, without limitation, any and all
arrangement fees, loan fees, facility fees, and any and all other fees, expenses, costs,

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indemnities, or other sums (including reasonable attorney costs) chargeable to a Credit Party
under any of the Credit Documents.

     “CSI” CapitalSource International Inc., a Delaware corporation.

     “Currency” shall mean Dollars or any Foreign Currency.

     “Customary Non-Recourse Exclusions” shall mean usual and customary exceptions and
non-recourse carve-outs in non-recourse secured debt financings of real property including, without
limitation, exceptions by reason of (i) any fraudulent misrepresentation made by the obligor in or
pursuant to any document evidencing any Debt, (ii) any unlawful act on the part of the obligor in
respect of the Debt, (iii) any waste or misappropriation of funds by the obligor in contravention
of the provisions of the Debt, (iv) customary environmental indemnities associated with the Real
Property securing the non-recourse debt financing, (v) voluntary bankruptcy of the obligor under
the non-recourse debt financing or (vi) failure of the obligor to comply with applicable special
purpose entity covenants, but excluding in each case exceptions by reason of (a) non-payment of the
Debt (other than the first debt service payment thereon) incurred in such non-recourse financing,
or (b) the failure of the relevant obligor to comply with financial covenants or similar financial
requirements. For the avoidance of doubt, in the event the Borrower or any of its Subsidiaries
shall become liable for one of the Customary Non-Recourse Exclusions, the guaranty will be included
in Senior Unsecured Debt.

     “Debt” of any Person means at any date, without duplication (a) all obligations of
such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (c) all obligations of such Person to pay the deferred purchase
price of property or services, except trade accounts payable arising in the ordinary course of
business, (d) all obligations of such Person as lessee under Capital Leases, (e) all obligations of
such Person to reimburse any bank or other Person in respect of amounts payable under a banker’s
acceptance, (f) all obligations of such Person to redeem preferred stock of such Person (in the
event such Person is a corporation), (g) all obligations (absolute or contingent) of such Person to
reimburse any bank or other Person in respect of amounts which are available to be drawn or have
been drawn under a letter of credit or similar instrument, (h) all Debt of others secured by a Lien
on any asset of such Person, whether or not such Debt is assumed by such Person, (i) all Debt of
others guaranteed by such Person, (j) all obligations, direct or indirect (absolute or contingent)
of such Person to repurchase property or assets sold or otherwise transferred by such Persons, (k)
all indebtedness, obligations or liabilities of that Person in respect of derivatives, determined
as of such date on a net mark-to-market basis in accordance with customary market practice, and (l)
the principal portion of all obligations of such Person under any synthetic lease, tax retention
operating lease, off-balance sheet loan or similar off-balance sheet financing product where such
transaction in each case (i) is considered borrowed money indebtedness for tax purposes, and (ii)
is classified as an operating lease under GAAP.

     “Default” shall mean any of the events specified in Section 7.1, whether or
not any requirement for the giving of notice or the lapse of time, or both, or any other condition,
has been satisfied.

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     “Defaulting Lender” shall mean, at any time, any Lender that, at such time (a) has
failed to make a Loan required pursuant to the term of this Credit Agreement, including the funding
of a Participation Interest in accordance with the terms hereof and such default remains uncured,
(b) has failed to pay to the Administrative Agent or any Lender an amount owed by such Lender
pursuant to the terms of this Credit Agreement and such default remains uncured, or (c) has been
deemed insolvent or has become subject to a bankruptcy or insolvency proceeding or to a receiver,
trustee or similar official.

     “Dollar Equivalent” shall mean, on any day, the spot selling rate at which the
Administrative Agent offers to sell such Foreign Currency for Dollars in the London foreign
exchange market at approximately 11:00 a.m., London time for delivery two (2) Business Days later.

     “Dollars” and “$” shall mean dollars in lawful currency of the United States
of America.

     “Domestic Lending Office” shall mean, initially, the office of each Lender designated
as such Lender’s Domestic Lending Office shown on Schedule 9.2; and thereafter, such other
office of such Lender as such Lender may from time to time specify to the Administrative Agent and
the Initial Borrower as the office of such Lender at which Alternate Base Rate Loans of such Lender
are to be made.

     “Domestic Subsidiary” shall mean any Subsidiary that is organized and existing under
the laws of the United States or any state or commonwealth thereof or under the laws of the
District of Columbia.

     “Environmental Authorizations” means all licenses, permits, orders, approvals,
notices, registrations or other legal prerequisites for conducting the business of the Credit
Parties or their Subsidiaries required by any Environmental Requirement.

     “Environmental Laws” shall mean any and all applicable foreign, federal, state, local
or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements
of any Governmental Authority or other requirement of Applicable Law (including common law)
regulating, relating to or imposing liability or standards of conduct concerning protection of
human health or the environment, as now or may at any time be in effect during the term of this
Credit Agreement.

     “Environmental Liability” means any liability, whether accrued, contingent or
otherwise, arising from and in any way associated with any Environmental Requirements.

     “Environmental Requirements” means any legal requirement relating to health, safety or
the environment and applicable to the Credit Parties, any Subsidiary of the Credit Parties or the
Properties, including but not limited to any such requirement under CERCLA or similar state
legislation and all federal, state and local laws, ordinances, regulations, orders, writs, decrees
and common law.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, or any successor law. Any reference to any provision of ERISA shall also be deemed
to be a reference to any successor provision or provisions thereof.

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     “EURIBOR” means, in relation to any Loan to be advanced to, or owing by, any Borrower
hereunder in Euro and any Interest Period relating thereto:

     (a) The percentage rate per annum equal to the offered quotation which appears on the
Screen for a duration equal to or comparable to the duration of such Interest Period at or about
11.00 a.m. (Brussels time) two Business Days prior to such Interest Period; or

     (b) If no quotation for Euro for the relevant Interest Period is displayed and the Agent has
not selected an alternative service on which a quotation is displayed, the rate offered by the
principal London office of the Administrative Agent to leading banks in immediately available funds
in the European interbank market at approximately 11:00 a.m., Brussels time two Business Days prior
to such Interest Period.

     “EURIBOR/LIBOR Lending Office” shall mean, initially, the office of each Lender
designated as such Lender’s EURIBOR/LIBOR Lending Office shown on Schedule 9.2; and
thereafter, such other office of such Lender as such Lender may from time to time specify to the
Administrative Agent and the Initial Borrower as the office of such Lender at which the
EURIBOR/LIBOR Rate Loans of such Lender are to be made.

     “EURIBOR/LIBOR Rate Loan” shall mean: (a) in the case of Loans denominated in any
Currency (other than Euro), any such Loan during any period in which it bears interest at a rate
based upon the LIBOR Rate; and (b) in the case of Loans denominated in Euro, any such Loan during
any period in which it bears interest at a rate based upon the EURIBOR.

     “Eurocurrency Reserve Percentage” shall mean for any day, the percentage (expressed as
a decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect
for such day as prescribed by the Federal Reserve Board (or any successor) for determining the
maximum reserve requirement (including without limitation any basic, supplemental or emergency
reserves) in respect of Eurocurrency liabilities, as defined in Regulation D of such Board as in
effect from time to time, or any similar category of liabilities for a member bank of the Federal
Reserve System in New York City.

     “Euro” shall mean the lawful currency of the Participating Member States.

     “Event of Default” shall mean any of the events specified in Section 7.1;
provided, however, that any requirement for the giving of notice or the lapse of
time, or both, or any other condition, has been satisfied.

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

     “Existing Letters of Credit” shall have the meaning set forth in Section
2.3(i).

     “Extension of Credit” shall mean, as to any Lender, the making of a Loan by such
Lender or the issuance of, or participation in, a Letter of Credit by such Lender.

     “Facility Extension Request” shall have the meaning set forth in Section 2.20.

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     “Fair Market Value” shall mean with respect to Real Property Owned the “as is”
appraised value of the Real Property Owned, provided that in no event shall the
Fair Market Value of Real Property Owned be greater than 1.2 times the purchase price of the Real
Property Owned.

     “Fannie Mae DUS Program” shall mean the Fannie Mae Delegated Underwriting and
Servicing Program for the servicing of multifamily mortgage loans which back mortgage-backed
securities.

     “Fannie Mae Servicing Strips” shall mean the unencumbered servicing strips of loans
(excluding loans where the payment of principal or interest is more than sixty (60) days past due)
originated and serviced by the Initial Borrower or any Consolidated Subsidiary under the Fannie Mae
DUS Program.

     “Federal Funds Effective Rate” shall have the meaning set forth in the definition of
“Alternate Base Rate”.

     “First Tier Domestic Subsidiary” shall mean a Domestic Subsidiary whose Capital Stock
is directly owned by the Initial Borrower.

     “First Tier Foreign Subsidiary” shall mean a Subsidiary that is not a Domestic
Subsidiary and whose Capital Stock is directly owned by the Initial Borrower.

     “Fiscal Month” means any fiscal month of the Initial Borrower.

     “Fiscal Quarter” means any fiscal quarter of the Initial Borrower.

     “Fiscal Year” means the fiscal year of the Initial Borrower for accounting purposes
ending on December 31 of each calendar year and when preceded or followed by the designation of a
calendar year (e.g. 2006 Fiscal Year means the Fiscal Year of the Initial Borrower ending on
December 31 of such designated calendar year).

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

     “Foreign Currency” shall mean Euro, Pound Sterling and any other currency of a
Permitted Country other than Dollars.

     “Foreign Currency Equivalent” shall mean, on any day, with respect to any amount in
Dollars, the amount of Foreign Currency that would be required to purchase such amount of Dollars
on such day, based on the rate appearing on the relevant display on the Reuters Monitor Money Rate
Service for the sale of Dollars for such Foreign Currency in the London foreign exchange market at
approximately 11:00 a.m. London time for delivery two (2) Business Days later, or, if not
available, the spot selling rate at which the Administrative Agent offers to sell Dollars for such
Foreign Currency in the London foreign exchange market at approximately 11:00 a.m., London time for
delivery two (2) Business Days later.

     “Fronting Fee” shall have the meaning set forth in Section 2.5(b).

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     “GAAP” shall mean, except as provided in Section 1.3, generally accepted
accounting principles in effect as of any date of determination in the United States of America
applied on a consistent basis.

     “Government Acts” shall have the meaning set forth in Section 2.19.

     “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any
entity exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government, any court or arbitrator and any accounting board or authority (whether or
not a part of the government) which is responsible for the establishment or interpretation of
national or international accounting principles.

     “Guarantor” shall have the meaning set forth in the first paragraph of this Credit
Agreement, and shall also include CSI so long as the Guaranty Agreement is in effect;
provided, however, that for purposes of Article X the term “Guarantor”
shall not include CSI.

     “Guaranty” shall mean the guaranty of the Guarantors set forth in Article X.

     “Guaranty Agreement” shall mean that certain Guaranty Agreement, dated as of December
20, 2006, made by and among the Initial Borrower, CSI and the Agent for the benefit each of the
Lenders.

     “Hazardous Materials” includes, without limitation, (a) solid or hazardous waste, as
defined in the Resource Conservation and Recovery Act of 1980, 42 U.S.C. §6901 et seq. and its
implementing regulations and amendments, or in any applicable state or local law or regulation, (b)
any “hazardous substance”, “pollutant” or “contaminant”, as defined in CERCLA, or in any applicable
state or local law or regulation, (c) gasoline, or any other petroleum product or by-product,
including crude oil or any fraction thereof, (d) toxic substances, as defined in the Toxic
Substances Control Act of 1976, or in any applicable state or local law or regulation, and (e)
insecticides, fungicides, or rodenticides, as defined in the Federal Insecticide, Fungicide, and
Rodenticide Act of 1975, or in any applicable state or local law or regulation, as each such act,
statute or regulation may be amended from time to time.

     “Hedging Agreement” shall mean, with respect to any Person, any agreement entered into
to protect such Person against fluctuations in interest rates, or currency or raw materials values,
including, without limitation, any interest rate swap, cap or collar agreement or similar
arrangement between such Person and one or more counterparties, commodity purchase or option
agreements or other interest or exchange rate hedging agreements.

     “Increasing Lender” shall have the meaning set forth in Section 2.2(a).

     “Initial Borrower” means CapitalSource Inc., a Delaware corporation.

     “Insolvency” shall mean, with respect to any Multiemployer Plan, the condition that
such Plan is insolvent within the meaning of such term as used in Section 4245 of ERISA.

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

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

     “Insolvency Proceeding” means any case, action or proceeding before any court or
Governmental Authority relating to an Insolvency Event.

     “Interest Expense” means, with respect to a Person and for any period, the total
consolidated interest expense (including, without limitation, capitalized interest expense and
interest expense attributable to Capitalized Lease Obligations) of such Person.

     “Interest Payment Date” shall mean (a) as to any Alternate Base Rate Loan or LMIR
Loan, the first day of each April, July, October and January and on the Commitment Termination
Date, (b) as to any EURIBOR/LIBOR Rate Loan having an Interest Period of three (3) months or less,
the last day of such Interest Period, and (c) as to any EURIBOR/LIBOR Rate Loan having an Interest
Period longer than three (3) months, (i) each three (3) month anniversary following the first day
of such Interest Period, and (ii) the last day of such Interest Period.

     “Interest Period” shall mean, with respect to any EURIBOR/LIBOR Rate Loan,

          (a) initially, the period commencing on the Borrowing Date or conversion date, as the
case may be, with respect to such EURIBOR/LIBOR Rate Loan and ending one (1), two (2), three
(3) or six (6) months thereafter, as selected by the Borrower in the Notice of Borrowing or
Notice of Conversion given with respect thereto; and

          (b) thereafter, each period commencing on the last day of the immediately preceding
Interest Period applicable to such EURIBOR/LIBOR Rate Loan and ending one (1), two (2),
three (3) or six (6) months thereafter, as selected by the Borrower by irrevocable notice to
the Administrative Agent not less than three (3) Business Days prior

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to the last day of the then current Interest Period with respect thereto;
provided that the foregoing provisions are subject to the following:

               (i) if any Interest Period pertaining to a EURIBOR/LIBOR Rate Loan would otherwise end
on a day that is not a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless the result of such extension would be to carry such Interest
Period into another calendar month in which event such Interest Period shall end on the
immediately preceding Business Day;

               (ii) any Interest Period pertaining to a EURIBOR/LIBOR Rate Loan that begins on the
last Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall end on the
last Business Day of the relevant calendar month;

               (iii) if the Borrower shall fail to give notice as provided above, the Borrower shall
be deemed to have selected an Alternate Base Rate Loan to replace the affected EURIBOR/LIBOR
Rate Loan;

               (iv) any Interest Period in respect of any Loan that would otherwise extend beyond the
Commitment Termination Date shall end on the Commitment Termination Date; and

               (v) no more than ten EURIBOR/LIBOR Rate Loans may be in effect at any time. For
purposes hereof, EURIBOR/LIBOR Rate Loans with different Interest Periods shall be
considered as separate EURIBOR/LIBOR Rate Loans, even if they shall begin on the same date,
although borrowings, extensions and conversions may, in accordance with the provisions
hereof, be combined at the end of existing Interest Periods to constitute a new
EURIBOR/LIBOR Rate Loan with a single Interest Period.

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

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

     “Investment Grade” shall mean an S&P rating of “BBB-” or better, a Fitch rating of
“BBB-” or better, or a Moody’s rating of “Baa3” or better.

     “Investment Loan” means any senior or subordinated loan (including letters of credit
issued under such loan) or lease (a) arising from the extension of credit to an Obligor by the
Initial Borrower or a Consolidated Subsidiary (excluding an Unrestricted Subsidiary) in the
ordinary course of business, (b) originated in accordance with the policies and procedures set
forth in the Credit and Collection Policy, and (c) good and marketable title to which is owned by
Initial Borrower or a Consolidated Subsidiary.

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     “Investments in Equity Instruments” means each Investment, that is made in accordance
with the policies and procedures set forth in the Credit and Collection Policy, owned by the
Initial Borrower or any Consolidated Subsidiary (excluding an Unrestricted Subsidiary) in (a)
common stock, partnership interests or membership interests of any Person and that is classified as
“Common Stock,” “Partnership Units” or “Membership Units” on the consolidated schedule of
investments of the Initial Borrower for the then most recently ended Fiscal Quarter, (b) preferred
stock (other than redeemable preferred stock) of any Person and that is classified as “Preferred
Stock’ on the consolidated schedule of investments of the Initial Borrower for the then most
recently ended Fiscal Quarter, (c) redeemable preferred stock of any Person and that is classified
as “Redeemable Preferred Stock” on the consolidated schedule of investments of the Initial Borrower
for the then most recently ended Fiscal Quarter, and (d) warrants to purchase common stock,
partnership interests or membership interests of any Person and that is classified as “Common Stock
Warrants,” “Partnership Unit Warrants” or “Membership Unit Warrants” on the consolidated schedule
of investments of the Initial Borrower for the then most recently ended Fiscal Quarter.

     “Issuing Lender” shall mean Bank of America, N.A., Wachovia and any other consenting
Lender in their capacity as such designated by the Initial Borrower with the consent of the
Administrative Agent.

     “Issuing Lender Fees” shall have the meaning set forth in Section 2.5(c).

     “Joinder Agreement’ shall mean a Joinder Agreement in substantially the form of
Exhibit N executed and delivered by an Additional Credit Party in accordance with the
provisions of Section 5.9.

     “Judgment Currency” shall have the meaning set forth in Section 9.19(b).

     “Lender” shall have the meaning set forth in the first paragraph of this Credit
Agreement.

     “Letters of Credit” shall mean any letter of credit issued by the Issuing Lender
pursuant to the terms hereof as such letter of credit may be amended, modified, extended, renewed
or replaced from time to time.

     “Letter of Credit Fee” shall have the meaning set forth in Section 2.5(b).

     “LIBOR” means, in relation to any Loan other than an Alternate Base Rate Loan, to be
advanced to, or owing by, any Borrower hereunder in any Currency (other than Euro) and any Interest
Period relating thereto the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of
1%) appearing on the Screen as the London interbank offered rate for deposits in such Currency at
approximately 11:00 A.M. (London time) two (2) Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period. If, for any reason, such rate is
not available with respect to amounts denominated in such Currency on the Screen, then “LIBOR”
shall mean (with respect to amounts denominated in such Currency) the rate per annum at which
deposits in such Currency in an amount comparable to the Loans then requested are being offered to
leading banks at approximately 11:00 A.M. London time, two (2) Business Days prior to the
commencement of the applicable Interest Period for settlement in immediately

-17-

 

available funds by leading banks in the London interbank market for a period equal to the
Interest Period selected, as determined by the Administrative Agent.

     “LIBOR Market Index Rate” means, for any day, the one-month LIBOR Rate for Dollar
deposits as reported on the Telerate Service, Telerate Page 3750 as of 11:00 A.M., London time, on
such day, or if such day is not a Business Day, then the immediately preceding Business Day (or if
not so reported, then as determined by the Swingline Lender from another recognized source for
interbank quotation).

     “LIBOR Rate” for any Loan other than an Alternate Base Rate Loan, in any Currency
(other than Euro), shall mean a rate per annum (rounded upwards, if necessary, to the next higher
1/100th of 1%) determined by the Administrative Agent pursuant to the following formula:

	 	 	 	 	 
	LIBOR Rate =
	 	LIBOR 

	 	 
	 
	 	1.00 — Eurocurrency Reserve Percentage
	 	 

     “Lien” means, with respect to any asset, any mortgage, deed to secure debt, deed of
trust, lien, pledge, charge, security interest, security title, preferential arrangement
constituting a security interest or encumbrance or encumbrance of any kind in respect of such asset
to secure or assure payment of a Debt or a Guarantee, whether by consensual agreement or by
operation of statute or other law, or by any agreement, contingent or otherwise, to provide any of
the foregoing. An asset shall be deemed to be subject to a Lien if such asset is held by a special
purpose entity (including any SPE Subsidiary) and the equity interests of such entity are
themselves subject to a Lien. For the purposes of this Credit Agreement, a Person shall be deemed
to own subject to a Lien any asset which it has acquired or holds subject to the interest of a
vendor or lessor under any conditional sale agreement, capital lease or other title retention
agreement relating to such asset.

     “LMIR Loan” means a Swingline Loan, or portion thereof, during any period in which it
bears interest at a rate based upon the LIBOR Market Index Rate.

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

     “Loan” shall mean a Revolving Loan or a Swingline Loan, as appropriate.

     “LOC Commitment” shall mean the commitment of the Issuing Lender to issue Letters of
Credit and with respect to each Lender that has a Commitment, the commitment of such Lender to
purchase participation interests in the Letters of Credit in an amount equal to such Lender’s
Commitment Percentage of LOC Committed Amount, as such amount may be reduced from time to time in
accordance with the provisions hereof.

-18-

 

     “LOC Committed Amount” shall have the meaning set forth in Section 2.3(a).

     “LOC Documents” shall mean, with respect to any Letter of Credit, such Letter of
Credit, any amendments thereto, any documents delivered in connection therewith, any application
therefor, and any agreements, instruments, guarantees or other documents (whether general in
application or applicable only to such Letter of Credit) governing or providing for (a) the rights
and obligations of the parties concerned, or (b) any collateral security for such obligations.

     “LOC Obligations” shall mean, at any time, the sum of (a) the maximum amount which is,
or at any time thereafter may become, available to be drawn under Letters of Credit then
outstanding, assuming compliance with all requirements for drawings referred to in such Letters of
Credit, plus (b) the aggregate amount of all drawings under Letters of Credit honored by
the Issuing Lender but not theretofore reimbursed.

     “Mandatory Cost Rate” shall mean the percentage rate per annum calculated in
accordance with and in the manner set forth in Exhibit O.

     “Mandatory LOC Borrowing” shall have the meaning set forth in Section 2.3(e).

     “Mandatory Swingline Borrowing” shall have the meaning set forth in Section
2.4(b)(ii).

     “Margin Stock” means “margin stock” as defined in Regulations T, U or X of the Board
of Governors of the Federal Reserve System, as in effect from time to time, together with all
official rulings and interpretations issued thereunder.

     “Material Adverse Change” means the occurrence of a Material Adverse Effect.

     “Material Adverse Effect” means with respect to any event or circumstance, a material
adverse effect on (a) the business, financial condition, operations, performance or properties of
the Borrower and its Subsidiaries, taken as a whole, (b) the validity, enforceability or
collectibility of this Credit Agreement or any other Credit Document, (c) the rights and remedies
of the Administrative Agent or any Lender under this Credit Agreement or any Credit Document, or
(d) the ability of the Borrower and its Subsidiaries, taken as a whole, to perform its obligations
under this Credit Agreement or any other Credit Document.

     “Material Contract” shall mean (a) any contract or other agreement of the Initial
Borrower or any of its Subsidiaries listed by the Initial Borrower as a “material contract” in its
public filings with the SEC, and (b) any other written contract, agreement, permit or license, of
the Borrower or any of its Subsidiaries the failure to comply with which could reasonably be
expected to have a Material Adverse Effect.

     “Monthly Report” has the meaning set forth in Section 5.2(b).

     “Moody’s” means Moody’s Investors Service, Inc., or any successor thereto.

     “Multiemployer Plan” shall have the meaning set forth in Section 4001(a)(3) of ERISA.

-19-

 

     “National Currency” shall mean the currency, other than Euro, of a member state of the
European Union.

     “Net Income” means, as applied to any Person for any period, the aggregate amount of
net income of such Person, after taxes, for such period, as determined in accordance with GAAP.

     “Net Proceeds of Capital Stock/Conversion of Debt” means any and all proceeds (whether
cash or non-cash) or other consideration received by the Initial Borrower and its Consolidated
Subsidiaries, on a consolidated basis, in respect of the issuance of Capital Stock to a Person
other than the Initial Borrower (including, without limitation, the aggregate amount of any and all
Debt converted into Capital Stock), after deducting therefrom all reasonable and customary costs
and expenses incurred by the Initial Borrower and such Consolidated Subsidiary in connection with
the issuance of such Capital Stock in each case to the extent classified as equity on the
consolidated balance sheet of the Initial Borrower and its Consolidated Subsidiaries.

     “Note” or “Notes” shall mean the Revolving Notes, and/or the Swingline Note,
collectively, separately or individually, as appropriate.

     “Notice of Borrowing” shall mean a request for a Revolving Loan borrowing pursuant to
Section 2.1(b)(i).

     “Notice of Conversion” shall mean the written notice of extension or conversion as
referenced and defined in Section 2.10(a).

     “Notice of Swingline Borrowing” shall mean a request for a Swingline Loan borrowing
pursuant to Section 2.4(b)(i).

     “Obligor” means with respect to any Investment, the Person or Persons obligated to
make payments pursuant to such Investment or in the case of Investments in Equity, the issuer of
such equity, including any guarantor thereof.

     “OFAC” shall mean the U.S. Department of the Treasury’s Office of Foreign Assets
Control.

     “OREO Property” shall mean real property, securing an Investment, that has been
acquired by the Initial Borrower or an Affiliate of the Initial Borrower through foreclosure or a
deed in lieu of foreclosure.

     “Other Parties” shall have the meaning set forth in Section 10.7(c).

     “Participant” shall have the meaning set forth in Section 9.6(b).

     “Participating Member State” shall mean any member state of the European Union that
adopts or has adopted Euro as its lawful currency in accordance with legislation of the European
Union relating to the European Economic and Monetary Union.

-20-

 

     “Participation Interest” shall mean a participation interest purchased by (a) a Lender
in LOC Obligations as provided in Section 2.3(c), or (b) a participation interest purchased
by a Lender in Swingline Loans as provided in Section 2.4.

     “PATRIOT Act” shall have the meaning set forth in Section 9.18.

     “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any
or all of its functions under ERISA.

     “Permitted Country” means each of Australia, Austria, Belgium, Canada, China, Denmark,
Finland, France, Germany, Hong Kong, Ireland, Israel, Japan, Luxembourg, Portugal, Spain, Sweden,
Switzerland, The Netherlands, The United Kingdom or the United States of America.

     “Permitted Lien” means with respect to the interest of the Borrower or any Subsidiary
in the collateral related to any Investment, any of the following as to which no enforcement,
collection, execution, levy or foreclosure proceedings shall have been commenced: (a)
materialmen’s, warehousemen’s, mechanics’ and other liens arising by operation of law in the
ordinary course of business for sums not due or sums that are being contested in good faith; (b)
Liens for federal, state, municipal and other local taxes if such taxes are not at the time due and
payable or if the Obligor shall currently be contesting the validity thereof in good faith by
appropriate proceedings; (c) Liens held by senior lenders with respect to Investments in
subordinated debt; and (d) Liens in favor of a collateral agent on behalf of all noteholders of the
related Obligor.

     “Permitted Lines of Business” shall mean the line or lines of business conducted by
the Initial Borrower and its Subsidiaries on the Closing Date (including, among other things, the
lines of business contemplated for a Bank Subsidiary, investment management business, financial
services business, the loan servicing business, commercial lending business, real estate investment
business and mortgage lending business).

     “Person” means an individual, a corporation, a limited liability company, a
partnership (including without limitation, a joint venture), an unincorporated association, a trust
or any other entity or organization, including, but not limited to, a government or political
subdivision or an agency or instrumentality thereof.

     “Plan” means at any time an employee pension benefit plan which is covered by Title IV
of ERISA or subject to the minimum funding standards under Section 412 of the Code and is either
(a) maintained by a member of the Controlled Group for employees of any member of the Controlled
Group, or (b) maintained pursuant to a collective bargaining agreement or any other arrangement
under which more than one employer makes contributions and to which a member of the Controlled
Group is then making or accruing an obligation to make contributions or has within the preceding
five (5) plan years made contributions.

     “Portfolio Investments” means Investments made by the Initial Borrower or a
Consolidated Subsidiary in the ordinary course of business and consistently with practices existing
on the date hereof in a Person that is accounted for under GAAP as a portfolio investment of the
Initial Borrower.

-21-

 

     “Pounds Sterling” shall mean the lawful currency of the United Kingdom.

     “Prime Rate” shall have the meaning set forth in the definition of Alternate Base
Rate.

     “Properties” means all real property owned, leased or otherwise used or occupied by
any Credit Party or any Subsidiary of a Credit Party, wherever located.

     “Purchasing Lender” shall have the meaning set forth in Section 9.6(c).

     “Qualified Available Unpledged Assets” shall mean Available Unpledged Assets (a) good
and marketable title to which is 100% owned by the Initial Borrower or a Consolidated Subsidiary;
provided, however, that Investment Loans to Obligors that are organized outside of the United
States, Investments in Equity Instruments or debt securities of any Person located outside of the
United States or any other Available Unpledged Assets located outside of the United States must be
directly owned by any Credit Party to be deemed Qualified Available Unpledged Assets; (b) free and
clear of any Lien or encumbrance of any Person (other than Permitted Liens), (c) that are not the
subject of a contractual or other prohibition or restraint that, directly or indirectly, prohibits
or restrains or has the effect of prohibiting or restraining (i) any Consolidated Subsidiary (that
is not a Credit Party) from transferring the Available Unpledged Assets to any Credit Party, or
(ii) the Initial Borrower or any Consolidated Subsidiary from granting the Administrative Agent and
Lenders a Lien on such Available Unpledged Assets, (d) originated or acquired without any fraud or
material misrepresentation, and (e) in material compliance with all Applicable Laws.

     “Real Estate Loans” shall mean any loan that is an extension of credit fully secured
by and underwritten to the value of the related Obligor’s interest in real property.

     “Real Property Owned” shall mean any real property owned in fee simple by the Initial
Borrower or a Consolidated Subsidiary of the Initial Borrower; provided, however,
that such term shall not include OREO Properties.

     “Register” shall have the meaning set forth in Section 9.6(d).

     “Reimbursement Obligation” shall mean the obligation of the Borrower to reimburse the
Issuing Lender pursuant to Section 2.3(d) for amounts drawn under Letters of Credit.

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

     “Related Property” means with respect to any Investment, any property or other assets
of the Obligor thereunder pledged as collateral to secure the repayment of such Investment.

     “Release Condition” means the satisfaction of each of the following conditions: (a)
all indebtedness (as defined in Section 10.1) that CSF owes to the Administrative Agent
and/or the Lenders in its capacity as a Borrower has been indefeasibly paid in full in cash (or, in
the case of Letters of Credit of which CSF is the actual account party, each such Letter of Credit
has been cash collateralized in an amount equal to 103% of the stated and undrawn amount of such
Letter of Credit and in the Currency in which such Letter of Credit was issued and otherwise on
terms

-22-

 

and conditions satisfactory to the applicable Issuing Lender) and there remains no commitment
to make Revolving Loans to CSF; (b) the Administrative Agent shall have received written notice
from CSF of its desire to terminate its rights as a Borrower with respect to the Commitment and LOC
Commitment in accordance with Section 2.6(a)(ii); and (c) no Default or Event of Default
shall have occurred and be continuing at the time of such termination pursuant to Section
2.6(a)(ii) or would result from such termination or the termination of the Guaranty Agreement.

     “Relevant Time” shall have the meaning set forth in Section 2.22(c).

     “Reorganization” shall mean, with respect to any Multiemployer Plan, the condition
that such Plan is in reorganization within the meaning of such term as used in Section 4241 of
ERISA.

     “Reportable Event” shall mean any of the events set forth in Section 4043(c) of ERISA,
other than those events as to which the thirty (30) day notice period is waived under PBGC Reg.
§4043.

     “Required Lenders” shall mean Lenders holding in the aggregate more than 50% of the
sum of all Loans and LOC Obligations then outstanding at such time plus the aggregate unused
Commitments at such time (treating for purposes hereof in the case of LOC Obligations, in the case
of the Issuing Lender and the Swingline Loans, in the case of the Swingline Lender, only the
portion of the LOC Obligations of the Issuing Lender and Swingline Loans of the Swingline Lender
which are not subject to the Participation Interests of the other Lenders and, in the case of the
Lenders other than the Issuing Lender and the Swingline Lender, the Participation Interests of such
Lenders in LOC Obligations and Swingline Loans hereunder as direct obligations); provided,
however, that if any Lender shall be a Defaulting Lender at such time, then there shall be
excluded from the determination of Required Lenders, Loans and LOC Obligations (including
Participation Interests) owing to such Defaulting Lender and such Defaulting Lender’s Commitments,
or after termination of the Commitments, the principal balance of the Loans and LOC Obligations
owing to such Defaulting Lender.

     “Residential Mortgage Policies and Procedures” shall mean the written residential
mortgage policies and procedures manual of the Initial Borrower in the form provided to the Lenders
prior to the Closing Date and attached hereto as Schedule 1.1(a) as it may be amended or
supplemented from time to time.

     “Responsible Officer” shall mean, as to (a) the Borrower, the Chief Executive Officer,
the President, the Chief Financial Officer or the Treasurer, and (b) any other Credit Party, any
duly authorized officer thereof.

     “Restricted Payment” means (a) any dividend or other distribution on any shares of the
Initial Borrower’s Capital Stock (except dividends payable solely in shares of its Capital Stock)
or (b) any payment on account of the purchase, redemption, retirement or acquisition of (i) any
shares of the Initial Borrower’s Capital Stock (except shares acquired upon the conversion thereof
into other shares of its capital stock) or (ii) any option, warrant or other right to acquire
shares of the Initial Borrower’s Capital Stock.

-23-

 

     “Revolving Loans” shall have the meaning set forth in Section 2.1.

     “Revolving Note” shall have the meaning set forth in Section 2.1(e).

     “Risk Rating Level” means risk rating levels of 1 through 6, each as determined by the
Initial Borrower in accordance with the risk rating scale as denoted on Schedule 1.1(b), as
of any date of determination, and pertaining to any Investment Loan.

	1.	 	“Risk Rated 1 Investment Loan” means any Investment Loan with a Risk Rating Level of
	 
	2.	 	“Risk Rated 2 Investment Loan” means any Investment Loan with a Risk Rating Level of
	 
	3.	 	“Risk Rated 3 Investment Loan” means any Investment Loan with a Risk Rating Level of
	 
	4.	 	“Risk Rated 4 Investment Loan” means any Investment Loan with a Risk Rating Level of
	 
	5.	 	“Risk Rated 5 Investment Loan” means any Investment Loan with a Risk Rating Level of
	 
	6.	 	“Risk Rated 6 Investment Loan” means any Investment Loan with a Risk Rating Level of

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

     “Sanctioned Entity” shall mean (i) an agency of the government of, (ii) an
organization directly or indirectly controlled by, or (iii) a person resident in a country that is
subject to a sanctions program identified on the list maintained by OFAC and available at
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as otherwise published
from time to time as such program may be applicable to such agency, organization or person.

     “Sanctioned Person” shall mean a person named on the list of Specially Designated
Nationals or Blocked Persons maintained by OFAC available at
http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or as otherwise published from
time to time.

     “Screen” shall mean, for:

     (a) any Currency (other than Euro), the relevant display page for LIBOR for such Currency (as
determined by the Administrative Agent) on the Telerate Service; provided that, if the
Administrative Agent determines in its reasonable judgment that there is no such relevant display
page for LIBOR for such Currency, “Screen” means the relevant display page for LIBOR for such
Currency (as determined by the Administrative Agent) on the Reuters Monitor Money Rates Service;
and

-24-

 

     (b) the Euro, the relevant display page for EURIBOR on the Telerate Screen (as determined by
the Administrative Agent), which page shall display an average rate of the Banking Federation of
the European Union for Euro; provided that, if such page or such service shall cease to be
available, such other page or such other service for the purpose of displaying an average rate of
the Banking Federation of the European Union as the Agent shall select.

     “SEC” shall mean the United States Securities and Exchange Commission.

     “Securitization Transaction” means any financing transaction undertaken by the Initial
Borrower or an Affiliate of the Initial Borrower that is secured, directly or indirectly, by an
Investment Loan or Real Property Owned or any portion thereof or interest therein, including any
sale, lease, whole loan sale, asset securitization, secured loan or other transfer of one or more
Investment Loans or Real Property Owned or any portion thereof.

     “Senior Unsecured Debt” shall mean any Debt that is not secured by a Lien and is not
junior in right to payment with respect to any other Debt. For clarity, (i) the amount of Senior
Unsecured Debt attributable to a revolving loan facility shall be the amount of Debt outstanding as
of the date of determination, (ii) guaranties in respect of non-recourse secured real property
financings that are limited to Customary Non-Recourse Exclusions shall not constitute Senior
Unsecured Debt, and (iii) redemption obligations in respect of preferred stock (unless expressly
senior in accordance with its terms) are deemed junior in right of payment to other Debt.

     “SPE Subsidiary” means a bankruptcy remote, special purpose entity that is a Wholly
Owned Subsidiary of the Initial Borrower, created for the sole purpose of, and whose only business
shall be, acquisition of Investment Loans or Real Property Owned pursuant to a Securitization
Transaction and those activities incidental to the Securitization Transaction.

     “Stockholders Equity” means, at any time, the stockholders’ equity of the Initial
Borrower and its Consolidated Subsidiaries, as set forth or reflected on the most recent
consolidated balance sheet of the Initial Borrower and its Consolidated Subsidiaries prepared in
accordance with GAAP.

     “Subsidiary” shall mean, as to any Person, a corporation, partnership, limited
liability company or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of directors or other
managers of such corporation, partnership or other entity are at the time owned, or the management
of which is otherwise controlled, directly or indirectly through one or more intermediaries, or
both, by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to
“Subsidiaries” in this Credit Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower
or the Guarantors; provided, however, that, the term “Subsidiary” shall not include
any Person that constitutes an Investment in Equity Instruments; provided, further
that the term “Subsidiary” shall not include an Unrestricted Subsidiary unless as noted otherwise.

     “Swingline Commitment” shall mean the commitment of the Swingline Lender to make
Swingline Loans in an aggregate principal amount at any time outstanding up to the Swingline

-25-

 

Committed Amount, and the commitment of the Lenders to purchase participation interests in the
Swingline Loans as provided in Section 2.4(b)(ii), as such amounts may be reduced from time
to time in accordance with the provisions hereof.

     “Swingline Committed Amount” shall mean the amount of the Swingline Lender’s Swingline
Commitment as specified in Section 2.4(a).

     “Swingline Lender” shall mean Wachovia and any successor swingline lender in their
capacity as such.

     “Swingline Loan” shall have the meaning set forth in Section 2.4(a).

     “Swingline Note” shall mean the promissory note of the Initial Borrower in favor of
the Swingline Lender evidencing the Swingline Loans provided pursuant to Section 2.4(d), as
such promissory note may be amended, modified, supplemented, extended, renewed or replaced from
time to time.

     “Taxes” shall have the meaning set forth in Section 2.18(a).

     “Transferee” shall have the meaning assigned in Section 9.6(f).

     “Transfer Effective Date” shall have the meaning set forth in each Commitment Transfer
Supplement.

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

     “United States” means the United States of America.

     “Unrestricted Subsidiary” means (a) any Bank Subsidiary, and (b) any other Subsidiary
designated as an “Unrestricted Subsidiary” in writing by the Initial Borrower to the Administrative
Agent from time to time and consented to by the Required Lenders.

     “Unsecured Debt” means, at any time, the aggregate unpaid principal amount of all Debt
of the Initial Borrower and its Consolidated Subsidiaries other than Debt of the Initial Borrower
or a Consolidated Subsidiary secured by any Lien.

     “Voting Stock” shall mean, with respect to any Person, Capital Stock issued by such
Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for
the election of directors (or persons performing similar functions) of such Person, even though the
right so to vote has been suspended by the happening of such contingency.

     “Wachovia” shall mean Wachovia Bank, National Association, a national banking
association.

     “WCM” shall mean Wachovia Capital Markets, LLC.

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     “Wholly Owned Subsidiary” means any Subsidiary all of the shares of Capital Stock or
other ownership interests of which (except directors’ qualifying shares) are at the time directly
or indirectly owned by the Initial Borrower.

     Section 1.2. Other Definitional Provisions.

          (a) Unless otherwise specified therein, all terms defined in this Credit Agreement
shall have the defined meanings when used in the Notes or other Credit Documents or any
certificate or other document made or delivered pursuant hereto.

          (b) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

          (c) The words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Credit Agreement shall refer to this Credit Agreement as a whole and not to any
particular provision of this Credit Agreement, and Section, subsection, Schedule and Exhibit
references are to this Credit Agreement unless otherwise specified.

          (d) The words “include”, “includes” and “including” shall be deemed to be followed by
“without limitation” whether or not they are in fact followed by such words or words of like
import.

          (e) The words “writing”, “written” and comparable terms shall refer to printing,
typing, computer disk, e-mail, facsimile and other means of reproducing words in a visible
form.

          (f) References to any agreement or contract are to such agreement or contract as
amended, restated, supplemented or otherwise modified from time to time in accordance with
the terms hereof and thereof. References to any Person include the successors and permitted
assigns of such Person.

     Section 1.3. Accounting Terms.

     Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements required to be
delivered hereunder shall be prepared in accordance with GAAP applied on a basis consistent with
the most recent audited consolidated financial statements of the Initial Borrower and its
Consolidated Subsidiaries delivered to the Lenders; provided that, if the Initial Borrower
notifies the Administrative Agent that it wishes to amend any covenant in Section 5.32 to
eliminate the effect of any change in GAAP on the operation of such covenant (or if the
Administrative Agent notifies the Initial Borrower that the Required Lenders wish to amend
Section 5.32 for such purpose), then the Initial Borrower’s compliance with such covenant
shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP
became effective, until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Initial Borrower and the Required Lenders.

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     Section 1.4. Computation of Time Periods.

     All time references in this Credit Agreement and the other Credit Documents shall be to
Charlotte, North Carolina time unless otherwise indicated. For purposes of computation of periods
of time hereunder, the word “from” means “from and including” and the words “to” and “until” each
mean “to but excluding.”

     Section 1.5. Currencies Generally.

          (a) At any time, any reference in the definition of the term “Alternative Currency” or
in any other provision of this Credit Agreement to the Currency of any particular nation
means the lawful currency of such nation at such time whether or not the name of such
Currency is the same as it was on the date hereof. For purposes of determining (i) whether
the amount of any Revolving Loan, together with all other Revolving Loans, Swingline Loans
and LOC Obligations outstanding or to be borrowed or issued at the same time as such
Revolving Loan, would exceed the Committed Amount then in effect, (ii) whether the LOC
Obligations exceed the LOC Committed Amount, and (iii) whether any Lender’s Commitment
Percentage of any Revolving Loan (together with its Commitment Percentage of all other
Revolving Loans, Swingline Loans and LOC Obligations then outstanding or to be borrowed or
issued at the same time as such Revolving Loan) would exceed the amount of such Lender’s
Commitment, the outstanding principal amount of any Revolving Loan or LOC Obligation that is
denominated in any Alternative Currency shall be deemed to be the Dollar Equivalent of such
amount of Alternative Currency determined as of the date of such Revolving Loan or LOC
Obligation. Wherever in this Credit Agreement in connection with a Revolving Loan or LOC
Obligation an amount, such as a required minimum or multiple amount, is expressed in
Dollars, but such Revolving Loan or LOC Obligation is denominated in any Alternative
Currency, such amount shall be the relevant Foreign Currency Equivalent of such Dollar
amount (rounded to the nearest one thousandth). In addition, for purposes of complying with
any requirement of this Credit Agreement stated in Dollars or calculating any ratio or
other test set forth in this Credit Agreement, the amount of any Revolving Loan and LOC
Obligation that is denominated in any Alternative Currency shall be deemed to be the Dollar
Equivalent of such amount of Alternative Currency determined as of the date of such
calculation.

          (b) Each obligation hereunder of any party hereto that is denominated in the National
Currency of a state that is not a Participating Member State on the date hereof shall,
effective from the date on which such state becomes a Participating Member State, be
redenominated in Euro in accordance with the legislation of the European Union applicable to
the European Monetary Union; provided that, if and to the extent that any such legislation
provides that any such obligation of any such party payable within such Participating Member
State by crediting an account of the creditor can be paid by the debtor either in Euro or
such National Currency, such party shall be entitled to pay or repay such amount either in
Euro or in such National Currency. If the basis of accrual of interest or fees expressed in
this Credit Agreement with respect to any Alternative Currency of any country that becomes a
Participating Member State after the date on which such currency becomes an Alternative
Currency shall be inconsistent with any

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convention or practice in the interbank market for the basis of accrual of interest or
fees in respect of Euro, such convention or practice shall replace such expressed basis
effective as of and from the date on which such state becomes a Participating Member State;
provided that, with respect to any Revolving Loan denominated in such currency that is
outstanding immediately prior to such date, such replacement shall take effect at the end of
the Interest Period therefor.

          (c) Without prejudice to the respective liabilities of the Borrower to the Lenders and
the Lenders to the Borrower under or pursuant to this Agreement, each provision of this
Credit Agreement shall be subject to such reasonable changes of construction as the
Administrative Agent may from time to time, in consultation with the Initial Borrower,
reasonably specify to be necessary or appropriate to reflect the introduction or changeover
to Euro in any country that becomes a Participating Member State after the date hereof;
provided that the Administrative Agent shall provide the Initial Borrower and each
Lender with prior notice of the proposed change with an explanation of such change in
sufficient time to permit the Initial Borrower and the Lenders an opportunity to respond to
such proposed change.

ARTICLE II

THE LOANS; AMOUNT AND TERMS

     Section 2.1. Revolving Loans.

          (a) Revolving Commitment. Prior to the Commitment Termination Date, subject to
the terms and conditions hereof, each Lender severally agrees to make revolving credit loans
in Dollars or in any Alternative Currency to the Borrower (“Revolving Loans”) from
time to time for the purposes hereinafter set forth; provided, however, that
(i) with regard to each Lender individually, the sum of such Lender’s share of outstanding
Revolving Loans, plus such Lender’s Commitment Percentage of outstanding Swingline
Loans, plus such Lender’s Commitment Percentage of LOC Obligations shall not exceed
such Lender’s Commitment Percentage of the aggregate Committed Amount, and (ii) with regard
to the Lenders collectively, the Advances Outstanding shall not exceed the aggregate
Committed Amount then in effect. For purposes hereof, the aggregate amount available
hereunder shall be FIVE HUNDRED FORTY-FIVE MILLION DOLLARS ($545,000,000.00) (as such
aggregate maximum amount may be (A) increased from time to time as provided in Section
2.2, and (B) reduced from time to time as provided in Section 2.6, the
“Committed Amount”); provided, however, that the aggregate principal
amount of all outstanding Revolving Loans and LOC Obligations in Alternative Currencies
shall not exceed thirty percent (30%) of the Committed Amount (“Alternative Currency Sub
Limit”). Revolving Loans denominated in Dollars may consist of Alternate Base Rate
Loans or EURIBOR/LIBOR Rate Loans, or a combination thereof, as the Initial Borrower may
request, and may be repaid and reborrowed in accordance with the provisions hereof.
Revolving Loans denominated in any Alternative Currency may consist of Alternate Base Rate
Loans or EURIBOR/LIBOR Rate Loans, or a combination thereof, as the Borrower may request,
and may be repaid and reborrowed in accordance with the provisions hereof.

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Notwithstanding the foregoing, any Revolving Loans made on the Closing Date or on
either of the two Business Days immediately following the Closing Date may only consist of
Alternate Base Rate Loans denominated in Dollars. Any Loans denominated in Dollars shall be
made by each Lender at its Domestic Lending Office and any Loans denominated in any
Alternative Currency shall be made by each Lender at its EURIBOR/LIBOR Lending Office.

          (b) Revolving Loan Borrowings.

               (i) Notice of Borrowing. The Borrower shall request a Revolving Loan borrowing
by written notice (or telephone notice promptly confirmed in writing which confirmation may
be by fax) to the Administrative Agent not later than 11:00 A.M. on the same Business Day of
the requested borrowing in the case of Alternate Base Rate Loans denominated in Dollars, and
on the third Business Day prior to the date of the requested borrowing in the case of
EURIBOR/LIBOR Rate Loans denominated in Dollars, and on the fourth Business Day prior to the
date of the requested borrowing in the case of Alternate Base Rate Loans or EURIBOR/LIBOR
Rate Loans denominated in any Alternative Currency. Each such request for borrowing shall
be irrevocable and shall specify (A) that a Revolving Loan is requested, (B) the date of the
requested borrowing (which shall be a Business Day), (C) the aggregate principal amount to
be borrowed, and (D) whether the borrowing shall be comprised of Alternate Base Rate Loans,
EURIBOR/LIBOR Rate Loans or a combination thereof, the Currency therefor, and if
EURIBOR/LIBOR Rate Loans are requested, the Interest Period(s) therefor. A form of Notice
of Borrowing (a “Notice of Borrowing”) is attached as Exhibit A. If the
Borrower shall fail to specify in any such Notice of Borrowing (1) an applicable Interest
Period in the case of a EURIBOR/LIBOR Rate Loan, then such notice shall be deemed to be a
request for an Interest Period of one month, (2) the type of Revolving Loan requested, then
such notice shall be deemed to be a request for an Alternate Base Rate Loan hereunder or (3)
the Currency of the Revolving Loan requested, then such notice shall be deemed to be a
request by the Initial Borrower for an Alternate Base Rate Loan denominated in Dollars
hereunder. The Administrative Agent shall give notice to each Lender promptly upon receipt
of each Notice of Borrowing, the contents thereof and each such Lender’s share thereof.

               (ii) Minimum Amounts. Each Revolving Loan shall be in a minimum aggregate
amount of $5,000,000 and integral multiples of $100,000 in excess thereof (or the remaining
amount of the Committed Amount, if less).

               (iii) Advances. Each Lender will make its Commitment Percentage of each
Revolving Loan borrowing available to the Administrative Agent for the account of the
applicable Borrower at the office of the Administrative Agent specified in Section
9.2, or at such other office as the Administrative Agent may designate in writing, upon
reasonable advance notice by 1:00 P.M. on the date specified in the applicable Notice of
Borrowing, in the Currency of such Revolving Loan and in funds immediately available to the
Administrative Agent. Such borrowing will then be made available to the applicable Borrower
by the Administrative Agent by crediting the account of the applicable Borrower on the books
of such office with the aggregate of the amounts made

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available to the Administrative Agent by the Lenders and in like funds as received by
the Administrative Agent.

          (c) Repayment. The principal amount of all Revolving Loans shall be due and
payable in full in the Currency of such Revolving Loan on the Commitment Termination Date.

          (d) Interest. Subject to the provisions of Section 2.9, Revolving
Loans shall bear interest as follows:

               (i) Alternate Base Rate Loans. During such periods as any Revolving Loans
shall be comprised of Alternate Base Rate Loans, each such Alternate Base Rate Loan shall
bear interest at a per annum rate equal to the Alternate Base Rate; and

               (ii) EURIBOR/LIBOR Rate Loans. During such periods as any Revolving Loans
shall be comprised of EURIBOR/LIBOR Rate Loans, each such Loan denominated in (a) any
Currency (other than Euro) shall bear interest at a per annum rate equal to the sum of the
applicable LIBOR Rate plus the Applicable Percentage, and (b) Euro shall bear interest at a
per annum rate equal to the sum of the applicable EURIBOR plus the Applicable Percentage.

Interest on Revolving Loans shall be payable in arrears on each Interest Payment Date.

          (e) Revolving Notes. The Borrower’s obligation to pay each Lender’s Revolving
Loans shall be evidenced by a revolving note made payable to such Lender in substantially
the form of Exhibit B, if requested by such Lender (“Revolving Note”). 

     Section 2.2. Increase of the Commitments.

          (a) Requests for Increase by Initial Borrower. The Initial Borrower may, at
any time, propose that the Commitments hereunder be increased (each such proposed increase
being a “Commitment Increase”) by notice to the Administrative Agent, specifying
each existing Lender (each an “Increasing Lender”) and/or each additional lender
(each an “Assuming Lender”) that shall have agreed to an additional Commitment and
the date on which such increase is to be effective (the “Commitment Increase Date”),
which shall be a Business Day at least five (5) Business Days after delivery of such notice
and thirty (30) days prior to the Commitment Termination Date; provided that:

               (i) the minimum amount of the Commitment of any Assuming Lender, and the minimum amount
of the increase of the Commitment of any Increasing Lender, as part of such Commitment
Increase shall be $5,000,000 or a larger multiple of $5,000,000 in excess thereof;

               (ii) immediately after giving effect to such Commitment Increase, the total Commitments
of all of the Lenders hereunder shall not exceed $1,250,000,000 less the amount of any
permanent reductions in the aggregate Committed Amount pursuant to Section 2.6(a);

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               (iii) each Increasing Lender and Assuming Lender shall be consented to by the
Administrative Agent (which consent shall not be unreasonably withheld or delayed);

               (iv) each Assuming Lender shall be consented to by the Issuing Lender (which consent
shall not be unreasonably withheld or delayed), provided, that, consent from
the Issuing Lender shall not be required if the Assuming Lender has a senior unsecured debt
rating from any two of S&P, Moody’s and Fitch equal to or higher than A- (or A3 with respect
to Moody’s);

               (v) no Default shall have occurred and be continuing on such Commitment Increase Date
or shall result from the proposed Commitment Increase;

               (vi) the representations and warranties contained in this Credit Agreement shall be
true and correct on and as of the Commitment Increase Date as if made on and as of such date
(or, if any such representation and warranty is expressly stated to have been made as of a
specific date, such representations and warranties shall be true and correct as of such
specific date);

               (vii) the conditions set forth in Section 3.2 shall be satisfied; and

               (viii) the Borrower shall, if requested, execute such Notes as are necessary to reflect
the increase in the Commitments.

          (b) Effectiveness of Commitment Increase by Initial Borrower. The Assuming
Lender, if any, shall become a Lender hereunder as of such Commitment Increase Date and the
Commitment of any Increasing Lender and such Assuming Lender shall be increased as of such
Commitment Increase Date; provided, that:

               (i) the Administrative Agent shall have received on or prior to 11:00 A.M., Charlotte,
North Carolina time, on such Commitment Increase Date, a certificate of a duly authorized
officer of the Initial Borrower stating that each of the applicable conditions to such
Commitment Increase set forth in the foregoing paragraph (a) has been satisfied; and

               (ii) each Assuming Lender or Increasing Lender shall have delivered to the
Administrative Agent, on or prior to 11:00 A.M., Charlotte, North Carolina time, on such
Commitment Increase Date, an agreement, in form and substance satisfactory to the Initial
Borrower and the Administrative Agent, pursuant to which such Lender shall, effective as of
such Commitment Increase Date, undertake a Commitment or an increase of Commitment, duly
executed by such Assuming Lender or Increasing Lender and the Initial Borrower and
acknowledged by the Administrative Agent.

          (c) Recordation into Register. Upon its receipt of an agreement referred to in
clause (b)(ii) above executed by an Assuming Lender or any Increasing Lender,
together with the certificate referred to in clause (b)(i) above, the Administrative
Agent shall, if such agreement has been completed, (i) accept such agreement, (ii) record
the

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information contained therein in the Register, and (iii) give prompt notice thereof to
the Initial Borrower.

          (d) Adjustments of Borrowings upon Effectiveness of Increase. In the event
that the Administrative Agent shall have received notice from the Initial Borrower as to any
agreement with respect to a Commitment Increase on or prior to the relevant Commitment
Increase Date and the actions provided for in clauses (b)(i) and (b)(ii)
above shall have occurred by 11:00 A.M., Charlotte, North Carolina time, on such Commitment
Increase Date, the Administrative Agent shall notify the Lenders (including any Assuming
Lenders) of the occurrence of such Commitment Increase Date promptly on such date by
facsimile transmission or e-mail. On the date of such Commitment Increase, the Borrower
shall (i) prepay the outstanding Revolving Loans (if any) in full, (ii) simultaneously
borrow new Revolving Loans (which new Revolving Loans shall be Alternate Base Rate Loans
denominated in the same Currency as the Revolving Loans prepaid) hereunder in an amount
equal to such prepayment; provided that with respect to subclauses (i) and
(ii), (A) the prepayment to, and borrowing from, any existing Lender shall be
effected by book entry to the extent that any portion of the amount prepaid to such Lender
will be subsequently borrowed from such Lender, and (B) the existing Lenders, the Increasing
Lenders and the Assuming Lenders shall make and receive payments among themselves, in a
manner acceptable to the Administrative Agent, so that, after giving effect thereto, the
Loans are held ratably by the Lenders in accordance with the respective Commitments of such
Lenders (after giving effect to such Commitment Increase), and (iii) pay to the Lenders the
amounts, if any, payable under Section 2.17 as a result of any such prepayment.
Concurrently therewith, the Lenders shall be deemed to have adjusted their participation
interests in any outstanding LOC Obligations so that such interests are held ratably in
accordance with their Commitments as so increased.

     Section 2.3. Letter of Credit Subfacility.

          (a) Issuance. Subject to Section 2.3(h) and the other terms and
conditions hereof and of the LOC Documents, if any, and any other terms and conditions which
the Issuing Lender may reasonably require, prior to the Commitment Termination Date the
Issuing Lender shall issue, and the Lenders shall participate in, Letters of Credit for the
account of the Borrower from time to time upon request in a form acceptable to the Issuing
Lender; provided, however, that (i) the aggregate amount of LOC Obligations
shall not at any time exceed TWO HUNDRED FIFTY MILLION DOLLARS ($250,000,000) (the “LOC
Committed Amount”), (ii) the Advances Outstanding shall not at any time exceed the
aggregate Committed Amount then in effect, (iii) the Advances Outstanding in Alternative
Currencies shall not exceed the Alternative Currency Sub Limit, (iv) all Letters of Credit
shall be issued in Dollars or in an Alternative Currency (without limiting the provisions of
Section 2.3(h), Letters of Credit issued in Dollars shall only be issued for the
account of the Initial Borrower and Letters of Credit issued in Alternative Currencies shall
be issued for the account of any Borrower) and (v) Letters of Credit shall be issued for any
lawful corporate purposes and may be issued as standby letters of credit, and trade letters
of credit. Except for the Existing Letters of Credit or as otherwise expressly agreed upon
by all the Lenders, no Letter of Credit shall have an

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original expiry date more than twelve (12) months from the date of issuance;
provided, however, so long as no Default or Event of Default has occurred
and is continuing and subject to the other terms and conditions to the issuance of Letters
of Credit hereunder, the expiry dates of Letters of Credit may be extended annually or
periodically from time to time at the request of the applicable Borrower or by operation of
the terms of the applicable Letter of Credit to a date not more than twelve (12) months from
the then current date of expiry; provided, further, that no Letter of
Credit, as originally issued or as extended, shall have an expiry date extending beyond the
date that is one month prior to the Commitment Termination Date. Furthermore, unless
otherwise agreed to by the Issuing Lender, no trade Letter of Credit shall have an expiry
date more than 180 days from the date of issuance. Notwithstanding the foregoing, with the
consent of the Administrative Agent and the Issuing Lender, Letters of Credit may have an
expiry date extending beyond the date that is one month prior to the Commitment Termination
Date provided that the Borrower deposits cash collateral (30 days prior to the Commitment
Termination Date) with the Issuing Lender in an amount equal to 103% of the stated and
undrawn amount of the Letter of Credit and in the Currency in which such Letter of Credit
was issued. Each Letter of Credit shall comply with the related LOC Documents. The
issuance date and expiry date of each Letter of Credit shall be a Business Day. Except for
the Existing Letters of Credit, any Letters of Credit issued hereunder shall be in a minimum
original face amount of $25,000.

          (b) Notice and Reports. Unless otherwise agreed to by the Issuing Lender and
the applicable Borrower, the request for the issuance of a standby Letter of Credit shall be
submitted to the Issuing Lender at least three (3) Business Days prior to the requested date
of issuance, and the request for the issuance of a trade Letter of Credit shall be submitted
to the Issuing Lender at least one (1) Business Day prior to the requested date of issuance.
The Issuing Lender will on the date of issuance of each Letter of Credit and promptly upon
request provide to the Administrative Agent a detailed report specifying the Letters of
Credit which are then issued and outstanding and any activity with respect thereto which may
have occurred since the date of any prior report, and including therein, among other things,
the account party, the beneficiary, the face amount, expiry date as well as any payments or
expirations which may have occurred. The Issuing Lender will further provide to the
Administrative Agent promptly upon request copies of the Letters of Credit. The Issuing
Lender will provide to the Administrative Agent, and any requesting Lender, promptly upon
request a summary report of the nature and extent of LOC Obligations then outstanding.

          (c) Participations. Each Lender (other than the Issuing Lender of such Letter
of Credit), upon issuance of any Letter of Credit (or upon such Person becoming a Lender
hereunder), shall be deemed to have purchased without recourse a risk participation from the
Issuing Lender in such Letter of Credit and the obligations arising thereunder and any
collateral relating thereto, in each case in an amount equal to its Commitment Percentage of
the obligations under such Letter of Credit and shall absolutely, unconditionally and
irrevocably assume, as primary obligor and not as surety, and be obligated to pay to the
Issuing Lender therefor and discharge when due, its Commitment Percentage of the obligations
arising under such Letter of Credit. Without limiting the scope and nature of each Lender’s
participation in any Letter of Credit, to the extent that the Issuing Lender

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has not been reimbursed as required hereunder or under any LOC Document, each such
Lender shall pay to the Issuing Lender its Commitment Percentage of such unreimbursed
drawing in the Currency of such unreimbursed drawing and in same day funds on the day of
notification by the Issuing Lender of an unreimbursed drawing pursuant to the provisions of
subsection (d) below. The obligation of each Lender to so reimburse the Issuing
Lender shall be absolute and unconditional and shall not be affected by the occurrence of a
Default, an Event of Default or any other occurrence or event. Any such reimbursement shall
not relieve or otherwise impair the obligation of the Borrower to reimburse the Issuing
Lender under any Letter of Credit, together with interest as hereinafter provided.

          (d) Reimbursement. In the event of any drawing under any Letter of Credit, the
Issuing Lender will promptly notify the Initial Borrower and the Administrative Agent. The
Borrower shall reimburse the Issuing Lender on the day of drawing under any Letter of Credit
(either with the proceeds of a Revolving Loan obtained hereunder or otherwise) in the
Currency of such drawing and in same day funds as provided herein or in the LOC Documents.
If the Borrower shall fail to reimburse the Issuing Lender as provided herein, the
unreimbursed amount of such drawing shall bear interest at a per annum rate equal to the
Alternate Base Rate applicable to the Currency of such drawing plus 2%. Unless the
Borrower shall immediately notify the Issuing Lender and the Administrative Agent of its
intent to otherwise reimburse the Issuing Lender, the Borrower shall be deemed to have
requested a Revolving Loan in the Currency and the amount of the drawing as provided in
subsection (e) below, the proceeds of which will be used to satisfy the
reimbursement obligations. The Borrower’s reimbursement obligations hereunder shall be
absolute and unconditional under all circumstances irrespective of any rights of set-off,
counterclaim or defense to payment the Borrower may claim or have against the Issuing
Lender, the Administrative Agent, the Lenders, the beneficiary of the Letter of Credit drawn
upon or any other Person, including without limitation any defense based on any failure of
the Borrower to receive consideration or the legality, validity, regularity or
unenforceability of the Letter of Credit. The Issuing Lender will promptly notify the other
Lenders of the Currency and amount of any unreimbursed drawing and each Lender shall
promptly pay to the Administrative Agent for the account of the Issuing Lender, in such
Currency and in immediately available funds, the amount of such Lender’s Commitment
Percentage of such unreimbursed drawing. Such payment shall be made on the day such notice
is received by such Lender from the Issuing Lender if such notice is received at or before
2:00 P.M., otherwise such payment shall be made at or before 12:00 Noon on the Business Day
next succeeding the day such notice is received. If such Lender does not pay such amount to
the Issuing Lender in full upon such request, such Lender shall, on demand, pay to the
Administrative Agent for the account of the Issuing Lender interest on the unpaid amount
during the period from the date of such drawing until such Lender pays such amount to the
Issuing Lender in full at a rate per annum equal to (i), if such unpaid amount is owed in
Dollars and paid within two Business Days of such date, the Federal Funds Effective Rate,
and thereafter at a rate equal to the Alternate Base Rate or (ii) if such unpaid amount is
owed in any Alternative Currency, the Alternate Base Rate. Each Lender’s obligation to make
such payment to the Issuing Lender, and the right of the Issuing Lender to receive the same,
shall be absolute and unconditional, shall not be affected by

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any circumstance whatsoever and without regard to the termination of this Credit
Agreement or the Commitments hereunder, the existence of a Default or Event of Default or
the acceleration of the Credit Party Obligations hereunder and shall be made without any
offset, abatement, withholding or reduction whatsoever.

          (e) Repayment with Revolving Loans. On any day on which the Borrower shall
have requested, or been deemed to have requested, a Revolving Loan to reimburse a drawing
under a Letter of Credit, the Administrative Agent shall give notice to the Lenders that a
Revolving Loan has been requested or deemed requested in connection with a drawing under a
Letter of Credit, in which case a Revolving Loan borrowing shall be immediately made
comprised entirely of Revolving Loans in the Currency of such drawing and bearing interest
at the Alternate Base Rate applicable to the Currency of such drawing (each such borrowing,
a “Mandatory LOC Borrowing”) pro rata based on each Lender’s
respective Commitment Percentage (determined before giving effect to any termination of the
Commitments pursuant to Section 7.2) and the proceeds thereof shall be paid directly
to the Issuing Lender for application to the respective LOC Obligations. Each Lender hereby
irrevocably agrees to make such Revolving Loans immediately upon any such request or deemed
request on account of each Mandatory LOC Borrowing in the amount and in the manner specified
in the preceding sentence and on the same such date (or, in the case of Mandatory LOC
Borrowings in Alternative Currency, on the next Business Day) notwithstanding that
(i) the amount of Mandatory LOC Borrowing may not comply with the minimum amount for
borrowings of Revolving Loans otherwise required hereunder, (ii) whether any conditions
specified in Section 3.2 are then satisfied, (iii) whether a Default or an Event of
Default then exists, (iv) failure for any such request or deemed request for Revolving Loan
to be made by the time otherwise required in Section 2.1(b), (v) the date of such
Mandatory LOC Borrowing, or (vi) any reduction in the Committed Amount after any such Letter
of Credit may have been drawn upon. In the event that any Mandatory LOC Borrowing cannot
for any reason be made on the date otherwise required above (including, without limitation,
as a result of the commencement of a proceeding under the Bankruptcy Code with respect to
the Borrower), then each such Lender hereby agrees that it shall forthwith fund (as of the
date the Mandatory LOC Borrowing would otherwise have occurred, but adjusted for any
payments received from the Borrower on or after such date and prior to such purchase) its
Participation Interests in the outstanding LOC Obligations; provided,
further, that in the event any Lender shall fail to fund its Participation Interest
on the day the Mandatory LOC Borrowing would otherwise have occurred, then the amount of
such Lender’s unfunded Participation Interest therein shall bear interest payable by such
Lender to the Issuing Lender upon demand, at the rate equal to (i), if such unfunded
Participation Interest is owed in Dollars and paid within two Business Days of such date,
the Federal Funds Effective Rate, and thereafter at a rate equal to the Alternate Base Rate
or (ii) if such unfunded Participation Interest is owed in any Alternative Currency, the
Alternate Base Rate.

          (f) Modification, Extension. The issuance of any supplement, modification,
amendment, renewal, or extension to any Letter of Credit shall, for purposes hereof, be
treated in all respects the same as the issuance of a new Letter of Credit hereunder;
provided that such supplement, modification, amendment, renewal or extension shall
not

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cause the Borrower to pay an additional Fronting Fee on such Letter of Credit except
for any Fronting Fees due with respect to any increase in the stated amount of such Letter
of Credit.

          (g) Letter of Credit Governing Law. Unless otherwise expressly agreed by the
Issuing Lender and the Initial Borrower, when a Letter of Credit is issued, (i) the rules of
the “International Standby Practices 1998” published by the Institute of International
Banking Law & Practice (or such later version thereof as may be in effect at the time of
issuance) shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform
Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce at the time of issuance, shall apply to each trade Letter
of Credit.

          (h) Designation of Subsidiaries as Account Parties. Notwithstanding anything
to the contrary set forth in this Credit Agreement, including without limitation Section
2.3(a), a Letter of Credit issued hereunder may contain a statement to the effect that
such Letter of Credit is issued for the account of a Subsidiary of the Initial Borrower;
provided that, notwithstanding such statement, the Initial Borrower shall be the
actual account party for all purposes of this Credit Agreement for such Letter of Credit and
such statement shall not affect the Initial Borrower’s reimbursement obligations hereunder
with respect to such Letter of Credit. In no event shall a Letter of Credit be issued for
the account of an SPE Subsidiary in connection with a Securitization Transaction or for the
account of a Bank Subsidiary. Nothing in this Section 2.3(h) shall be construed to
require the Issuing Lender to issue Letters of Credit for the account of a Subsidiary of the
Initial Borrower where the Subsidiary is the actual account party.

          (i) Existing Letters of Credit. The letters of credit previously issued by
Bank of America, N.A. and identified on Schedule 2.3(i) (the “Existing Letters
of Credit”) shall be deemed to be Letters of Credit issued by the Issuing Lender
pursuant to the Credit Agreement and shall be expressly subject to all of the terms and
conditions of this Section 2.3. Notwithstanding anything to the contrary set forth
in the Existing Letters of Credit, the Initial Borrower shall be deemed to be the account
party for all purposes of this Credit Agreement. The Letter of Credit Fee shall be payable
with respect to the Existing Letters of Credit pursuant to Section 2.5(b) for the
period commencing on the date of this Credit Agreement to the expiry date of the applicable
Existing Letters of Credit. 

     Section 2.4. Swingline Loan Subfacility.

          (a) Swingline Commitment. Prior to the Commitment Termination Date, subject to
the terms and conditions hereof, the Swingline Lender, in its individual capacity, agrees to
make certain revolving credit loans to the Initial Borrower (each a “Swingline Loan”
and, collectively, the “Swingline Loans”) for the purposes hereinafter set forth;
provided, however, that (i) the aggregate amount of Swingline Loans
outstanding at any time shall not exceed ONE HUNDRED MILLION DOLLARS ($100,000,000) (the
“Swingline Committed Amount”), and (ii) the sum of the Advances Outstanding shall
not exceed the Committed Amount. Swingline Loans hereunder may

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be repaid and reborrowed in accordance with the provisions hereof. Swingline Loans
shall be made only in Dollars.

          (b) Swingline Loan Borrowings.

               (i) Notice of Borrowing and Disbursement. The Swingline Lender will make
Swingline Loans available to the Initial Borrower on any Business Day upon delivery of a
Notice of Swingline Borrowing by the Initial Borrower to the Administrative Agent not later
than 2:00 P.M. on such Business Day. A form of Notice of Swingline Borrowing (a “Notice
of Swingline Borrowing”) is attached as Exhibit E. Swingline Loan borrowings
hereunder shall be made in minimum amounts of $100,000 and in integral amounts of $100,000
in excess thereof.

               (ii) Repayment of Swingline Loans. Each Swingline Loan borrowing shall be due
and payable upon the earlier of (a) thirty (30) days after the Swingline Loan advance and
(b) the Commitment Termination Date. The Swingline Lender may, at any time, in its sole
discretion, by written notice to the Initial Borrower and the Administrative Agent, demand
repayment of its Swingline Loans by way of a Revolving Loan borrowing, in which case the
Initial Borrower shall be deemed to have requested a Revolving Loan borrowing denominated in
Dollars comprised entirely of Alternate Base Rate Loans in the amount of such Swingline
Loans; provided, however that, in the following circumstances, any such
demand shall also be deemed to have been given one Business Day prior to each of (A) the
Commitment Termination Date, (B) the occurrence of any Event of Default described in
Section 7.1(f), (C) acceleration of the Credit Party Obligations hereunder, whether
on account of an Event of Default described in Section 7.1(f) or any other Event of
Default, and (D) the exercise of remedies in accordance with the provisions of Section
7.2 hereof (each such Revolving Loan borrowing made on account of any such deemed
request therefor as provided herein being hereinafter referred to as “Mandatory
Swingline Borrowing”). Each Lender hereby irrevocably agrees to make such Revolving
Loans promptly upon any such request or deemed request on account of each Mandatory
Swingline Borrowing in the amount and in the manner specified in the preceding sentence and
on the same such date notwithstanding (1) the amount of Mandatory Swingline Borrowing may
not comply with the minimum amount for borrowings of Revolving Loans otherwise required
hereunder, (2) whether any conditions specified in Section 3.2 are then satisfied,
(3) whether a Default or an Event of Default then exists, (4) failure of any such request or
deemed request for Revolving Loans to be made by the time otherwise required in Section
2.1(b)(i), (5) the date of such Mandatory Swingline Borrowing, or (6) any reduction in
the Committed Amount or termination of the Commitments immediately prior to such Mandatory
Swingline Borrowing or contemporaneously therewith. In the event that any Mandatory
Swingline Borrowing cannot for any reason be made on the date otherwise required above
(including, without limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code), then each Lender hereby agrees that it shall forthwith purchase (as of the
date the Mandatory Swingline Borrowing would otherwise have occurred, but adjusted for any
payments received from the Initial Borrower on or after such date and prior to such
purchase) from the Swingline Lender such participations in the outstanding Swingline Loans
as shall be necessary to cause each such Lender to share in such

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Swingline Loans ratably based upon its respective Commitment Percentage (determined
before giving effect to any termination of the Commitments pursuant to Section 7.2);
provided that (x) all interest payable on the Swingline Loans shall be for the account of
the Swingline Lender until the date as of which the respective participation is purchased,
and (y) at the time any purchase of participations pursuant to this sentence is actually
made, the purchasing Lender shall be required to pay to the Swingline Lender interest on the
principal amount of such participation purchased for each day from and including the day
upon which the Mandatory Swingline Borrowing would otherwise have occurred to but excluding
the date of payment for such participation, at the rate equal to, if paid within two
Business Days of the date of the Mandatory Swingline Borrowing, the Federal Funds Effective
Rate, and thereafter at a rate equal to the Alternate Base Rate.

          (c) Interest on Swingline Loans. Subject to the provisions of Section
2.9(b), Swingline Loans shall bear interest at a per annum rate equal to the LIBOR
Market Index Rate plus the Applicable Percentage. Interest on Swingline Loans shall
be payable in arrears on each Interest Payment Date.

          (d) Swingline Note. The Swingline Loans shall be evidenced by a duly executed
promissory note of the Initial Borrower to the Swingline Lender in the original amount of
the Swingline Committed Amount and substantially in the form of Exhibit F.

     Section 2.5. Fees.

          (a) Commitment Fee. In consideration of the Commitment, the Borrower agrees to
pay to the Administrative Agent, for the ratable benefit of the Lenders, a commitment fee
(the “Commitment Fee”) in an amount equal to the Applicable Percentage per annum on
the average daily unused amount of the Committed Amount during the calendar quarter for
which such fee is payable. For purposes of computation of the Commitment Fee, LOC
Obligations shall be considered usage, but Swingline Loans shall not be considered usage, of
the Committed Amount. The Commitment Fee shall be payable quarterly in arrears not later
than five (5) Business Days following the last day of each calendar quarter for the prior
calendar quarter.

          (b) Letter of Credit Fees. In consideration of the LOC Commitments, the
Borrower agrees to pay to the Administrative Agent for the ratable benefit of the Lenders
(including the Issuing Lender) a fee (the “Letter of Credit Fee”) equal to the
Applicable Percentage for EURIBOR/LIBOR Rate Loans per annum on the average daily maximum
amount available to be drawn under each Letter of Credit from the date of issuance to the
date of expiration. The Letter of Credit Fee shall be payable quarterly in arrears not
later than five (5) Business Days following the last day of each calendar quarter for the
prior calendar quarter. In addition to the Letter of Credit Fee, the Borrower agrees to pay
to the Issuing Lender, for its own account, a fronting fee (the “Fronting Fee”)
equal to the greater of (i) one-eighth of one percent (0.125%) of the face amount of each
Letter of Credit when issued, or (ii) $250. The Fronting Fee shall be payable quarterly in
arrears not later than five (5) Business Days following the last day of each calendar
quarter for the prior calendar quarter.

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          (c) Issuing Lender Fees. In addition to the Letter of Credit Fees and Fronting
Fee payable pursuant to subsection (b) above, the Borrower shall pay to the Issuing
Lender for its own account the reasonable and customary charges from time to time of the
Issuing Lender with respect to the amendment, transfer, administration, cancellation and
conversion of, and drawings under, such Letters of Credit (collectively, the “Issuing
Lender Fees”).

          (d) Administrative Fee. The Borrower agrees to pay to the Administrative
Agent, for its own account, an annual administrative fee of $35,000, due and payable
quarterly, in advance, commencing on the Closing Date until the Commitments have been
terminated and the Credit Party Obligations have been paid in full.

          (e) No Duplication. The fees payable under this Section 2.5 shall be
owed and payable by the Initial Borrower; provided that if there is more than one Borrower
hereunder and each has any LOC Obligations outstanding, the fees payable in subsections
(b) and (c) above shall be payable by the Borrower that is the actual account
party.

     Section 2.6. Commitment Reductions.

          (a) Voluntary Reductions.

               (i) The Initial Borrower shall have the right to terminate or permanently reduce the
unused portion of the Committed Amount or the Alternative Currency Sub Limit at any time or
from time to time upon not less than three (3) Business Days’ (or four (4) Business Days in
the case of the Alternative Currency Sub Limit) prior written notice to the Administrative
Agent (which shall notify the Lenders thereof as soon as practicable) of such termination or
reduction, which notice shall specify the effective date thereof and the amount of any such
reduction which shall be in a minimum amount of $1,000,000 or a whole multiple of $1,000,000
in excess thereof and shall be irrevocable and effective upon receipt by the Administrative
Agent; provided that no such reduction or termination shall be permitted if after
giving effect thereto, and to any prepayments of the Revolving Loans made on the effective
date thereof, the Advances Outstanding would exceed the aggregate Committed Amount and/or
the Alternative Currency Sub Limit then in effect; provided, further that,
in the case of the proposed reduction or termination of the Alternative Currency Sub Limit,
no Default or Event of Default shall have occurred and be continuing at the time of such
proposed reduction or termination or would result from such reduction or termination.

               (ii) CSF shall have the right to terminate its rights as a Borrower with respect to the
Commitment and LOC Commitment hereunder at any time or from time to time upon not less than
three (3) Business Days’ (or four (4) Business Days’ in the case of the Alternative Currency
Sub Limit) prior written notice to the Administrative Agent (which shall notify the Lenders
thereof as soon as practicable) of such termination, which notice shall specify the
effective date thereof and shall be irrevocable and effective upon receipt by the
Administrative Agent; provided that (1) all indebtedness (as defined in Section
10.1) that CSF owes to the Administrative Agent and/or the Lenders in its capacity as a
Borrower has been indefeasibly paid in full in cash (or, in the case of Letters

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of Credit of which CSF is the actual account party, each such Letter of Credit has been
cash collateralized in an amount equal to 103% of the stated and undrawn amount of such
Letter of Credit and in the Currency in which such Letter of Credit was issued and otherwise
on terms and conditions satisfactory to the applicable Issuing Lender), and (2) no Default
or Event of Default shall have occurred and be continuing at the time of such termination
pursuant to this Section 2.6(a) or would result from such termination or the
termination of the Guaranty Agreement.

          (b) Commitment Termination Date. The Commitment, the Swingline Commitment and
the LOC Commitment shall automatically terminate on the Commitment Termination Date.

     Section 2.7. Prepayments.

          (a) Optional Prepayments. The Borrower shall have the right to prepay Loans in
whole or in part from time to time; provided, however, that each partial
prepayment of Revolving Loans shall be in a minimum principal amount of $1,000,000 and
integral multiples of $100,000 in excess thereof, and each partial prepayment of a Swingline
Loan shall be in a minimum principal amount of $100,000 and integral multiples of $100,000
in excess thereof. The Borrower shall give irrevocable notice of such prepayment in writing
to the Administrative Agent (which shall notify the Lenders thereof as soon as practicable),
which notice shall be at least: (i) three (3) Business Days prior to the proposed date of
prepayment in the case of EURIBOR/LIBOR Rate Loans denominated in Dollars, (ii) one (1)
Business Day prior to the proposed date of prepayment of Alternate Base Rate Loans
denominated in Dollars, and (iii) four (4) Business Days prior to the proposed date of
prepayment of Alternate Base Rate Loans and/or EURIBOR/LIBOR Rate Loans denominated in any
Alternative Currency. Amounts prepaid under this Section 2.7(a) shall be applied to
the outstanding Loans as the Borrower may elect; provided, that each Lender shall
receive its pro rata share of any such prepayment based on its Commitment
Percentage. All prepayments under this Section 2.7(a) shall be subject to
Section 2.17, but otherwise without premium or penalty. Interest on the principal
amount prepaid shall be payable on the next occurring Interest Payment Date that would have
occurred had such Loan not been prepaid or, at the request of the Administrative Agent,
interest on the principal amount prepaid shall be due and payable on any date that a
prepayment is made hereunder through the date of prepayment. Amounts prepaid on the
Revolving Loans and Swingline Loans may be reborrowed in accordance with the terms hereof.

          (b) Mandatory Prepayments.

               (i) Committed Amount. If at any time after the Closing Date, the Advances
Outstanding shall exceed the aggregate Committed Amount then in effect, the Borrower
immediately shall prepay the Revolving Loans and Swingline Loans and (after all Revolving
Loans and Swingline Loans have been repaid) cash collateralize the LOC Obligations in an
amount sufficient to eliminate such excess. All amounts required to be paid pursuant to this
Section 2.7(b)(i) shall be paid and applied as follows: (A) first to the
payment of outstanding Swingline Loans, (B), second, to the payment of outstanding

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Revolving Loans in the Currency in which such loans are owed; and (C) third, to
a cash collateral account in respect of LOC Obligations in the Currency in which such LOC
Obligations were issued. All prepayments under this Section 2.7(b)(i) shall be
subject to Section 2.17 and be accompanied by interest on the principal amount
prepaid through the date of prepayment.

               (ii) If at any time after the Closing Date, the aggregate principal amount of all
outstanding Revolving Loans denominated in any Alternative Currency plus all
outstanding LOC Obligations denominated in any Alternative Currency shall exceed 105% of the
aggregate Alternative Currency Sub-Limit, the Borrower immediately shall prepay such
Alternative Currency Revolving Loans and (after all such Revolving Loans have been repaid)
cash collateralize such LOC Obligations in an amount sufficient to eliminate such excess.
All amounts required to be paid pursuant to this Section 2.7(b)(ii) shall be paid
and applied as follows: (A) first, to the payment of outstanding Revolving Loans in
the Currency in which such loans are owed; and (B) second, to a cash collateral
account in respect of LOC Obligations in the Currency in which such LOC Obligations were
issued. All prepayments under this Section 2.7(b)(ii) shall be subject to
Section 2.17 and be accompanied by interest on the principal amount prepaid through
the date of prepayment. For purposes of the calculations set forth in this Section
2.7(b)(ii), Revolving Loans and LOC Obligations denominated in Alternative Currencies
shall be redenominated in Dollars in an amount equal to the Dollar Equivalent thereof.

     Section 2.8. Minimum Principal Amounts.

     All borrowings, payments and prepayments in respect of Revolving Loans shall be in such
amounts and be made pursuant to such elections so that after giving effect thereto the aggregate
principal amount of the Revolving Loans comprising any borrowing shall be $1,000,000 or a whole
multiple of $100,000 in excess thereof.

     Section 2.9. Default Rate and Payment Dates.

          (a) If (i) all or a portion of the principal amount of any EURIBOR/LIBOR Rate Loan
shall not be paid when due (whether at the stated maturity, by acceleration or otherwise),
such overdue amount shall bear interest at a rate per annum which is equal to the rate that
would otherwise be applicable thereto plus 2%, until the end of the Interest Period
applicable thereto and thereafter the unpaid portion of such Revolving Loan shall, if such
Revolving Loan is not denominated in Dollars, automatically be redenominated in Dollars on
the last day of such Interest Period in an amount equal to the Dollar Equivalent thereof on
the date of such redenomination and such overdue amount shall bear interest at a rate per
annum which is equal to the Alternate Base Rate applicable to Dollars plus 2% (the
“ABR Default Rate”), (ii) all or a portion of the principal amount of any Alternate
Base Rate Loan shall not be paid when due (whether at the stated maturity, by acceleration
or otherwise), such overdue amount shall bear interest at a rate per annum which is equal to
the ABR Default Rate, (iii) if any interest payable on the principal amount of any Loan
shall not be paid when due (after the applicable grace period), such overdue amount, if such
Loan is not denominated in Dollars, shall automatically be

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redenominated in Dollars on the due date therefor in an amount equal to the Dollar
Equivalent thereof on the date of such redenomination and such overdue amount shall bear
interest at a rate per annum which is equal to the ABR Default Rate, and (iv) if any fee or
other amount shall not be paid when due, such overdue amount shall bear interest at a rate
per annum which is equal to the ABR Default Rate, in each case noted above from the date of
such non-payment until such amount is paid in full (after as well as before judgment).

          (b) Upon the occurrence, and during the continuance, of any other Event of Default
hereunder, the principal of and, to the extent permitted by law, interest on the Loans and
any other amounts owing hereunder shall bear interest, payable on demand, at a per annum
rate which is (A) in the case of principal, the rate that would otherwise be applicable
thereto, plus 2%, or (B) in the case of interest, fees or other amounts, the
Alternate Base Rate applicable to the Currency of such Loan plus 2% (after as well
as before judgment). The Required Lenders shall have the right to revoke the imposition of
any default interest imposed under this Section 2.9(b).

          (c) Interest on each Loan shall be payable in arrears on each Interest Payment Date;
provided that interest accruing pursuant to subsection (b) of this
Section 2.9 shall be payable from time to time on demand.

     Section 2.10. Conversion Options.

          (a) The Borrower may, in the case of Revolving Loans elect from time to time to convert
Alternate Base Rate Loans to EURIBOR/LIBOR Rate Loans by giving the Administrative Agent at
least: (i) three (3) Business Days’ prior irrevocable written notice of such election in the
case of Loans denominated in Dollars and (ii) at least four (4) Business Days’ prior
irrevocable written notice of such election in the case of Loans denominated in any
Alternative Currency. In addition, the Borrower may elect from time to time to convert
EURIBOR/LIBOR Rate Loans to Alternate Base Rate Loans by giving the Administrative Agent
irrevocable written notice by 11:00 A.M. one Business Day prior to the proposed date of
conversion. A form of Notice of Conversion is attached as Exhibit C (the
“Notice of Conversion”). If the date upon which an Alternate Base Rate Loan is to
be converted to a EURIBOR/LIBOR Rate Loan is not a Business Day, then such conversion shall
be made on the next succeeding Business Day. All or any part of outstanding Alternate Base
Rate Loans may be converted as provided herein; provided that (i) no Loan may be
converted into a EURIBOR/LIBOR Rate Loan when any Default or Event of Default has occurred
and is continuing, and (ii) partial conversions shall be in an aggregate principal amount of
$1,000,000 or a whole multiple of $100,000 in excess thereof. EURIBOR/LIBOR Rate Loans may
only be converted to Alternate Base Rate Loans on the last day of the applicable Interest
Period. If the date upon which a EURIBOR/LIBOR Rate Loan is to be converted to an Alternate
Base Rate Loan is not a Business Day, then such conversion shall be made on the next
succeeding Business Day and during the period from such last day of an Interest Period to
such succeeding Business Day such Loan shall bear interest as if it were an Alternate Base
Rate Loan.

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          (b) Any EURIBOR/LIBOR Rate Loan may be continued as such upon the expiration of an
Interest Period with respect thereto by the Borrower giving the Administrative Agent at
least four (4) Business Days prior irrevocable notice of such election (or the Initial
Borrower giving the Administrative Agent at least three (3) Business Days’ prior irrevocable
written notice of such election in the case of EURIBOR/LIBOR Rate Loans denominated in
Dollars); provided, that no EURIBOR/LIBOR Rate Loan may be continued as such when
any Default or Event of Default has occurred and is continuing, in which case such Loan
shall be automatically converted to an Alternate Base Rate Loan at the end of the applicable
Interest Period with respect thereto. If the Borrower shall fail to give timely notice of
an election to continue any EURIBOR/LIBOR Rate Loan, or the continuation of any
EURIBOR/LIBOR Rate Loan is not permitted hereunder, such EURIBOR/LIBOR Rate Loan shall be
automatically converted to an Alternate Base Rate Loan at the end of the applicable Interest
Period with respect thereto.

     Section 2.11. Computation of Interest and Fees.

          (a) Interest payable hereunder with respect to any Alternate Base Rate Loan based on
the Prime Rate or any Alternative Currency borrowing denominated in Pounds Sterling shall be
calculated on the basis of a year of 365 days (or 366 days, as applicable) for the actual
days elapsed. Subject to the foregoing, all fees, interest and all other amounts payable
hereunder shall be calculated on the basis of a 360 day year for the actual days elapsed.
The Administrative Agent shall as soon as practicable notify the Initial Borrower and the
Lenders of each determination of EURIBOR and a LIBOR Rate on the Business Day of the
determination thereof. Any change in the interest rate on a Loan resulting from a change in
the Alternate Base Rate shall become effective as of the opening of business on the day on
which such change in the Alternate Base Rate shall become effective. The Administrative
Agent shall as soon as practicable notify the Initial Borrower and the Lenders of the
effective date and the amount of each such change.

          (b) Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Credit Agreement shall be conclusive and binding on the Borrower and the
Lenders in the absence of manifest error. The Administrative Agent shall, at the request of
the Initial Borrower, deliver to the Initial Borrower a statement showing the computations
used by the Administrative Agent in determining any interest rate.

          (c) It is the intent of the Lenders and the Credit Parties to conform to and contract
in strict compliance with applicable usury law from time to time in effect. All agreements
between the Lenders and the Credit Parties are hereby limited by the provisions of this
paragraph which shall override and control all such agreements, whether now existing or
hereafter arising and whether written or oral. In no way, nor in any event or contingency
(including but not limited to prepayment or acceleration of the maturity of any Loan), shall
the interest taken, reserved, contracted for, charged, or received under this Credit
Agreement, under the Notes or otherwise, exceed the maximum nonusurious amount permissible
under Applicable Law. If, from any possible construction of this Credit Agreement or any
other document, interest would otherwise be

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payable in excess of the maximum nonusurious amount, any such construction shall be
subject to the provisions of this paragraph and such interest shall be automatically reduced
to the maximum nonusurious amount permitted under Applicable Law, without the necessity of
execution of any amendment or new document. If any Lender shall ever receive anything of
value which is characterized as interest on the Loans under Applicable Law and which would,
apart from this provision, be in excess of the maximum nonusurious amount, an amount equal
to the amount which would have been excessive interest shall, without penalty, be applied to
the reduction of the principal amount owing on the Loans and not to the payment of interest,
or refunded to the Borrower or the other payor thereof if and to the extent such amount
which would have been excessive exceeds such unpaid principal amount of the Loans. The
right to demand payment of the Loans or any other amount required to be paid hereunder does
not include the right to receive any interest which has not otherwise accrued on the date of
such demand, and the Lenders do not intend to charge or receive any unearned interest in the
event of such demand. All interest paid or agreed to be paid to the Lenders with respect to
the Loans shall, to the extent permitted by Applicable Law, be amortized, prorated,
allocated, and spread throughout the full stated term (including any renewal or extension)
of the Loans so that the amount of interest on account of such indebtedness does not exceed
the maximum nonusurious amount permitted by Applicable Law.

     Section 2.12. Pro Rata Treatment and Payments.

          (a) Allocation of Payments Before Event of Default. Each borrowing of
Revolving Loans and any reduction of the Commitments shall be made pro rata
according to the respective Commitment Percentages of the Lenders. Each payment under this
Credit Agreement or any Note shall be applied, first, to any fees then due and owing
by the Borrower pursuant to Section 2.5, second, to interest then due and
owing hereunder and under the Notes and, third, to principal then due and owing
hereunder and under the Notes. Each payment on account of any fees pursuant to Section
2.5 shall be made pro rata in accordance with the respective amounts due
and owing (except as to the Fronting Fees and the Issuing Lender Fees). Each optional
prepayment on account of principal of the Loans shall be applied in accordance with
Section 2.7(a); provided, that prepayments made pursuant to Section
2.15 shall be applied in accordance with such Section. Each mandatory prepayment on
account of principal of the Loans shall be applied in accordance with Section
2.7(b). All payments (including prepayments) to be made by the Borrower on account of
principal, interest and fees shall be made without defense, set-off or counterclaim (except
as provided in Section 2.18(b)) and shall be made to the Administrative Agent for
the account of the Lenders at the Administrative Agent’s office specified on Section
9.2 in immediately available funds not later than 1:00 P.M. on the date when due. All
amounts owing under this Credit Agreement are payable in Dollars; provided,
however, that the principal of, and interest on, any Revolving Loan denominated in
any Alternative Currency (except as otherwise provided in Section 2.9), breakage
costs relating to, and participations in, and reimbursements of drawings under Letters of
Credit denominated in, any Alternative Currency, shall only be payable in such Alternative
Currency. In addition, the cash collateralization of outstanding Letters of Credit
denominated in any Alternative Currency (when required under this Credit Agreement) shall be
in such Alternative Currency. The Administrative Agent shall

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distribute such payments to the Lenders entitled thereto promptly upon receipt in like
funds as received. If any payment hereunder (other than payments on EURIBOR/LIBOR Rate
Loans) becomes due and payable on a day other than a Business Day, such payment shall be
extended to the next succeeding Business Day, and, with respect to payments of principal,
interest thereon shall be payable at the then applicable rate during such extension. If any
payment on a EURIBOR/LIBOR Rate Loan becomes due and payable on a day other than a Business
Day, the maturity thereof shall be extended to the next succeeding Business Day unless the
result of such extension would be to extend such payment into another calendar month, in
which event such payment shall be made on the immediately preceding Business Day.

          (b) Allocation of Payments After Exercise of Remedies. Notwithstanding any
other provisions of this Credit Agreement to the contrary, after the Commitments shall have
been terminated and the Loans and all other amounts under this Credit Agreement shall have
become due and payable in accordance with the terms of Section 7.2 hereof, all
amounts collected or received by the Administrative Agent or any Lender on account of the
Credit Party Obligations or any other amounts outstanding hereunder shall be paid over or
delivered as follows:

          FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including,
without limitation, reasonable attorneys’ and consultants’ fees) of the Administrative Agent
in connection with enforcing the rights of the Lenders hereunder;

          SECOND, to payment of any fees owed to the Administrative Agent;

          THIRD, to the payment of all reasonable out-of-pocket costs and expenses (including
without limitation, reasonable attorneys’ and consultants’ fees) of each of the Lenders in
connection with enforcing its rights under the Credit Documents or otherwise with respect to
the Credit Party Obligations owing to such Lender;

          FOURTH, to the payment of all accrued fees and interest;

          FIFTH, to the payment of the outstanding principal amount of the Loans and the payment
or cash collateralization of the outstanding LOC Obligations;

          SIXTH, to all other Credit Party Obligations and other obligations due and payable
hereunder or otherwise and not repaid pursuant to clauses “FIRST” through “FIFTH” above; and

          SEVENTH, to the payment of the surplus, if any, to whoever may be lawfully entitled to
receive such surplus.

In carrying out the foregoing: (i) amounts received shall be applied in the
numerical order provided until exhausted prior to application to the next succeeding
category; (ii) each of the Lenders shall receive an amount equal to its pro
rata share (based on the proportion of the then outstanding Loans and LOC
Obligations held by such Lender) of amounts available to be applied pursuant to
clauses “THIRD,” “FOURTH,” “FIFTH” and “SIXTH” above; and (iii) to the extent that
any amounts available for distribution pursuant to clause “FIFTH” above are
attributable to

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the issued but undrawn amount of outstanding Letters of Credit, such amounts shall be held by the
Administrative Agent in a cash collateral account and applied (A) first, to reimburse the Issuing
Lender from time to time for any drawings under such Letters of Credit, and (B) then, following the
expiration of all Letters of Credit, to all other obligations of the types described in clauses
“FIFTH” and “SIXTH” above in the manner provided in this Section 2.12(b).

     Section 2.13. Non-Receipt of Funds by the Administrative Agent.

     (a) Except as provided in Section 2.13(d), unless the Administrative Agent
shall have been notified in writing by a Lender prior to the date a Loan is to be made by
such Lender (which notice shall be effective upon receipt) that such Lender does not intend
to make the proceeds of such Loan available to the Administrative Agent, the Administrative
Agent may assume that such Lender has made such proceeds available to the Administrative
Agent on such date, and the Administrative Agent may in reliance upon such assumption (but
shall not be required to) make available to the Borrower a corresponding amount. If such
corresponding amount is not in fact made available to the Administrative Agent, the
Administrative Agent shall be able to recover such corresponding amount from such Lender.
If such Lender does not pay such corresponding amount forthwith upon the Administrative
Agent’s demand therefor, the Administrative Agent will promptly notify the Initial Borrower,
and the Borrower shall immediately pay such corresponding amount to the Administrative
Agent. The Administrative Agent shall also be entitled to recover from such Lender or the
Borrower, as the case may be, interest on such corresponding amount in respect of each day
from the date such corresponding amount was made available by the Administrative Agent to
the Borrower to the date such corresponding amount is recovered by the Administrative Agent
at a per annum rate equal to (i) from the Borrower at the applicable rate for the applicable
borrowing pursuant to the Notice of Borrowing, and (ii) from a Lender at the Federal Funds
Effective Rate with respect to Loans denominated in Dollars and at the Alternative Base Rate
with respect to Loans denominated in any Alternative Currency.

     (b) Except as provided in Section 2.13(d), unless the Administrative Agent
shall have been notified in writing by the Borrower, prior to the date on which any payment
is due from it hereunder (which notice shall be effective upon receipt) that the Borrower
does not intend to make such payment, the Administrative Agent may assume that such Borrower
has made such payment when due, and the Administrative Agent may in reliance upon such
assumption (but shall not be required to) make available to each Lender on such payment date
an amount equal to the portion of such assumed payment to which such Lender is entitled
hereunder, and if the Borrower has not in fact made such payment to the Administrative
Agent, such Lender shall, on demand, repay to the Administrative Agent the amount made
available to such Lender. If such amount is repaid to the Administrative Agent on a date
after the date such amount was made available to such Lender, such Lender shall pay to the
Administrative Agent on demand interest on such amount in respect of each day from the date
such amount was made available by the Administrative Agent to such Lender to the date such
amount is recovered by the Administrative Agent at a per annum rate equal to the Federal
Funds Effective Rate with respect to Loans denominated in Dollars and at the Alternative
Base Rate with respect to Loans denominated in any Alternative Currency.

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     (c) A certificate of the Administrative Agent submitted to the Initial Borrower or any
Lender with respect to any amount owing under this Section 2.13 shall be conclusive
in the absence of manifest error.

     (d) On the date of any borrowing of a Revolving Loan in any Alternative Currency, the
Administrative Agent shall make available to the applicable Borrower the proceeds of such
borrowing only upon actual receipt by the Administrative Agent from each Lender of such
Lender’s pro rata portion of such borrowing in such Alternative Currency.
On the date that any payment of the principal of or interest on any Revolving Loan
denominated in any Alternative Currency is due, the Administrative Agent shall make
available to each Lender such Lender’s pro rata portion of such payment only
upon actual receipt by the Administrative Agent from the Borrower of such payment.

     Section 2.14. Inability to Determine Interest Rate.

     Notwithstanding any other provision of this Credit Agreement, if (a) the Administrative Agent
shall reasonably determine (which determination shall be conclusive and binding absent manifest
error) that, by reason of circumstances affecting the relevant market, reasonable and adequate
means do not exist for ascertaining EURIBOR and/or LIBOR for any Currency for any Interest Period,
or (b) the Required Lenders shall reasonably determine (which determination shall be conclusive and
binding absent manifest error) that EURIBOR and/or the LIBOR Rate does not adequately and fairly
reflect the cost to such Lenders of funding EURIBOR/LIBOR Rate Loans that the Borrower has
requested during such Interest Period, the Administrative Agent shall forthwith give telephone
notice of such determination, confirmed in writing, to the Initial Borrower, and the Lenders at
least two Business Days prior to the first day of such Interest Period. Unless the Initial
Borrower shall have notified the Administrative Agent upon receipt of such telephone notice that it
wishes to rescind or modify the request regarding such EURIBOR/LIBOR Rate Loans, any Loans that
were requested to be made as EURIBOR/LIBOR Rate Loans shall be made as Alternate Base Rate Loans in
the applicable Currency and any Loans that were requested to be converted into or continued as
EURIBOR/LIBOR Rate Loans shall remain as or be converted into Alternate Base Rate Loans in the
applicable Currency. Until any such notice has been withdrawn by the Administrative Agent, no
further Loans shall be made as, continued as, or converted into, EURIBOR/LIBOR Rate Loans for the
Interest Periods so affected.

     Section 2.15. Illegality.

     Notwithstanding any other provision of this Credit Agreement, if the adoption of or any change
in any requirement of Applicable Law or in the interpretation or application thereof by the
relevant Governmental Authority to any Lender shall make it unlawful for such Lender or its
EURIBOR/LIBOR Lending Office to make or maintain EURIBOR/LIBOR Rate Loans in any Currency as
contemplated by this Credit Agreement or to obtain in the interbank eurodollar market through its
EURIBOR/LIBOR Lending Office the funds with which to make such Loans, (a) such Lender shall
promptly notify the Administrative Agent and the Initial Borrower thereof, (b) the commitment of
such Lender hereunder to make or continue EURIBOR/LIBOR Rate Loans in such Currency shall forthwith
be suspended until the Administrative Agent shall give notice that the condition or situation which
gave rise to the suspension shall no longer exist, and

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(c) such Lender’s Loans then outstanding as EURIBOR/LIBOR Rate Loans, if any, shall be
converted on the last day of the Interest Period for such Loans or within such earlier period as
required by law as Alternate Base Rate Loans. The Borrower hereby agrees promptly to pay any
Lender, upon its demand, any additional amounts necessary to compensate such Lender for actual and
direct costs (but not including anticipated profits) reasonably incurred by such Lender in making
any repayment in accordance with this Section 2.15 including, but not limited to, any
interest or fees payable by such Lender to lenders of funds obtained by it in order to make or
maintain its EURIBOR/LIBOR Rate Loans hereunder. A certificate as to any additional amounts
payable pursuant to this Section 2.15 submitted by such Lender, through the Administrative
Agent, to the Initial Borrower shall be conclusive in the absence of manifest error. Each Lender
agrees to use reasonable efforts (including reasonable efforts to change its EURIBOR/LIBOR Lending
Office) to avoid or to minimize any amounts which may otherwise be payable pursuant to this
Section 2.15; provided, however, that such efforts shall not cause the
imposition on such Lender of any additional costs or legal or regulatory burdens deemed by such
Lender to be material.

     Section 2.16. Requirements of Law.

     (a) If the adoption of or any change in any requirement of Applicable Law or in the
interpretation or application thereof or compliance by any Lender with any request or
directive (whether or not having the force of law) from any central bank or other
Governmental Authority made subsequent to the date hereof:

          (i) shall subject such Lender to any tax of any kind whatsoever with respect to any
Letter of Credit, any participation therein or any application relating thereto, any
EURIBOR/LIBOR Rate Loan made by it, or change the basis of taxation of payments to such
Lender in respect thereof (except for changes in the rate of tax on the overall net income
of such Lender);

          (ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other liabilities in or for
the account of, advances, loans or other extensions of credit by, or any other acquisition
of funds by, any office of such Lender which is not otherwise included in the determination
of EURIBOR or the LIBOR Rate hereunder; or

          (iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender of making or
maintaining EURIBOR/LIBOR Rate Loans or the Letters of Credit or the participations therein or to
reduce any amount receivable hereunder or under any Note, then, in any such case, the Borrower
shall promptly pay such Lender, upon its demand, any additional amounts necessary to compensate
such Lender for such additional cost or reduced amount receivable which such Lender reasonably
deems to be material as determined by such Lender with respect to its EURIBOR/LIBOR Rate Loans or
Letters of Credit.

     (b) Without prejudice to paragraph (a) (but without double-counting), if and so long as
any Lender is required by (i) the Bank of England or any other monetary or

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other authority of the United Kingdom or (ii) the European Central Bank to make special
deposits, to maintain reserve asset ratios or to pay fees, in each case in respect of such
Lender’s EURIBOR/LIBOR Rate Loans, such Lender may require the Borrower to pay,
contemporaneously with each payment of interest on each of such Loans, additional interest
on such Loan at a rate per annum equal to the Mandatory Cost Rate.

     (c) A certificate as to any additional amounts payable pursuant to this Section
2.16 submitted by such Lender, through the Administrative Agent, to the Initial Borrower
shall be conclusive in the absence of manifest error. Each Lender agrees to use reasonable
efforts (including reasonable efforts to change its Domestic Lending Office or EURIBOR/LIBOR
Lending Office, as the case may be) to avoid or to minimize any amounts which might
otherwise be payable pursuant to this paragraph of this Section 2.16;
provided, however, that such efforts shall not cause the imposition on such
Lender of any additional costs or legal or regulatory burdens deemed by such Lender to be
material.

     (d) If any Lender shall have reasonably determined that the adoption of or any change
in any requirement of Applicable Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling such Lender
with any request or directive regarding capital adequacy (whether or not having the force of
law) from any central bank or Governmental Authority made subsequent to the date hereof does
or shall have the effect of reducing the rate of return on such Lender’s or such
corporation’s capital as a consequence of its obligations hereunder to a level below that
which such Lender or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender’s or such corporation’s policies with
respect to capital adequacy) by an amount reasonably deemed by such Lender to be material,
then from time to time, within fifteen (15) days after demand by such Lender, the Borrower
shall pay to such Lender such additional amount as shall be certified by such Lender as
being required to compensate it for such reduction. Such a certificate as to any additional
amounts payable under this Section 2.16 submitted by a Lender (which certificate
shall include a description of the basis for the computation), through the Administrative
Agent, to the Initial Borrower shall be conclusive absent manifest error.

     (e) The agreements in this Section 2.16 shall survive the termination of this
Credit Agreement and payment of the Notes and all other amounts payable hereunder.

     Section 2.17. Indemnity.

     The Borrower hereby agrees to indemnify each Lender and to hold such Lender harmless from any
funding loss or expense which such Lender may sustain or incur as a consequence of (a) the failure
by the Borrower to pay the principal amount of or interest on any Loan by such Lender in accordance
with the terms hereof, (b) the failure of the Borrower to accept a borrowing after the Borrower has
given a notice in accordance with the terms hereof, (c) the failure of the Borrower to make any
prepayment after the Borrower has given a notice in accordance with the terms hereof, and/or (d)
the making by the Borrower of a prepayment of a Loan, or the conversion thereof, on a day which is
not the last day of the Interest Period with respect thereto,

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in each case including, but not limited to, any such loss or expense arising from interest or
fees payable by such Lender to lenders of funds obtained by it in order to maintain its Loans
hereunder. In addition, the Borrower agrees to indemnify and hold each Lender harmless from any
loss, cost or expense which such Lender may sustain or incur as a result or consequence of (a) the
payment of any LOC Obligation denominated in Alternative Currency on a date other than the due date
thereof or (b) the payment of any Credit Party Obligation denominated in Alternative Currency in a
different Currency. A certificate as to any additional amounts payable pursuant to this
Section 2.17 submitted by any Lender, through the Administrative Agent, to the Initial
Borrower (which certificate must be delivered to the Administrative Agent within thirty (30) days
following such default, prepayment or conversion) shall be conclusive in the absence of manifest
error. The agreements in this Section 2.17 shall survive termination of this Credit
Agreement and payment of the Notes and all other amounts payable hereunder.

     Section 2.18. Taxes.

     (a) All payments made by the Borrower hereunder or under any Note will be, except as
provided in Section 2.18(b), made free and clear of, and without deduction or
withholding for, any present or future taxes, levies, imposts, duties, fees, assessments or
other charges of whatever nature now or hereafter imposed by any Governmental Authority or
by any political subdivision or taxing authority thereof or therein with respect to such
payments (but excluding any tax imposed on or measured by the net income or profits of a
Lender pursuant to the laws of the jurisdiction in which it is organized or the jurisdiction
in which the principal office or applicable lending office of such Lender is located or any
subdivision thereof or therein) and all interest, penalties or similar liabilities with
respect thereto (all such non-excluded taxes, levies, imposts, duties, fees, assessments or
other charges being referred to collectively as “Taxes”). If any Taxes are so
levied or imposed, the Borrower agrees to pay the full amount of such Taxes, and such
additional amounts as may be necessary so that every payment of all amounts due under this
Credit Agreement or under any Note, after withholding or deduction for or on account of any
Taxes, will not be less than the amount provided for herein or in such Note. The Borrower
will furnish to the Administrative Agent as soon as practicable after the date the payment
of any Taxes is due pursuant to Applicable Law certified copies (to the extent reasonably
available and required by law) of tax receipts evidencing such payment by the Borrower. The
Borrower agrees to indemnify and hold harmless each Lender, and reimburse such Lender upon
its written request, for the amount of any Taxes so levied or imposed and paid by such
Lender.

     (b) Each Lender that is not a United States person (as such term is defined in Section
7701(a)(30) of the Code) agrees to deliver to the Initial Borrower and the Administrative
Agent on or prior to the Closing Date, or in the case of a Lender that is an assignee or
transferee of an interest under this Credit Agreement pursuant to Section 9.6(c)
(unless the respective Lender was already a Lender hereunder immediately prior to such
assignment or transfer), on the date of such assignment or transfer to such Lender, (i) if
the Lender is a “bank” within the meaning of Section 881(c)(3)(A) of the Code, two accurate
and complete original signed copies of Internal Revenue Service Form W-8BEN, W-8ECI or
W-8IMY (or successor forms) certifying such Lender’s entitlement to a complete exemption
from United States withholding tax with respect to payments to be

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made under this Credit Agreement and under any Note, or (ii) if the Lender is not a
“bank” within the meaning of Section 881(c)(3)(A) of the Code, Internal Revenue Service Form
W-8BEN, W-8ECI or W-8IMY as set forth in clause (i) above, or (A) a certificate
substantially in the form of Exhibit L (any such certificate, a “2.18
Certificate”), and (B) two accurate and complete original signed copies of Internal
Revenue Service Form W-8BEN (or successor form) certifying such Lender’s entitlement to an
exemption from United States withholding tax with respect to payments of interest to be made
under this Credit Agreement and under any Note. In addition, each Lender agrees that it
will deliver upon the Initial Borrower’s request updated versions of the foregoing, as
applicable, whenever the previous certification has become obsolete or inaccurate in any
material respect, together with such other forms as may be required in order to confirm or
establish the entitlement of such Lender to a continued exemption from or reduction in
United States withholding tax with respect to payments under this Credit Agreement and any
Note. Notwithstanding anything to the contrary contained in Section 2.18(a), but
subject to the immediately succeeding sentence, (1) the Borrower shall be entitled, to the
extent it is required to do so by law, to deduct or withhold Taxes imposed by the United
States (or any political subdivision or taxing authority thereof or therein) from interest,
fees or other amounts payable hereunder for the account of any Lender which is not a United
States person (as such term is defined in Section 7701(a)(30) of the Code) for U.S. federal
income tax purposes to the extent that such Lender has not provided to the Initial Borrower
U.S. Internal Revenue Service Forms that establish a complete exemption from such deduction
or withholding, and (2) the Borrower shall not be obligated pursuant to Section
2.18(a) hereof to gross-up payments to be made to a Lender in respect of Taxes imposed
by the United States if (I) such Lender has not provided to the Initial Borrower the
Internal Revenue Service Forms required to be provided to the Initial Borrower pursuant to
this Section 2.18(b), or (II) in the case of a payment, other than interest, to a
Lender described in clause (ii) above, to the extent that such Forms do not
establish a complete exemption from withholding of such Taxes. Notwithstanding anything to
the contrary contained in the preceding sentence or elsewhere in this Section 2.18,
the Borrower agrees to pay additional amounts and to indemnify each Lender in the manner set
forth in Section 2.18(a) (without regard to the identity of the jurisdiction
requiring the deduction or withholding) in respect of any amounts deducted or withheld by it
as described in the immediately preceding sentence as a result of any changes after the
Closing Date in any Applicable Law, treaty, governmental rule, regulation, guideline or
order, or in the interpretation thereof, relating to the deducting or withholding of Taxes.

     (c) Each Lender agrees to use reasonable efforts (including reasonable efforts to
change its Domestic Lending Office or EURIBOR/LIBOR Lending Office, as the case may be) to
avoid or to minimize any amounts which might otherwise be payable pursuant to this
Section 2.18; provided, however, that such efforts shall not cause
the imposition on such Lender of any additional costs or legal or regulatory burdens deemed
by such Lender in its sole discretion to be material.

     (d) If the Borrower pays any additional amount pursuant to this Section 2.18
with respect to a Lender, such Lender shall use reasonable efforts to obtain a refund of tax
or credit against its tax liabilities on account of such payment; provided that such

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Lender shall have no obligation to use such reasonable efforts if either (i) it is in
an excess foreign tax credit position, or (ii) it believes in good faith, in its sole
discretion, that claiming a refund or credit would cause adverse tax consequences to it. In
the event that such Lender receives such a refund or credit, such Lender shall pay to the
Initial Borrower an amount that such Lender reasonably determines is equal to the net tax
benefit obtained by such Lender as a result of such payment by the Borrower. In the event
that no refund or credit is obtained with respect to the Borrower’s payments to such Lender
pursuant to this Section 2.18, then such Lender shall upon request provide a
certification that such Lender has not received a refund or credit for such payments.
Nothing contained in this Section 2.18 shall require a Lender to disclose or detail
the basis of its calculation of the amount of any tax benefit or any other amount or the
basis of its determination referred to in the proviso to the first sentence of this
Section 2.18 to the Borrower or any other party.

     (e) The agreements in this Section 2.18 shall survive the termination of this
Credit Agreement and the payment of the Notes and all other amounts payable hereunder.

     Section 2.19. Indemnification; Nature of Issuing Lender’s Duties.

     (a) In addition to its other obligations under Section 2.3, the Borrower hereby
agrees to protect, indemnify, pay and save the Issuing Lender and each Lender harmless from
and against any and all claims, demands, liabilities, damages, losses, costs, charges and
expenses (including reasonable attorneys’ fees) that the Issuing Lender or such Lender may
incur or be subject to as a consequence, direct or indirect, of (i) the issuance of any
Letter of Credit, or (ii) the failure of the Issuing Lender to honor a drawing under a
Letter of Credit as a result of any act or omission, whether rightful or wrongful, of any
present or future de jure or de facto government or governmental authority (all such acts or
omissions, herein called “Government Acts”).

     (b) As between the Borrower and the Issuing Lender and each Lender, the Borrower shall
assume all risks of the acts, omissions or misuse of any Letter of Credit by the beneficiary
thereof. Neither the Issuing Lender nor any Lender shall be responsible: (i) for the form,
validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by
any party in connection with the application for and issuance of any Letter of Credit, even
if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate,
fraudulent or forged; (ii) for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign any Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, that may prove to be invalid or
ineffective for any reason; (iii) for failure of the beneficiary of a Letter of Credit to
comply fully with conditions required in order to draw upon a Letter of Credit; (iv) for
errors, omissions, interruptions or delays in transmission or delivery of any messages, by
mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) for errors
in interpretation of technical terms; (vi) for any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under a Letter of Credit or of
the proceeds thereof; and (vii) for any consequences arising from causes beyond the control
of the Issuing Lender or any Lender, including, without

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limitation, any Government Acts. None of the above shall affect, impair, or prevent
the vesting of the Issuing Lender’s rights or powers hereunder.

     (c) In furtherance and extension and not in limitation of the specific provisions
hereinabove set forth, any action taken or omitted by the Issuing Lender or any Lender,
under or in connection with any Letter of Credit or the related certificates, if taken or
omitted in the absence of gross negligence or willful misconduct, shall not put such Issuing
Lender or such Lender under any resulting liability to the Borrower. It is the intention of
the parties that this Credit Agreement shall be construed and applied to protect and
indemnify the Issuing Lender and each Lender against any and all risks involved in the
issuance of the Letters of Credit, all of which risks are hereby assumed by the Borrower,
including, without limitation, any and all risks of the acts or omissions, whether rightful
or wrongful, of any Government Authority. The Issuing Lender and the Lenders shall not, in
any way, be liable for any failure by the Issuing Lender or anyone else to pay any drawing
under any Letter of Credit as a result of any Government Acts or any other cause beyond the
control of the Issuing Lender and the Lenders.

     (d) Nothing in this Section 2.19 is intended to limit the reimbursement
obligation of the Borrower contained in Section 2.3(d) hereof. The obligations of
the Borrower under this Section 2.19 shall survive the termination of this Credit
Agreement. No act or omissions of any current or prior beneficiary of a Letter of Credit
shall in any way affect or impair the rights of the Issuing Lender and the Lenders to
enforce any right, power or benefit under this Credit Agreement.

     (e) Notwithstanding anything to the contrary contained in this Section 2.19,
the Borrower shall have no obligation to indemnify the Issuing Lender or any Lenders in
respect of any liability incurred by the Issuing Lender or such Lender arising out of the
gross negligence or willful misconduct of the Issuing Lender (including action not taken by
the Issuing Lender or such Lender), as determined by a court of competent jurisdiction or
pursuant to arbitration.

     Section 2.20. Extension of Commitment Termination Date.

     Prior to the two year anniversary of the Closing Date, Initial Borrower may extend the
Commitment Termination Date to a date that is not later than twelve (12) months after the
then-effective Commitment Termination Date, no more than one time, upon: (a) delivery of a Facility
Extension Request in the form attached hereto as Exhibit M (the “Facility Extension
Request”) to Administrative Agent; (b) payment to Administrative Agent for the benefit of the
Lenders of a facility extension fee equal to twenty basis points (0.20%) on the then-existing
Committed Amount (i.e., 0.20% times the Committed Amount); and (c) payment by Borrower of all fees
and expenses to Administrative Agent and the Lenders to the extent then due. Such extension shall
be evidenced by delivery of written confirmation of the same by Administrative Agent to Initial
Borrower; provided, that:

          (i) no Default or Event of Default shall have occurred and be continuing; and

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          (ii) the representations and warranties contained in this Credit Agreement shall be
true and correct on and as of the Facility Extension Request as if made on and as of such
date (or, if any such representation and warranty is expressly stated to have been made as
of a specific date, such representations and warranties shall be true and correct as of such
specific date).

     Section 2.21. Replacement of Lenders.

     If Borrower becomes obligated to pay additional amounts to any Lender pursuant to Section
2.16 or Section 2.18, then Initial Borrower may within sixty (60) days thereafter
designate another bank or financial institution which is acceptable to Agent in its reasonable
discretion (such other bank or financial institution being called a “Replacement Lender”)
to purchase the Loans of such Lender and such Lender’s rights hereunder, without recourse to or
warranty by, or expense to, such Lender, for a purchase price equal to the outstanding principal
amount of the Loans payable to such Lender plus any accrued but unpaid interest on such Loans and
all accrued but unpaid fees owed to such Lender and any other amounts payable to such Lender under
this Credit Agreement (all such amounts shall only be payable in the Currency in which they are
owed under this Agreement), and to assume all the obligations of such Lender hereunder, and, upon
such purchase and assumption (pursuant to a Commitment Transfer Supplement), such Lender shall no
longer be a party hereto or have any rights hereunder (other than rights with respect to
indemnities and similar rights applicable to such Lender prior to the date of such purchase and
assumption) and shall be relieved from all obligations to Borrower hereunder, and the Replacement
Lender shall succeed to the rights and obligations of such Lender hereunder. Nothing in this
Section 2.21 shall be deemed to relieve Borrower of its obligation to pay additional
amounts to any Lender pursuant to Section 2.16 or Section 2.18.

     Section 2.22. Additional Limitations on CSF as Borrower. Notwithstanding anything to
the contrary contained in this Agreement (but subject to Section 2.3(h)), in no event shall
any Revolving Loan or Letter of Credit be issued to, or for the account of, CSF if the Guaranty
Agreement is not in full force and effect with respect to the Initial Borrower and CSI.

     Section 2.23. Several Liability of the Borrower. Without limiting the obligations of
the Initial Borrower or CSI as a guarantor under the Guaranty Agreement or of CSF as a Guarantor
under the Guaranty in Article X hereof, each Borrower shall be severally (and not jointly) liable
for any and all of the Revolving Loans made directly to it as a Borrower, and Letters of Credit
issued for the actual account of it as a Borrower.

     Section 2.24. Currency Conversion of Loans. Except as otherwise provided in
Section 2.9, in no event shall the Currency in which any outstanding Alternate Base Rate
Loan or EURIBOR/LIBOR Rate Loan is denominated be changed or converted into another Currency
(including, without limitation, if any such Loan is converted to an Alternate Base Rate Loan or
LIBOR Rate Loan pursuant to Section 2.10).

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ARTICLE III

CONDITIONS PRECEDENT

     Section 3.1. Conditions to Closing.

     This Credit Agreement shall become effective upon, and the obligation of each Lender to make
the initial Loans, and the Issuing Lender to issue Letters of Credit on the Closing Date is subject
to, the satisfaction of the following conditions precedent:

     (a) Execution of Credit Agreement and Credit Documents. The Administrative
Agent shall have received (i) counterparts of this Credit Agreement, executed by a duly
authorized officer of each party hereto, (ii) a Note, for the account of each Lender that
requests a Note, (iii) for the account of the Swingline Lender, the Swingline Note, and (iv)
counterparts of any other Credit Document, executed by the duly authorized officers of the
parties thereto.

     (b) Authority Documents. The Administrative Agent shall have received the
following:

          (i) Certificate of Incorporation, Etc. Copies of the certificate of
incorporation or other charter or formation documents of each Credit Party certified to be
true and complete as of a recent date by the appropriate governmental authority of the state
of its incorporation or formation, as the case may be.

          (ii) Resolutions. Copies of resolutions of the board of directors or other
comparable managing body of each Credit Party approving and adopting the Credit Documents,
the transactions contemplated therein and authorizing execution and delivery thereof,
certified by an officer or the managing member of such Credit Party as of the Closing Date
to be true and correct and in force and effect as of such date.

          (iii) Bylaws. A copy of the bylaws and/or operating agreement of each Credit
Party certified by an officer or managing member of such Credit Party as of the Closing Date
to be true and correct and in force and effect as of such date.

          (iv) Good Standing. Copies of certificates of good standing, existence or its
equivalent with respect to each Credit Party certified as of a recent date by the
appropriate governmental authorities of the state of incorporation or formation, as the case
may be, and each other state in which such Credit Party is qualified to do business.

          (v) Incumbency. An incumbency certificate of each Credit Party certified by a
secretary or assistant secretary pursuant to the Secretary Certificate substantially in the
form of Exhibit D (“Secretary’s Certificate”) to be true and correct as of
the Closing Date, in form and substance satisfactory to Administrative Agent.

     (c) Personal Property Collateral. The Administrative Agent shall have
received, in form and substance satisfactory to the Administrative Agent: (i) searches of
UCC filings in the jurisdiction of the chief executive office and state of incorporation of

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each Credit Party and each jurisdiction where Credit Party’s personal property is
located; and (ii) copies of the financing statements on file in such jurisdictions.

     (d) Legal Opinions of Counsel. The Administrative Agent shall have received an
opinion of counsel for each Credit Party from Hogan and Hartson LLP dated the Closing Date
and addressed to the Administrative Agent and the Lenders in form and substance satisfactory
to Administrative Agent.

     (e) Fees. The Administrative Agent and the Lenders shall have received all
fees, if any, owing pursuant to Section 2.5 and any fee or commitment letter.

     (f) Litigation. There shall not exist any pending or threatened litigation,
investigation, bankruptcy or insolvency, injunction, order or claim affecting or relating to
any Credit Party or any of their Subsidiaries, this Credit Agreement and the other Credit
Documents, that has not been settled, dismissed, vacated, discharged or terminated prior to
the Closing Date which could reasonably be expected to result in a Material Adverse Effect.

     (g) Government Consent. The Administrative Agent shall have received evidence
that all governmental, shareholder and material third party consents and approvals necessary
in connection with the financings and other transactions contemplated hereby have been
obtained.

     (h) Compliance with Laws. The Loans and other transactions contemplated hereby
shall be in compliance with all Applicable Laws and regulations (including all applicable
securities and banking laws, rules and regulations).

     (i) Bankruptcy. There shall be no Insolvency Proceedings with respect to any
Credit Party or any of their Subsidiaries.

     (j) Financial Statements. The Administrative Agent and the Lenders shall have
received copies of the financial statements referred to in Section 5.1 hereof, each
in form and substance satisfactory to it.

     (k) No Material Adverse Change. Since December 31, 2005, there has been no
Material Adverse Change with respect to the Borrower and its Subsidiaries taken as a whole.

     (l) Financial Condition Certificate. The Administrative Agent shall have
received a certificate, substantially in the form of Exhibit G (“Solvency
Certificate”) and certified as accurate by a Responsible Officer, demonstrating
compliance by the Borrower and its Subsidiaries as of the Closing Date with the financial
covenants contained in Section 5.32 hereof.

     (m) Officer’s Certificate. The Administrative Agent shall have received a
certificate executed by a Responsible Officer of each Credit Party as of the Closing Date
stating that (i) no action, suit, investigation or proceeding is pending or, to the
knowledge of each such Credit Party, threatened in any court or before any arbitrator or

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governmental instrumentality that purports to affect the Credit Parties or the
transactions contemplated by the Credit Documents, if such action, suit, investigation or
proceeding could reasonably be expected to have a Material Adverse Effect, and (ii)
immediately after giving effect to this Credit Agreement (including the initial Loans
hereunder), the other Credit Documents, and all the transactions contemplated therein or
thereby to occur on such date, (A) no Default or Event of Default exists, and (B) all
representations and warranties contained herein and in the other Credit Documents are true
and correct in all material respects.

     (n) Borrower Information Certificate. The Administrative Agent shall have
received a certificate substantially in the form of Exhibit K (“Borrower
Information Certificate”), for benefit of itself and the Lenders, provided by each
Credit Party that sets forth information required by the PATRIOT Act including, without
limitation, the identity of each Credit Party, the name and address of each Credit Party and
other information that will allow the Administrative Agent or any Lender, as applicable, to
identify each Credit Party in accordance with the PATRIOT Act.

     (o) Additional Matters. All other documents and legal matters in connection
with the transactions contemplated by this Credit Agreement shall be reasonably satisfactory
in form and substance to the Administrative Agent and its counsel.

     Section 3.2. Conditions to All Extensions of Credit.

     The obligation of each Lender to make any Extension of Credit hereunder is subject to the
satisfaction of the following conditions precedent on the date of making such Extension of Credit:

     (a) Representations and Warranties. The representations and warranties made by
the Credit Parties herein or which are contained in any certificate furnished at any time
under or in connection herewith shall be true and correct on and as of the date of such
Extension of Credit as if made on and as of such date (except for those which expressly
relate to an earlier date, in which case, such representations and warranties shall be true
and correct as of such earlier date).

     (b) No Default or Event of Default. No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the Extension of Credit to
be made on such date unless such Default or Event of Default shall have been waived in
accordance with this Credit Agreement.

     (c) Compliance with Covenants. Immediately after giving effect to the making
of any such Extension of Credit, each Credit Party is in compliance with each of the
covenants set forth herein.

     (d) Compliance with Commitments. Immediately after giving effect to the making
of any such Extension of Credit (and the application of the proceeds thereof), (i) the sum
of the aggregate principal amount of outstanding Revolving Loans, plus outstanding Swingline
Loans, plus LOC Obligations shall not exceed the Committed Amount then in effect, (ii) the
LOC Obligations shall not exceed the LOC Committed

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Amount, (iii) the Swingline Loans shall not exceed the Swingline Committed Amount, and
(iv) the aggregate principal amount of outstanding Revolving Loans denominated in any
Alternative Currency plus LOC Obligations denominated in any Alternative Currency shall not
exceed the Alternative Currency Sub-Limit. For purposes of completing the calculations set
forth in this Section 3.2(d), Revolving Loans and LOC Obligations denominated in
Alternative Currencies shall be redenominated in Dollars in an amount equal to the Dollar
Equivalent thereof.

     (e) Additional Conditions to Revolving Loans. If such Loan is made pursuant to
Section 2.1, all applicable conditions set forth in such Section shall have been
satisfied.

     (f) Additional Conditions to Letters of Credit. If such Extension of Credit is
made pursuant to Section 2.3, all applicable conditions set forth in such Section
shall have been satisfied.

     (g) Material Adverse Change. There shall have been no Material Adverse Change
to the Credit Parties and their Subsidiaries taken as whole.

     Each request for an Extension of Credit and each acceptance by the Borrower of any such
Extension of Credit shall be deemed to constitute a representation and warranty by each Credit
Party as of the date of such Extension of Credit that the applicable conditions in paragraphs (a)
through (g) of this Section 3.2 have been satisfied.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     To induce the Lenders to enter into this Credit Agreement and to make the Extension of Credit
herein provided for, each of the Credit Parties hereby represents and warrants to the
Administrative Agent and to each Lender that:

     Section 4.1. Existence and Power. Each of the Credit Parties (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization, (b)
is duly qualified to transact business in every jurisdiction where, by the nature of its business,
such qualification is necessary, except for such jurisdictions where the failure to so qualify
could not reasonably be expected to have a Material Adverse Effect, and (c) has all organizational
powers and all governmental licenses, authorizations, consents and approvals required to carry on
its business as now conducted, except for those licenses, permits or other approvals, the absence
of which could not reasonably be expected to have a Material Adverse Effect.

     Section 4.2. Organizational and Governmental Authorization; No Contravention. The
execution, delivery and performance by each Credit Party of the Credit Documents to which each such
Credit Party is a party (a) are within each such Credit Party’s organizational powers, (b) have
been duly authorized by all necessary organizational action, (c) require no action by or in respect
of, or filing with, any governmental body, agency or official, (d) do not contravene any provision
of any Applicable Law or regulation or of the organizational documents of each Credit Party or of
any judgment, injunction, order, decree, or constitute a default under any material agreement
binding upon the Credit Parties or any of their Subsidiaries, and (e) do not result in

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the creation or imposition of any Lien on any asset of the Credit Parties or any of their
Subsidiaries.

     Section 4.3. Binding Effect. This Credit Agreement constitutes a valid and binding
agreement of each Credit Party enforceable in accordance with its terms, and the Notes and the
other Credit Documents, when executed and delivered in accordance with this Credit Agreement, will
constitute valid and binding obligations of the Credit Parties enforceable in accordance with their
respective terms, provided that the enforceability hereof and thereof is subject in each case to
general principles of equity and to Insolvency Laws.

     Section 4.4. Financial Information. (a) The consolidated balance sheet of the
Initial Borrower and its Consolidated Subsidiaries (including Unrestricted Subsidiaries) as of
December 31, 2005 and the related consolidated statements of income, shareholders’ equity and cash
flows for the Fiscal Year then ended, reported on by a Big 4 Accounting Firm, copies of which have
been delivered to each of the Lenders, fairly present, in conformity with GAAP, the consolidated
financial position of the Initial Borrower and its Consolidated Subsidiaries (including
Unrestricted Subsidiaries) as of such dates and their consolidated results of operations and cash
flows for such periods stated.

     (b) Since December 31, 2005 there has been no event, act, condition or occurrence which
has had or could reasonably be expected to have a Material Adverse Effect.

     Section 4.5. Litigation. There is no investigation, action, suit or proceeding
pending, or to the knowledge of the Credit Parties threatened, against or affecting any Credit
Party or any Subsidiary (including Unrestricted Subsidiaries) of a Credit Party before any court or
arbitrator or any governmental body, agency or official which could reasonably be expected to have
a Material Adverse Effect or which purports to affect the validity or enforceability of the Credit
Documents.

     Section 4.6. Compliance with ERISA. (a) The Borrower and each member of the
Controlled Group have fulfilled their obligations under the minimum funding standards of ERISA and
the Code with respect to each Plan and are in compliance in all material respects with the
presently applicable provisions of ERISA and the Code, and have not incurred any liability to the
PBGC or a Plan under Title IV of ERISA.

     (b) Neither the Borrower nor any member of the Controlled Group is or ever has been
obligated to contribute to any Multiemployer Plan.

     (c) The assets of Borrower or any Subsidiary do not and will not constitute “plan
assets,” within the meaning of ERISA, the Code and the respective regulations promulgated
thereunder. The execution, delivery and performance of this Credit Agreement, and the
borrowing and repayment of amounts hereunder, do not and will not constitute “prohibited
transactions” under ERISA or the Code.

     Section 4.7. Taxes. There have been filed on behalf of the Borrower and its
Subsidiaries all Federal tax returns and, to the Borrower’s knowledge all state and local income,
excise, property and other tax returns which are required to be filed by them and all taxes due

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pursuant to such returns or pursuant to any assessment received by or on behalf of the
Borrower or any Subsidiary have been paid prior to becoming delinquent (other than taxes currently
being contested in good faith by appropriate proceedings and with respect to which reserves in
accordance with GAAP have been provided on the books of the Borrower). The charges, accruals and
reserves on the books of the Borrower and its Subsidiaries in respect of taxes or other
governmental charges are, in the opinion of the Borrower, adequate.

     Section 4.8. Subsidiaries. Each of the Borrower’s Subsidiaries (including
Unrestricted Subsidiaries) (a) is an entity duly organized, validly existing and in good standing
under the laws of its jurisdiction of incorporation or organization, except as could not reasonably
be expected to have a Material Adverse Effect, (b) is duly qualified to transact business in every
jurisdiction where, by the nature of its business, such qualification is necessary, except for such
jurisdictions where the failure to qualify could not reasonably be expected to have a Material
Adverse Effect, and (c) has all organizational powers and all governmental licenses,
authorizations, consents and approvals required to carry on its business as now conducted except
those licenses, permits or other approvals, the absence of which could not reasonably be expected
to have a Material Adverse Effect. As of the date hereof, the Borrower has no Subsidiaries except
those Subsidiaries listed on Schedule 4.8, which accurately sets forth each such
Subsidiary’s complete name and jurisdiction of incorporation.

     Section 4.9. Investment Company Act. None of the Credit Parties is (i) an “investment
company” or a company controlled by an “investment company” that has elected to be regulated as a
“business development company” within the meaning of the Investment Company Act, or (ii) a person
qualifying for treatment as a “regulated investment company” under the Code.

     Section 4.10. [Reserved]

     Section 4.11. Ownership of Property. Each Credit Party and each of their Subsidiaries
has title to its properties sufficient for the conduct of its business.

     Section 4.12. No Default. None of the Credit Parties nor any of their respective
Subsidiaries is in default under or with respect to any agreement, instrument or undertaking to
which it is a party or by which it or any of its property is bound which could reasonably be
expected to have a Material Adverse Effect. No event has occurred and is continuing and no
condition exists, or would result from the Extension of Credit or from the application of the
proceeds therefrom, which constitutes a Default or Event of Default.

     Section 4.13. Full Disclosure.

     (a) None of the factual information (other than projections) heretofore furnished
(including any information furnished in public filings) in writing by any Credit Party for
purposes of or in connection with this Credit Agreement contains any untrue statement of a
material fact, or when taken together with all other written information so furnished omits
to state any material fact necessary to make any information not materially misleading.

     (b) Any projections heretofore furnished by the Borrower to the Administrative Agent
for purposes of or in connection with the Credit Agreement were

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prepared in good faith on the basis of the assumptions stated therein, which
assumptions were fair in light of the conditions existing at the time of delivery of such
forecasts, and represented, at the time of the delivery, the Borrower’s best estimate of its
future financial performance.

     (c) Each Credit Party has disclosed to the Lenders in writing any and all facts which
are reasonably likely to have a Material Adverse Effect.

     Section 4.14. Environmental Matters. Except as could not reasonably be expected to
have a Material Adverse Effect:

     (a) None of the Credit Parties nor any of their Subsidiaries (including Unrestricted
Subsidiaries) is subject to any Environmental Liability and none of the Credit Parties or
any their Subsidiaries (including Unrestricted Subsidiaries) has been designated as a
potentially responsible party under CERCLA. None of the Properties has been identified on
any current or proposed (i) National Priorities List under 40 C.F.R. § 300, (ii) CERCLIS
list, or (iii) any list arising from a state statute similar to CERCLA.

     (b) No Hazardous Materials have been or are being used, produced, manufactured,
processed, treated, recycled, generated, stored, disposed of, managed or otherwise handled
at, or shipped or transported to or from the Properties or are otherwise present at, on, in
or under the Properties, or, to the best of the knowledge of any Credit Party, at or from
any adjacent site or facility, except for Hazardous Materials, such as cleaning solvents,
pesticides and other materials used, produced, manufactured, processed, treated, recycled,
generated, stored, disposed of, and managed or otherwise handled in minimal amounts in the
ordinary course of business in compliance with all applicable Environmental Requirements.

     (c) Each Credit Party and each of their Subsidiaries (including Unrestricted
Subsidiaries) and Affiliates, has procured all Environmental Authorizations necessary for
the conduct of its business, and is in compliance with all Environmental Requirements in
connection with the operation of the Properties and the Credit Parties, and each of their
respective Subsidiary’s (including Unrestricted Subsidiaries) and Affiliate’s, respective
businesses.

     Section 4.15. Compliance with Laws. Each Credit Party and each Subsidiary (including
Unrestricted Subsidiaries) of the Credit Parties is in compliance with all Applicable Laws,
including, without limitation, all Environmental Laws except in such instances in which failure to
comply therewith, either individually or in the aggregate, could not reasonably be expected to have
a Material Adverse Effect.

     Section 4.16. Capital Stock. All Capital Stock, debentures, bonds, notes and all
other securities of the Credit Parties and their Subsidiaries presently issued and outstanding are
validly issued in accordance with all Applicable Laws, including, but not limited to, the “Blue
Sky” laws of all applicable states and the federal securities laws. As of the Closing Date the
issued shares of Capital Stock of each Credit Party’s respective Wholly Owned Subsidiaries are
owned by the

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Credit Parties free and clear of any Lien or adverse claim except for Liens described on
Schedule 4.16.

     Section 4.17. Margin Stock. None of the Credit Parties or any of their Subsidiaries
is engaged in the business of extending credit for the purpose of “purchasing” or “carrying” any
Margin Stock. The Credit Parties do not own any Margin Stock, and no portion of the proceeds of
any Loan hereunder will be used, directly or indirectly, for the purpose of purchasing or carrying
any Margin Stock, for the purpose of reducing or retiring any Debt that was originally incurred to
purchase or carry any Margin Stock or for any other purpose that might cause any portion of such
proceeds to be considered a “purpose credit” within the meaning of Regulation T, U or X of the
Board of Governors of the Federal Reserve System. The Credit Parties will not take or permit to be
taken any action that might cause any Credit Document to violate any regulation of the Board of
Governors of the Federal Reserve System.

     Section 4.18. Insolvency. After giving effect to the execution and delivery of the
Credit Documents and the Extension of Credit under this Credit Agreement, none of the Credit
Parties will be “insolvent,” within the meaning of such term as defined in the Bankruptcy Code or
Section 2 of the Uniform Fraudulent Transfer Act, or any other applicable state law pertaining to
fraudulent transfers, as each may be amended from time to time, or be unable to pay its debts
generally as such debts become due, or have an unreasonably small capital to engage in any business
or transaction, whether current or contemplated.

     Section 4.19. Available Unpledged Assets. The information contained in the Monthly
Report delivered pursuant to Section 5.2(b) is an accurate and complete listing in all
material respects of all Qualified Available Unpledged Assets, and the information contained
therein with respect to the identity of such Qualified Available Unpledged Assets and the amounts
owing thereunder is true and correct in all material respects. The Borrower owns and has good and
marketable title to the Qualified Available Unpledged Assets and each such Qualified Available
Unpledged Asset and the Related Property is free and clear of any Lien of any Person (other than
Permitted Liens).

     Section 4.20. Labor Matters. There are no significant strikes, lockouts, slowdowns or
other labor disputes against the Credit Parties pending or, to the knowledge of the Credit Parties,
threatened. The hours worked by and payment made to employees of the Credit Parties and each
Subsidiary of the Credit Parties have not been in violation of the Fair Labor Standards Act or any
other applicable federal, state or foreign law dealing with such matters, except in such instances
in which the failure to comply therewith, either individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

     Section 4.21. Patents, Trademarks, Etc. To the best of their knowledge, the Credit
Parties and each Subsidiary of the Credit Parties owns, or is licensed to use, all patents,
trademarks, trade names, copyrights, technology, know-how and processes, service marks and rights
with respect to the foregoing that are (a) necessary for the conduct of their respective businesses
as currently conducted, and (b) material to the businesses, financial condition, operations, or
properties, of the Credit Parties and their Subsidiaries taken as a whole. To the Credit Parties
knowledge, the use of such patents, trademarks, trade names, copyrights, technology, know-how,
processes and rights with respect to the Credit Parties and their

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Subsidiaries, does not infringe on the rights of any Person in any manner which could
reasonably be expected to cause a Material Adverse Effect.

     Section 4.22. Tax Shelter Regulations. Borrower does not intend to treat the Loans
and advances and related transactions as being a “reportable transaction” (within the meaning of
Treasury Regulation Section 1.6011-4). In the event Borrower determines to take any action
inconsistent with such intention, it will promptly notify Administrative Agent thereof. If
Borrower so notifies Administrative Agent, Borrower acknowledges that one or more of the Lenders
may treat its Revolving Loans and/or its interest in Swingline Loans as part of a transaction that
is subject to Treasury Regulation 301.6112-1, and that such Lender or Lenders, as applicable, will
maintain the lists and other records required by such Treasury Regulation.

     Section 4.23. All Consents Required. All approvals, authorizations, consents, orders
or other actions of any Person or of any Governmental Authority (if any) required in connection
with the due execution, delivery and performance by the Credit Parties of this Credit Agreement and
any Credit Document to which the Credit Parties are a party, have been obtained.

     Section 4.24. Selection Procedures. No procedures believed by the Credit Parties to
be adverse to the interests of the Administrative Agent and the Lenders were utilized by the Credit
Parties in identifying and/or selecting the Investments that are part of the Available Unpledged
Assets and Qualified Available Unpledged Assets; it being understood that the selection procedures
used by the Credit Parties for the inclusion of Investments in one or more of its Securitization
Transactions or other financing facilities and which are solely intended to obtain the most
beneficial advance rates thereunder and/or otherwise maximize the efficiency of such facilities
shall not be deemed to be adverse procedures for the purposes of this Section.

     Section 4.25. [Reserved].

     Section 4.26. Credit and Collection Policy; Residential Mortgage Policies and
Procedures. The copy of the Residential Mortgage Policies and Procedures and the Credit and
Collection Policy, attached hereto as Schedule 1.1(a) and Schedule 4.26,
respectively, are true, complete and accurate as of the Closing Date. Since the date hereof, there
have been no material changes in any Credit and Collection Policy or the Residential Mortgage
Policies and Procedures other than in accordance with this Credit Agreement. Since December 31,
2005, no Material Adverse Change has occurred in the overall rate of collection of the Investment
Loans and Investments in Equity Instruments, and Borrower has at all times complied in all material
respects and to the extent applicable with the Credit and Collection Policy with respect to each
Investment Loan and each Investment in Equity Instruments.

     Section 4.27. Compliance with OFAC Rules and Regulations. None of the Borrower, any
Subsidiary (including Unrestricted Subsidiaries) of the Borrower, any Guarantor, or, to the
Borrower’s knowledge, any Affiliate of the Borrower or any Guarantor (i) is a Sanctioned Person, or
(ii) derives any of its operating income from investments in, or transactions with, Sanctioned
Persons or Sanctioned Entities. The proceeds of any Loan will not be used and have not been used
to fund any operations in, finance any investments or activities in or make any payments to, a
Sanctioned Person or a Sanctioned Entity.

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     Section 4.28. REIT Status. The Initial Borrower (a) operates its business so as to
satisfy all requirements necessary to qualify as a REIT, and will not intentionally take any action
that will cause Initial Borrower to fail to so qualify; (b) maintains adequate records so as to
comply with all record-keeping requirements relating to its qualification as a REIT as required by
the Code and applicable regulations of the Department of Treasury promulgated thereunder and will
properly prepare and timely file with the Internal Revenue Service all returns and reports required
thereby to qualify as a REIT; and (c) requested or will timely request from its shareholders all
information required by the Code and applicable regulations of the Department of Treasury
promulgated thereunder to qualify as a REIT.

ARTICLE V

COVENANTS

     Each Credit Party hereby covenants and agrees that, on the Closing Date, and thereafter for so
long as this Credit Agreement is in effect and until the Commitments have terminated, no Note
remains outstanding and unpaid and the Credit Party Obligations under the Credit Documents,
together with interest, Commitment Fees and all other amounts owing to the Agent or any Lender
hereunder, are paid in full:

     Section 5.1. Financial Statements.

     Initial Borrower shall furnish to the Administrative Agent and each of the Lenders:

     (a) Annual Financial Statements. As soon as available, but in any event within
ten (10) days of the date the Initial Borrower is required to file its Form 10-K with the
SEC (without giving effect to any extension of such due date, whether obtained by filing the
notification permitted by Rule 12b-25 or any successor provision thereto or otherwise), a
copy of the consolidated and consolidating balance sheet of the Initial Borrower and its
Consolidated Subsidiaries (including Unrestricted Subsidiaries) as at the end of such Fiscal
Year and the related consolidated and consolidating statements of income, cash flows and
retained earnings of the Initial Borrower and its Consolidated Subsidiaries (including
Unrestricted Subsidiaries) for such year, audited by a Big 4 Accounting Firm, setting forth
in each case in comparative form the figures for the preceding Fiscal Year, reported on
without a “going concern” or like qualification, exception or assumption, or qualification
or assumption indicating that the scope of the audit was inadequate to permit such
independent certified public accountants to certify such financial statements without such
qualification;

     (b) Quarterly Financial Statements. As soon as available and in any event
within ten (10) days of the date the Initial Borrower is required to file its Form 10-Q with
the SEC (without giving effect to any extension of such due date, whether obtained by filing
the notification permitted by Rule 12b-25 or any successor provision thereto or otherwise),
a company-prepared consolidated and consolidating balance sheet of the Initial Borrower and
its Consolidated Subsidiaries (including Unrestricted Subsidiaries) as at the end of such
period and related company-prepared consolidated and consolidating statements of income,
cash flows and retained earnings for the Initial Borrower and its

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Consolidated Subsidiaries (including Unrestricted Subsidiaries) for such quarterly
period and for the portion of the Fiscal Year ending with such period, in each case setting
forth in comparative form the figures for the corresponding period or periods of the
preceding Fiscal Year (subject to normal recurring year-end audit adjustments) certified as
to fairness of presentation, GAAP and consistency by the Chief Financial Officer of the
Initial Borrower; and

all such financial statements to fairly present in all material respects the financial condition
and results from operations of the entities and for the periods specified and to be prepared in
reasonable detail and in accordance with GAAP (subject, in the case of interim statements, to
normal year-end audit adjustments) applied consistently throughout the periods reflected therein
and, if applicable, accompanied by a description of, and an estimation of the effect on the
financial statements on account of, a change in the application of accounting principles as
provided in Section 1.3.

     Section 5.2. Certificates; Other Information.

     Initial Borrower shall furnish to the Administrative Agent and each of the Lenders:

     (a) concurrently with the delivery of the financial statements referred to in
Sections 5.1(a) and 5.1(b) above, a certificate of a Responsible Officer
substantially in the form of Exhibit H (“Compliance Certificate”) stating
that (i) such financial statements present fairly the financial position of the Initial
Borrower and its Consolidated Subsidiaries (including Unrestricted Subsidiaries) for the
periods indicated in conformity with GAAP applied on a consistent basis, (ii) each Credit
Party during such period observed or performed in all material respects all of its covenants
and other agreements, and satisfied in all material respects every condition, contained in
this Credit Agreement to be observed, performed or satisfied by it, and (iii) such
Responsible Officer has obtained no knowledge of any Default or Event of Default except as
specified in such certificate and if any Default then exists, setting forth the details
thereof and the action which the Initial Borrower is taking or proposes to take with respect
thereto, and including calculations in reasonable detail required to indicate compliance
with Sections 5.8, 5.28 and 5.32 as of the last day of such period;

     (b) within fifteen (15) Business Days after the end of each calendar month, a monthly
report (the “Monthly Report”) signed by a Responsible Officer of the Initial
Borrower and substantially in the form of Exhibit I; and

     (c) promptly, such additional financial and other information as the Administrative
Agent, on behalf of any Lender, may from time to time reasonably request.

     Section 5.3. Payment of Taxes and Other Obligations.

     The Credit Parties will, and will cause each of their Subsidiaries (including Unrestricted
Subsidiaries) to pay, discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, (subject, where applicable, to specified grace periods) all (a)
Federal taxes, and (b) promptly upon obtaining knowledge thereof, all state and local taxes,

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assessments and governmental charges the nonpayment of which could reasonably be expected to
result in a material liability or asset impairment, and any additional costs that are imposed as a
result of any failure to so pay, discharge or otherwise satisfy such taxes, obligations and
liabilities, except when the amount or validity of any such taxes, obligations and liabilities is
currently being contested in good faith by appropriate proceedings and reserves, if applicable, in
conformity with GAAP with respect thereto have been provided on the books of the Credit Parties.

     Section 5.4. Notices.

     Immediately after any Credit Party becomes aware thereof give written notice to the
Administrative Agent (which shall promptly transmit such notice to each Lender) of the occurrence
of any Default or Event of Default, and promptly (but in no event later than three (3) Business
Days after a Responsible Officer of any Credit Party obtains actual knowledge thereof) give written
notice of the following to the Administrative Agent (which shall promptly transmit such notice to
each Lender):

     (a) the occurrence of any default or event of default under any Contractual Obligation
of any of the Credit Parties or any Subsidiary which could reasonably be expected to have a
Material Adverse Effect or result in monetary liability in excess of $10,000,000;

     (b) any litigation, or any investigation or proceeding affecting any of the Credit
Parties which, could reasonably be expected to have a Material Adverse Effect;

     (c) any order, judgment or decree exceeding $10,000,000 having been entered against any
of the Credit Parties or any Subsidiary;

     (d) (i) the occurrence or expected occurrence of any Reportable Event with respect to
any Plan, a failure to make any required contribution to a Plan, the creation of any Lien in
favor of the PBGC (other than a Permitted Lien) or a Plan or any withdrawal from, or the
termination, Reorganization or Insolvency of, any Multiemployer Plan, or (ii) the
institution of proceedings or the taking of any other action by the PBGC or any Credit Party
or any Commonly Controlled Entity or any Multiemployer Plan with respect to the withdrawal
from, or the terminating, Reorganization or Insolvency of, any Plan;

     (e) any notice of any material violation received by any Credit Party from any
Governmental Authority; and

     (f) any other development or event which could reasonably be expected to have a
Material Adverse Effect.

Each notice pursuant to this Section 5.4 shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein and stating what
action the Credit Party proposes to take with respect thereto. In the case of any notice of a
Default or Event of Default, such Credit Party shall specify that such notice is a Default or Event
of Default notice on the face thereof.

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     Section 5.5. Inspection of Property, Books and Records.

     Each Credit Party will: (a) keep, and will cause each Subsidiary (including Unrestricted
Subsidiaries) to keep, proper books of record and account in which full, true and correct entries
in conformity with GAAP shall be made of all dealings and transactions in relation to its business
and activities; (b) permit, and will cause each Subsidiary (including Unrestricted Subsidiaries) of
the Credit Parties to permit, during regular business hours, upon not less than five (5) days prior
notice which notice shall not be required in the case of a Default or an Event of Default having
occurred, the Administrative Agent or its designee, at the expense of the Borrower, to perform
periodic field audits and investigations of the Borrower and the Qualified Available Unpledged
Assets, from time to time, provided that the field audits and investigations at the Borrower’s
headquarters in Chevy Chase, Maryland shall be no more frequent than once each Fiscal Year (in the
absence of an Event of Default); and (c) permit, and will cause each Subsidiary (including
Unrestricted Subsidiaries) to permit, representatives of the Administrative Agent and any Lender at
the expense of the Administrative Agent or such Lender, as applicable, prior to the occurrence of
an Event of Default and at the Borrower’s expense after the occurrence of an Event of Default to
visit and inspect, during regular business hours, any of their respective properties, to examine
and make abstracts from any of their respective books and records (including computer tapes and
disks) and to discuss their respective affairs, finances and accounts with their respective
officers, employees and independent public accountants. Each Credit Party agrees to cooperate and
assist in such visits and inspections; provided that such visits and inspections shall be
no more frequent than once each Fiscal Year so long as no Event of Default shall have occurred and
be continuing, and as often as may reasonably be desired in the event that an Event of Default
shall have occurred and be continuing.

     Section 5.6. Acquisitions.

     Neither the Borrower nor any Subsidiary of the Borrower shall consummate any Acquisition,
unless (a) the line or lines of business of the Person to be acquired are substantially the same as
or related to one or more Permitted Lines of Business, (b) no Default or Event of Default shall
have occurred and be continuing either immediately prior to or immediately after giving effect to
such Acquisition and no less than three (3) Business Days after the date such Acquisition is
effective the Initial Borrower provides to the Administrative Agent and Lenders pro forma financial
statements confirming the Initial Borrower will be in pro forma compliance with Section
5.32, and (c) the Person acquired shall be (i) a Subsidiary or merged into a Subsidiary or (ii)
be merged into the Borrower immediately upon consummation of the Acquisition (or if assets are
being acquired, the acquiror shall be the Borrower or a Subsidiary of the Borrower).

     Section 5.7. Restricted Payments.

     If a Default or Event of Default specified in Section 7.1(a) or Section 7.1(f)
shall have occurred and be continuing, or if as a result of the occurrence of any other Event of
Default the Credit Party Obligations have been accelerated pursuant to Section 7.2, the
Credit Parties shall not make any Restricted Payment.

     Section 5.8. Capital Expenditures.

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     Capital Expenditures will not exceed in the aggregate in any Fiscal Year the sum of
$25,000,000; provided, however, to the extent Capital Expenditures in any fiscal
year are less than the amount permitted by this Section 5.8, such unused amounts may be
carried forward to a subsequent period.

     Section 5.9. Additional Guarantors.

Initial Borrower will cause each of its First Tier Domestic Subsidiaries and each of its First Tier
Foreign Subsidiaries, whether newly formed, after acquired or otherwise existing, to promptly (and
in any event within thirty (30) days after such Subsidiary is formed or acquired (or such longer
period of time as agreed to by the Administrative Agent in its reasonable discretion)) become a
Guarantor hereunder by way of execution of a Joinder Agreement; provided that,
First Tier Foreign Subsidiaries shall not be required to become a Guarantor if it would be unlawful
or would cause any material adverse tax consequences to the Initial Borrower or such First Tier
Foreign Subsidiary. The Initial Borrower may also at any time voluntarily cause any of its Wholly
Owned Subsidiaries (other than First Tier Domestic Subsidiaries or First Tier Foreign Subsidiaries)
to become a Guarantor hereunder by way of execution of a Joinder Agreement. In addition, Initial
Borrower shall, and shall cause CSI to, enter into the Guaranty Agreement prior to or simultaneous
with CSF becoming a Borrower hereunder and shall maintain, and shall cause CSI to maintain, the
Guaranty Agreement in full force and effect and shall perform and observe all of the terms and
provisions of the Guaranty Agreement to be performed or observed by it, and cause CSI to do the
same, until such time as the Release Condition has been satisfied. Upon satisfaction of the
Release Condition, the Guaranty Agreement shall be terminated and the Administrative Agent shall
promptly (and in any event within five (5) Business Days after the written request of the Initial
Borrower) execute such documents as may reasonably be requested by the Initial Borrower to
evidence such termination.

     Section 5.10. Maintenance of Unsecured Debt Rating.

     Initial Borrower shall at all times maintain a senior unsecured debt rating by one of (a)
Fitch, (b) S&P, or (c) Moody’s. In the event Initial Borrower shall maintain one senior unsecured
debt rating such rating shall at all times be equal to or greater than (i) in the case of Fitch
“BB-”, (ii) in the case of S&P “BB-”, and (iii) in the case of Moody’s “Ba3”. In the event Initial
Borrower shall maintain two or more senior unsecured debt ratings, two of such ratings shall at all
times be equal to or greater than (i) in the case of Fitch “BB-”, (ii) in the case of S&P “BB-”,
and (iii) in the case of Moody’s “Ba3”.

     Section 5.11. Ownership of Credit Parties; Restrictions.

     No Credit Party shall sell, transfer, pledge or otherwise dispose of any Capital Stock or
other equity interest in any other Credit Party that is a Subsidiary of the Initial Borrower and no
Credit Party that is a Subsidiary of the Initial Borrower may issue or sell its Capital Stock,
except that such Capital Stock or other equity interest may be transferred or issued to another
Credit Party.

     Section 5.12. Maintenance of Existence.

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     Each Credit Party will and will cause each Subsidiary of a Credit Party, except as otherwise
permitted by Section 5.13 and 5.14, to continue to engage in business of the same
general type as any of the Permitted Lines of Business, preserve and maintain its existence,
rights, franchises and privileges in the jurisdiction of its formation, and qualify and remain
qualified in good standing in each jurisdiction where the failure to maintain such existence,
rights, franchises, privileges and qualification has had, or could reasonably be expected to have,
a Material Adverse Effect.

     Section 5.13. Dissolution.

     None of the Credit Parties or any Subsidiary of a Credit Party shall suffer or permit
dissolution or liquidation, except (a) through corporate reorganization, merger, asset sale or
similar transaction to the extent permitted by Section 5.14; (b) the dissolution or
liquidation of Subsidiaries which are not Credit Parties, provided that: (i) if such Subsidiary is
a Wholly Owned Subsidiary, it transfers all of its assets to a Credit Party or a Wholly Owned
Subsidiary prior to such liquidation or dissolution; (ii) such Subsidiary has no assets at the time
of such liquidation or dissolution; and (iii) immediately after giving effect thereto no Default or
Event of Default would exist.

     Section 5.14. Consolidations, Mergers and Sales of Assets. (a) None of the Credit
Parties will, nor will they permit any Subsidiary of a Credit Party to, consolidate or merge with
or into any other Person; provided that (i) any Credit Party may merge with another Person
if (A) in the case of any Credit Party that is organized under the laws of the United States of
America or one of its states, such Person is organized under the laws of the United States of
America or one of its states, (B) a Credit Party is the entity surviving such merger or the
surviving entity becomes a Credit Party hereunder upon the effectiveness of such merger, and in any
consolidation or merger involving the Borrower, the Borrower shall be the surviving entity, and (C)
immediately after giving effect to such merger, no Default or Event of Default shall have occurred
and be continuing, and (ii) Subsidiaries of the Initial Borrower (which are not Credit Parties) may
merge with (1) one another or into the Initial Borrower or any Credit Party, or (2) another Person
in connection with a transaction permitted by, and subject to the satisfaction of the conditions
set forth in, Section 5.6.

     (b) None of the Credit Parties will sell or otherwise dispose of assets except (i) any
Credit Party may sell Portfolio Investments (including, but not limited to, Investment Loans
and Investments in Equity Instruments) in the ordinary course of business, or (ii) any
Credit Party may make any other disposition so long as prior to such sale no Default or
Event of Default exists and immediately after giving effect to such sale, no Default or
Event of Default shall exist; provided that the Credit Parties shall at all times be in
compliance with Section 5.32.

     Section 5.15. Use of Proceeds.

     No Letter of Credit nor any portion of the proceeds of any Revolving Loan or any Swingline
Loan will be used by any Borrower or any Subsidiary (as applicable) (a) directly or indirectly, for
the purpose, whether immediate, incidental or ultimate, of purchasing or carrying any Margin Stock,
or (b) for any purpose in violation of any Applicable Law or regulation. The

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proceeds of the Revolving Loans shall be used to fund Portfolio Investments made in the
ordinary course of business of any Borrower or any Subsidiary and for general corporate purposes
and proceeds of the Swingline Loans shall be used to fund Portfolio Investments made in the
ordinary course of business of any Borrower or any Subsidiary and for general corporate purposes.
Each Letter of Credit will be used by any Borrower or any Subsidiary for the benefit of Obligors
under Investment Loans and for general corporate purposes in the ordinary course of business of the
Borrower and its Subsidiaries. The proceeds of the Revolving Loans in any Alternative Currency
shall be used by any Borrower or any Subsidiary (as applicable) solely to: (a) satisfy obligations,
denominated in such Alternative Currency, in the ordinary course of such Person’s business; or (b)
acquire Portfolio Investments; provided, that (i) such Portfolio Investments are in the
same Alternative Currency and (ii) the issuer, in the case of equity interests, or the obligor, in
the case of debt interests, is organized or incorporated under the laws of a jurisdiction of a
Permitted Country.

     Section 5.16. Compliance with Laws.

     (a) Compliance with Laws. Each Credit Party will, and will cause each
Subsidiary (including Unrestricted Subsidiaries) and each member of the Controlled Group to,
comply with all Applicable Laws (including but not limited to those with respect to the
Investment Loans and any Related Property), regulations and similar requirements of
governmental authorities (including but not limited to PBGC), except where the necessity of
such compliance is being contested in good faith through appropriate proceedings diligently
pursued or where failure to comply could not be expected to cause a Material Adverse Effect.

     (b) ERISA Exemptions. No Credit Party shall permit any of its respective
assets to become or be deemed to be “plan assets” within the meaning of ERISA, the Code and
the respective regulations promulgated thereunder.

     Section 5.17. Insurance.

     Each Credit Party will maintain, and will cause each Subsidiary of a Credit Party to maintain
(either in the name of such Credit Party or in such Subsidiary’s own name), insurance with
financially sound and reputable insurance companies, in such amounts and against such risks as are
customarily maintained by companies of established repute engaged in the same or similar business.

     Section 5.18. Change in Fiscal Year.

     The Borrower will not change its Fiscal Year without the consent of the Administrative Agent.

     Section 5.19. Maintenance of Property.

     Each Credit Party shall, and shall cause each Subsidiary of a Credit Party to, maintain all of
its Properties and assets necessary for the conduct of its business in good condition, repair and
working order, ordinary wear and tear excepted and subject to damage and destruction due to
casualty events.

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     Section 5.20. Environmental Laws.

     Each Credit Party shall, and shall cause each Subsidiary (including Unrestricted Subsidiaries)
to:

     (a) Comply in all material respects with all applicable Environmental Laws and obtain
and comply in all material respects with and maintain any and all licenses, approvals,
notifications, registrations or permits required by applicable Environmental Laws except, in
each case, to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect.

     (b) Conduct and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required under Environmental Laws and promptly comply in
all material respects with all lawful orders and directives of all Governmental Authorities
regarding Environmental Laws except to the extent that the same are being contested in good
faith by appropriate proceedings or could not reasonably be expected to have a Material
Adverse Effect.

     Section 5.21. [Reserved]

     Section 5.22. [Reserved]

     Section 5.23. Compliance with Material Contracts.

     Each Credit Party will, and will cause each Subsidiary to comply with all Material Contracts
except, in each case, to the extent failure to do so could not reasonably be expected to have a
Material Adverse Effect.

     Section 5.24. Transactions with Affiliates.

     None of the Credit Parties nor any Subsidiary of the Credit Parties shall enter into, or be a
party to, any transaction with any Affiliate of any Credit Party or such Subsidiary (which
Affiliate is not a Credit Party or a Subsidiary of a Credit Party), except as permitted by law and
in the ordinary course of business and pursuant to terms which are no less favorable to such Credit
Party or such Subsidiary than would be obtained in a comparable arm’s length transaction with a
Person which is not an Affiliate; provided that this Section 5.24 shall not apply
to: (a) the origination, administration or modification of an Investment Loan or an Investment in
Equity Instruments; (b) the exercise of any right or remedy in connection with an Investment Loan
or an Investment in Equity Instruments; or (c) the making of any Restricted Payment permitted
pursuant to Section 5.7.

     Section 5.25. [Reserved].

     Section 5.26. No Restrictive Agreement.

     None of the Credit Parties will, and will not permit or cause any of their Subsidiaries to,
directly or indirectly, create or otherwise cause or suffer to exist or become effective any
restriction or encumbrance on (a) the ability of any Credit Party and its Subsidiaries to perform

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and comply with their respective obligations under the Credit Documents, (b) the ability of
any Subsidiary of the Initial Borrower that is not a Credit Party (other than SPE Subsidiaries) to
make any dividend payments or other distributions in respect of its Capital Stock, to repay Debt
owed to any Credit Party or any other Subsidiary or to repay the Credit Party Obligations, except
with respect to transactions described in Schedule 5.26; or (c) the ability of any
Subsidiary of the Initial Borrower that is not a Credit Party (other than SPE Subsidiaries) to
transfer any of its unencumbered assets or properties to any Credit Party or any other Subsidiary;
provided, however, that the restriction in clause (c) above shall be
limited to unencumbered assets or properties in an amount sufficient to satisfy the Available Asset
Coverage Ratio set forth in Section 5.32(e).

     Section 5.27. Costs and Expenses.

     The Borrower shall satisfy all payment obligations under Section 9.5.

     Section 5.28. Additional Debt.

     The Borrower shall not issue, assume, create, incur or suffer to exist any Debt, except for:
(a) the Debt owed to the Lenders, the Issuing Lender and Swingline Lender under this Credit
Agreement and the Credit Documents; (b) the Debt existing and outstanding on the Closing Date
described on Schedule 5.28; and (c) any additional Debt, provided that after giving effect
to the incurrence of any such Debt, the Initial Borrower will be in compliance with the provisions
of Section 5.32.

     Section 5.29. [Reserved].

     Section 5.30. Credit and Collection Policy.

     The Borrower will and will cause each Subsidiary of the Borrower to (a) comply in all material
respects with the Credit and Collection Policy in regard to each Investment Loan and each
Investment in Equity Instruments, and (b) furnish to the Administrative Agent and the Lenders,
prior to its effective date, prompt notice of any material changes in the Credit and Collection
Policy.

     Section 5.31. REIT Status.

     The Initial Borrower will satisfy all requirements necessary to qualify as a REIT.

     Section 5.32. Financial Covenants.

     For so long as this Credit Agreement is in effect and thereafter until the payment in full of
the Credit Party Obligations, Initial Borrower shall not, directly or indirectly permit:

     (a) Consolidated Debt to Stockholders Equity Less Liquid Real Estate Assets.
The ratio of the Consolidated Debt to Stockholders Equity, determined as of the last day of
each Fiscal Quarter, to exceed 6.00 to 1.00; provided, however, such
calculation shall exclude the effects of any Liquid Real Estate Assets that are acquired and
levered by the Initial Borrower to enable the Initial Borrower to satisfy REIT asset and
income tests.

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     (b) Consolidated Debt to Stockholders Equity. The ratio of the Consolidated
Debt to Stockholders Equity, determined as of the last day of each Fiscal Quarter, to exceed
(i) 11.00 to 1.00 at the end of each Fiscal Quarter from the Closing Date until and
including the Fiscal Quarter ending December 31, 2006, and (ii) 10.0 to 1.00 at the end of
each Fiscal Quarter thereafter.

     (c) Minimum Consolidated Tangible Net Worth. Consolidated Tangible Net Worth
to be less than (i) $1,015,000,000, plus (ii) 70% of the cumulative Net Proceeds of
Capital Stock/Conversion of Debt received at any time after December 31, 2005.

     (d) Asset Quality. The Average Portfolio Charged-Off Ratio shall not exceed
4.00%, as determined on the last day of each Fiscal Quarter.

     (e) Available Asset Coverage Ratio. The Available Asset Coverage Ratio on the
last day of any calendar month shall not be less than 1.1 to 1.0; provided,
however, that if the Initial Borrower receives a senior unsecured debt rating of
“BBB-” (“Baa3” with respect to Moody’s) from any two of Fitch, S&P or Moody’s, the
Available Asset Coverage Ratio shall be reduced to 1.0 to 1.0; provided,
further, that the Initial Borrower shall not be required to satisfy the Available
Asset Coverage Ratio with respect to any calendar month in which the Initial Borrower shall
have a senior unsecured debt rating at the end of such month of “BBB” (“Baa2” with
respect to Moody’s) or higher from any two of Fitch, S&P or Moody’s; provided,
further, that if the Available Asset Coverage Ratio is not required to be calculated
due to an upgrade in the Initial Borrower’s senior unsecured debt rating, then any
subsequent Portfolio Investments contributed to the Bank Subsidiary shall not exceed
$25,000,000 in the aggregate during each Fiscal Year in which such Available Asset Coverage
Ratio is not required to be tested as of the end of such Fiscal Year. For the avoidance of
doubt, if the Initial Borrower should at any time fail to maintain a senior unsecured debt
rating of “BBB” (“Baa2” with respect to Moody’s) or higher from any two of Fitch,
S&P or Moody’s, the Initial Borrower shall be required to meet the Available Asset Coverage
Ratio.

     (f) Consolidated EBIT to Interest Expense. The ratio of Consolidated EBIT, for
the preceding four quarter period, to Interest Expense of Initial Borrower and its
Consolidated Subsidiaries for the preceding four quarter period, determined as of the last
day of each Fiscal Quarter to be less than 1.15 to 1.0.

     (g) Consolidated EBIT to Interest Expense Less Liquid Real Estate Assets.
The ratio of Consolidated EBIT, for the preceding four quarter period, to Interest
Expense of Initial Borrower and its Consolidated Subsidiaries for the preceding four quarter
period, determined as of the last day of each Fiscal Quarter to be less than 1.4 to 1.0;
provided, however, such calculation shall exclude the effects of any Liquid
Real Estate Assets that are acquired and levered by the Initial Borrower to enable the
Initial Borrower to satisfy REIT asset and income tests.

     Section 5.33. Other.

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     Each Credit Party will furnish to the Administrative Agent such other information, documents,
records or reports respecting the Portfolio Investments or the condition or operations, financial
or otherwise, of the Credit Parties as the Administrative Agent, at the request of any Lender, may
from time to time reasonably request in order to protect the interests of the Administrative Agent
or the Lender under or as contemplated by this Credit Agreement.

ARTICLE VI

[RESERVED]

ARTICLE VII

EVENTS OF DEFAULT

     Section 7.1. Events of Default.

     An Event of Default shall exist upon the occurrence of any of the following specified events
(each an “Event of Default”):

     (a) Payment Default. The Borrower shall fail to pay any principal on any Loan
or Note when due (whether at maturity, by reason of acceleration or otherwise) in accordance
with the terms thereof or hereof; or the Borrower shall fail to reimburse the Issuing Lender
for any LOC Obligations when due (whether at maturity, by reason of acceleration or
otherwise) in accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Loan or Note or any fee or other amount payable hereunder when due (whether
at maturity, by reason of acceleration or otherwise) in accordance with the terms thereof or
hereof and such failure to pay any interest or any fee shall continue unremedied for three
(3) Business Days.

     (b) Representations and Warranties. Any representation or warranty made or
deemed made herein, or in any of the other Credit Documents or which is contained in any
certificate, document or financial or other statement furnished at any time under or in
connection with this Credit Agreement shall prove to have been incorrect, false or
misleading in any material respect on or as of the date made or deemed made.

     (c) Covenant Default. (i) Any Credit Party shall fail to perform, comply with
or observe any term, covenant or agreement applicable to it contained in Sections
5.1, 5.2, 5.4, 5.6, 5.7 through 5.15,
5.24, 5.28, 5.31 or 5.32 hereof; or (ii) any Credit Party
shall fail to comply with any other covenant contained in this Credit Agreement or the other
Credit Documents (other than as described in Sections 7.1(a) or 7.1(c)(i)
above), and such breach or failure to comply remains uncured for thirty (30) calendar days
after the earlier of (A) receipt by such Credit Party of written notice of such violation,
breach, or failure to comply, and (B) the time at which such Credit Party knew or became
aware, or should reasonably have known or been aware, of such violation, breach, or failure
to comply.

     (d) Debt Payment Default. Any Credit Party or any Subsidiary of a Credit Party
shall default in any payment of principal of or interest on any Debt (other than the

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Loans and Reimbursement Obligations) in an aggregate principal amount equal to or
greater than $17,500,000 for Borrower and any of its Subsidiaries in the aggregate beyond
any applicable grace period or cure period (not to exceed thirty (30) days), if any,
provided in the instrument or agreement under which such Debt was created.

     (e) Debt Acceleration. Any event or condition shall occur which results in the
acceleration of the maturity of Debt outstanding in an aggregate principal amount equal to
or greater than $17,500,000 of the Borrower and its Subsidiaries or the mandatory prepayment
(other than a mandatory prepayment required under the applicable Debt instrument or
agreement as a result of an equity or debt issuance, disposition of assets, or casualty or
condemnation event) or purchase of such Debt by the Borrower (or its designee) or such
Subsidiary of the Borrower (or its designee) prior to the scheduled maturity thereof.

     (f) Bankruptcy Default. (i) Any Credit Party or any of their Subsidiaries
shall commence any case, proceeding or other action (A) under any existing or future law of
any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or
relief of debtors, seeking to have an order for relief entered with respect to it, or
seeking to have it judged bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding-up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part of its
assets, or any Credit Party or any of its Subsidiaries shall make a general assignment for
the benefit of its creditors; or (ii) there shall be commenced against any Credit Party or
any of its Subsidiaries any case, proceeding or other action of a nature referred to in
clause (i) above which (A) results in the entry of an order for relief or any such
adjudication or appointment, or (B) remains undismissed, undischarged or unbonded for a
period of sixty (60) days; or (iii) there shall be commenced against any Credit Party or any
of its Subsidiaries any case, proceeding or other action seeking issuance of a warrant of
attachment, execution, distraint or similar process against all or any substantial part of
its assets which results in the entry of an order for any such relief which shall not have
been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the
entry thereof; or (iv) any Credit Party or any of its Subsidiaries shall take any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the
acts set forth in clause (i), (ii) or (iii) above; or (v) any Credit
Party or any of its Subsidiaries shall generally not, or shall be unable to, or shall admit
in writing its inability to, pay its debts as they become due; provided,
however, that the provisions of this clause (f) shall not apply to any
special purpose entity established solely to finance real estate assets that has an
aggregate fair market value of less than $15,000,000 at the time of any such bankruptcy,
insolvency or reorganization, and there is no Material Adverse Effect as a result of any
such bankruptcy, insolvency or reorganization.

     (g) Judgment Default. One or more judgments, orders, decrees or arbitration
awards shall be entered against a Credit Party or any of its Subsidiaries involving in the
aggregate a liability (to the extent not paid when due or covered by insurance) of
$17,500,000 or more and all such judgments, orders, decrees or arbitration awards shall

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not have been paid and satisfied, vacated, discharged, stayed or bonded pending appeal
within thirty (30) days from the entry thereof.

     (h) ERISA Default. The Borrower or any member of the Controlled Group shall
fail to pay when due any material amount which it shall have become liable to pay to the
PBGC or to a Plan under Title IV of ERISA; or notice of intent to terminate a Plan or Plans
shall be filed under Title IV of ERISA by the Borrower, any member of the Controlled Group,
any plan administrator or any combination of the foregoing; or the PBGC shall institute
proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to
administer any such Plan or Plans or a proceeding shall be instituted by a fiduciary of any
such Plan or Plans to enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall
not have been dismissed within thirty (30) days thereafter; or a condition shall exist by
reason of which the PBGC would be entitled to obtain a decree adjudicating that any such
Plan or Plans must be terminated.

     (i) Tax Lien. A federal tax lien shall be filed against the Borrower or any
Subsidiary of the Borrower under Section 6323 of the Code or a lien of the PBGC shall be
filed against the Borrower or any Subsidiary of the Borrower under Section 4068 of ERISA and
in either case such lien shall remain undischarged for a period of twenty-five (25) days
after the date of filing except when the amount or validity of such lien is currently being
contested in good faith by appropriate proceedings and reserves in conformity with GAAP with
respect thereto have been provided on the books of the Borrower.

     (j) Change of Control. A Change of Control shall have occurred.

     (k) [Reserved].

     (l) [Reserved].

     (m) Failure of Credit Documents. This Credit Agreement or any other Credit
Document shall for any reason cease to be valid and binding obligations of the Borrower and
each Credit Party thereto or any Person acting by or on behalf of any Credit Party shall
deny or disaffirm such Person’s obligations under this Credit Agreement or any other Credit
Document.

     (n) The Initial Borrower is not in compliance with the senior unsecured debt ratings
set forth in Section 5.10.

     Section 7.2. Acceleration; Remedies.

     Upon the occurrence and during the continuation of an Event of Default, then, and in any such
event, (a) if such event is an Event of Default specified in Section 7.1(f) above with
respect to any Credit Party, automatically the Commitments shall immediately terminate and the
Loans (with accrued interest thereon), and all other amounts under the Credit Documents (including
without limitation the maximum amount of all contingent liabilities under Letters of Credit) shall
immediately become due and payable, and the Borrower shall immediately pay to the Administrative
Agent cash collateral as security for the LOC Obligations for subsequent

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drawings under then outstanding Letters of Credit in an amount equal to the maximum amount
which may be drawn under Letters of Credit then outstanding, and (b) if such event is any other
Event of Default, subject to the terms of Section 8.5, with the written consent of the
Required Lenders, the Administrative Agent may, or upon the written request of the Required
Lenders, the Administrative Agent shall, take any or all of the following actions: (i) by notice to
the Initial Borrower declare the Commitments to be terminated forthwith, whereupon the Commitments
shall immediately terminate; (ii) by notice of default to the Initial Borrower declare the Loans
(with accrued interest thereon) and all other amounts owing under this Credit Agreement and the
Notes to be due and payable forthwith and direct the Borrower to pay to the Administrative Agent
cash collateral as security for the LOC Obligations for subsequent drawings under then outstanding
Letters of Credit in an amount equal to the maximum amount of which may be drawn under Letters of
Credit then outstanding, to be paid in the Alternative Currency in which such Letters of Credit
were issued, whereupon the same shall immediately become due and payable; and/or (iii) exercise on
behalf of the Lenders all of its other rights and remedies under this Credit Agreement, the other
Credit Documents and Applicable Law. Except as expressly provided above in this Section
7.2, presentment, demand, protest and all other notices of any kind are hereby expressly waived
by the Credit Parties.

ARTICLE VIII

THE ADMINISTRATIVE AGENT

     Section 8.1. Appointment.

     Each Lender hereby irrevocably designates and appoints Wachovia as the Administrative Agent of
such Lender under this Credit Agreement, and each such Lender irrevocably authorizes Wachovia, as
the Administrative Agent for such Lender, to take such action on its behalf under the provisions of
this Credit Agreement and to exercise such powers and perform such duties as are expressly
delegated to the Administrative Agent by the terms of this Credit Agreement, together with such
other powers as are reasonably incidental thereto. Each Lender acknowledges that the Credit
Parties may rely upon action taken by the Administrative Agent on behalf of the Lenders hereunder.
Notwithstanding any provision to the contrary elsewhere in this Credit Agreement, the
Administrative Agent shall not have any duties or responsibilities, except those expressly set
forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Credit Agreement or
otherwise exist against the Administrative Agent.

     Section 8.2. Delegation of Duties.

     The Administrative Agent may execute any of its duties under this Credit Agreement by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrative Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.
Without limiting the foregoing, the Administrative Agent may appoint one of its affiliates as its
agent to perform the functions of the Administrative Agent hereunder relating to the advancing of
funds to the Borrower and distribution of funds to the Lenders and to perform such other related
functions of the Administrative Agent hereunder as are reasonably incidental to such functions.

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     Section 8.3. Exculpatory Provisions.

     Neither the Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact, Subsidiaries or Affiliates shall be (a) liable for any action lawfully taken or
omitted to be taken by it or such Person under or in connection with this Credit Agreement (except
for its or such Person’s own gross negligence, fraud or willful misconduct), or (b) responsible in
any manner to any of the Lenders for any recitals, statements, representations or warranties made
by any Credit Party or any officer thereof contained in this Credit Agreement or in any
certificate, report, statement or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Credit Agreement or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of any of the Credit Documents or for any
failure of any Credit Party to perform its obligations hereunder or thereunder. The Administrative
Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance by any Credit Party of any of the agreements contained in, or conditions
of, this Credit Agreement, or to inspect the properties, books or records of the any Credit Party.

     Section 8.4. Reliance by Administrative Agent.

     (a) The Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, consent, certificate, affidavit,
letter, telecopy, statement, order or other document or conversation believed by it in good
faith to be genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel (including, without limitation,
counsel to the Borrower), independent accountants and other experts selected by the
Administrative Agent. The Administrative Agent may deem and treat the payee of any Note as
the owner thereof for all purposes unless an executed Commitment Transfer Supplement has
been filed with the Administrative Agent pursuant to Section 9.6(c) with respect to
the Loans evidenced by such Note. The Administrative Agent shall be fully justified in
failing or refusing to take any action under this Credit Agreement unless it shall first
receive such advice or concurrence of the Required Lenders as it deems appropriate or it
shall first be indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of taking or continuing to take any such
action. The Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under any of the Credit Documents in accordance with a request of
the Required Lenders or all of the Lenders, as may be required under this Credit Agreement,
and such request and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders and all future holders of the Notes.

     (b) For purposes of determining compliance with the conditions specified in Section
3.1, each Lender that has signed this Credit Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to a Lender.

     Section 8.5. Notice of Default.

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     The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of
any Default or Event of Default hereunder unless the Administrative Agent has received notice from
a Lender or the Borrower referring to this Credit Agreement, describing such Default or Event of
Default and stating that such notice is a “notice of default”. In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders. The Administrative Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required Lenders;
provided, however, that unless and until the Administrative Agent shall have
received such directions, the Administrative Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders except to the extent that this Credit
Agreement expressly requires that such action be taken, or not taken, only with the consent or upon
the authorization of the Required Lenders, or all of the Lenders, as the case may be.

     Section 8.6. Non-Reliance on Administrative Agent and Other Lenders.

     Each Lender expressly acknowledges that neither the Administrative Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates has made any representation
or warranty to it and that no act by the Administrative Agent hereinafter taken, including any
review of the affairs of any Credit Party, shall be deemed to constitute any representation or
warranty by the Administrative Agent to any Lender. Each Lender represents to the Administrative
Agent that it has, independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property, financial and other
condition and creditworthiness of the Borrower or any other Credit Party and made its own decision
to make its Loans hereunder and enter into this Credit Agreement. Each Lender also represents that
it will, independently and without reliance upon the Administrative Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit analysis, appraisals and decisions in taking or not taking action under this Credit
Agreement, and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and creditworthiness of the Borrower.
Except for notices, reports and other documents expressly required to be furnished to the Lenders
by the Administrative Agent hereunder, the Administrative Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or creditworthiness of the
Borrower or any other Credit Party which may come into the possession of the Administrative Agent
or any of its officers, directors, employees, agents, attorneys-in-fact or affiliates.

     Section 8.7. Indemnification.

     The Lenders agree to indemnify the Administrative Agent in its capacity as such, the Issuing
Lender in its capacity as such and the Swingline Lender in its capacity as such (to the extent not
reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), ratably
according to their respective Commitment Percentages in effect on the date on which indemnification
is sought under this Section 8.7, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or

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disbursements of any kind whatsoever which may at any time (including, without limitation, at
any time following the payment of the Notes or any Reimbursement Obligation) be imposed on,
incurred by or asserted against the Administrative Agent, the Issuing Lender or the Swingline
Lender in any way relating to or arising out of any Credit Document or any documents contemplated
by or referred to herein or therein or the transactions contemplated hereby or thereby or any
action taken or omitted by the Administrative Agent, the Issuing Lender or the Swingline Lender
under or in connection with any of the foregoing; provided, however, that no Lender
shall be liable for the payment of any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements to the extent resulting from
the gross negligence or willful misconduct of the Administrative Agent, the Issuing Lender or the
Swingline Lender, as applicable, as determined by a court of competent jurisdiction. The
agreements in this Section 8.7 shall survive the termination of this Credit Agreement and
payment of the Notes, any Reimbursement Obligation and all other amounts payable hereunder.

     Section 8.8. The Administrative Agent in Its Individual Capacity.

     The Administrative Agent and its affiliates may make loans to, accept deposits from and
generally engage in any kind of business with the Borrower as though the Administrative Agent were
not the Administrative Agent hereunder. With respect to the Loans made or renewed by it and any
Note issued to it, the Administrative Agent shall have the same rights and powers under this Credit
Agreement as any Lender and may exercise the same as though it were not the Administrative Agent,
and the terms “Lender” and “Lenders” shall include the Administrative Agent in its individual
capacity.

     Section 8.9. Successor Administrative Agent.

     The Administrative Agent may resign as Administrative Agent upon thirty (30) days’ prior
written notice to the Initial Borrower and the Lenders. If the Administrative Agent shall resign
as Administrative Agent under this Credit Agreement and the other Credit Documents or if the
Administrative Agent enters or becomes subject to receivership, then the Required Lenders shall
appoint from among the Lenders a successor administrative agent for the Lenders, which successor
agent shall be approved by the Initial Borrower (such approval not to be unreasonably withheld) so
long as no Default or Event of Default has occurred and is continuing, whereupon such successor
administrative agent shall succeed to the rights, powers and duties of the Administrative Agent,
and the term “Administrative Agent” shall mean such successor administrative agent effective upon
such appointment and approval, and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the parties to this Credit Agreement or any holders of
the Notes. If no successor Administrative Agent has accepted appointment as Administrative Agent
within thirty (30) days after the retiring Administrative Agent’s giving notice of resignation, the
retiring Administrative Agent shall have the right, on behalf of the Lenders, to appoint a
successor administrative agent, which successor shall be approved by the Initial Borrower (such
approval not to be unreasonably withheld) so long as no Default or Event of Default has occurred
and is continuing; provided, that, such successor administrative agent has minimum
capital and surplus of at least $500,000,000. If no successor administrative agent has accepted
appointment as Administrative

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Agent within sixty (60) days after the retiring Administrative Agent’s giving notice of
resignation, the retiring Administrative Agent’s resignation shall nevertheless become effective
and the Lenders shall perform all duties of the Administrative Agent hereunder until such time, if
any, as the Required Lenders appoint a successor administrative agent as provided for above. After
any retiring Administrative Agent’s resignation as Administrative Agent, the indemnification
provisions of this Credit Agreement and the other Credit Documents and the provisions of this
Article VIII shall inure to its benefit as to any actions taken or omitted to be taken by
it while it was Administrative Agent under this Credit Agreement.

     Section 8.10. Other Agents.

     None of the Lenders or other Persons identified on the facing page or signature pages of this
Credit Agreement as a “syndication agent,” “documentation agent,” “co—agent,” “book manager,”
“book runner,” “lead manager,” “arranger,” “lead arranger” or “co—arranger” shall have any right
(except as expressly set forth herein), power, obligation, liability, responsibility or duty under
this Credit Agreement other than, in the case of such Lenders, those applicable to all Lenders as
such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall
have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges
that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in
deciding to enter into this Credit Agreement or in taking or not taking action hereunder.

ARTICLE IX

MISCELLANEOUS

     Section 9.1. Amendments, Waivers and Release of Collateral.

     Neither this Credit Agreement, nor any of the Notes, nor any of the other Credit Documents,
nor any terms hereof or thereof may be amended, supplemented, waived or modified except in
accordance with the provisions of this Section 9.1 nor may the Borrower or any Guarantor be
released except in accordance with the provisions of this Section 9.1. The Required
Lenders may, or, with the written consent of the Required Lenders, the Administrative Agent may,
from time to time, (a) enter into with the Initial Borrower or any other Credit Party written
amendments, supplements or modifications hereto and to the other Credit Documents for the purpose
of adding any provisions to this Credit Agreement or the other Credit Documents or changing in any
manner the rights of the Lenders or of the Borrower or any other Credit Party hereunder or
thereunder, or (b) waive, on such terms and conditions as the Required Lenders may specify in such
instrument, any of the requirements of this Credit Agreement or the other Credit Documents or any
Default or Event of Default and its consequences; provided, however, that no such
waiver and no such amendment, waiver, supplement, modification or release shall:

          (i) reduce the amount or extend the scheduled date of maturity of any Loan or Note or
any installment thereon, or reduce the stated rate of any interest or fee payable hereunder
(except in connection with a waiver of interest at the increased post-default rate set forth
in Section 2.9(b) which shall be determined by a vote of the Required Lenders) or
extend the scheduled date of any payment thereof or increase the

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amount or extend the expiration date of any Lender’s Commitment (except for the
extension of the Commitment Termination Date pursuant to Section 2.20), in each case
without the written consent of each Lender directly affected thereby; or

          (ii) amend, modify or waive any provision of this Section 9.1 or reduce the
percentage specified in the definition of Required Lenders, without the written consent of
all the Lenders; or

          (iii) amend, modify or waive any provision of Article VIII, without the written
consent of the Administrative Agent; or

          (iv) release any Guarantor from the Guaranty hereunder or any guarantor under the
Guaranty Agreement (except as otherwise permitted by Sections 5.9, 5.13 or
5.14), without the written consent of all the Lenders; or

          (v) cancel or forgive any amounts owing hereunder, without the written consent of all
of the Lenders affected thereby; or

          (vi) subordinate the Loans to any other Debt without the written consent of all of the
Lenders; or

          (vii) permit the Borrower to assign or transfer any of its rights or obligations under
this Credit Agreement or other Credit Documents without the written consent of all of the
Lenders; or

          (viii) amend, modify or waive any provision of the Credit Documents requiring consent,
approval or request of the Required Lenders or all Lenders without the written consent of
all of the Required Lenders or Lenders as appropriate; or

          (ix) amend, modify or waive the order in which Credit Party Obligations are paid in
Section 2.12(b) without the written consent of each Lender directly affected
thereby; or

          (x) amend or modify the provisions to the Credit Documents to permit the Borrower to
obtain borrowings in currencies other than Dollars, Pounds Sterling or Euro, without the
written consent of all the Lenders affected thereby; or

          (xi) amend or modify the definition of Credit Party Obligations to delete or exclude
any obligation or liability described therein without the written consent of each Lender
directly affected thereby;

provided, further, that no amendment, waiver or consent affecting the rights or
duties of the Administrative Agent, or the Issuing Lender or the Swingline Lender under any Credit
Document shall in any event be effective, unless in writing and signed by the Administrative Agent,
or the Issuing Lender and/or the Swingline Lender, as applicable, in addition to the Lenders
required hereinabove to take such action.

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     Any such waiver, any such amendment, supplement or modification and any such release shall
apply equally to each of the Lenders and shall be binding upon the Borrower, the Lenders, the
Administrative Agent and all future holders of the Notes. In the case of any waiver, the Borrower,
the other Credit Parties, the Lenders and the Administrative Agent shall be restored to their
former position and rights hereunder and under the outstanding Loans and Notes and other Credit
Documents, and any Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default,
or impair any right consequent thereon.

     Notwithstanding any of the foregoing to the contrary, the consent of the Borrower shall not be
required for any amendment, modification or waiver of the provisions of Article VIII (other
than the provisions of Section 8.9); provided, however, that the
Administrative Agent will provide written notice to the Initial Borrower of any such amendment,
modification or waiver. In addition, the Borrower and the Lenders hereby authorize the
Administrative Agent to modify this Credit Agreement by unilaterally amending or supplementing
Schedule 2.1(a) from time to time in the manner requested by the Initial Borrower, the
Administrative Agent or any Lender in order to reflect any assignments or transfers of the Loans as
provided for hereunder; provided, however, that the Administrative Agent shall
promptly deliver a copy of any such modification to the Initial Borrower and each Lender.

     Notwithstanding the fact that the consent of all the Lenders is required in certain
circumstances as set forth above, (A) each Lender is entitled to vote as such Lender sees fit on
any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the
provisions of Section 1126(c) of the Bankruptcy Code supersede the unanimous consent provisions set
forth herein, and (B) the Required Lenders may consent to allow a Credit Party to use cash
collateral (excluding cash collateral securing LOC Obligations) in the context of a bankruptcy or
insolvency proceeding.

     If, in connection with any proposed amendment, modification, supplement, waiver or release (a
“Proposed Change”) requiring the consent of all Lenders or all affected Lenders, the
consent of Required Lenders is obtained, but the consent of other Lenders whose consent is required
is not obtained (any such Lender whose consent is not obtained being referred to as a
“Non-Consenting Lender”), then, so long as Agent is not a Non-Consenting Lender, at Initial
Borrower’s request, Agent may within sixty (60) days thereafter designate another bank or financial
institution which is acceptable to Agent in its reasonable discretion (such other bank or financial
institution being called a “Replacement Lender”) to purchase the Loans of such
Non-Consenting Lender and such Non-Consenting Lender’s rights hereunder, without recourse to or
warranty by, or expense to, such Non-Consenting Lender, for a purchase price equal to the
outstanding principal amount of the Loans payable to such Non-Consenting Lender plus any accrued
but unpaid interest on such Loans and all accrued but unpaid fees owed to such Non-Consenting
Lender and any other amounts payable to such Non-Consenting Lender under this Credit Agreement, and
to assume all the obligations of such Non-Consenting Lender hereunder, and, upon such purchase and
assumption (pursuant to a Commitment Transfer Supplement), such Non-Consenting Lender shall no
longer be a party hereto or have any rights hereunder (other than rights with respect to
indemnities and similar rights applicable to such Non-Consenting Lender prior to the date of such
purchase and assumption) and shall be relieved from all

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obligations to Borrower hereunder, and the Replacement Lender shall succeed to the rights and
obligations of such Non-Consenting Lender hereunder.

     Section 9.2. Notices.

     (a) Except as otherwise provided in Article II, all notices, requests and
demands to or upon the respective parties hereto to be effective shall be in writing
(including by telecopy or other electronic communications as provided below), and, unless
otherwise expressly provided herein, shall be deemed to have been duly given or made (i)
when delivered by hand, (ii) when transmitted via telecopy (or other facsimile device) to
the number set out herein, (iii) the day following the day on which the same has been
delivered prepaid to a reputable national overnight air courier service, or (iv) the third
Business Day following the day on which the same is sent by certified or registered mail,
postage prepaid and return receipt requested, in each case, addressed as follows in the case
of the Borrower, the other Credit Parties and the Administrative Agent, the Domestic Lending
Offices set forth on Schedule 9.2 in the case of the Lenders, or to such other
address as may be hereafter notified by the respective parties hereto and any future holders
of the Notes:

	 	 	 	 	 
	 
	 	The Borrower:	 	CapitalSource Inc.
	 
	 	 	 	4445 Willard Avenue
	 
	 	 	 	Chevy Chase, MD 20815
	 
	 	 	 	Attention: Chief Financial Officer
	 
	 	 	 	Telecopier: (301) 841-2307
	 
	 	 	 	 
	 
	 	with a copy to:	 	CapitalSource Inc.
	 
	 	 	 	4445 Willard Avenue
	 
	 	 	 	Chevy Chase, MD 20815
	 
	 	 	 	Attention: Chief Legal Officer
	 
	 	 	 	Telecopier: (301) 841-2380
	 
	 	 	 	 
	 
	 	The Guarantors:	 	c/o CapitalSource Inc.
	 
	 	 	 	4445 Willard Avenue
	 
	 	 	 	Chevy Chase, MD 20815
	 
	 	 	 	Attention: Chief Financial Officer
	 
	 	 	 	Telecopier: (301) 841-2307
	 
	 	 	 	 
	 
	 	with a copy to:	 	c/o CapitalSource Inc.
	 
	 	 	 	4445 Willard Avenue
	 
	 	 	 	Chevy Chase, MD 20815
	 
	 	 	 	Attention: Chief Legal Officer
	 
	 	 	 	Telecopier: (301) 841-2380

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	 	The Administrative 	 	Wachovia Bank, National Association
	 
	 	Agent:	 	201 South College Street
	 
	 	 	 	NC0680/CP8
	 
	 	 	 	Charlotte, North Carolina  28288-0608
	 
	 	 	 	Attention:  Syndication Agency Services
	 
	 	 	 	Telecopier:  (704) 383-0288
	 
	 	 	 	Telephone:  (704) 374-2698
	 
	 	 	 	 
	 
	 	with a copy to:	 	Wachovia Bank, National Association
	 
	 	 	 	One Wachovia Center, Mail Code: NC0600
	 
	 	 	 	Charlotte, North Carolina 28288-0608
	 
	 	 	 	Attention:  Paul Burkhart
	 
	 	 	 	Telecopier:  (704) 715-0067

provided, that, notices given by the Borrower pursuant to Section 2.1 or
Section 2.10 hereof shall be effective only upon receipt thereof by the Administrative
Agent.

     (b) Notices and other communications to the Lenders or the Administrative Agent
hereunder may be delivered or furnished by electronic communication (including e-mail and
Internet or intranet websites) pursuant to procedures approved by the Administrative Agent;
provided, that, the foregoing shall not apply to notices to any Lender
pursuant to Article II if such Lender, as applicable, has notified the
Administrative Agent that it is incapable of receiving notices under such Section by
electronic communication. The Administrative Agent or the Borrower may, in its discretion,
agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided further,
that, approval of such procedures may be limited to particular notices or
communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement); provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

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     Section 9.3. No Waiver; Cumulative Remedies.

     No failure to exercise and no delay in exercising, on the part of the Administrative Agent or
any Lender, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

     Section 9.4. [Reserved].

     Section 9.5. Payment of Expenses and Taxes; Indemnification.

          The Borrower agrees (a) to pay or reimburse the Administrative Agent and WCM for all
reasonable out-of-pocket costs and expenses incurred in connection with the development,
preparation, negotiation, printing and execution of, and any amendment, supplement or modification
to, this Credit Agreement and the other Credit Documents and any other documents prepared in
connection herewith or therewith, and the consummation and administration of the transactions
contemplated hereby and thereby, together with the reasonable fees and disbursements of counsel to
the Administrative Agent, (b) to pay or reimburse each Lender and the Administrative Agent for all
its costs and expenses incurred in connection with the enforcement or preservation of any rights
under this Credit Agreement, the Notes and any other Credit Document, including, without
limitation, the reasonable fees and disbursements of counsel to the Administrative Agent and to the
Lenders (including reasonable allocated costs of in-house legal counsel of Administrative Agent),
(c) on demand, to pay, indemnify, and hold each Lender, the Administrative Agent and WCM harmless
from, any and all recording and filing fees and any and all liabilities with respect to, or
resulting from any delay in paying stamp, excise and other similar taxes, if any, which may be
payable or determined to be payable in connection with the execution and delivery of, or
consummation or administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of, the Credit
Documents and any such other documents, (d) defend, indemnify and hold harmless the Administrative
Agent and the Lenders, and their respective Affiliates and their respective employees, agents,
officers and directors, from and against any and all claims, demands, penalties, fines,
liabilities, settlements, damages, costs and expenses of whatever kind or nature known or unknown,
contingent or otherwise, arising out of, or in any way relating to the violation of, noncompliance
with or liability under, any Environmental Law applicable to the operations of the Credit Parties
or the Properties, or any orders, requirements or demands of Governmental Authorities related
thereto, including, without limitation, reasonable attorney’s and consultant’s fees, investigation
and laboratory fees, response costs, court costs and litigation expenses, except to the extent that
any of the foregoing arise out of the gross negligence or willful misconduct of the party seeking
indemnification therefor, and (e) to pay, indemnify, and hold each Lender, the Administrative Agent
and WCM and their Affiliates, employees, officers and directors harmless from and against, any and
all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever with respect to the use, or proposed
use, of proceeds of the Loans or Letters of Credit, and (f) to pay, indemnify, and hold each
Lender, the Administrative Agent and WCM and their Affiliates, employees, officers and directors
harmless

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from and against, any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever to the
extent arising from third party claims with respect to the execution, delivery, enforcement,
performance and administration of the Credit Documents and any such other documents (all of the
foregoing, collectively, the “indemnified liabilities”); provided, however, that
the Borrower shall not have any obligation hereunder to the Administrative Agent, WCM or any Lender
with respect to indemnified liabilities arising from the gross negligence or willful misconduct of
the Administrative Agent, WCM or such Lender, as determined by a court of competent jurisdiction.
The agreements in this Section 9.5 shall survive repayment of the Loans, Notes, LOC
Obligations and all other amounts payable hereunder.

     Section 9.6. Successors and Assigns; Participations; Purchasing Lenders.

     (a) This Credit Agreement shall be binding upon and inure to the benefit of the
Borrower, the Lenders, the Administrative Agent, all future holders of the Notes and their
respective successors and assigns, except that the Borrower may not assign or transfer any
of its rights or obligations under this Credit Agreement or the other Credit Documents
without the prior written consent of each Lender.

     (b) Any Lender may, in the ordinary course of its business and in accordance with
Applicable Law, at any time sell to one or more banks or other entities (each, a
“Participant”) participating interests in any Loan owing to such Lender, any Note
held by such Lender, any Commitment of such Lender, or any other interest of such Lender
hereunder, in each case in minimum amounts of $10,000,000 (or, if less, the entire amount of
such Lender’s obligations, Commitments or other interests). In the event of any such sale
by a Lender of participating interests to a Participant, such Lender’s obligations under
this Credit Agreement to the other parties to this Credit Agreement shall remain unchanged,
such Lender shall remain solely responsible for the performance thereof, such Lender shall
remain the holder of any such Note for all purposes under this Credit Agreement, and the
Borrower and the Administrative Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Credit Agreement.
No Lender shall transfer or grant any participation under which the Participant shall have
rights to approve any amendment to or waiver of this Credit Agreement or any other Credit
Document except to the extent such amendment or waiver would (i) extend the scheduled
maturity of any Loan or Note or any installment thereon in which such Participant is
participating (except in connection with the extension of the Commitment Termination Date
pursuant to Section 2.20), or reduce the stated rate or extend the time of payment
of interest or fees thereon (except in connection with a waiver of interest at the increased
post-default rate) or reduce the principal amount thereof, or increase the amount of the
Participant’s participation over the amount thereof then in effect (it being understood that
a waiver of any Default or Event of Default shall not constitute a change in the terms of
such participation, and that an increase in any Commitment or Loan shall be permitted
without consent of a Participant if such Participant’s participation is not increased as a
result thereof), or (ii) consent to the assignment or transfer by the Borrower of any of its
rights and obligations under this Credit Agreement. In the case of any such participation,
the Participant shall not have any rights under this Credit Agreement or any of the other
Credit Documents

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(the Participant’s rights against such Lender in respect of such participation to be
those set forth in the agreement executed by such Lender in favor of the Participant
relating thereto) and all amounts payable by the Borrower hereunder shall be determined as
if such Lender had not sold such participation; provided, that, each
Participant shall be entitled to the benefits of Sections 2.16, 2.17,
2.18, 2.19 and 9.5 with respect to its participation in the
Commitments and the Loans outstanding from time to time; provided, further,
that, no Participant shall be entitled to receive any greater amount pursuant to
such Sections than the transferor Lender would have been entitled to receive in respect of
the amount of the participation transferred by such transferor Lender to such Participant
had no such transfer occurred.

     (c) Any Lender may, in the ordinary course of its business and in accordance with
Applicable Law, at any time, sell or assign with the consent of the Administrative Agent and
the Issuing Lender and, so long as no Default or Event of Default has occurred and is
continuing, the Initial Borrower (in each case, which consent shall not be unreasonably
withheld), to one or more additional banks, insurance companies or other financial
institutions or any funds investing in bank loans (each, a “Purchasing Lender”), all
or any part of its rights and obligations under this Credit Agreement and the Notes in
minimum amounts of $10,000,000 (or, if less, the entire amount of such Lender’s Commitment),
pursuant to a Commitment Transfer Supplement, executed by such Purchasing Lender, such
transferor Lender, the Administrative Agent and, so long as no Default or Event of Default
has occurred and is continuing, the Initial Borrower, and delivered to the Administrative
Agent for its acceptance and recording in the Register; provided, however,
that consent from the Issuing Lender shall not be required if the Purchasing Lender has a
senior unsecured debt rating from any two of S&P, Moody’s and Fitch equal to or higher than
A- (or A3 with respect to Moody’s); provided, further, that any sale or
assignment to another Lender or to an Affiliate of an existing Lender shall not require the
consent of the Administrative Agent, the Issuing Lender or the Borrower. Upon such
execution, delivery, acceptance and recording, from and after the Transfer Effective Date
specified in such Commitment Transfer Supplement, (i) the Purchasing Lender thereunder shall
be a party hereto and, to the extent provided in such Commitment Transfer Supplement, have
the rights and obligations of a Lender hereunder with a Commitment as set forth therein, and
(ii) the transferor Lender thereunder shall, to the extent provided in such Commitment
Transfer Supplement, be released from its obligations under this Credit Agreement (and, in
the case of a Commitment Transfer Supplement covering all or the remaining portion of a
transferor Lender’s rights and obligations under this Credit Agreement, such transferor
Lender shall cease to be a party hereto). Such Commitment Transfer Supplement shall be
deemed to amend this Credit Agreement to the extent, and only to the extent, necessary to
reflect the addition of such Purchasing Lender and the resulting adjustment of Commitment
Percentages arising from the purchase by such Purchasing Lender of all or a portion of the
rights and obligations of such transferor Lender under this Credit Agreement and the Notes.
On or prior to the Transfer Effective Date specified in such Commitment Transfer Supplement,
the Borrower, at its own expense, shall execute and deliver to the Administrative Agent in
exchange for the Notes delivered to the Administrative Agent pursuant to such Commitment
Transfer Supplement new Notes to the order of such Purchasing Lender in an amount equal to
the Commitment assumed by it pursuant to such Commitment

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Transfer Supplement and, unless the transferor Lender has not retained a Commitment
hereunder, new Notes to the order of the transferor Lender in an amount equal to the
Commitment retained by it hereunder. Such new Notes shall be dated the Closing Date and
shall otherwise be in the form of the Notes replaced thereby. The Notes surrendered by the
transferor Lender shall be returned by the Administrative Agent to the Initial Borrower
marked “cancelled”.

     (d) The Administrative Agent shall maintain at its address referred to in Section
9.2 a copy of each Commitment Transfer Supplement delivered to it and a register (the
“Register”) for the recordation of the names and addresses of the Lenders and the
Commitment of, and principal amount of the Loans owing to, each Lender from time to time.
The entries in the Register shall be conclusive, in the absence of manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register as the owner of the Loan recorded therein for all purposes of this
Credit Agreement. The Register shall be available for inspection by the Initial Borrower or
any Lender at any reasonable time and from time to time upon reasonable prior notice.

     (e) Upon its receipt of a duly executed Commitment Transfer Supplement, together with
payment to the Administrative Agent by the transferor Lender or the Purchasing Lender
(except for any assignment by a Lender to an Affiliate of such Lender), as agreed between
them, of a registration and processing fee of $3,500 for each Purchasing Lender listed in
such Commitment Transfer Supplement and the Notes, if any, subject to such Commitment
Transfer Supplement, the Administrative Agent shall (i) accept such Commitment Transfer
Supplement, (ii) record the information contained therein in the Register, and (iii) unless
Initial Borrower’s consent to such assignment is not required give prompt notice of such
acceptance and recordation to the Initial Borrower.

     (f) Each Credit Party authorizes each Lender to disclose to any Participant or
Purchasing Lender (each, a “Transferee”) and any prospective Transferee any and all
financial information in such Lender’s possession concerning the Borrower and its Affiliates
which has been delivered to such Lender by or on behalf of a Credit Party pursuant to this
Credit Agreement or which has been delivered to such Lender by or on behalf of a Credit
Party in connection with such Lender’s credit evaluation of the Borrower and its Affiliates
prior to becoming a party to this Credit Agreement, in each case subject to Section
9.15.

     (g) At the time of each assignment pursuant to this Section 9.6 to a Person
which is not already a Lender hereunder and which is not a United States person (as such
term is defined in Section 7701(a)(30) of the Code) for federal income tax purposes, the
respective assignee Lender shall provide to the Initial Borrower and the Administrative
Agent the appropriate Internal Revenue Service Forms (and, if applicable, a 2.18
Certificate) described in Section 2.18.

     (h) Nothing herein shall prohibit any Lender from pledging or assigning any of its
rights under this Credit Agreement (including, without limitation, any right to

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payment of principal and interest under any Note) to any Federal Reserve Bank in
accordance with Applicable Laws.

     Section 9.7. Set-off.

     (a) Each Lender agrees that if any Lender (a “benefited Lender”) shall at any
time receive any payment of all or part of its Loans, or interest thereon, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to
an Insolvency Event or otherwise) in a greater proportion than any such payment to or
collateral received by any other Lender, if any, in respect of such other Lender’s Loans, or
interest thereon, such benefited Lender shall purchase for cash from the other Lenders a
participating interest in such portion of each such other Lender’s Loan, or shall provide
such other Lenders with the benefits of any such collateral, or the proceeds thereof, as
shall be necessary to cause such benefited Lender to share the excess payment or benefits of
such collateral or proceeds ratably with each of the Lenders; provided,
however, that if all or any portion of such excess payment or benefits is thereafter
recovered from such benefited Lender, such purchase shall be rescinded, and the purchase
price and benefits returned, to the extent of such recovery, but without interest. The
Borrowers and each other Credit Party agrees that each Lender so purchasing a portion of
another Lender’s Loans may exercise all rights of payment (including, without limitation,
rights of set-off) with respect to such portion as fully as if such Lender were the direct
holder of such portion.

     (b) In addition to any rights and remedies of the Lenders provided by law (including,
without limitation, other rights of set-off), each Lender and its Affiliates shall have the
right, without prior notice to the Borrower or the applicable Credit Party, any such notice
being expressly waived by the Credit Parties to the extent permitted by Applicable Law, upon
the occurrence of any Event of Default, to setoff and appropriate and apply any and all
deposits (general or special, time or demand, provisional or final), in any currency, and
any other credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held by or owing to such
Lender or any branch or agency thereof to or for the credit or the account of the Borrower
or any other Credit Party, or any part thereof in such amounts as such Lender may elect,
against and on account of the Loans and other Credit Party Obligations of the Borrower and
the other Credit Parties to such Lender hereunder and claims of every nature and description
of such Lender against the Borrower and the other Credit Parties, in any Currency, whether
arising hereunder or, under any other Credit Document provided by such Lender pursuant to
the terms of this Credit Agreement, as such Lender may elect, whether or not such Lender has
made any demand for payment and although such obligations, liabilities and claims may be
contingent or unmatured. The aforesaid right of set-off may be exercised by such Lender
against the Borrower, any other Credit Party or against any trustee in bankruptcy, debtor in
possession, assignee for the benefit of creditors, receiver or execution, judgment or
attachment creditor of the Borrower or any other Credit Party, or against anyone else
claiming through or against the Borrower or any other Credit Party, or any such trustee in
bankruptcy, debtor in possession, assignee for the benefit of creditors, receiver, or
execution, judgment or attachment creditor, notwithstanding the fact that such right of

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set-off shall not have been exercised by such Lender prior to the occurrence of any
Default or Event of Default. Each Lender agrees promptly to notify the Initial Borrower and
the Administrative Agent after any such set-off and application made by such Lender;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application.

     Section 9.8. Table of Contents and Section Headings.

     The table of contents and the Section and subsection headings herein are intended for
convenience only and shall be ignored in construing this Credit Agreement.

     Section 9.9. Counterparts.

     This Credit Agreement may be executed by one or more of the parties to this Credit Agreement
on any number of separate counterparts, and all of said counterparts taken together shall be deemed
to constitute one and the same instrument. A set of the copies of this Credit Agreement signed by
all the parties shall be lodged with the Borrower and the Administrative Agent.

     Section 9.10. Effectiveness.

     This Credit Agreement shall become effective on the date on which all of the parties have
signed a copy hereof (whether the same or different copies) and shall have delivered the same to
the Administrative Agent or, in the case of the Lenders, shall have given to the Administrative
Agent written, telecopied or telex notice (actually received) at such office that the same has been
signed and mailed to it.

     Section 9.11. Severability.

     Any provision of this Credit Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

     Section 9.12. Integration.

     This Credit Agreement and the Notes, if any, represent the agreement of the Borrower, the
Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no
promises, undertakings, representations or warranties by the Administrative Agent, the Borrower, or
any Lender relative to the subject matter hereof not expressly set forth or referred to herein or
in the Notes, if any.

     Section 9.13. Governing Law.

     This Credit Agreement and the Notes and the rights and obligations of the parties under this
Credit Agreement and the Notes shall be governed by, and construed and interpreted in

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accordance with, the law of the State of New York without regard to conflict of laws
principles thereof (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law).

     Section 9.14. Consent to Jurisdiction and Service of Process.

     Any legal action or proceeding with respect to this Credit Agreement or any other Credit
Document shall be brought in the courts of the State of New York in New York County or of the
United States for the Southern District of New York, and, by execution and delivery of this Credit
Agreement, each Credit Party, the Administrative Agent and each Lender accepts, for itself and in
connection with its Properties, generally and unconditionally, the non-exclusive jurisdiction of
the aforesaid courts and irrevocably agrees to be bound by any final judgment rendered thereby in
connection with this Credit Agreement from which no appeal has been taken or is available. Each
Credit Party, the Administrative Agent and each Lender irrevocably agrees that all service of
process in any such proceedings in any such court may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail), postage prepaid and
return receipt requested, to it at its address set forth in Section 9.2 or at such other
address of which the Administrative Agent shall have been notified pursuant thereto, such service
being hereby acknowledged by the Borrower and the other Credit Parties to be effective and binding
service in every respect. Each Credit Party, the Administrative Agent and the Lenders irrevocably
waives any objection, including, without limitation, any objection to the laying of venue or based
on the grounds of forum non conveniens, which it may now or hereafter have to the bringing of any
such action or proceeding in any such jurisdiction. Nothing herein shall affect the right to serve
process in any other manner permitted by law or shall limit the right of any Lender to bring
proceedings against the Borrower in the court of any other jurisdiction.

     Section 9.15. Confidentiality.

     Each of the Administrative Agent, the Lenders and the Issuing Lender agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,
employees, agents, advisors and other representatives (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any self-regulatory authority, such as
the National Association of Insurance Commissioners), (c) to the extent required by applicable laws
or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Credit Document or any
action or proceeding relating to this Credit Agreement or any other Credit Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Credit
Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with the written consent
of the Initial Borrower or (h) to the extent such Information (x) becomes publicly available other
than as a result of a breach of this Section or (y) becomes available to the Administrative Agent,
any Lender, the Issuing Lender or any of their respective Affiliates on a nonconfidential basis
from a source other than the Borrower.

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     For purposes of this Section, “Information” means all information received from the
Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of
their respective businesses, other than any such information that is available to the
Administrative Agent, any Lender or the Issuing Lender on a nonconfidential basis prior to
disclosure by the Borrower or any of its Subsidiaries. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.

     Section 9.16. Acknowledgments.

     The Borrower hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of each
Credit Document;

     (b) neither the Administrative Agent nor any Lender has any fiduciary relationship with
or duty to the Borrower or any other Credit Party arising out of or in connection with this
Credit Agreement and the relationship between Administrative Agent and Lenders, on one hand,
and the Borrower, on the other hand, in connection herewith is solely that of debtor and
creditor; and

     (c) no joint venture exists among the Lenders or among the Borrower and the Lenders.

     Section 9.17. Waivers of Jury Trial; Waiver of Consequential Damages.

     THE BORROWER, THE OTHER CREDIT PARTIES, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN
ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND
FOR ANY COUNTERCLAIM THEREIN. The Borrower, the other Credit Parties, the Administrative Agent and
the Lenders agree not to assert any claim against any other party to this Credit Agreement or any
of their respective directors, officers, employees, attorneys, Affiliates or agents, on any theory
of liability, for special, indirect, consequential or punitive damages arising out of or otherwise
relating to any of the transactions contemplated herein.

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     Section 9.18. PATRIOT Act Notice.

     Each Lender and the Administrative Agent (for itself and not on behalf of any other party)
hereby notifies each Credit Party that, pursuant to the requirements of the USA PATRIOT Act, Title
III of Pub. L. 107-56, signed into law October 26, 2001 (the “PATRIOT Act”), it is required
to obtain, verify and record information that identifies each Credit Party, which information
includes the name and address of each Credit Party and other information that will allow such
Lender or the Administrative Agent, as applicable, to identify each Credit Party in accordance with
the PATRIOT Act.

     Section 9.19. Judgment Shortfall.

     (a) If, for the purpose of obtaining judgment in any court, it is necessary to convert
a sum owing hereunder in one Currency into another Currency, each party hereto agrees, to
the fullest extent that it may effectively do so, that the rate of exchange used shall be
that at which in accordance with normal banking procedures in the relevant jurisdiction the
first Currency could be purchased with such other Currency on the Business Day immediately
preceding the day on which final judgment is given.

     (b) The obligations of the Borrower in respect of any sum due to any party hereto or
any holder of the obligations owing hereunder (the “Applicable Creditor”) shall,
notwithstanding any judgment in a Currency (the “Judgment Currency”) other than the
Currency in which such sum is stated to be due hereunder (the “Agreement Currency”),
be discharged only to the extent that, on the Business Day following receipt by the
Applicable Creditor of any sum adjudged to be so due in the Judgment Currency, the
Applicable Creditor may in accordance with normal banking procedures in the relevant
jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount of
the Agreement Currency so purchased is less than the sum due in accordance with this
Agreement to the Applicable Creditor in the Agreement Currency, the Borrower agrees,
as a separate obligation and notwithstanding any such judgment, to indemnify the Applicable
Creditor against such loss and if the amount of the Agreement Currency so purchased exceeds
the sum due in accordance with this Agreement to the Applicable Creditor in the Agreement
Currency, the Applicable Creditor agrees to remit such excess to the Borrower. The
obligations of the Borrower and Applicable Creditor contained in this Section 9.19
shall survive the termination of this Agreement and the payment of all other amounts owing
hereunder.

     Section 9.20. Return of Notes.

     In the event of (i) any termination in full by the Initial Borrower or CSF of all rights
with respect to the Commitment in accordance Section 2.6(a)(i) or 2.6(a)(ii), as applicable or (ii)
the delivery of any new Note in replacement of a previously issued Note, the applicable Lender
shall return to the Borrower any Notes previously issued to it relating to such terminated
Commitment or replaced Note, as applicable and such Notes shall be marked “cancelled.” In the event
that any Lender does not return its applicable Note or Notes as described in this Section 9.20
within forty-five (45) days after the written request of Borrower, Borrower shall be entitled

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to receive a lost note affidavit from such Lender including customary indemnifications reasonably
satisfactory to Borrower with respect to the applicable unreturned Note or Notes.

ARTICLE X

GUARANTY

     Section 10.1. The Guaranty.

     In order to induce the Lenders to enter into this Credit Agreement and to extend credit
hereunder and thereunder and in recognition of the direct benefits to be received by the Guarantors
from the Extensions of Credit hereunder, each of the Guarantors hereby agrees with the
Administrative Agent and the Lenders to unconditionally and irrevocably jointly and severally
guarantee the full and prompt payment when due, whether upon maturity, by acceleration or
otherwise, of any and all indebtedness of the Borrower to the Administrative Agent and the Lenders.
If any or all of the indebtedness becomes due and payable hereunder, each Guarantor
unconditionally promises to pay such indebtedness to the Administrative Agent, the Lenders, or
their respective order, or demand, together with any and all reasonable expenses which may be
incurred by the Administrative Agent or the Lenders in collecting any of the Credit Party
Obligations. The word “indebtedness” is used in this Article X in its most comprehensive
sense and includes any and all advances, debts, obligations and liabilities of the Borrower,
including specifically all Credit Party Obligations, arising in connection with this Credit
Agreement or the other Credit Documents, in each case, heretofore, now, or hereafter made, incurred
or created, whether voluntarily or involuntarily, absolute or contingent, liquidated or
unliquidated, determined or undetermined, whether or not such indebtedness is from time to time
reduced, or extinguished and thereafter increased or incurred, whether the Borrower may be liable
individually or jointly with others, whether or not recovery upon such indebtedness may be or
hereafter become barred by any statute of limitations, and whether or not such indebtedness may be
or hereafter become otherwise unenforceable. The guaranty set forth in this Article X is
continuing guaranty and is a guaranty of payment and is not merely a guaranty of collection.

     Notwithstanding any provision to the contrary contained herein or in any other of the Credit
Documents, to the extent the obligations of a Guarantor shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any applicable state or
federal law relating to fraudulent conveyances or transfers) then the obligations of each such
Guarantor hereunder shall be limited to the maximum amount that is permissible under Applicable Law
(whether federal or state and including, without limitation, the Bankruptcy Code).

     Section 10.2. Bankruptcy.

     Additionally, each of the Guarantors unconditionally and irrevocably guarantees jointly and
severally the payment of any and all Credit Party Obligations of the Borrower to the Lenders
whether or not due or payable by the Borrower upon the occurrence of any of the events specified in
Section 7.1(f), and unconditionally promises to pay such Credit Party Obligations to the
Administrative Agent for the account of the Lenders, or order, on demand, in lawful money of the
United States. Each of the Guarantors further agrees that to the extent that the Borrower

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or a Guarantor shall make a payment or a transfer of an interest in any property to the Administrative
Agent or any Lender, which payment or transfer or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, or otherwise is avoided, and/or required to be repaid to
the Borrower or a Guarantor, the estate of the Borrower or a Guarantor, a trustee, receiver or any
other party under any bankruptcy law, state or federal law, common law or equitable cause, then to
the extent of such avoidance or repayment, the obligation or part thereof intended to be satisfied
shall be revived and continued in full force and effect as if said payment had not been made.

     Section 10.3. Nature of Liability.

     The liability of each Guarantor hereunder is exclusive and independent of any security for or
other guaranty of the Credit Party Obligations of the Borrower whether executed by any such
Guarantor, any other guarantor or by any other party, and no Guarantor’s liability hereunder shall
be affected or impaired by (a) any direction as to application of payment by the Borrower or by any
other party, or (b) any other continuing or other guaranty, undertaking or maximum liability of a
guarantor or of any other party as to the Credit Party Obligations of the Borrower, or (c) any
payment on or in reduction of any such other guaranty or undertaking, or (d) any dissolution,
termination or increase, decrease or change in personnel by the Borrower, or (e) any payment made
to the Administrative Agent or the Lenders on the Credit Party Obligations which the Administrative
Agent or such Lenders repay the Borrower pursuant to court order in any bankruptcy, reorganization,
arrangement, moratorium or other debtor relief proceeding, and each of the Guarantors waives any
right to the deferral or modification of its obligations hereunder by reason of any such
proceeding.

     Section 10.4. Independent Obligation.

     The obligations of each Guarantor hereunder are independent of the obligations of any other
Guarantor or the Borrower, and a separate action or actions may be brought and prosecuted against
each Guarantor whether or not action is brought against any other Guarantor or the Borrower and
whether or not any other Guarantor or the Borrower is joined in any such action or actions. Subject to the provisions of Section 10.2 regarding revival of Credit Party
Obligations, the Guarantors’ joint and several liability with respect to the Credit Party
Obligations shall not obligate them to pay any Credit Party Obligations which have already been
fully satisfied.

     Section 10.5. Authorization.

     Each of the Guarantors authorizes the Administrative Agent and each Lender, without notice or
demand (except as shall be required by applicable statute and cannot be waived), and without
affecting or impairing its liability hereunder, from time to time to (a) renew, compromise, extend,
increase, accelerate or otherwise change the time for payment of, or otherwise change the terms of
the Credit Party Obligations or any part thereof in accordance with this Credit Agreement,
including any increase or decrease of the rate of interest thereon, (b) take and hold security from
any Guarantor or any other party for the payment of this Guaranty or the Credit Party Obligations
and exchange, enforce waive and release any such security, (c) apply such security and direct the
order or manner of sale thereof as the Administrative Agent and the

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Lenders in their discretion may determine, and (d) release or substitute any one or more endorsers, Guarantors, the Borrower or
other obligors.

     Section 10.6. Reliance.

     It is not necessary for the Administrative Agent or the Lenders to inquire into the capacity
or powers of the Borrower or the officers, directors, members, partners or agents acting or
purporting to act on its behalf, and any Credit Party Obligations made or created in reliance upon
the professed exercise of such powers shall be guaranteed hereunder.

     Section 10.7. Waiver.

     (a) Each of the Guarantors waives any right (except as shall be required by applicable
statute and cannot be waived) to require the Administrative Agent or any Lender to (i)
proceed against the Borrower, any other guarantor or any other party, (ii) proceed against
or exhaust any security held from the Borrower, any other guarantor or any other party, or
(iii) pursue any other remedy in the Administrative Agent’s or any Lender’s power
whatsoever. Each of the Guarantors waives any defense based on or arising out of any
defense of the Borrower, any other guarantor or any other party other than payment in full
of the Credit Party Obligations (other than contingent indemnity obligations), including
without limitation any defense based on or arising out of the disability of the Borrower,
any other guarantor or any other party, or the unenforceability of the Credit Party
Obligations or any part thereof from any cause, or the cessation from any cause of the
liability of the Borrower other than payment in full of the Credit Party Obligations. The
Administrative Agent may, at its election, foreclose on any security held by the
Administrative Agent by one or more judicial or nonjudicial sales (to the extent such sale
is permitted by Applicable Law), or exercise any other right or remedy the Administrative
Agent or any Lender may have against the Borrower or any other party, or any security,
without affecting or impairing in any way the liability of any Guarantor hereunder except to
the extent the Credit Party Obligations have been paid in full and the Commitments have been
terminated. Each of the Guarantors waives any defense arising out of any such election by
the Administrative Agent or any of the Lenders, even though such election operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of the Guarantors against the Borrower
or any other party or any security.

     (b) Each of the Guarantors waives all presentments, demands for performance, protests
and notices, including without limitation notices of nonperformance, notice of protest,
notices of dishonor, notices of acceptance of this Guaranty, and notices of the existence,
creation or incurring of new or additional Credit Party Obligations. Each Guarantor assumes
all responsibility for being and keeping itself informed of the Borrower’s financial
condition and assets, and of all other circumstances bearing upon the risk of nonpayment of
the Credit Party Obligations and the nature, scope and extent of the risks which such
Guarantor assumes and incurs hereunder, and agrees that neither the Administrative Agent nor
any Lender shall have any duty to advise such Guarantor of information known to it regarding
such circumstances or risks.

-98-

 

     (c) Each of the Guarantors hereby agrees it will not exercise any rights of subrogation
which it may at any time otherwise have as a result of this Guaranty (whether contractual,
under Section 509 of the U.S. Bankruptcy Code, or otherwise) to the claims of the Lenders
against the Borrower or any other guarantor of the Credit Party Obligations of the Borrower
owing to the Lenders (collectively, the “Other Parties”) and all contractual,
statutory or common law rights of reimbursement, contribution or indemnity from any Other
Party which it may at any time otherwise have as a result of this Guaranty until such time
as the Credit Party Obligations shall have been paid in full and the Commitments have been
terminated. Each of the Guarantors hereby further agrees not to exercise any right to
enforce any other remedy which the Administrative Agent or the Lenders now have or may
hereafter have against any Other Party, any endorser or any other guarantor of all or any
part of the Credit Party Obligations of the Borrower and any benefit of, and any right to
participate in, any security or collateral given to or for the benefit of the Lenders to
secure payment of the Credit Party Obligations of the Borrower until such time as the Credit
Party Obligations (other than contingent indemnity obligations) shall have been paid in full
and the Commitments have been terminated.

     Section 10.8. Limitation on Enforcement.

     The Lenders agree that this Guaranty may be enforced only by the action of the Administrative
Agent acting upon the instructions of the Required Lenders and that no Lender shall have any right
individually to seek to enforce or to enforce this Guaranty, it being understood and agreed that
such rights and remedies may be exercised by the Administrative Agent for the benefit of the
Lenders under the terms of this Credit Agreement. The Lenders further agree that this Guaranty may
not be enforced against any director, officer, employee or stockholder of the Guarantors.

     Section 10.9. Confirmation of Payment.

     The Administrative Agent and the Lenders will, upon request after payment of the indebtedness
and obligations which are the subject of this Guaranty and termination of the Commitments relating thereto, confirm to the Borrower, the Guarantors or any other Person that
such indebtedness and obligations have been paid and the Commitments relating thereto terminated,
subject to the provisions of Section 10.2.

     Section 10.10. Limitation of Guaranty of CSF. Notwithstanding anything to contrary
contained herein, CSF shall not be deemed a Guarantor with respect to any and all indebtedness that
it owes to the Administrative Agent and the Lenders as a Borrower hereunder (but shall continue to
be a Guarantor with respect to all other indebtedness).

Remainder of Page Intentionally Left Blank.

Signature Pages Follow.

-99-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Credit Agreement to be duly executed
and delivered by its proper and duly authorized officers as of the day and year first above
written.

	 	 	 	 	 
	 	 CAPITALSOURCE INC.,

a Delaware corporation

 	 
	 	By:  	/s/
 JEFFREY A. LIPSON
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	 CAPITALSOURCE TRS INC.,

a Delaware corporation

 	 
	 	By:  	/s/  JEFFREY A. LIPSON
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	CAPITALSOURCE FINANCE LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/
 JEFFREY A. LIPSON 
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	CSE MORTGAGE LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/
JEFFREY A. LIPSON
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	CAPITALSOURCE SF TRS INC.,

a Delaware limited liability company

 	 
	 	By:  	/s/  JEFFREY A. LIPSON
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	CAPITALSOURCE INTERNATIONAL, INC.,

a Delaware corporation
 	 
	 	By:  	/s/  JEFFREY A. LIPSON
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL 
ASSOCIATION, as
Administrative Agent, as 
Issuing Lender, and as a
Lender

 	 
	 	By:  	/S/ MIKE ROMANZO
 	 
	 	 	Name:  	Mike Romanzo, CFA 	 
	 	 	Title:  	Director 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Lender 	 
	 
	 	By:  	/S/ STEFANIE J. BRAN
 	 
	 	 	Name:  	Stefanie J. Bran 	 
	 	 	Title:  	Vice President, Bank of America 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, as a Lender

 	 
	 	By:  	/S/ DANIEL TWENGE
 	 
	 	 	Name:  	Daniel Twenge 	 
	 	 	Title:  	Authorized Signatory, Morgan Stanley Bank 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	SUNTRUST BANK, as a Lender

 	 
	 	By:  	/S/ ROBERT S. ASHCOM
 	 
	 	 	Name:  	Robert S. Ashcom 	 
	 	 	Title:  	Director 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS 

BRANCH, as a Lender

 	 
	 	By:  	/s/ JAY CHALL
 	 
	 	 	Name:  	Jay Chall 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ MARKUS FRENZEN
 	 
	 	 	Name:  	Markus Frenzen 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	BMO CAPITAL MARKETS FINANCING, 

INC., as a Lender

 	 
	 	By:  	/S/ AMY K. DUMSER
 	 
	 	 	Name:  	Amy K. Dumser 	 
	 	 	Title:  	Director 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	BEAR STEARNS CORPORATE LENDING INC., 

as a Lender

 	 
	 	By:  	/S/ STEPHEN O’KEEFE 	 
	 	 	Name:  	Stephen O’Keefe 	 
	 	 	Title:  	Authorized Signatory 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., as a 

Lender

 	 
	 	By:  	/S/ RICHARD J. POWOROZNEK 	 
	 	 	Name:  	Richard J. Poworoznek 	 
	 	 	Title:  	Executive Director 

JPMorgan Chase Bank, N.A.	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	SOCIÉTÉ GÉNÉRALE, as a Lender

 	 
	 	By:  	/S/ SHELLEY YU
 	 
	 	 	Name:  	Shelley Yu 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	FORTIS CAPITAL GROUP, as a Lender

 	 
	 	By:  	/S/ SHANE KLEIN
 	 
	 	 	Name:  	Shane Klein 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	 	 
	 	By:  	/S/ CHRISTINE R. SEALE
 	 
	 	 	Name:  	Christine R. Seale 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	TAIPEI FUBON COMMERCIAL BANK, NEW 

YORK AGENCY, as a Lender

 	 
	 	By:  	/S/ MONG SHYR WU
 	 
	 	 	Name:  	Mong Shyr Wu 	 
	 	 	Title:  	V.P. & C.L.O. 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	BANK OF COMMUNICATIONS CO., LTD., 

NEW YORK BRANCH, as a Lender

 	 
	 	By:  	/S/ SHELLEY HE
 	 
	 	 	Name:  	Shelley He 	 
	 	 	Title:  	Deputy General Manager 	 
	 

Signatures Continued on Following Page

 

 

	 	 	 	 	 
	 	CITIBANK, N.A., as a Lender

 	 
	 	By:  	/S/ CATHERINE MORROW
 	 
	 	 	Name:  	Catherine Morrow 	 
	 	 	Title:  	Vice Presidentexv10w9

 

Exhibit 10.9

COMPOSITE
VERSION

(THROUGH AMENDMENT 3)

 

 

AMENDED AND RESTATED

SALE AND SERVICING AGREEMENT

by and among

CSE QRS FUNDING I LLC,

as the Seller

CSE MORTGAGE LLC,

as the Originator and as the Servicer

EACH OF THE PURCHASERS AND PURCHASER AGENTS

FROM TIME TO TIME PARTY HERETO,

WACHOVIA CAPITAL MARKETS, LLC,

as the Administrative Agent and as the VFCC Agent

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as the Backup Servicer and as the Collateral Custodian

Dated as of April 28, 2006

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE I DEFINITION	 	 	8	 
	 
	 	Section 1.1	 	Certain Defined Terms	 	 	8	 
	 
	 	Section 1.2	 	Other Terms	 	 	58	 
	 
	 	Section 1.3	 	Computation of Time Periods	 	 	59	 
	 
	 	Section 1.4	 	Interpretation	 	 	59	 
	 
	 	Section 1.5	 	Special Provisions Relating to Alternative Currency Loans	 	 	59	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II PURCHASE OF THE VARIABLE FUNDING CERTIFICATES	 	 	60	 
	 
	 	Section 2.1	 	The Variable Funding Certificates	 	 	60	 
	 
	 	Section 2.2	 	[Reserved]	 	 	62	 
	 
	 	Section 2.3	 	Procedures for Advances by Purchasers	 	 	62	 
	 
	 	Section 2.4	 	Reduction of the Facility Amount; Mandatory and Optional	 	 	 	 
	 
	 	 	 	Repayments	 	 	63	 
	 
	 	Section 2.5	 	Determination of Interest	 	 	64	 
	 
	 	Section 2.6	 	Percentage Evidenced by each Variable Funding Certificate	 	 	64	 
	 
	 	Section 2.7	 	[Reserved]	 	 	64	 
	 
	 	Section 2.8	 	Notations on Variable Funding Certificates	 	 	64	 
	 
	 	Section 2.9	 	Settlement Procedures During the Revolving Period	 	 	64	 
	 
	 	Section 2.10	 	Settlement Procedures During the Amortization Period	 	 	66	 
	 
	 	Section 2.11	 	Collections and Allocations	 	 	67	 
	 
	 	Section 2.12	 	Payments, Computations, Etc.	 	 	68	 
	 
	 	Section 2.13	 	Optional Repurchase	 	 	69	 
	 
	 	Section 2.14	 	Fees	 	 	69	 
	 
	 	Section 2.15	 	Increased Costs; Capital Adequacy; Illegality	 	 	69	 
	 
	 	Section 2.16	 	Taxes	 	 	71	 
	 
	 	Section 2.17	 	Assignment of the Sale Agreement	 	 	72	 
	 
	 	Section 2.18	 	Substitution of Assets	 	 	72	 
	 
	 	Section 2.19	 	Optional Sales	 	 	74	 
	 
	 	Section 2.20	 	Discretionary Sales	 	 	75	 
	 
	 	Section 2.21	 	Required Equity Requirements	 	 	76	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III CONDITIONS TO ADVANCES	 	 	77	 

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	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 3.1	 	Conditions to Closing and Initial Advance	 	 	77	 
	 
	 	Section 3.2	 	Conditions Precedent to All Advances	 	 	78	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	 	 	80	 
	 
	 	Section 4.1	 	Representations and Warranties of the Seller	 	 	80	 
	 
	 	Section 4.2	 	Representations and Warranties of the Seller Relating	 	 	 	 
	 
	 	 	 	to the Agreement and the Collateral	 	 	89	 
	 
	 	Section 4.3	 	Representations and Warranties of the Servicer	 	 	90	 
	 
	 	Section 4.4	 	Representations and Warranties of the Backup Servicer	 	 	93	 
	 
	 	Section 4.5	 	Representations and Warranties of the Collateral Custodian	 	 	94	 
	 
	 	Section 4.6	 	Breach of Certain Representations and Warranties	 	 	95	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V GENERAL COVENANTS	 	 	96	 
	 
	 	Section 5.1	 	Affirmative Covenants of the Seller	 	 	96	 
	 
	 	Section 5.2	 	Negative Covenants of the Seller	 	 	99	 
	 
	 	Section 5.3	 	Covenants of the Seller Relating to the Hedging of Assets	 	 	101	 
	 
	 	Section 5.4	 	Affirmative Covenants of the Servicer	 	 	102	 
	 
	 	Section 5.5	 	Negative Covenants of the Servicer	 	 	105	 
	 
	 	Section 5.6	 	Affirmative Covenants of the Backup Servicer	 	 	106	 
	 
	 	Section 5.7	 	Negative Covenants of the Backup Servicer	 	 	106	 
	 
	 	Section 5.8	 	Affirmative Covenants of the Collateral Custodian	 	 	106	 
	 
	 	Section 5.9	 	Negative Covenants of the Collateral Custodian	 	 	107	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI ADMINISTRATION AND SERVICING OF CONTRACTS	 	 	107	 
	 
	 	Section 6.1	 	Designation of the Servicer	 	 	107	 
	 
	 	Section 6.2	 	Duties of the Servicer	 	 	108	 
	 
	 	Section 6.3	 	Authorization of the Servicer	 	 	109	 
	 
	 	Section 6.4	 	Collection of Payments	 	 	110	 
	 
	 	Section 6.5	 	Servicer Advances	 	 	112	 
	 
	 	Section 6.6	 	Realization Upon Charged-Off Assets	 	 	112	 
	 
	 	Section 6.7	 	Maintenance of Insurance Policies	 	 	113	 
	 
	 	Section 6.8	 	Servicing Compensation	 	 	113	 
	 
	 	Section 6.9	 	Payment of Certain Expenses by Servicer	 	 	113	 

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	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 6.10	 	Reports	 	 	114	 
	 
	 	Section 6.11	 	Annual Statement as to Compliance	 	 	114	 
	 
	 	Section 6.12	 	Annual Independent Public Accountant’s Servicing Reports	 	 	115	 
	 
	 	Section 6.13	 	Limitation on Liability of the Servicer and Others	 	 	115	 
	 
	 	Section 6.14	 	The Servicer Not to Resign	 	 	115	 
	 
	 	Section 6.15	 	Servicer Defaults	 	 	116	 
	 
	 	Section 6.16	 	Appointment of Successor Servicer	 	 	117	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII THE BACKUP SERVICER	 	 	119	 
	 
	 	Section 7.1	 	Designation of the Backup Servicer	 	 	119	 
	 
	 	Section 7.2	 	Duties of the Backup Servicer	 	 	119	 
	 
	 	Section 7.3	 	Merger or Consolidation	 	 	121	 
	 
	 	Section 7.4	 	Backup Servicing Compensation	 	 	121	 
	 
	 	Section 7.5	 	Backup Servicer Removal	 	 	121	 
	 
	 	Section 7.6	 	Limitation on Liability	 	 	122	 
	 
	 	Section 7.7	 	The Backup Servicer Not to Resign	 	 	122	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII THE COLLATERAL CUSTODIAN	 	 	123	 
	 
	 	Section 8.1	 	Designation of Collateral Custodian	 	 	123	 
	 
	 	Section 8.2	 	Duties of Collateral Custodian	 	 	123	 
	 
	 	Section 8.3	 	Merger or Consolidation	 	 	125	 
	 
	 	Section 8.4	 	Collateral Custodian Compensation	 	 	125	 
	 
	 	Section 8.5	 	Collateral Custodian Removal	 	 	125	 
	 
	 	Section 8.6	 	Limitation on Liability	 	 	125	 
	 
	 	Section 8.7	 	The Collateral Custodian Not to Resign	 	 	126	 
	 
	 	Section 8.8	 	Release of Documents	 	 	126	 
	 
	 	Section 8.9	 	Return of Required Asset Documents	 	 	127	 
	 
	 	Section 8.10	 	Access to Certain Documentation and Information	 	 	 	 
	 
	 	 	 	Regarding the Collateral; Audits	 	 	128	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX SECURITY INTEREST	 	 	128	 
	 
	 	Section 9.1	 	Grant of Security Interest	 	 	128	 
	 
	 	Section 9.2	 	Release of Lien on Collateral	 	 	129	 

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(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 9.3	 	Further Assurances	 	 	129	 
	 
	 	Section 9.4	 	Remedies	 	 	129	 
	 
	 	Section 9.5	 	Waiver of Certain Laws	 	 	129	 
	 
	 	Section 9.6	 	Power of Attorney	 	 	130	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE X TERMINATION EVENTS	 	 	130	 
	 
	 	Section 10.1	 	Termination Events	 	 	130	 
	 
	 	Section 10.2	 	Remedies	 	 	133	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI INDEMNIFICATION	 	 	134	 
	 
	 	Section 11.1	 	Indemnities by the Seller	 	 	134	 
	 
	 	Section 11.2	 	Indemnities by the Servicer	 	 	137	 
	 
	 	Section 11.3	 	After-Tax Basis	 	 	137	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XII THE ADMINISTRATIVE AGENT AND PURCHASER AGENTS	 	 	138	 
	 
	 	Section 12.1	 	The Administrative Agent	 	 	138	 
	 
	 	Section 12.2	 	The Purchaser Agents	 	 	140	 
	 
	 	Section 12.3	 	Additional Agent	 	 	142	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XIII MISCELLANEOUS	 	 	145	 
	 
	 	Section 13.1	 	Amendments and Waivers	 	 	145	 
	 
	 	Section 13.2	 	Notices, Etc.	 	 	145	 
	 
	 	Section 13.3	 	Ratable Payments	 	 	145	 
	 
	 	Section 13.4	 	No Waiver; Remedies	 	 	146	 
	 
	 	Section 13.5	 	Binding Effect; Benefit of Agreement	 	 	146	 
	 
	 	Section 13.6	 	Term of this Agreement	 	 	146	 
	 
	 	Section 13.7	 	Governing Law; Consent to Jurisdiction; Waiver of	 	 	 	 
	 
	 	 	 	Objection to Venue	 	 	146	 
	 
	 	Section 13.8	 	Waiver of Jury Trial	 	 	146	 
	 
	 	Section 13.9	 	Costs, Expenses and Taxes	 	 	147	 
	 
	 	Section 13.10	 	No Proceedings	 	 	147	 
	 
	 	Section 13.11	 	Recourse Against Certain Parties	 	 	148	 
	 
	 	Section 13.12	 	Protection of Right, Title and Interest in the	 	 	 	 
	 
	 	 	 	Collateral; Further Action Evidencing Advances	 	 	149	 
	 
	 	Section 13.13	 	Confidentiality	 	 	150	 

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	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 13.14	 	Execution in Counterparts; Severability; Integration	 	 	152	 
	 
	 	Section 13.15	 	Waiver of Setoff	 	 	152	 
	 
	 	Section 13.16	 	Assignments	 	 	152	 
	 
	 	Section 13.17	 	Heading and Exhibits	 	 	152	 
	 
	 	Section 13.18	 	Loans Subject to Retained Interest Provisions	 	 	153	 
	 
	 	Section 13.19	 	Tax Treatment of Advances	 	 	153	 
	 
	 	Section 13.20	 	Original Sale and Servicing Agreement	 	 	153	 

	 	 	 
	EXHIBITS
	 	 
	EXHIBIT A-1

	 	Form of Borrowing Notice (Advances and Reduction of Facility Amount)
	EXHIBIT A-2

	 	Form of Borrowing Notice (Reinvestments of Principal Collections)
	EXHIBIT A-3

	 	Form of Borrowing Base Certificate
	EXHIBIT B-1

	 	Form of Variable Funding Certificate (Purchasers)
	EXHIBIT B-2

	 	Form of Variable Funding Certificate (Additional Purchasers)
	EXHIBIT C

	 	Form of Monthly Report
	EXHIBIT D

	 	Form of Hedging Agreement (including Schedule and Confirmation)
	EXHIBIT E-1

	 	Form of Officer’s Certificate to Solvency (CSE QRS Funding I LLC)
	EXHIBIT E-2

	 	Form of Officer’s Certificate to Solvency (CSE Mortgage LLC)
	EXHIBIT F-1

	 	Form of Officer’s Closing Certificate (CSE QRS Funding I LLC)
	EXHIBIT F-2

	 	Form of Officer’s Closing Certificate (CSE Mortgage LLC)
	EXHIBIT G-1

	 	Form of Power of Attorney(CSE QRS Funding I LLC)
	EXHIBIT G-2

	 	Form of Power of Attorney(CSE Mortgage LLC)
	EXHIBIT H

	 	Form of Release of Required Asset Documents
	EXHIBIT I

	 	Form of Assignment of Mortgage
	EXHIBIT J

	 	Form of Servicer’s Certificate
	EXHIBIT K

	 	Form of Transferee Letter
	EXHIBIT L

	 	Form of Certificate of Outside Counsel

SCHEDULES

	 	 	 
	SCHEDULE I

	 	Condition Precedent Documents
	SCHEDULE II

	 	List of Lock-Box Banks and Lock-Box Accounts
	SCHEDULE III

	 	Location of Required Asset Documents and Asset Files
	SCHEDULE IV

	 	Asset List
	SCHEDULE V

	 	Residential Mortgage Policies and Procedures

v

 

AMENDED AND RESTATED SALE AND SERVICING AGREEMENT

     THIS AMENDED AND RESTATED SALE AND SERVICING AGREEMENT (such agreement as amended, modified,
waived, supplemented, restated or replaced from time to time, the “Agreement”) is made as of this
28th day of April, 2006, by and among:

     (1) CSE QRS FUNDING I LLC, a Delaware limited liability company, as the seller (together with
its successors and assigns in such capacity, the “Seller”);

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

     (3) EACH OF THE PURCHASERS AND PURCHASER AGENTS FROM TIME TO TIME PARTY HERETO (together with
their respective successors and assigns in such capacities, each a “Purchaser” and a “Purchaser
Agent,” respectively);

     (4) WACHOVIA CAPITAL MARKETS, LLC, a Delaware limited liability company (“WCM”), as the
administrative agent for the Purchaser Agents hereunder (together with its successors and assigns
in such capacity, including any successor appointed pursuant to ARTICLE XII, the
“Administrative Agent”), and as the Purchaser Agent for Variable Funding Capital Company LLC
(together with its successors and assigns in such capacity, the “VFCC Agent”); and

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

RECITALS

     WHEREAS, the Seller, the Originator, the Servicer, Variable Funding Capital Company LLC
(together with its successors and assigns, “VFCC”), the VFCC Agent, the Administrative Agent, the
Backup Servicer, the Collateral Custodian and Wachovia Bank, National Association, as Hedge
Counterparty (as defined below) have heretofore executed and delivered that certain Sale and
Servicing Agreement, dated as of December 28, 2005 (as amended, the “Original Sale and Servicing
Agreement”);

     WHEREAS, Section 13.1 of the Original Sale and Servicing Agreement provides that no
amendment shall be effective without the written agreement of the Seller, the Servicer, the Backup
Servicer, the Collateral Custodian, the Administrative Agent, the Secured Parties and the Hedge
Counterparty;

     WHEREAS, the Seller, the Originator, the Servicer, VFCC, Fairway Finance Company, LLC
(together with its successors and assigns, “Fairway”), Park Avenue Receivables Company,

6

 

LLC
(together with its successors and assigns, “Park Avenue”), the VFCC Agent, Harris Nesbitt Corp., as
the Purchaser Agent for Fairway (together with its successors and assigns in such capacity, the “Fairway Agent”), JPMorgan Chase Bank, National Association, as the Purchaser
Agent for Park Avenue (together with its successors and assigns in such capacity, the “Park Avenue
Agent”), the Administrative Agent, the Backup Servicer, the Collateral Custodian and the Hedge
Counterparty hereby desire to amend and restate the Original Sale and Servicing Agreement to (i)
make Three Pillars and the Three Pillars Agent, parties thereto, (ii) increase the Facility Amount,
and (iii) make such other changes as are necessary or in the interests of the parties;

     WHEREAS, each of the Seller, the Originator, the Servicer, VFCC, Fairway, Park Avenue, the
VFCC Agent, the Fairway Agent, the Park Avenue Agent, the Administrative Agent, the Backup
Servicer, the Collateral Custodian, and the Hedge Counterparty consents to the amendment and
restatement of the Original Sale and Servicing Agreement pursuant to this Agreement; and

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

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

ARTICLE I

DEFINITION

     Section 1.1 Certain Defined Terms.

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

“1940 Act”: Defined in Section 10.1(i).

“Accrual Period”: (a) with respect to each Advance (or portion thereof) funded at an Interest Rate
other than the CP Rate, (i) with respect to the first Payment Date, the period from and including
the Closing Date to but excluding such first Payment Date and (ii) with respect to any subsequent
Payment Date, the period from and including the previous Payment Date to but excluding such
subsequent Payment Date, and (b) with respect to each Advance (or portion thereof) funded at an
Interest Rate equal to the CP Rate, (i) with respect to the first Payment Date, the period from and
including the Closing Date to and including the last day of the calendar month in which the Closing
Date occurs and (ii) with respect to any subsequent Payment Date, the period ending on the last day
of the calendar month immediately preceding the month in which the Payment Date occurs and
commencing on the first (1st) day of such immediately preceding calendar month.

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“Acquired Loan”: A Loan that is originated by a Person other than the Originator, CapitalSource
Finance LLC or any of their respective Subsidiaries and acquired by the Originator in a “true sale” transaction pursuant to an acquisition agreement, provided that the foregoing shall exclude
(i) any CS Funding III Asset that was not an “Acquired Loan” under and as defined in the CS Funding
III Transaction and (ii) any Retained Interest.

“Acquisition Facility”: That certain Loan Certificate and Servicing Agreement, dated as of
February 28, 2003, by and among CapitalSource Acquisition Funding LLC, as the seller, CapitalSource
Finance LLC, as the originator and as the servicer, Variable Funding Capital Company LLC (formerly
known as Variable Funding Capital Corporation), as the purchaser, Wachovia Capital Markets, LLC
(f/k/a Wachovia Securities, Inc.), as the Administrative Agent and as the Purchaser Agent and Wells
Fargo Bank, National Association, successor-by-merger to Wells Fargo Bank Minnesota, National
Association, as the backup servicer and as the Collateral Custodian, as such agreement may be
amended, modified, waived, supplemented or restated from time to time and including any document,
certificate or agreement executed in connection therewith.

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

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

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

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

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

“Additional Purchaser”: Defined in Section 13.16.

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

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

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

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“Advance”: Defined in Section 2.1(b).

“Advance Rate”: On any Determination Date, with respect to any Eligible Asset, the percentage set
forth in the tables below, as determined by (i) the type of Eligible Asset, (ii) the Related
Property classification of such Eligible Asset, (iii) the highest Concentration Percentage Range
after the inclusion of such Eligible Asset in the Collateral and (iv) the LTV of such Eligible
Asset, if applicable.

For the avoidance of doubt, the applicable Advance Rate for any Eligible Asset that constitutes
Development Property shall be the Advance Rate for Development Property as set forth in the tables
below, notwithstanding any other Related Property Classification that may be applicable to such
Eligible Asset.

Senior Secured Loan and Sale/Leaseback Loan

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Related Property	 	Concentration	 	Advance Rate
	Classification	 	Percentage Range	 	LTV <=65%	 	LTV <=70%	 	LTV<=75%	 	LTV <=80%	 	LTV <=85%	 	LTV <=90%
	Office Properties, Healthcare
Properties,
Industrial
Properties and
Retail Properties
	 	 	≤ 30	%	 	 	—	 	 	 	—	 	 	 	80	%	 	 	75	%	 	 	65	%	 	 	60	%
	 	> 30% to ≤ 35%	 	 	—	 	 	 	—	 	 	 	75	%	 	 	70	%	 	 	60	%	 	 	55	%
	 	 	> 35	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Multifamily Properties
	 	 	≤ 30	%	 	 	—	 	 	 	—	 	 	 	80	%	 	 	75	%	 	 	70	%	 	 	65	%
	 

	 	> 30% to ≤ 35%	 	 	—	 	 	 	—	 	 	 	75	%	 	 	70	%	 	 	65	%	 	 	60	%
	 
	 	 	> 35	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hospitality Properties
	 	 	≤ 30	%	 	 	80	%	 	 	75	%	 	 	70	%	 	 	65	%	 	 	0	%	 	 	0	%
	 

	 	> 30% to ≤ 35%	 	 	75	%	 	 	70	%	 	 	65	%	 	 	60	%	 	 	0	%	 	 	0	%
	 
	 	 	> 35	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mixed Use Properties
	 	 	≤ 25	%	 	 	—	 	 	 	—	 	 	 	80	%	 	 	75	%	 	 	65	%	 	 	60	%
	 
	 	> 25 to ≤ 30%	 	 	—	 	 	 	—	 	 	 	75	%	 	 	70	%	 	 	60	%	 	 	55	%
	 
	 	 	> 30	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Development Properties
	 	 	≤ 20	%	 	 	—	 	 	 	—	 	 	 	80	%	 	 	75	%	 	 	65	%	 	 	60	%
	 

	 	> 20% to ≤ 25%	 	 	—	 	 	 	—	 	 	 	70	%	 	 	65	%	 	 	55	%	 	 	50	%
	 
	 	> 25% to ≤ 30%	 	 	—	 	 	 	—	 	 	 	60	%	 	 	55	%	 	 	45	%	 	 	40	%
	 
	 	> 30% to ≤ 35%	 	 	—	 	 	 	—	 	 	 	50	%	 	 	45	%	 	 	35	%	 	 	30	%
	 
	 	 	> 35	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%

9

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Related Property	 	Concentration	 	Advance Rate
	Classification	 	Percentage Range	 	LTV <=65%	 	LTV <=70%	 	LTV<=75%	 	LTV <=80%	 	LTV <=85%	 	LTV <=90%
	Development Properties which
constitute
Condominium
Conversions
	 	 	≤ 15	%	 	 	—	 	 	 	—	 	 	 	80	%	 	 	75	%	 	 	65	%	 	 	60	%
	 	> 15% to ≤ 20%	 	 	—	 	 	 	—	 	 	 	70	%	 	 	65	%	 	 	55	%	 	 	50	%
	 	> 20% to ≤ 25%	 	 	—	 	 	 	—	 	 	 	60	%	 	 	55	%	 	 	45	%	 	 	40	%
	 	> 25% to ≤ 30%	 	 	—	 	 	 	—	 	 	 	50	%	 	 	45	%	 	 	35	%	 	 	30	%
	 	 	> 30	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Land Development
	 	 	≤ 15	%	 	 	—	 	 	 	—	 	 	 	80	%	 	 	75	%	 	 	65	%	 	 	60	%
	 
	 	> 15% to ≤ 20%	 	 	—	 	 	 	—	 	 	 	75	%	 	 	70	%	 	 	60	%	 	 	55	%
	 
	 	> 20% to ≤ 25%	 	 	—	 	 	 	—	 	 	 	70	%	 	 	65	%	 	 	55	%	 	 	50	%
	 
	 	> 25% to ≤ 30%	 	 	—	 	 	 	—	 	 	 	65	%	 	 	60	%	 	 	50	%	 	 	45	%
	 
	 	 	> 30	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Property
	 	 	≤ 10	%	 	 	—	 	 	 	—	 	 	 	80	%	 	 	75	%	 	 	65	%	 	 	60	%
	 
	 	 	> 10	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%

B-Note Loans

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Related Property	 	Concentration	 	Advance Rate
	Classification	 	Percentage Range	 	LTV<=75%	 	LTV <=80%	 	LTV <=85%	 	LTV <=90%
	Office Properties, Healthcare Properties, Industrial Properties
and Retail Properties
	 	 	≤ 30	%	 	 	—	 	 	 	—	 	 	 	60	%	 	 	55	%
	 	> 30% to ≤ 35%	 	 	—	 	 	 	—	 	 	 	55	%	 	 	50	%
	 	 	> 35	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Multifamily Properties
	 	 	≤ 30	%	 	 	—	 	 	 	—	 	 	 	65	%	 	 	55	%
	 
	 	> 30% to ≤ 35%	 	 	—	 	 	 	—	 	 	 	60	%	 	 	50	%
	 
	 	 	> 35	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hospitality Properties
	 	 	≤ 30	%	 	 	60	%	 	 	55	%	 	 	0	%	 	 	0	%
	 
	 	> 30% to ≤ 35%	 	 	55	%	 	 	50	%	 	 	0	%	 	 	0	%
	 
	 	 	> 35	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mixed Use Properties
	 	 	≤ 25	%	 	 	—	 	 	 	—	 	 	 	60	%	 	 	55	%
	 
	 	> 25 to ≤ 30%	 	 	—	 	 	 	—	 	 	 	55	%	 	 	50	%
	 
	 	 	> 30	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Development Properties
	 	 	≤ 20	%	 	 	—	 	 	 	—	 	 	 	60	%	 	 	55	%
	 
	 	> 20% to ≤ 25%	 	 	—	 	 	 	—	 	 	 	50	%	 	 	45	%
	 
	 	> 25% to ≤ 30%	 	 	—	 	 	 	—	 	 	 	40	%	 	 	35	%
	 
	 	> 30% to ≤ 35%	 	 	—	 	 	 	—	 	 	 	30	%	 	 	25	%
	 
	 	 	> 35	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%

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	Related Property	 	Concentration	 	 
	Classification	 	Percentage Range	 	Advance Rate
	 	 	 	 	 	 	LTV<=75%	 	LTV <=80%	 	LTV <=85%	 	LTV <=90%
	Development
Properties which
constitute
Condominium
Conversions
	 	 	≤ 15	%	 	 	—	 	 	 	—	 	 	 	60	%	 	 	55	%
	 
	 	> 15% to ≤ 20%	 	 	—	 	 	 	—	 	 	 	50	%	 	 	45	%
	 
	 	> 20% to ≤ 25%	 	 	—	 	 	 	—	 	 	 	40	%	 	 	35	%
	 
	 	> 25% to ≤ 30%	 	 	—	 	 	 	—	 	 	 	30	%	 	 	25	%
	 
	 	 	> 30	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%
	Land Development
	 	 	≤ 15	%	 	 	—	 	 	 	—	 	 	 	60	%	 	 	55	%
	 
	 	> 15% to ≤ 20%	 	 	—	 	 	 	—	 	 	 	55	%	 	 	50	%
	 
	 	> 20% to ≤ 25%	 	 	—	 	 	 	—	 	 	 	50	%	 	 	45	%
	 
	 	> 25% to ≤ 30%	 	 	—	 	 	 	—	 	 	 	45	%	 	 	40	%
	 
	 	 	> 30	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%
	Other Property
	 	 	≤ 10	%	 	 	—	 	 	 	—	 	 	 	60	%	 	 	55	%
	 
	 	 	> 10	%	 	 	—	 	 	 	—	 	 	 	0	%	 	 	0	%

Mezzanine Loan

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Related Property	 	Concentration	 	 	 	 	 	Advance Rate	 	 
	Classification	 	Percentage Range	 	 	 	 	 	 
	 	 	 	 	 	 	LTV <=80%	 	LTV <=85%	 	LTV <=90%
	Office Properties, Healthcare
Properties, Industrial
Properties and Retail
Properties
	 	 	≤ 30	%	 	 	—	 	 	 	—	 	 	 	50	%
	 
	 	> 30% to ≤ 35%	 	 	—	 	 	 	—	 	 	 	45	%
	 
	 	 	> 35	%	 	 	—	 	 	 	—	 	 	 	0	%
	Multifamily Properties
	 	 	≤ 30	%	 	 	—	 	 	 	—	 	 	 	50	%
	 
	 	> 30% to ≤ 35%	 	 	—	 	 	 	—	 	 	 	45	%
	 
	 	 	> 35	%	 	 	—	 	 	 	—	 	 	 	0	%
	Hospitality Properties
	 	 	≤ 30	%	 	 	50	%	 	 	0	%	 	 	0	%
	 
	 	> 30% to ≤ 35%	 	 	45	%	 	 	0	%	 	 	0	%
	 
	 	 	> 35	%	 	 	0	%	 	 	0	%	 	 	0	%
	Mixed Use Properties
	 	 	≤ 25	%	 	 	—	 	 	 	—	 	 	 	50	%
	 
	 	> 25 to ≤ 30%	 	 	—	 	 	 	—	 	 	 	45	%
	 
	 	 	> 30	%	 	 	—	 	 	 	—	 	 	 	0	%
	Other Property
	 	 	≤ 10	%	 	 	—	 	 	 	—	 	 	 	50	%
	 
	 	 	> 10	%	 	 	—	 	 	 	—	 	 	 	0	%

Senior Secured ABL

	 	 	 	 	 	 	 	 	 
	Related Property	 	Concentration	 	 
	Classification	 	Percentage Range	 	Advance Rate
	Office Properties, Healthcare
Properties, Industrial
Properties and Retail Properties
	 	 	≤ 30	%	 	 	85	%
	 
	 	> 30% to ≤ 35%	 	 	80	%
	 
	 	 	> 35	%	 	 	0	%
	Multifamily Properties
	 	 	≤ 30	%	 	 	85	%
	 
	 	> 30% to ≤ 35%	 	 	80	%
	 
	 	 	> 35	%	 	 	0	%

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	Related Property	 	Concentration	 	 
	Classification	 	Percentage Range	 	Advance Rate
	Hospitality Properties
	 	 	≤ 30	%	 	 	85	%
	 
	 	> 30% to ≤ 35%	 	 	80	%
	 
	 	 	> 35	%	 	 	0	%
	Mixed Use Properties
	 	 	≤ 25	%	 	 	85	%
	 
	 	> 25 to ≤ 30%	 	 	80	%
	 
	 	 	> 30	%	 	 	0	%
	Development Properties
	 	 	≤ 20	%	 	 	85	%
	 
	 	> 20% to ≤ 25%	 	 	75	%
	 
	 	> 25% to ≤ 30%	 	 	65	%
	 
	 	> 30% to ≤ 35%	 	 	55	%
	 
	 	 	> 35	%	 	 	0	%
	Development Properties which constitute Condominium Conversions
	 	 	≤ 15	%	 	 	85	%
	 
	 	> 15% to ≤ 20%	 	 	75	%
	 
	 	> 20% to ≤ 25%	 	 	65	%
	 
	 	> 25% to ≤ 30%	 	 	55	%
	 
	 	 	> 30	%	 	 	0	%
	Land Development
	 	 	≤ 15	%	 	 	85	%
	 
	 	> 15% to ≤ 20%	 	 	80	%
	 
	 	> 20% to ≤ 25%	 	 	75	%
	 
	 	> 25% to ≤ 30%	 	 	70	%
	 
	 	 	> 30	%	 	 	0	%
	Other Property
	 	 	≤ 10	%	 	 	85	%
	 
	 	 	> 10	%	 	 	0	%

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

“Advances Outstanding”: On any day, the aggregate principal amount of all Advances outstanding on
such day, after giving effect to all repayments of Advances and the making of new Advances on such
day; provided that the “Advances Outstanding” under and as defined in the Original Sale and
Servicing Agreement on and as of the Closing Date shall be deemed to be Advances Outstanding for
all purposes of this Agreement.

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

“Affected Purchaser”: Defined in Section 13.1(c).

“Affiliate”: With respect to a Person, means any other Person that, directly or indirectly,
controls, is controlled by or under common control with such Person, or is a director or officer of
such Person. For purposes of this definition, “control” (including the terms “controlling,”

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“controlled by” and “under common control with”) when used with respect to any specified Person
means the possession, direct or indirect, of the power to vote 20% or more of the voting securities
of such Person or to direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by contract or otherwise.

“Agent’s Account”: With respect to (a) VFCC, the VFCC Agent’s Account, (b) Park Avenue, the Park
Avenue Agent’s Account, (c) Fairway, the Fairway Agent’s Account, (d) Three Pillars, the Three
Pillars Agent’s Account, or (d) any Additional Agent, any Additional Agent’s Account, in each case
as applicable.

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

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

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

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Sale and Servicing Agreement on and as of the Closing Date shall be deemed to be Aggregate Unpaids
under and for all purposes of this Agreement.

“Allocation Adjustment Event”: With respect to each Loan included in the Collateral subject to the
Retained Interest provisions of this Agreement, the occurrence of any one or more of the following
under and as defined in any Permitted Securitization Transaction rated by the Rating Agencies, as
applicable: (i) a “Servicer Default”, (ii) an “Event of Default” or (iii) an “Accelerated
Amortization Event”.

“Alternative Currency”: At any time, any of Canadian Dollars, English Pounds Sterling or Euros.

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

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

“Amsterdam Business Day”: Any day other than a Saturday or a Sunday on which banks are not
required or authorized to be closed in Amsterdam, the Netherlands.

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

“Appraisal”: With respect to any Mortgaged Property as to which an appraisal is required or
permitted to be performed pursuant to the terms of this Agreement, an appraisal performed in
conformance with the guidelines of the Appraisal Institute.

“Appraisal Institute”: The international membership association of professional real estate
appraisers.

“Asset Checklist”: The list of loan documents attached as Schedule 5 to the Acquisition Facility
or an electronic list delivered by or on behalf of the Seller to the Collateral Custodian that
identifies each of the items contained in the related Asset File, as amended from time to time.

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

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

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

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

“Assignment of Leases and Rents”: With respect to any Mortgaged Property, any assignment of
leases, rents and profits or similar instrument executed by the Obligor, assigning to the mortgagee
all of the income, rents and profits derived from the ownership, operation, leasing or disposition
of all or a portion of such Mortgaged Property, whether contained in the Mortgage or in a document
separate from the Mortgage, in the form that was duly executed, acknowledged and delivered, as
amended, modified, renewed or extended through the date hereof and from time to time hereafter in
accordance with the Credit and Collection Policy.

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

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

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

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

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

15

 

to such Determination Date and each of the 11 preceding Determination Dates (or such lesser number
as shall have elapsed as of such Determination Date) and the denominator of which is twelve (or the
corresponding lesser number of Determination Dates included in the calculations described herein).

“Average Portfolio Charged-Off Ratio”: As of any Determination Date, the percentage equivalent of
a fraction (i) the numerator of which is equal to the sum of the Portfolio Outstanding Asset
Balance of all Portfolio Assets (excluding equity investments) that became Charged-Off Portfolio
Assets (net of Recoveries during such Collection Period) during the Collection Period related to
such Determination Date and each of the 11 preceding Determination Dates (or such lesser number as
shall have elapsed as of such Determination Date), and (ii) the denominator of which is equal to a
fraction the numerator of which is the sum of the Portfolio Outstanding Asset Balance (excluding
equity investments) as of the first day of the Collection Period related to such Determination Date
and each of the 11 preceding Determination Dates (or such lesser number as shall have elapsed as of
such Determination Date) and the denominator of which is twelve (or the corresponding lesser number
of Determination Dates included in the calculations described herein); provided that, such
calculation shall exclude the effects of any Liquid Real Estate Assets that are acquired and
levered by the Originator solely to satisfy REIT asset and income tests.

“Average Portfolio Delinquency Ratio”: As of any Determination Date, the percentage equivalent of
a fraction the numerator of which is equal to the sum of the Portfolio Delinquency Ratio on such
Determination Date and each of the two preceding Determination Dates (or such lesser number as
shall have elapsed as of such Determination Date) and the denominator of which is equal to three
(or the corresponding lesser number of Determination Dates included in the calculations described
herein); provided that, such calculation shall exclude the effects of any Liquid Real Estate Assets
that are acquired and levered by the Originator solely to satisfy REIT asset and income tests.

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

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

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

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

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

“Banded Floating Rate Loan”: A Loan where the interest rate payable by the Obligor thereof
fluctuates between a minimum interest rate and a maximum interest rate allowable under its
Underlying Instruments.

16

 

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

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

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

“B-Note Loan”: Any Term Loan that (i) is a multilender loan, (ii) is secured by a first or second
priority Lien on all of the Obligor’s assets constituting Related Property for the Loan, (iii) has
a “first dollar” at risk not to exceed 65% of the Loan to Value Ratio and a “last dollar” at risk
not to exceed 90% of the Loan to Value Ratio, and (iv) contains terms which, upon the occurrence of
an event of default under the Loan Documents or in the case of any liquidation or foreclosure on
the Related Property, provide that the principal of the Seller’s portion of such Loan would be paid
only after the other lenders parties on the senior tranche related to such Loan are paid in full.

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

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

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

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

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

“Canadian Dollars”: The lawful currency of Canada.

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“Capital Stock”: Any capital stock or membership interests (in the case of a limited liability
company) or equivalent equity interests of CapitalSource Inc. or any Consolidated Subsidiary (to
the extent issued to a Person other than CapitalSource Inc.), whether common or preferred.

     “Change-in-Control”: Any of the following:

     (a) any Person or two or more Persons acting in concert shall have acquired “beneficial
ownership,” directly or indirectly, of, or shall have acquired by contract or otherwise, or shall
have entered into a contract or arrangement that, upon consummation, will result in its or their
acquisition of, or control over, Voting Stock of any Credit Party (or other securities convertible
into such Voting Stock) representing 33-1/3% or more of the combined voting power of all Voting
Stock of such Credit Party;

     (b) the replacement of greater than 50% of the board of directors of any Credit Party over a
two year period from the directors who constituted the board of directors at the beginning of such
period, and such replacements shall not have been approved or nominated by a vote of at least a
majority of the board of directors of such Credit Party then still in office who were either
members of such board of directors at the beginning of such period or whose election as a member of
such board of directors was previously so approved;

     (c) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially all of the
assets of any Credit Party and its Subsidiaries taken as a whole to any “person” (as such term is
used in Sections 13(d) and 14(d) of the Exchange Act);

     (d) the failure of CapitalSource Inc. to own (directly or through wholly owned subsidiaries),
free and clear of all Liens, 99.9% of the outstanding Voting Stock of the Originator;

     (e) the creation or imposition of any Lien on any limited liability company membership
interests in the Seller;

     (f) the failure by the Originator to own all of the limited liability company membership
interests in the Seller;

     (g) the CSE Management Agreement shall fail to be in full force and effect; or

     (h) CapitalSource Finance LLC shall fail to be the sub-servicer.

Notwithstanding the foregoing, solely for the purpose of determining whether there has been a
Change-in-Control pursuant to clause (a) above, any purchase by one or more Excluded Persons which
increases any of such Excluded Persons’ direct or indirect ownership interest (whether individually
or in the aggregate) in the Voting Stock of any Credit Party shall not constitute a
Change-in-Control even if the amount of Voting Stock acquired or controlled by such Excluded
Person(s) exceeds (whether individually or in the aggregate) 33-1/3% of the combined voting power
of all Voting Stock of the Originator or CapitalSource Inc., as applicable; provided that for so
long as any of such Excluded Persons’ direct or indirect ownership interest in the Voting Stock of
the Originator or CapitalSource Inc. exceeds (individually or in the aggregate) 33-1/3%

18

 

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

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

“Charged-Off Portfolio Asset”: A Portfolio Asset (or portion thereof deemed to be “charged-off”)
(excluding equity investments) as to which any of the following first occurs: (i) the Servicer has
determined or should have reasonably determined in accordance with the Credit and Collection Policy
(or such similar policies and procedures utilized by the Servicer in servicing such Portfolio
Asset) that such Portfolio Asset is not collectible, (ii) (a) all or any portion of one or more
principal or interest payments (other than in respect of default rate interest) remain unpaid for
at least ninety (90) days from the original due date for such payment (without giving effect to any
Servicer Advance thereon), in which case not less than fifty percent (50%) of the Portfolio
Outstanding Asset Balance of such Portfolio Asset shall be deemed to be “charged-off” for purposes
of this Agreement, and (b) all or any portion of one or more principal or interest payments (other
than in respect of default rate interest) remain unpaid for at least one hundred and eighty (180)
days from the original due date for such payment (without giving effect to any Servicer Advance
thereon), in which case not less than one hundred percent (100%) of the Portfolio Outstanding Asset
Balance of such Portfolio Asset shall be deemed to be “charged-off” for purposes of this Agreement,
or (iii) (a) the Obligor thereof or any Person obligated thereon is subject to an Insolvency Event,
in which case not less than fifty percent (50%) of the Portfolio

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Outstanding Asset Balance of such Portfolio Asset shall be deemed to be “charged-off” as of the
date of the occurrence of such Insolvency Event for purposes of this Agreement, (b) the Obligor or
any Person obligated thereon has suffered a material adverse change which materially affects its
viability as an ongoing concern as reasonably determined by the Servicer, or (c) adequate
collateral or other source of payment does not exist to repay the principal due under the Portfolio
Asset as determined by the Servicer.

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

“Closing Date”: April 28, 2006.

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

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

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

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

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

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

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

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

“Collection Period”: Each calendar month.

“Collections”: (a) All cash collections and other cash proceeds of any Asset, including, without
limitation, Scheduled Payments, Finance Charges, Prepayments, Insurance Proceeds, all Recoveries or
other amounts received in respect thereof but excluding any Excluded Amounts,

20

 

(b) any cash proceeds or other funds received by the Seller or the Servicer with respect to any
Related Security, (c) all payments received pursuant to any Hedging Agreement or Hedge Transaction
and (d) all Deemed Collections.

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

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

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

“Concentration Percentage Range”: The percentage equivalent of a fraction (i) the numerator of
which is the Aggregate Outstanding Asset Balance of all Eligible Assets secured by Related Property
of the same classification and (ii) the denominator of which is the total Aggregate Outstanding
Asset Balance.

“Concentrations Effective Date”: The earlier of:

     (i) the date that is three months following the closing of a Permitted Securitization
Transaction after the Closing Date; or

     (ii) the date on which the Aggregate Outstanding Asset Balance first equals or exceeds
$100,000,000 following the more recent of (a) the Closing Date and (b) the closing of a
Permitted Securitization Transaction after the Closing Date.

“Condominium Conversions”: Includes properties that have been, or are expected to be, converted to
condominium for ownership. For the avoidance of doubt, Condominium Conversions shall also be
considered Development Properties.

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

“Consolidated Subsidiary”: At any date any Subsidiary the accounts of which, in accordance with
GAAP, would be consolidated with those of CapitalSource Inc. in its consolidated and consolidating
financial statements as of such date.

“Consolidated Tangible Net Worth”: As of any date of determination, the assets less the
liabilities of any Person and its Subsidiaries on a consolidated basis, less intangible assets
(including goodwill), all determined in accordance with GAAP.

21

 

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

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

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

“Credit Party”: Any of CapitalSource Inc., CapitalSource TRS Inc., the Originator and any other
Subsidiary of CapitalSource Inc. that becomes a party to that certain Credit Agreement, dated as of
March 14, 2006, among CapitalSource Inc., as borrower, the guarantors named therein, the lender
parties thereto, Wachovia, as administrative agent for the lenders, as swingline lender, and
issuing lender, and Bank of America, N.A., as issuing lender, as such agreement is amended,
modified, waived, supplemented or restated from time to time; and “Credit Parties” shall
mean the foregoing collectively.

“CSE Management Agreement”: The management agreement, dated as of January 1, 2006, by and among
CapitalSource Inc., CSE Mortgage LLC and CapitalSource Finance LLC, as the same may be amended,
restated, modified or supplemented from time to time.

“CSE Prime Rate”: The rate designated by CSE Mortgage (or the originator of an Assigned Loan) from
time to time and/or pursuant to the related Underlying Instruments as its prime rate in the United
States, such rate to change as and when the designated rate changes; provided that

22

 

 the CSE Prime Rate is not intended to be the lowest rate of interest charged by CSE Mortgage (or
such originator) in connection with extensions of credit to debtors.

“CSE LIBOR Rate”: The posted rate for thirty (30), sixty (60) or ninety (90) day, as applicable,
deposits in Dollars appearing on Telerate Page 3750, as and when determined in accordance with the
applicable Required Asset Documents.

“CS Funding III Asset”: Any Asset included in the Collateral on the date of the Initial Advance
that was previously included in the “Collateral” under and as defined in the CS Funding III
Transaction.

“CS Funding III Cut-Off Date”: With respect to any CS Funding III Asset, the applicable “Cut-Off
Date” under and as defined in the CS Funding III Transaction.

“CS Funding III Transaction”: The transactions contemplated by the Sale and Servicing Agreement,
dated as of April 20, 2004, among CapitalSource Funding III LLC, CapitalSource Finance LLC,
Variable Funding Capital Company LLC (f/k/a Variable Funding Capital Corporation), each other
commercial paper conduit from time to time party thereto, Wachovia Bank, National Association,
Wachovia Capital Markets, LLC, each other purchaser agent from time to time party thereto, and
Wells Fargo Bank, National Association, and the related “Transaction Documents” (as defined
therein).

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

“Currency”: Dollars or any Alternative Currency.

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

“Delayed-Draw Term Loan”: A Loan that is fully committed on the closing date thereof and is
required by its terms to be fully funded in one or more installments on draw dates to occur within
three years after the closing date thereof but which, once fully funded, has the characteristics of
a Term Loan.

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

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

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

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

“Development Properties”: An existing property that is undergoing renovation or redevelopment that
either (i) disrupts at least 30% of the occupancy of the property, or (ii) temporarily reduces the
NOI of the property by more than 30%; provided that, a property will not be considered a
Development Property after it has an occupancy rate of at least 80%.

“DIP Loan”: A loan to an Obligor that is a “debtor-in-possession” as defined under the Bankruptcy
Code.

“Discretionary Sale”: Defined in Section 2.20.

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

“Discretionary Sale Notice”: Defined in Section 2.20(a).

“Dollar Equivalent”: On any day, with respect to the amount of any Alternative Currency, the
amount of Dollars that would be required to purchase such amount of Alternative Currency on such
day, based on the spot selling rate from the prior Business Day as determined by the Servicer
reported on Wall Street Journal to sell such Alternative Currency for Dollars in the London foreign
exchange market.

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

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

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 provided that if such Asset is part of a capital contribution to the Seller the Collateral
Custodian shall have received the Required Asset Documents within three Business Days of receipt of
the Certificate of Assignment and (B) that satisfies each of the following eligibility
requirements, as applicable:

(1) With respect to any Asset:

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

     (b) the Asset, (i) (together with the Collections and Related Security related thereto) has
been the subject of a grant by the Seller in favor of the Administrative Agent on behalf of the
Secured Parties, of a first priority perfected security interest, and (ii) with respect to which,
at the time of the sale of such Asset to the Seller, the Originator had a first priority (other
than in the case of B-Note Loans or Mezzanine Loans) perfected security interest in the Related
Property (other than additional or “boot” collateral) relating to such Loan;

     (c) at the time such Asset is included in the Collateral, the Asset (i) is not (and since its
origination by the Originator or, in the case of Acquired Loans, acquisition by the Originator has
never been) a Charged-Off Asset (either in whole or in part), (ii) is not past due in the case of a
Loan, with respect to payments of principal or interest (provided that if such Asset is past due at
the time it is included in the Collateral but not more than ten days past due, the Originator and
the Servicer must reasonably believe that such Asset will promptly and in no event later than the
date of the next Scheduled Payment due on such Asset, be brought current with respect to all
payments due thereunder), and (iii) has never been more than sixty days past due, with respect to
payments of principal or interest, or, in the case of Acquired Loans, to the best of the
Originator’s knowledge after due inquiry, has never been more than sixty days past due in the
twelve months prior to acquisition;

     (d) the Asset is an “eligible asset” as defined in Rule 3a-7 under the 1940 Act;

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

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

     (g) the Obligor with respect to such Asset is an Eligible Obligor and such Asset is payable
only in Dollars and does not permit the currency in which or the country in which such Asset is
payable to be changed; provided that, notwithstanding the foregoing, any such Asset denominated in
an Alternative Currency shall be deemed to satisfy the requirements in this clause that it be
payable in Dollars if such Asset is subject to appropriate currency hedging as determined by the
Administrative Agent in its sole discretion;

25

 

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

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

     (j) neither the assignment of the Asset under the Sale Agreement by the Originator, the sale
of the Asset hereunder or the granting of a security interest hereunder by the Seller violates,
conflicts with or contravenes any Applicable Laws or any contractual or other restriction,
limitation or encumbrance;

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

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

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

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

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

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

26

 

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

     (r) the Asset, together with the Required Asset Documents and Asset File related thereto, is
assignable and does not require the consent of or notice to the Obligor to consummate the
transactions contemplated by the Transaction Documents or contain any other restriction on the
transfer or the assignment of the Asset for the purpose of consummating the transactions
contemplated by the Transaction Documents other than a consent or waiver of such restriction that
has been obtained prior to the date on which the Asset was sold to the Seller; provided that with
respect to Loans which are secured by an interest in commercial real estate, the Required Asset
Documents may restrict the transfer or the assignment of the related Loan so long as such Loan is
freely assignable or transferable to a Qualified Transferee;

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

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

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

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

     (w) the Asset has not been compromised, adjusted, extended, satisfied, rescinded, set-off or
modified by the Seller, the Originator or the Obligor with respect thereto, and no Asset is subject
to compromise, adjustment, extension, satisfaction, rescission, set-off, counterclaim, defense,
abatement, suspension, deferment, deductible, reduction, termination or modification, whether
arising out of transactions concerning the Asset, or otherwise, by the Seller, the Originator or
the Obligor with respect thereto except for amendments to such Asset otherwise permitted under
Section 6.4(a) of this Agreement and in accordance with the Credit and Collection Policy;

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

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     (y) the Obligor of such Asset is not the subject of an Insolvency Event or Insolvency
Proceedings;

     (z) the Asset is secured by a valid, perfected, first priority (other than with respect to
B-Note Loans and Mezzanine Loans) security interest in all assets that constitute the collateral
for the Asset (subject to Liens expressly permitted by the Underlying Instruments);

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

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

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

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

     (ee) the Asset is not Margin Stock;

     (ff) the acquisition of the Asset by the Seller will not cause the Seller or the pool of
Collateral to be required to be registered as an investment company under the 1940 Act;

     (gg) the Asset is not subject to a guaranty by the Originator or any Affiliate thereof; and

     (hh) the proceeds of the Asset will not be used to finance “ground-up” construction
activities; provided that financing for purposes of Land Development shall not be considered a
“ground-up” construction activity.

(2) With respect to any Loan:

     (a) the Loan provides (i) for periodic payments of interest and/or principal in cash, which
are due and payable on a monthly, quarterly or semi-annual basis unless otherwise consented to in
writing by the Administrative Agent, and (ii) that the Servicer (or, with respect to Assigned
Loans, that the agent bank or a majority of the related lenders) may accelerate all payments if the
Obligor is in default under the Loan and any applicable grace period has expired (in the case of
any B-Note Loan or Mezzanine Loan, subject to any applicable intercreditor or subordination
agreement); provided that, Sale/Leaseback Loans shall provide for payments of interest and/or
principal in cash, no less frequently than on a quarterly basis;

     (b) the Loan is underwritten as (i) a rediscount loan, (ii) a commercial real estate loan, or
(iii) a Sale/Leaseback Loan, in each case pursuant to and in accordance with the Credit and
Collection Policy;

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     (c) the Loan is a Sale/Leaseback Loan, Senior Secured ABL Loan, Senior Secured Loan, B-Note
Loan or Mezzanine Loan;

     (d) the Loan has an original term to maturity of not more than 25 years;

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

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

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

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

     (i) except with respect to B-Note Loans, Mezzanine Loans and certain Loans that, in the
Originator’s reasonable judgment cannot be cross-collateralized or cross-defaulted because of REIT
eligibility criteria, if the Obligor of such Loan is the Obligor of more than one Loan, all such
Loans are cross-collateralized and cross-defaulted;

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

     (k) the Loan is not a Loan or extension of credit by the Originator to the Obligor for the
purpose of making any past due principal, interest or other payments due on such Loan;

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

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

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

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

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     (p) with respect to B-Note Loans or Mezzanine Loans, the Originator has entered into an
intercreditor agreement or subordination agreement (or such provisions are contained in the
principal Underlying Instruments) with, or provisions for the benefit of, the senior lender, which
agreement or provisions are assignable to and have been assigned to the Seller, and which provide
that any standstill of remedies by the Originator or its assignee is limited (A) such that no
standstill of remedies may be imposed unless (x) a default with respect to the senior obligation
has occurred and is continuing and (y) in the case of such a default, other than a payment default,
the Originator’s or assignee’s receipt from the senior lender or Obligor of a notice of default by
the Obligor under the senior debt, and (B) to no longer than one hundred eighty (180) days in
duration in the aggregate in any given year;

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

     (r) with respect to any Acquired Loan acquired from an Affiliate of the Originator, the
Administrative Agent has received a satisfactory legal opinion concerning the acquisition of such
Loan by the Originator in a true sale transaction;

     (s) with respect to any Acquired Loan that was acquired in a pool by the Originator along with
one or more other Acquired Loans, the Administrative Agent has approved in writing such Loan for
inclusion in the Collateral and has completed its own due diligence with respect to such Loan;

     (t) with respect to Agented Notes, the related Underlying Instruments (a) shall include a note
purchase or similar agreement containing provisions relating to the appointment and duties of a
payment agent and a collateral agent and intercreditor and (if applicable) subordination
provisions, and (b) are duly authorized, fully and properly executed and are the valid, binding and
unconditional payment obligation of the Obligor thereof;

     (u) with respect to Agented Notes, CapitalSource Finance LLC or the Originator (or a wholly
owned subsidiary of the Originator) has been appointed the collateral agent of the security and the
payment agent for all such notes prior to such Agented Note becoming a part of the Collateral;

     (v) with respect to Agented Notes, if the entity serving as the collateral agent of the
security for all syndicated notes of the Obligor has or will change from the time of the
origination of the notes, all appropriate assignments of the collateral agent’s rights in and to
the collateral on behalf of the noteholders have been executed and filed or recorded as appropriate
prior to such Agented Note becoming a part of the Collateral;

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

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

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

     (z) no portion of the proceeds used to make payments of principal or interest on such Loan
have come from a new loan by the Originator;

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

     (bb) is not a consumer loan;

     (cc) is not a DIP loan; and

     (dd) none of the Loans secured by a Mortgage are high-cost loans as defined by applicable
predatory- and abusive-lending laws.

(3) With respect to any Sale/Leaseback Loan:

     (a) the Originator or CapitalSource Finance LLC shall be the lender of record for such Loan;
provided that with respect to any Sale/Leaseback Loan for which CapitalSource Finance LLC is the
lender of record prior to such Sale/Leaseback Loan becoming part of the Collateral the Seller shall
deliver a true sale opinion in form and substance acceptable to the Administrative Agent;

     (b) (i) the Collateral Custodian or an escrow agent (pursuant to an escrow agreement in form
and substance acceptable to the Administrative Agent in its sole discretion) shall hold a Mortgage
in blank for the benefit of each Purchaser with respect to all real property assets of the SPE
Obligor and (ii) the Administrative Agent shall have the right to cause the Collateral Custodian
(at the expense of the Originator) to file the Mortgage(s) for the benefit of the Administrative
Agent and the Purchasers upon (A) the occurrence of a Termination Event or an Unmatured Termination
Event or (B) a default or event of default (however defined or described) in the Underlying
Instruments for such Sale/Leaseback Loan;

     (c) the Originator shall provide an indemnity to the Purchasers to cover any losses suffered
by the Purchasers as a result of any Lien against any of the SPE Obligor’s assets that is pari
passu or takes priority over the Liens granted pursuant to the Transaction Documents;

     (d) the Underlying Lessee is not an Affiliate of CapitalSource Inc. or its Subsidiaries;

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     (e) the SPE Obligor owns the fee simple or ground lease interest in the underlying property
and shall not grant a Lien on such underlying property to any Person other than the Originator;

     (f) in no event shall the payments on the Lease abate or diminish, except:

     (I) upon a purchase by the Underlying Lessee of the underlying Property (the “Leased
Property”) following (A) a condemnation with respect to the Leased Property, in which such a
material part of the Leased Property is taken, or all points of ingress and/or egress to
public roadways servicing the underlying property are materially impaired by a taking, so as
to have a material adverse effect on Underlying Lessee’s business, and (B) the making of a
rejectable offer (the “Rejectable Offer”) by the Underlying Lessee to SPE Obligor to
purchase the Leased Property, together with all condemnation awards at a purchase price
equal to the fair market value thereof as determined by an Appraisal on an as-is basis but
disregarding the related condemnation but in no event shall such purchase price be less than
the outstanding principal of and accrued interest on the related Sale/Leaseback Loan, and
its acceptance by SPE Obligor,

     (II) upon the making of a Rejectable Offer following such condemnation and its
rejection by SPE Obligor, such rejection to be conditioned upon (i) the prepayment by SPE
Obligor of the Sale/Leaseback Loan at par plus any accrued interest or (ii) SPE Obligor
providing assurances of such prepayment which are acceptable to the Administrative Agent,

     (III) upon the termination of the Underlying Lease following a casualty with respect to
the Leased Property which renders the Leased Property unsuitable for its primary intended
use, such termination to be conditioned upon (i) the prepayment by SPE Obligor of the
Sale/Leaseback Loan at par plus any accrued interest or (ii) SPE Obligor providing
assurances of such prepayment which are acceptable to the Administrative Agent, or

     (IV) in the event a condemnation or casualty described in clauses (I)(A) and (III)
above, respectively, occurs in the final 12 months of the term of the Underlying Lease, the
Underlying Lessee shall have the right to terminate the Underlying Lease with no further
obligations thereunder other than the satisfaction of all accrued and unpaid obligations to
the date of termination.

In the event that SPE Obligor accepts the Rejectable Offer, SPE Obligor shall convey title to the
Leased Property by deed (or, in the case of a ground lease, assignment of its rights and
obligations under such ground to the Underlying Lessee) and assign its rights and interests in the
related condemnation awards to the Underlying Lessee upon payment of the purchase price therefor.
In the event that the SPE Obligor rejects the Rejectable Offer, then subject to the Underlying
Lessee’s satisfaction of all accrued and unpaid obligations to the date of termination, the
Underlying Lessee shall have the right to terminate the Underlying Lease upon notice thereof;

32

 

     (g) the terms of the Lease shall provide periodic payments (which shall not be subject to
defense, set-off or counterclaim) from Underlying Lessee to SPE Obligor no less frequently than on
a quarterly basis to equal the interest and principal payments on the related Loan, including with
an appropriate rate of return to SPE Obligor which shall be similar to interest rates charged by
Originator to other third parties on loans with a similar risk profile;

     (h) the term of the Lease shall be at least equal to the term of the related Loan;

     (i) the Underlying Lessee shall not be in default under the Lease at the time of contribution
and thereafter shall not be in payment default;

     (j) any extraordinary payments by Underlying Lessee to SPE Obligor, including, but not limited
to, default, bankruptcy and early lease termination payments (but excluding late payment fees)
shall be applied to effectuate a reduction in the principal to the related Loan;

     (k) (i) the Underlying Lessee or SPE Obligor shall maintain risk property insurance in an
amount at least equal to the full replacement cost of the underlying property, (ii) shall maintain
general liability, business interruption and any other insurance agreed upon in the Lease and (iii)
all such insurance policies shall name the Originator and each Purchaser as additional insured;

     (l) either the rights of the SPE Obligor under the Lease are freely assignable by the SPE
Obligor or the Underlying Lessee has consented to the assignment of such rights to the Originator
and its assignees;

     (m) the Loan shall contain customary representations, warranties, indemnities, events of
default and remedies (including liquidated damages) similar to other transactions that Originator
would make to a third party in an arms-length transaction; and

     (n) the Seller shall have a pledge of the SPE Obligor’s equity interest.

“Eligible Obligor”: On any date of determination, any Obligor that:

     (i) is a business organization (and not a natural person) duly organized and validly
existing under the laws of its jurisdiction of organization and has a billing address within
the United States,

     (ii) is a legal operating entity or holding company,

     (iii) has not entered into the Loan primarily for personal, family or household
purposes,

     (iv) is not a Governmental Authority,

     (v) except with respect to Sale/Leaseback Loans to SPE Obligors, the Obligor is not an
Affiliate of the Originator or Seller,

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     (vi) is not in the gaming (other than Obligors in the business of providing services to
the gaming industry), nuclear waste or natural resource exploration/production and oil field
service industries,

     (vii) is not engaged in the business of conducting proprietary research on new drug
development,

     (viii) is not the subject of an Insolvency Proceeding,

     (ix) as of the applicable Cut-Off Date, has an Eligible Risk Rating, and

     (x) is not an Obligor of a Charged-Off Asset or Delinquent Asset; provided that with
respect to an Obligor on any Loan previously financed pursuant to and in accordance with the
terms and conditions of the Acquisition Facility, the Eligible Obligor criteria applicable
to such Obligor (to the extent different than the foregoing) shall be limited to the
criteria set forth in the definition of “Eligible Obligor” in the Acquisition Facility
(which criteria are incorporated herein by reference along with any related terms,
provisions and definitions mutatis mutandis as if set forth fully herein and notwithstanding
any subsequent or contemporaneous termination of the Acquisition Facility (collectively, the
“Incorporated Obligor Criteria”)) and such Obligor shall be deemed to be an Eligible
Obligor or an ineligible Obligor for purposes of this Agreement, as the case may be, on any
date of determination by virtue of such Obligor’s having satisfied or failed to satisfy each
of the Eligible Obligor criteria and any Incorporated Obligor Criteria on such date.

“Eligible Repurchase Obligations”: Repurchase obligations with respect to any security that is a
direct obligation of, or fully guaranteed by, the United States or any agency or instrumentality
thereof the obligations of which are backed by the full faith and credit of the United States, in
either case entered into with a depository institution or trust company (acting as principal)
described in clauses (c)(2) and (c)(4) of the definition of Permitted Investments.

“Eligible Risk Rating”: With respect to a designated Obligor, a “Rating 1,” “Rating 2,” “Rating
3,” or, solely in the case of Assets originated or acquired by CapitalSource Inc. or its Affiliates
longer than six months before the Asset becomes part of the Collateral, “Rating 4” each as
determined in accordance with the Credit and Collection Policy.

“English Pound Sterling”: The lawful currency of the United Kingdom.

“Environmental Laws”: Any and all foreign, federal, state and local laws, statutes, ordinances,
rules, regulations, permits, licenses, approvals, interpretations and orders of courts or
Governmental Authorities, relating to the protection of human health or the environment, including,
but not limited to, requirements pertaining to the manufacture, processing, distribution, use,
treatment, storage, disposal, transportation, handling, reporting, licensing, permitting,
investigation or remediation of hazardous materials. Environmental Laws include, without
limitation, the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. §
9601 et seq.), the Hazardous Material Transportation Act (49 U.S.C. § 331 et seq.),
the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Federal Water
Pollution Control Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401
et seq.),

34

 

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

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

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

“Euro”: The lawful currency of the Participating Member States.

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

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

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

“Excepted Person”: Defined in Section 13.13(a).

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“Excess Spread Account”: Defined in Section 6.4(g).

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

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

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

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

“Facility Amount”: The aggregate Commitments then in effect; provided that such amount may not at
any time exceed $2,000,000,000 without the written agreement of the parties hereto; provided
further that, on or after the Termination Date, the Facility Amount shall mean the Advances
Outstanding.

“Facility Termination Date”: April 28, 2009, or such later date as the Administrative Agent and
each Purchaser Agent, in its sole discretion, shall notify the Seller of in writing.

“Fairway”: Defined in the Recitals of this Agreement.

“Fairway Agent”: Defined in the Recitals of this Agreement.

“Fairway Agent’s Account”: A special account (ABA number 071000288; account number 2545804) in the
name of BMO Capital Markets at Harris Trust and Savings Bank.

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

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

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

36

 

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

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

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

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

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

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

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

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

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

“Healthcare Properties”: Includes hospitals, clinics, nursing homes, sports clubs, spas and other
healthcare facilities and other similar Interests in Real Property used in one or more similar
businesses (but excluding medical offices).

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

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

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

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

“Hedge Guaranty”: The Guaranty, dated as of December 28, 2005, by and between CSE Mortgage in
favor of Wachovia, as Hedge Counterparty, as amended, modified, waived, supplemented, restated or
replaced from time to time.

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

“Hedge Percentage”: With respect to:

     (a) Fixed Rate Assets is, on any day that (i) the Aggregate Outstanding Asset Balance exceeds
$150,000,000, an amount equal to 100% if the sum of the Outstanding Asset Balances of all Fixed
Rate Assets exceeds $50,000,000, (ii) the Aggregate Outstanding Asset Balance exceeds $150,000,000,
an amount equal to 0% if the sum of the Outstanding Asset Balances of all Fixed Rate Assets is less
than or equal to $50,000,000, (iii) the Aggregate Outstanding Asset Balance is less than or equal
to $150,000,000, an amount equal to 100% if the sum of the Outstanding Asset Balances of all Fixed
Rate Assets exceeds $20,000,000 or (iv) the Aggregate Outstanding Asset Balance is less than or
equal to $150,000,000, an amount equal to 0% if the sum of the Outstanding Asset Balances of all
Fixed Rate Assets is less than or equal to $20,000,000;

     (b) Floating Rate Assets is 0%;

     (c) Banded Floating Rate Loans that are within 0.50% of the maximum interest rate allowable
under their Required Asset Documents, on any day, is an amount equal to 100%.

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

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

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

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

“Hospitality Properties”: Includes hotels, motels, resorts, youth hostels, bed and breakfasts and
other similar Interests in Real Property used in one or more similar businesses.

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

“Indebtedness”: With respect to any Person at any date, (a) all indebtedness of such Person for
borrowed money or for the deferred purchase price of property or services (other than current
liabilities incurred in the ordinary course of business and payable in accordance with customary
trade practices) or that is evidenced by a note, bond, debenture or similar instrument or other
evidence of indebtedness customary for indebtedness of that type, (b) all obligations of such
Person under leases that shall have been or should be, in accordance with generally accepted
accounting principles, recorded as capital leases, (c) all obligations of such Person in respect of
acceptances issued or created for the account of such Person, (d) all liabilities secured by any
Lien on any property owned by such Person even though such Person has not assumed or otherwise
become liable for the payment thereof, (e) all indebtedness, obligations or liabilities of that
Person in respect of Derivatives, and (f) obligations under direct or indirect guaranties in
respect of obligations (contingent or otherwise) to purchase or otherwise acquire, or to otherwise
assure a creditor against loss in respect of, indebtedness or obligations of others of the kind
referred to in clauses (a) through (e) above.

“Indemnified Amounts”: Defined in Section 11.1.

“Indemnified Parties”: Defined in Section 11.1.

“Independent Director”: Defined in Section 4.1(u).

“Industrial Properties”: Includes factories, refinery plants, warehouses, breweries and other
similar Interests in Real Property used in one or more similar businesses.

39

 

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

“Initial Advance”: The first Advance.

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

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

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

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

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

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

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

“Interest”: For each Accrual Period and each Advance outstanding, the sum of the products of:

40

 

	 	 	 	 	 
	IR x P x

	 	      
	1	 
	 

	 	 	D 	

	 	 	 	 	 
	where:
	 	 	 	 
	 
	 	 	 	 
	IR

	 	=
	 	the Interest Rate applicable on such day;
	 
	 	 	 	 
	P

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

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

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

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

“Interests in Real Property”: A fee simple interest, a financeable estate for years or a leasehold
interest, in each case in real property.

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

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

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

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

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

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

“Land Development”: Financing to an entity engaged in the business of purchasing land for the
purposes of resale to a developer.

“Lease”: The underlying triple-net lease between SPE Obligor and any Underlying Lessee pursuant to
which the Underlying Lessee is responsible for all expenses arising from the use or operation of
the underlying property, including, without limitation, taxes, insurance premiums, alterations, and
repairs and maintenance costs.

“Leased Property”: Defined in clause 3(f) of the definition of Eligible Asset.

“LIBOR Rate”: For any day during any Accrual Period and any Advance or portion thereof, an
interest rate per annum equal to:

     (1) the posted rate for thirty (30) day deposits in Dollars appearing on Telerate
page 3750 as of 11:00 a.m. (London time) on the Business Day which is the second (2nd)
Business Day immediately preceding the applicable Funding Date (with respect to the
initial Accrual Period for such Advance) and as of the second (2nd) Business Day
immediately preceding the first (1st) day of the applicable Accrual Period (with respect
to all subsequent Accrual Periods for such Advance); or

     (2) if no such rate appears on Telerate page 3750 at such time and day, then the
LIBOR Rate shall be determined by Wachovia at its principal office in Charlotte, North
Carolina as its rate (each such determination, absent manifest error, to be conclusive and
binding on all parties hereto and their assignees) at which thirty (30) day deposits in
Dollars are being, have been, or would be offered or quoted by Wachovia to major banks in
the applicable interbank market for Eurodollar deposits at or about 11:00 a.m. (Charlotte,
North Carolina time) on such day.

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

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

“Liquidation Expenses”: With respect to (a) any Asset, the aggregate amount of all out-of-pocket
expenses reasonably incurred by the Servicer (including amounts paid to any subservicer) and any
reasonably allocated costs of counsel (if any), in each case in accordance with the Servicer’s
customary procedures in connection with the repossession, refurbishing and

42

 

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

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

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

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

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

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

“Loan-to-Liquidation Value” or “LLV”: With respect to any Loan, as of the date of origination, the
percentage equivalent of a fraction (i) the numerator of which is equal to the maximum availability
(as provided in the applicable Underlying Instruments) of such Loan as of the date of

43

 

its origination and (ii) the denominator of which is equal to the liquidation value of the Related
Property securing such Loan that is subject to a first priority lien in favor of the Originator (as
determined by the Servicer in accordance with the Credit and Collection Policy and in a
commercially reasonable manner).

“Loan-to-Value Ratio” or “LTV”: With respect to any Loan, as of any date of determination, the
percentage equivalent of a fraction (a) the numerator of which is equal to the total commitment
amount of such Loan as of the date of its origination (as provided in the related Underlying
Instruments) (or the Outstanding Asset Balance with respect to Delayed-Draw Term Loans as
determined on the last day of each calendar month) plus the total commitment amount or principal
amount, as the case may be, as of the applicable date of origination or incurrence, of all loans
and other indebtedness which is senior to or pari passu with such Loan in the “capital structure”
of the related Obligor (as defined in, and as determined by the Servicer in accordance with, the
Credit and Collection Policy and in a commercially reasonable manner), and (b) the denominator of
which is equal to the lower of the Obligor’s cost to acquire the Related Property or the current
value (determined by means of an Appraisal) of the Related Property.

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

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

“Lock-Box Agreement”: The Fifth Amended and Restated Three Party Agreement Relating to Lockbox
Services and Control (with Activation Upon Notice), dated as of June 30, 2005, by and among certain
financing agents party thereto, Bank of America, N.A., as the lockbox bank, CapitalSource Finance
LLC, as the originator, as the original servicer and as the lockbox servicer, and CapitalSource
Funding LLC, as the owner of the account and as the owner of the lockbox, as amended, modified,
waived, supplemented, restated or replaced from time to time.

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

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

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

44

 

“Material Mortgage Loan”: Any Loan for which the underlying Related Property consisting of real
property owned by the Obligor (i) represents 25% or more (measured by the book value of the three
most valuable parcels of real property as of the date of such Loan) of (a) the original commitment
for such Loan and (b) the fair value of the underlying Obligor and Related Property as a whole and
(ii) is material to the operations of the related business; provided that a Material Mortgage Loan
shall not include certain parcels of real property which the Obligor is in the process of
disposing.

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

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

     (a) the Facility Amount;

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

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

provided that in case of each of the foregoing clauses (a)-(c), during the Amortization
Period, the Maximum Availability shall be equal to the Advances Outstanding.

“Mezzanine Loan”: Any Term Loan (i) that is subordinate to a B-Note Loan, if any, in terms of
priority of payment obligations, (ii) the payment of which may contain a form of equity
participation in the issuer or Obligor and is secured by a pledge from the parent of the Obligor of
the equity in such Obligor or otherwise, and (iii) that does not share in the same collateral
package as the Obligor’s senior loans.

“Minimum Overcollateralization Amount”: As of any date of determination, an amount equal to the
product of 1.5 and the sum of the Outstanding Asset Balances of all Eligible Assets attributable to
the Obligor having the largest aggregate Outstanding Asset Balance of Eligible Assets included as
part of the Collateral (excluding the amount, calculated without duplication, by which such
Eligible Assets exceed any applicable Pool Concentration Criteria)

“Minimum Pool Yield”: A Pool Yield equal to 2.75%.

“Mixed Use Properties”: Includes any property or pool of properties in which not more than 50% of
the rentable area of such property can be classified into a single classification of Mortgaged
Property.

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

45

 

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

“Mortgage”: The mortgage, deed of trust or other instrument creating a first or second Lien on an
Interest in Real Property securing a Loan subject to this Agreement, including the Assignment of
Leases and Rents related thereto.

“Mortgaged Property”: The underlying Interests in Real Property which are subject to the Lien of a
Mortgage that secures a Loan, consisting of Interests in Real Property in a parcel or parcels of
land, at least one of which parcels is improved by a commercial building or facility, together with
Interests in Real Property in such commercial building or facility and any personal property,
fixtures, leases and other property or rights pertaining to such land, commercial building or
facility which are subject to the related Mortgage. For the avoidance of doubt, the applicable
classification of Mortgaged Property includes Healthcare Properties, Hospitality Properties,
Industrial Properties, Multifamily Properties, Office Properties, Retail Properties, Other Property
and Land Development. Each Eligible Asset shall be classified into one of the applicable
classifications of Mortgaged Property identified herein or as a Mixed Use Property, including
Eligible Assets that are also classified as Development Properties.

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

“Multifamily Properties”: Includes multifamily dwellings such as apartment blocks, condominiums
and cooperative owned buildings.

“NAICS Code” means the North American Industry Classification System Codes by at least four digits.

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

“NOI”: With respect to any Mortgaged Property, as of the last day of any fiscal quarter, the
amount determined for the period consisting of such fiscal quarter and each of the three
immediately preceding fiscal quarters of the sum of all rents and other revenues received in the
ordinary course from such Mortgaged Property minus all expenses paid related to the
ownership, operation and maintenance of such Mortgaged Property.

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

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

“Office Properties”: Includes office buildings (including medical offices), conference facilities
and other similar Interests in Real Property used in the commercial real estate business.

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

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

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

“Optional Sale Date”: Any Business Day, provided forty-five (45) days written notice is given in
accordance with Section 2.19(a).

“Original Sale and Servicing Agreement”: Defined in the Recitals of this Agreement.

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

“Other Costs”: Defined in Section 13.09(c).

“Other Property”: Includes any property that is not Healthcare Property, Hospitality Property,
Industrial Property, Multifamily Property, Office Property, Retail Property, Mixed Use Property or
Land Development.

“Outstanding Asset Balance”: (i) With respect to any Loan (other than any other “Loan” under and
as defined in the Acquisition Facility) at any time, the sum of (a) the portion of all future
Scheduled Payments becoming due under or with respect to such Loan plus (b) any past due Scheduled
Payments with respect to such Loan (other than with respect to those payments to the extent a
Servicer Advance is outstanding with respect thereto), and (ii) with respect to any other “Loan”
(under and as defined in the Acquisition Facility), the “Outstanding Asset Balance” as calculated
in accordance with the terms and provisions of the Acquisition Facility (which terms and provisions
are incorporated herein by reference mutatis mutandis as if set forth fully herein and
notwithstanding any subsequent or contemporaneous termination of the Acquisition Facility);
provided that notwithstanding anything to the contrary contained herein, for purposes

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of determining the Aggregate Outstanding Asset Balance, if any portion of an Asset is deemed to be
“charged-off” in accordance with the provisions of the definition of Charged-Off Asset, then the
entire Asset shall be deemed to have an Outstanding Asset Balance of zero, except for purposes of
calculating the Average Pool Charged-Off Ratio.

“Overcollateralization Amount”: As of any date of determination, an amount equal to the product of
(i) the Overcollateralization Percentage on such date and (ii) the Borrowing Base on such date.

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

“Overcollateralization Shortfall”: As of any date of determination, the positive difference, if
any, of (a) the Minimum Overcollateralization Amount on such date minus (b) the
Overcollateralization Amount on such date.

“Park Avenue”: Defined in the Recitals of this Agreement.

“Park Avenue Agent”: Defined in the Recitals of this Agreement.

“Park Avenue Agent’s Account”: A special account (account number 645475302) in the name of the
Park Avenue Agent maintained at JPMorgan Chase Bank, National Association.

“Participating Member State”: A member of the European Community that adopts or has adopted the
Euro as its lawful currency in accordance with legislation of the European Economic Community
relating to the Economic and Monetary Union.

“Participation Loan”: A Loan to an Obligor, originated by the Originator and serviced by the
Servicer in the ordinary course of its business, in which a participation interest has been granted
to another Person in accordance with the Credit and Collection Policy and (i) such transaction has
been fully consummated, pursuant to a participation agreement, (ii) such Loan (other than in the
case of a Noteless Loan) is represented by a separate promissory note, and (iii) the Originator has
the right to receive and collect payments directly in its own name, and to enforce its rights
directly against the Obligor thereof including the right to proceed against collateral; provided
that any such Loan shall exclude any Retained Interest.

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

“Payment Duties”: Defined in Section 8.2(b).

“Permitted Investments”: With respect to any Payment Date means negotiable instruments or
securities or other investments maturing on or before such Payment Date (a) which, except in the
case of demand or time deposits, investments in money market funds and Eligible Repurchase
Obligations, are represented by instruments in bearer or registered form or ownership of which is
represented by book entries by a Clearing Agency or by a Federal Reserve Bank in favor of

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depository institutions eligible to have an account with such Federal Reserve Bank who hold such
investments on behalf of their customers, (b) that, as of any date of determination, mature by
their terms on or prior to the Business Day immediately preceding the next Payment Date immediately
following such date of determination, and (c) that evidence:

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

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

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

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

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

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

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

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

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

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

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

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

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

“Pool Concentration Criteria”: With respect to item (8), (9) and (12) below, on any day, and with
respect to all other items below, on any day on and after the Concentrations Effective Date, each
of the concentration limitations as set forth below, which concentration limitations (unless
otherwise indicated) shall be measured on the basis of a percentage of the Aggregate Outstanding
Asset Balance:

     (1) the sum of the Outstanding Asset Balance of all Eligible Assets the Obligors of
which are resident of the same state shall not exceed 20%, with the exception of Florida,
California and New York, each of which shall not exceed 30%; provided that the state
having the single highest concentration other than California, Florida and New York shall
not exceed 30%;

     (2) the sum of the Outstanding Asset Balances of all Eligible Assets that are Loans
secured by Development Properties shall not exceed 35% (including, for the avoidance of
doubt, rediscount loans secured by Development Properties); provided that, Condominium
Conversions shall not exceed 30%;;

     (3) the sum of the Outstanding Asset Balances of all Eligible Assets that are Senior
Secured ABLs shall not exceed 50%;

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     (4) the sum of the Outstanding Asset Balances of all Eligible Assets that are B-Note
Loans or Mezzanine Loans shall not exceed 20%;

     (5) the sum of the Outstanding Asset Balances of all Eligible Assets that are Loans
secured by the same classification of Mortgaged Property shall not exceed the amounts set
forth in the following table:

	 	 	 	 	 
	Property Classification	 	Concentration Limit
	Office Properties, Healthcare Properties, Industrial
Properties and Retail Properties
	 	 	35	%
	Multifamily Properties
	 	 	35	%
	Hospitality Properties
	 	 	35	%
	Land Development
	 	 	30	%
	Other Property
	 	 	10	%

     (6) the sum of the Outstanding Asset Balances of all Eligible Assets that are Mixed
Use Properties shall not exceed 30%;

     (7) the sum of the Outstanding Asset Balances of all Eligible Assets that are
Sale/Leaseback Loans shall not exceed 20%;

     (8) the sum of the Outstanding Asset Balances of all Eligible Assets with a “Risk
Rating 4”, a “Risk Rating 5” and a “Risk Rating 6” shall not exceed 20%, 10% and 0%,
respectively;

     (9) the sum of the Outstanding Asset Balances of all Eligible Assets to a single
Obligor shall not exceed $50,000,000;

     (10) the Aggregate Outstanding Asset Balances of all Eligible Assets divided by the
number of Obligors (including Affiliates thereof) shall not exceed the greater of (a)
1.75% or (b) $15 million;

     (11) the sum of the Outstanding Asset Balances of all Eligible Assets that are
Acquired Loans shall not exceed 25%;

     (12) the sum of the Outstanding Asset Balances of all Eligible Assets which have been
included as part of the Collateral for eighteen (18) months or more shall not exceed 20%;

     (13) the sum of the Outstanding Asset Balances of all Eligible Assets where all or
any portion of the Related Property is located outside of the United States and its
territories and protectorates shall not exceed 15%;

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     (14) subject to the requirements of (1)(g) of the definition of Eligible Asset, the
sum of the Outstanding Asset Balances of all Eligible Assets which provide for interest
and principal payments in British Pounds Sterling, Euros or Canadian Dollars shall not
exceed 10%; and

     (15) the sum of the Outstanding Asset Balances of all Loans which provide for
payments of interest on a semi-annual basis shall not exceed the lesser of (a) 5% and (b)
$20,000,000.

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

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

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

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

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

“Portfolio Charged-Off Ratio”: As of any Determination Date, the product of (i) twelve (12) and
(ii) the percentage equivalent of a fraction, (a) the numerator of which is equal to the sum of the
Portfolio Outstanding Asset Balances of all Portfolio Assets (excluding equity and preferred stock
investments) that became Charged-Off Portfolio Asset (net of Recoveries during such Collection
Period) during the Collection Period related to such Determination Date and (b) the

52

 

denominator of which is equal to the Portfolio Aggregate Outstanding Asset Balance (excluding
equity and preferred stock investments) as of the first (1st) day of the Collection Period related
to such Determination Date; provided that, such calculation shall exclude the effects of any Liquid
Real Estate Assets that are acquired and levered by the Originator solely to satisfy REIT asset and
income tests.

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

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

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

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

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

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

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

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

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

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

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

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

“Purchaser”: (i) VFCC, Park Avenue, Fairway and Three Pillars and (ii) any Additional Purchaser,
as the context requires; and “Purchasers” means collectively (a) VFCC, Park Avenue, Fairway and
Three Pillars and (b) the Additional Purchasers.

“Purchaser Agent”: The VFCC Agent, the Park Avenue Agent, the Fairway Agent and Three Pillars
Agent or any Additional Agent, as the context requires; and “Purchaser Agents” means collectively
the VFCC Agent, the Park Avenue Agent, the Fairway Agent and Three Pillars Agent and the Additional
Agents.

“Purchaser Affiliate”: With respect to a Purchaser or Purchaser Agent, means any other Person
that, directly or indirectly, controls, is controlled by or under common control with such Person.
For purposes of this definition, “control” (including the terms “controlling,” “controlled by” and
“under common control with”) when used with respect to any specified Person means the possession,
direct or indirect, of the power to vote 50% or more of the voting securities of such Person or to
direct or cause the direction of the management or policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

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

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

“Qualified Transferee”:

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

     (b) any other Person which:

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

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

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     (iii) is one of the following: (I) an insurance company, bank, savings and loan
association, investment bank, trust company, commercial credit corporation, pension plan,
pension fund, pension fund advisory firm, mutual fund, real estate investment trust,
governmental entity or plan; (II) an investment company, money management firm or a
“qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of
1933, as amended, or an “institutional accredited investor” within the meaning of
Regulation D under the Securities Act of 1933, as amended; or (III) the trustee, collateral
agent or administrative agent in connection with (x) a securitization of the subject Asset
through the creation of collateralized debt or loan obligations or (y) an asset-backed
commercial paper transaction funded by a commercial paper conduit whose commercial paper
notes are rated at least “A-1” by S&P or at least “P-1” by Moody’s, or (z) a repurchase
transaction funded by an entity which would otherwise be a Qualified Transferee so long as
the “equity interest” (other than any nominal or de minimis equity interest) in the special
purpose entity that issues notes or certificates in connection with any such collateralized
debt or loan obligation, asset-backed commercial paper funded transaction or repurchase
transaction is owned by one or more entities that are Qualified Transferees under subclauses
(A) or (B) above; or (IV) any entity Controlled (as defined below) by any of the entities
described in subclauses (i), (ii) or (iii) above.

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

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

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

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

“Recoveries”: As of the time any Related Property or any other related property is sold, discarded
(after a determination by the Servicer that such Related Property or any other related property has
little or no remaining value) or otherwise determined to be fully liquidated by the Servicer in
accordance with the Credit and Collection Policy (or such similar policies and procedures utilized
by the Servicer in servicing the Portfolio Assets) with respect to any Charged-Off Asset or
Charged-Off Portfolio Asset, the proceeds from the sale of the Related Property or any other
related property, the proceeds of any related Insurance Policy, any other recoveries with respect
to such Charged-Off Asset or Charged-Off Portfolio Asset, the Related

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Property, any other related property, and amounts representing late fees and penalties, net of
Liquidation Expenses and amounts, if any, received that are required under such Asset or Portfolio
Asset, as applicable, to be refunded to the related Obligor.

“Register”: Defined in Section 13.16(d).

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

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

“Rejectable Offer”: Defined in clause 3(f) of the definition of Eligible Asset.

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

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

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

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

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

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

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

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

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

     (h) the “Assets” under and as defined in the Original Sale and Servicing Agreement; and

     (i) the proceeds of each of the foregoing.

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

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

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

“Required Asset Documents”: With respect to (i) any Noteless Loan identified as a Noteless Loan on
the Asset Checklist, a copy of the related Loan Register (together with a certificate of a
Responsible Officer of the Servicer certifying to the accuracy of such Loan Register as of the date
such Loan is included as a part of the Collateral), (ii) all Loans other than Noteless Loans, the
duly executed original of the promissory note and an assignment (which may be by endorsement or
allonge) of each such promissory note to the Seller and then the Administrative Agent, signed by an
officer of the Originator and the Seller, respectively, (iii) any Loan, any related loan agreement
and the Asset Checklist together with, to the extent set forth on the Asset Checklist, duly
executed (if applicable) originals or copies of each of any related participation agreement,
acquisition agreement, subordination agreement, intercreditor agreement, security agreements or
similar instruments, UCC financing statements, guarantee, or Insurance Policy (iv) for each Loan
secured by real property, an Assignment of Mortgage and (v) for any Loan identified as an Assigned
Loan on the Asset Checklist, the duly executed original assignment agreement; provided that with
respect to any Assigned Loan, any of the foregoing documents, other than any related promissory
notes in the case of Assigned Loans only, may be copies.

“Required Equity Contribution”: On any day after the occurrence of a Termination Event or on the
Termination Date and prior to the Collection Date when the Originator shall have received a
Required Equity Contribution Notice, an amount equal to the excess, if any, of (a) the sum of the
Outstanding Asset Balances of all Eligible Assets attributable to the three Obligors having the
largest aggregate Outstanding Asset Balances of Eligible Assets included as part of the Collateral
on such date (net of amounts in excess of applicable Pool Concentration Criteria calculated without
duplication) over (b) the Minimum Overcollateralization Amount; provided that, in no event
shall such amount exceed $75,000,000.

“Required Equity Contribution Notice”: A written demand by the Administrative Agent to the
Originator specifying an amount equal to any payment obligation of the Seller then due and owing
under this Agreement or any other Transaction Document, whether arising in respect of the Seller’s
obligation to make payment of Advances Outstanding, Required Equity Shortfall, Interest,
indemnification, fees, expenses or otherwise.

“Required Equity Shortfall”: On any day, the excess, if any, of the Required Equity Contribution
over an amount equal to the excess, if any, of (a) the sum of (i) the Borrowing Base on
such day plus (ii) all Principal Collections on deposit in the Principal Collections
Account and all deposits in the Excess Spread Account on such day, over (b) the Advances
Outstanding on such day.

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

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

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

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

“Retail Properties”: Includes retail stores, restaurants, bookstores, clothing stores and other
similar Interests in Real Property used in one or more similar businesses.”

“Retained Interest”: (A) With respect to any Revolving Loan or any Loan with an unfunded
commitment on the part of the Originator that does not provide by its terms that funding thereunder
is in Originator’s sole and absolute discretion and that is transferred by the Originator to the
Seller and/or by the Seller to the Purchasers, all of the obligations, if any, to provide
additional funding with respect to such Revolving Loan, and (B) with respect to any Assigned Loan,
any Participation Loan or any Agented Note that is transferred by the Originator to the Seller
and/or by the Seller to the Purchasers, (i) all of the obligations, if any, of the agent(s) under
the documentation evidencing such Assigned Loan, Participation Loan, or Agented Note and (ii) the
applicable portion of the interests, rights and obligations under the documentation evidencing such
Assigned Loan, Participation Loan, or Agented Note that relate to such portion(s) of the
indebtedness that is owned by another lender or is being retained by the Originator pursuant to
clause (A) of this definition.

“Retransfer Date”: Defined in Section 4.6.

“Replacement Notice”: Defined in Section 13.1(c).

“Replacement Purchaser”: Defined in Section 13.1(c).

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

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

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

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

“Sale/Leaseback Loan”: Any Loan by the Originator to an SPE Obligor that is collateralized by real
estate and the SPE Obligor’s rights under a Lease with an Underlying Lessee.

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

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

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

“Senior Secured ABL Loan”: Any Revolving Loan that (i) is secured by a first priority Lien on all
of the Obligor’s assets constituting Related Property for the Loan, (ii) provides the related
Obligor with the option to receive additional borrowings thereunder based on the value of its
eligible accounts receivable, residential mortgage receivables, inventory (other than real estate
property or land) or equipment, (iii) has a Loan-to-Liquidation Value of less than or equal to (a)
85% with respect to the Related Property which constitutes accounts receivable, (b) 90% with
respect to the Related Property which constitutes residential mortgage receivables, (c) 50% with
respect to the Related Property which constitutes inventory (other than real estate property or
land), and (d) 80% with respect to the Related Property which constitutes equipment, and (iii)
provides that the payment obligation of the Obligor on such Loan is either senior to, or pari passu
with, all other loans or financings to such Obligor.

“Senior Secured Loan”: Any Loan that (i) is secured by a first priority Lien on all of the
Obligor’s assets constituting Related Property for the Loan, (ii) has a Loan-to-Value of not
greater than 90%, and (iii) provides that the payment obligation of the Obligor on such Loan is
either senior to, or pari passu with, all other loans or financings to such Obligor.

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

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

“Servicer Default”: Defined in Section 6.15.

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“Servicer Termination Notice”: Defined in Section 6.15.

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

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

“Servicing Fee Rate”: 0.50% per annum for Eligible Assets which are not Workout Assets and 0.75%
per annum for Workout Assets, without duplication.

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

“SPE Obligor”: An Obligor that (a) is organized as a bankruptcy remote, special purpose entity (as
evidenced by an Opinion of Counsel in form and substance satisfactory to the Administrative Agent)
and is not an operating company and (b) has as its primary assets real property and rights under a
Lease.

“Subsidiary”: As to any Person, a corporation, partnership or other entity of which shares of
stock or other ownership interests having ordinary voting power (other than stock or such other
ownership interests having such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation, partnership or other
entity are at the time owned, or the management of which is otherwise controlled, directly or
indirectly, through one or more intermediaries, or both, by such Person.

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

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

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

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

“Termination Date”: The earliest of (a) the date of the termination of the Facility Amount
pursuant to Section 2.4, (b) the Business Day designated by the Seller to the
Administrative

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Agent and each Purchaser Agent as the Termination Date at any time following two Business Days’
prior written notice thereof to the Administrative Agent and each Purchaser Agent, (c) April 25,
2008, (d) the date any Liquidity Agreement shall cease to be in full force and effect, (d) the date
of the declaration of the Termination Date pursuant to Section 10.2(a) or the date of the
automatic occurrence of the Termination Date pursuant to Section 10.2(b), and (e) the
second Business Day prior to the Facility Termination Date.

“Termination Event”: Defined in Section 10.1.

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

“Three Pillars”: Three Pillars Funding LLC, a Delaware limited liability company, and its
successors and assigns.

“Three Pillars Agent”: SunTrust Capital Markets, Inc., and its successors and assigns, or any
other entity that has been appointed as the administrator of Three Pillars.

“Three Pillars Agent’s Account”: A special account (account number 8800171236) in the name of the
Three Pillars Agent maintained at SunTrust Bank.

“Transaction”: Defined in Section 3.2.

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

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

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

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

“Underlying Instruments”: The indenture, loan agreement, credit agreement or other agreement
pursuant to which a Loan has been issued or created and each other agreement that governs the terms
of or secures the obligations represented by such Loan or of which the holders of such Loan are the
beneficiaries.

“Underlying Lessee”: A lessee that is obligated on a Lease with an SPE Obligor.

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“United States”: The United States of America.

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

“US Bank Collection Account”: Account number 4346848296 maintained by the Originator at US Bank
National Association.

“Variable Funding Certificate”: Defined in Section 2.1.

“VFCC”: Defined in the Recitals of this Agreement.

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

“VFCC Agent’s Account”: A special account (account number 2000002391825) in the name of the VFCC
Agent maintained at Wachovia.

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

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

“Warranty Asset”: Any Asset that fails to satisfy any criteria of the definition of Eligible
Asset; provided that notwithstanding the foregoing, for purposes of determining what is a Warranty
Asset, (i) the criteria set forth in clauses (1)(c), (1)(d), 1(m)(i),
1(t) (but solely to the extent the criteria in such clause 1(t) relates to any
express representation and warranty that an Asset is an Eligible Asset), 1(w),
1(x), (1)(y) and clauses (2)(e) and 2(f) (but solely to the extent
that the criteria in such clauses 2(e) and 2(f) would not be satisfied as a result
of the operation of law or an effective court order in connection with an Insolvency Event) and
clause (3)(i) of the definition of Eligible Asset and clauses (vii), (viii)
and (ix) in the definition of Eligible Obligor shall apply only as of the applicable
Cut-Off Date of such Asset, and (ii) with respect to any CS Funding III Asset, the criteria set
forth in the definition of Eligible Asset and Eligible Obligor shall apply only as of the
applicable CS Funding III Cut-Off Date (other than the criteria set forth in the definition of
Eligible Asset clauses (1)(a), (b)(i), (d), (e), (f),
(j), (k), (r), (cc), (ee) and (ff) which shall
apply only as of the applicable Cut-Off Date).

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

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

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

“Workout Asset”: A Delinquent Asset or a Charged-Off Asset.

     Section 1.2 Other Terms.

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

     Section 1.3 Computation of Time Periods.

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

     Section 1.4 Interpretation.

     In each Transaction Document, unless a contrary intention appears:

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

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

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

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

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

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

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

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modification, codification, replacement or reenactment of such Section or other
provision.

     Section 1.5 Special Provisions Relating to Alternative Currency Loans.

     For purposes of (a) complying with any requirement of this Agreement stated in Dollars and (b)
calculating any ratio or other test set forth in this Agreement, the amount of any Asset that is
denominated in an Alternative Currency shall be deemed to be the Dollar Equivalent of such amount
of Alternative Currency determined as of the date of such calculation including, without
limitation, the following (together with any defined terms in which such defined terms are used):
“Aggregate Outstanding Asset Balance”, “Borrowing Base”, “Pool Concentration Criteria”, “Hedge
Percentage”, “Interest Collections”, “Outstanding Asset Balance”, “Permitted Investments”,
“Portfolio Aggregate Outstanding Asset Balance”, “Portfolio Outstanding Asset Balance”, “Principal
Collections”, “Scheduled Payment” and “Servicing Fee”.

ARTICLE II

PURCHASE OF THE VARIABLE FUNDING CERTIFICATES

     Section 2.1 The Variable Funding Certificates.

     (a) On the terms and conditions hereinafter set forth, Seller shall deliver a duly executed
variable funding certificate (each such certificate, a “Variable Funding Certificate” or “VFC”), in
substantially the form of Exhibit B-1 or B-2, as applicable, (i) on the Closing
Date, to each Purchaser Agent at its address set forth on the signature pages of this Agreement,
and (ii) on each date on which an Additional Purchaser purchases a Variable Funding Certificate, to
the related Additional Agent at the address designated by such Additional Agent. Each Variable
Funding Certificate shall evidence an undivided ownership interest (and the Seller does hereby
sell, transfer, assign and convey such undivided ownership interest to the Purchasers) in the
Collateral purchased by a Purchaser in an amount equal, at any time, to the percentage equivalent
of a fraction (i) the numerator of which is the Advances outstanding under the applicable VFC on
such day, and (ii) the denominator of which is the total aggregate Advances Outstanding on such
day. Interest shall accrue, and each VFC shall be payable, as described herein. The VFC purchased
by (1)(A) VFCC shall be in the name of “Wachovia Capital Markets, LLC, as the VFCC Agent” and shall
be in the face amount equal to $400,000,000, (B) Fairway, shall be in the name of “Harris Nesbitt
Corp., as the Fairway Agent” and shall be in the face amount equal to $200,000,000, (C) Park
Avenue, shall be in the name of “JPMorgan Chase Bank, National Association, as the Park Avenue
Agent” and shall be in the face amount equal to $200,000,000 and (D) Three Pillars, shall be in the
name of “SunTrust Capital Markets, Inc., as the Three Pillars Agent” and shall be in the face
amount equal to $200,000,000 and (2) an Additional Purchaser shall be in the name of such
Additional Purchaser and shall be in a face amount to be determined; provided that the aggregate
amount outstanding under all VFCs at any one time shall not exceed the Facility Amount.

     (b) On the terms and conditions hereinafter set forth, from the Closing Date to, but excluding
the Termination Date, the Seller may, at its option, request the Purchasers to make advances of
funds under the VFCs (each, an “Advance”) and the Purchasers shall make such

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Advance in an amount equal to their Pro Rata Share of such requested Advance; provided that,
in no event shall the Purchasers make any Advance if, after giving effect to such Advance the
aggregate Advances Outstanding hereunder would exceed the lesser of (i) the Facility Amount or (ii)
the Maximum Availability. Notwithstanding anything contained in this Section 2.1 or
elsewhere in this Agreement to the contrary, no Purchaser shall be obligated to provide its
Purchaser Agent or the Seller with aggregate funds in connection with an Advance that would exceed
such Purchaser’s unused Commitment then in effect. Each Advance made by the Purchasers hereunder
is subject to the interests of the Hedge Counterparties under Section 2.9(a)(1) and
Section 2.10(a)(2) of this Agreement.

     (c) [Reserved].

     (d) The Seller may, within sixty (60) days but not less than forty-five (45) days prior to the
expiration of any Liquidity Agreement or this Agreement, by written notice to each Purchaser Agent,
make a request (i) for each applicable Liquidity Bank to extend the term of such Liquidity
Agreement for an additional period of 364 days and (ii) for each Purchaser Agent to extend the date
set forth in clause (c) of the definition of Termination Date for an additional period of
364 days. Each Purchaser Agent will give prompt notice to the applicable Purchaser and each
applicable Liquidity Bank of its receipt of such request, and each Purchaser and each Liquidity
Bank shall make a determination, in their sole discretion, not less than fifteen (15) days prior to
the expiration of the date set forth in clause (c) of the definition of Termination Date or
the expiration of any Liquidity Agreement (as applicable) as to whether or not it will agree to the
extension requested. The failure of a Purchaser Agent or a Liquidity Bank to provide timely notice
of its decision to the Seller shall be deemed to constitute a refusal by such Purchaser or such
Liquidity Bank (as applicable) to extend the date set forth in clause (c) of the definition
of Termination Date or the term of the Liquidity Agreement, respectively. In the event the term of
any Liquidity Agreement or the date set forth in clause (c) of the definition of
Termination Date is not extended for a period of up to 364 days, the Termination Date shall be
extended with the consent of each Purchaser Agent (such consent not to be unreasonably withheld)
for a period of 90 days and notice of such termination shall be provided by the Administrative
Agent to the Collateral Custodian, the Originator, the Seller and the Servicer. Only one such 90
day extension of the Termination Date, as described in this Section 2.1(d), may occur. The
Seller confirms that each Liquidity Bank and each Purchaser, in their sole and absolute discretion,
without regard to the value or performance of the Collateral or any other factor, may elect not to
extend any Liquidity Agreement or the date set forth in clause (c) of the definition of
Termination Date (as applicable).

     (e) The Seller may, with the written consent of the Administrative Agent, request that an
existing Purchaser increase its Commitment in connection with a corresponding increase in the
Facility Amount or, with the written consent of the Administrative Agent, add additional Persons as
Purchasers; provided, that: (i) if the addition of any Purchaser or the increase of any Purchaser’s
Commitment would cause the aggregate Commitments of the Purchasers to exceed $2,000,000,000, such
addition or increase may be effected only with the consent of the Administrative Agent and each
Purchaser Agent and (ii) the Commitment of any Purchaser may only be increased with the prior
written consent of such Purchaser. Each new Purchaser and

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Purchaser Agent shall become a party hereto by executing and delivering to the Administrative
Agent and the Seller an Additional Purchaser Agreement.

     (f) Notwithstanding anything to the contrary herein, each of the parties hereto hereby
understands and agrees that:

     (i) any outstanding “Advances” (under and as defined in the Original Sale and Servicing
Agreement) of any Purchaser that exist as of the Closing Date hereof shall, subject to the
remainder of this Section 2.1(f), be deemed to be Advances outstanding for all
purposes of this Agreement and the other Transaction Documents;

     (ii) any outstanding “Hedge Transactions” (under and as defined in the Original Sale
and Servicing Agreement) of any Hedge Counterparty that exist as of the Closing Date hereof
shall be deemed to be Hedge Transactions outstanding for all purposes of this Agreement and
the other Transaction Documents; and

     (iii) until the date following the Closing Date when the outstanding Advances of each
Purchaser (and on each subsequent date on which a Purchaser shall become a party to this
Agreement) equal such Purchaser’s Pro Rata Share of all Advances Outstanding, the Seller
shall request Advances, on a non-pro rata basis, from each Purchaser whose outstanding
Advances do not yet equal their respective Pro Rata Share of all Advances Outstanding on the
date so requested or that are becoming a party to this Agreement as of the Closing Date or
such later date, as applicable, and shall use the proceeds of such Advances to reduce
outstanding Advances of each other Purchaser until the respective outstanding Advances of
each Purchaser equal such Purchaser’s Pro Rata Share of all Advances Outstanding.

     Section 2.2 [Reserved].

     Section 2.3 Procedures for Advances by Purchasers.

     (a) Each Advance from a Purchaser hereunder shall be effected by the Seller (or the Servicer
on its behalf) delivering to the Administrative Agent and each Purchaser Agent (with a copy to the
Collateral Custodian and the Backup Servicer) a duly completed Borrowing Notice (along with a
Borrowing Base Certificate) no later than 2:00 p.m. (Charlotte, North Carolina time) at least one
Business Day prior to the proposed Funding Date (provided however if the proposed Funding Date is
not an Amsterdam Business Day, then the Funding Date shall be the next Business Day (which is also
an Amsterdam Business Day) following such proposed Funding Date). Each Borrowing Notice (along
with a Borrowing Base Certificate) shall (i) specify the desired amount of such Advance, which
amount must be at least equal to $250,000 per Purchaser, (ii) specify the date of such Advance,
(iii) specify the Assets to be financed on such Funding Date (including the appropriate file
number, Outstanding Asset Balance for each Asset and identifying each Loan by type and whether such
Loan is a Senior Secured ABL Loan, Senior Secured Loan, B-Note Loan, Mezzanine Loan, Acquired Loan,
Assigned Loan, or

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Participation Loan) and (iv) include a representation that all conditions precedent for an
Advance described in Article III hereof have been met. Each Borrowing Notice shall be
irrevocable.

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

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

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

     (a) The Seller may, upon at least twenty (20) Business Days’ prior written notice (such notice
to be received by the Administrative Agent and each Purchaser Agent no later than 5:00 p.m.
(Charlotte, North Carolina time) on such day) to the Administrative Agent and each Purchaser Agent,
terminate in whole or reduce in part the portion of the Facility Amount that exceeds the sum of the
Advances Outstanding, accrued Interest, Breakage Costs and Hedge Breakage Costs; provided that each
partial reduction of the Facility Amount shall be in an aggregate amount equal to at least
$1,000,000. Each notice of reduction or termination pursuant to this Section 2.4(a) shall
be irrevocable.

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

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respect of the termination of any Hedge Transaction. Any notice relating to any prepayment
pursuant to this Section 2.4(b) shall be irrevocable.

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

     Section 2.5 Determination of Interest.

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

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

     Section 2.6 Percentage Evidenced by each Variable Funding Certificate.

     The variable percentage ownership interest in the Collateral represented by each VFC shall be
initially computed on its date of purchase. Thereafter, until the Termination Date, each VFC shall
be automatically recomputed (or deemed to be recomputed) on each day prior to the Termination Date.
The variable percentage ownership interest in the Collateral represented by each VFC as computed
(or deemed recomputed) as of the close of business on the day immediately preceding the Termination
Date shall remain constant at all times on and after the Termination Date. The variable percentage
ownership interest in the Collateral represented by each VFC shall become zero when its Advances
and Interest have been indefeasibly paid in full.

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     Section 2.7 [Reserved].

     Section 2.8 Notations on Variable Funding Certificates.

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

     Section 2.9 Settlement Procedures During the Revolving Period.

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

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

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

     (3) to the Servicer, in an amount equal to any accrued and unpaid Servicing Fees to
the end of the preceding Collection Period, for the payment thereof;

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

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

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

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     (7) pro rata to each Hedge Counterparty, any Hedge Breakage Costs and payments due in
termination of any Hedge Transaction, owing to that Hedge Counterparty under its
respective Hedging Agreement, for the payment thereof;

     (8) to the Administrative Agent, each Purchaser Agent, the applicable Purchaser, the
Backup Servicer, the Collateral Custodian, the Affected Parties, the Indemnified Parties
or the Secured Parties, pro rata in accordance with the amount owed to such Person under
this clause (8), all other amounts, including Increased Costs but other than
Advances Outstanding, then due under this Agreement, for the payment thereof; and

     (9) any remaining amount shall be distributed to the Seller.

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

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

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

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

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

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

     Section 2.10 Settlement Procedures During the Amortization Period.

          (a) On each Payment Date during the Amortization Period, the Servicer shall direct the
Collateral Custodian to pay pursuant to the Monthly Report to the following Persons, (i) from the
Collection Account, to the extent of Available Funds, (ii) in the case of payments solely for
purposes of clause (6), from the Excess Spread Account to the extent of any amounts on
deposit

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therein, and (iii) from Servicer Advances received with respect to the immediately preceding
Collection Period, the following amounts in the following order of priority:

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

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

     (3) to the Servicer, in an amount equal to any accrued and unpaid Servicing Fees to
the end of the preceding Collection Period, for the payment thereof;

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

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

     (6) to each Purchaser Agent, pro rata in accordance with the amount of Advances
Outstanding hereunder for the account of the applicable Purchaser, in an amount necessary
to reduce the Advances Outstanding and Aggregate Unpaids to zero, for the payment thereof;

     (7) pro rata to each Hedge Counterparty, any Hedge Breakage Costs and payments due in
termination of any Hedge Transaction, owing to that Hedge Counterparty under its
respective Hedging Agreement to the extent not reimbursed pursuant to clause (1)
above, for the payment thereof;

     (8) to the Administrative Agent, each Purchaser Agent, the applicable Purchaser, the
Backup Servicer, the Collateral Custodian, the Affected Parties, the Indemnified Parties
or the Secured Parties, pro rata in accordance with the amount owed to such Person under
this clause (8), all other amounts, including Increased Costs but other than
Advances Outstanding, then due under this Agreement, for the payment thereof; and

     (9) any remaining amount shall be distributed to the Seller.

     Section 2.11 Collections and Allocations.

     (a) Collections. The Servicer shall promptly identify any collections received as
being on account of Interest Collections, Principal Collections or other Collections and shall

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

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

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

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

     Section 2.12 Payments, Computations, Etc.

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

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other fees hereunder shall be made on the basis of a year consisting of 360 days (other than
calculations with respect to the Base Rate which shall be based on a year consisting of 365 or 366
days, as applicable) for the actual number of days (including the first but excluding the last day)
elapsed.

     (b) Whenever any payment hereunder shall be stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day, and such extension of time
shall in such case be included in the computation of the payment of Interest or any fee payable
hereunder, as the case may be. For avoidance of doubt, to the extent that Available Funds are
insufficient on any Payment Date to satisfy the full amount of any Increased Costs pursuant to
Section 2.9(a)(8) or Section 2.10(a)(8), such unpaid amounts shall remain due and
owing and shall accrue Interest until repaid in full.

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

     Section 2.13 Optional Repurchase.

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

     Section 2.14 Fees.

     (a) The Servicer on behalf of the Seller shall pay in accordance with Section
2.9(a)(5) and Section 2.10(a)(5), as applicable, to the applicable Purchaser Agent from
the Collection Account to the extent funds are available on each Payment Date, monthly in arrears,
the applicable Program Fee and the applicable Commitment Fee agreed to between the Seller and such
Purchaser Agent in the relevant Purchaser Fee Letter and the relevant Additional Agent Fee Letter,
as applicable.

     (b) The Servicer shall be entitled to receive a fee (the “Servicing Fee”), monthly in arrears
in accordance with Section 2.9(a)(3) and Section 2.10(a)(3), as applicable, which
fee shall be equal to the sum of (a) the product of (i) the Servicing Fee Rate applicable to
Eligible Assets which are not Workout Assets, (ii) the Aggregate Outstanding Asset Balance
(excluding Workout Assets), as of the first day of the immediately preceding Collection Period and
(iii) the actual number of days in such Collection Period divided by 360, and (b) the product of
(i) the

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Servicing Fee Rate applicable to Workout Assets, (ii) the sum of the Outstanding Asset
Balances of all Workout Assets, as of the first day of the immediately preceding Collection Period
and (iii) the actual number of days in such Collection Period divided by 360.

     (c) The Backup Servicer shall be entitled to receive the Backup Servicing Fee in accordance
with Section 2.9(a)(4) and Section 2.10(a)(4), as applicable.

     (d) The Collateral Custodian shall be entitled to receive the Collateral Custodian Fee in
accordance with Section 2.9(a)(4) and Section 2.10(a)(4), as applicable.

     (e) The Seller shall pay to Dechert LLP as counsel to the Administrative Agent, on the Closing
Date, its reasonable estimated fees and out-of-pocket expenses in immediately available funds and
shall pay all additional reasonable fees and out-of-pocket expenses of Dechert LLP within thirty
(30) Business Days after receiving an invoice for such amounts.

     Section 2.15 Increased Costs; Capital Adequacy; Illegality.

     (a) If either (i) the introduction of or any change (including, without limitation, any change
by way of imposition or increase of reserve requirements) in or in the interpretation of any law or
regulation or (ii) the compliance by an Affected Party with any guideline or request from any
central bank or other Governmental Authority (whether or not having the force of law), shall (a)
subject an Affected Party to any Tax (except for Taxes on the overall net income of such Affected
Party), duty or other charge with respect to any ownership interest in the Collateral, or any right
to make Advances hereunder, or on any payment made hereunder, (b) impose, modify or deem applicable
any reserve requirement (including, without limitation, any reserve requirement imposed by the
Board of Governors of the Federal Reserve System, but excluding any reserve requirement, if any,
included in the determination of Interest), special deposit or similar requirement against assets
of, deposits with or for the amount of, or credit extended by, any Affected Party or (c) impose any
other condition affecting the ownership interest in the Collateral conveyed to the Purchasers
hereunder or the Purchasers’ rights hereunder, the result of which is to increase the cost to any
Affected Party or to reduce the amount of any sum received or receivable by an Affected Party under
this Agreement, then within ten days after demand by such Affected Party (which demand shall be
accompanied by a statement setting forth the basis for such demand), the Servicer shall pay (and to
the extent the Servicer does not make such payment the Seller shall pay) directly to such Affected
Party such additional amount or amounts as will compensate such Affected Party for such additional
or increased cost incurred or such reduction suffered.

     (b) If either (i) the introduction of or any change in or in the interpretation of any law,
guideline, rule, regulation, directive or request or (ii) compliance by any Affected Party with any
law, guideline, rule, regulation, directive or request from any central bank or other governmental
authority or agency (whether or not having the force of law), including, without limitation,
compliance by an Affected Party with any request or directive regarding capital adequacy, has or
would have the effect of reducing the rate of return on the capital of any Affected Party as a
consequence of its obligations hereunder or arising in connection herewith to a level below that
which any such Affected Party could have achieved but for such introduction, change or compliance
(taking into consideration the policies of such Affected Party with respect to capital

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adequacy) by an amount deemed by such Affected Party to be material, then from time to time,
within ten days after demand by such Affected Party (which demand shall be accompanied by a
statement setting forth the basis for such demand), the Servicer shall pay (and to the extent the
Servicer does not make such payment the Seller shall pay) directly to such Affected Party such
additional amount or amounts as will compensate such Affected Party for such reduction. For the
avoidance of doubt, if the issuance of Interpretation No. 46 by the Financial Accounting Standards
Board or any other change in accounting standards or the issuance of any other pronouncement,
release or interpretation, causes or requires the consolidation of all or a portion of the assets
and liabilities of the Originator or Seller with the assets and liabilities of the Administrative
Agent, any Purchaser Agent, any Purchaser or any Liquidity Bank, such event shall constitute a
circumstance on which such Affected Party may base a claim for reimbursement under this Section
2.15.

     (c) If as a result of any event or circumstance similar to those described in clause (a) or
(b) of this Section 2.15, any Affected Party is required to compensate a bank or other
financial institution providing liquidity support, credit enhancement or other similar support to
such Affected Party in connection with this Agreement or the funding or maintenance of Advances
hereunder, then within ten days after demand by such Affected Party, the Servicer shall pay (or to
the extent the Servicer does not make such payment the Seller shall pay) to such Affected Party
such additional amount or amounts as may be necessary to reimburse such Affected Party for any
amounts payable or paid by it.

     (d) In determining any amount provided for in this Section 2.15, the Affected Party
may use any reasonable averaging and attribution methods. Any Affected Party making a claim under
this Section 2.15 shall submit to the Servicer a written description as to such additional
or increased cost or reduction and the calculation thereof, which written description shall be
conclusive absent demonstrable error.

     (e) If the applicable Purchaser shall notify their respective Purchaser Agent that a
Eurodollar Disruption Event as described in clause (a) of the definition of “Eurodollar
Disruption Event” has occurred, the applicable Purchaser Agent shall in turn so notify the Seller,
whereupon all Advances Outstanding of the affected Purchaser in respect of which Interest accrues
at the Adjusted Eurodollar Rate shall immediately be converted into Advances Outstanding in respect
of which Interest accrues at the Base Rate.

     Section 2.16 Taxes.

     (a) All payments made by an Obligor in respect of an Asset and all payments made by the Seller
or the Servicer under this Agreement will be made free and clear of and without deduction or
withholding for or on account of any Taxes. If any Taxes are required to be withheld from any
amounts payable to the Administrative Agent, the Purchaser Agents, any Affected Party or any
Secured Party, then the amount payable to such Person will be increased (such increase, the
“Additional Amount”) such that every net payment made under this Agreement after withholding for or
on account of any Taxes (including, without limitation, any Taxes on such increase) is not less
than the amount that would have been paid had no such deduction or withholding been deducted or
withheld. The foregoing obligation to pay Additional Amounts, however, will not apply with respect
to net income or franchise taxes imposed on the

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Purchasers, any Affected Party, the Administrative Agent or the Purchaser Agents,
respectively, with respect to payments required to be made by the Seller or Servicer under this
Agreement, by a taxing jurisdiction in which the Purchasers, any Affected Party, the Administrative
Agent or the Purchaser Agents, are organized, conducts business or is paying taxes (as the case may
be).

     (b) The Servicer will indemnify (and to the extent the indemnification provided by the
Servicer is insufficient the Seller will indemnify) each Affected Party for the full amount of
Taxes payable by such Person in respect of Additional Amounts and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto. All payments in
respect of this indemnification shall be made within ten days from the date a written invoice
therefor is delivered to the Seller.

     (c) Within thirty (30) days after the date of any payment by the Seller and the Servicer of
any Taxes, the Seller and the Servicer will furnish to the Administrative Agent and each of the
Purchaser Agents at its address set forth under its name on the signature pages hereof, appropriate
evidence of payment thereof.

     (d) If a Purchaser is not created or organized under the laws of the United States or a
political subdivision thereof, such Purchaser shall deliver to the Seller, with a copy to the
Administrative Agent, (i) within fifteen (15) days after the date hereof, two (or such other number
as may from time to time be prescribed by Applicable Laws) duly completed copies of IRS Form W-8BEN
or Form W-8ECI (or any successor forms or other certificates or statements that may be required
from time to time by the relevant United States taxing authorities or Applicable Laws), as
appropriate, to permit the Seller to make payments hereunder for the account of such Purchaser
without deduction or withholding of United States federal income or similar Taxes and (ii) upon the
obsolescence of or after the occurrence of any event requiring a change in, any form or certificate
previously delivered pursuant to this Section 2.16(d), copies (in such numbers as may from
time to time be prescribed by Applicable Laws or regulations) of such additional, amended or
successor forms, certificates or statements as may be required under Applicable Laws or regulations
to permit the Seller and the Servicer to make payments hereunder for the account of such Purchaser
without deduction or withholding of United States federal income or similar Taxes.

     (e) If, in connection with an agreement or other document providing liquidity support, credit
enhancement or other similar support to the Purchasers in connection with this Agreement or the
funding or maintenance of Advances hereunder, the Purchasers are required to compensate a bank or
other financial institution in respect of Taxes under circumstances similar to those described in
this Section 2.16, then, within ten days after demand by the Purchasers, the Servicer shall
pay (or to the extent the Servicer does not make such payment the Seller shall pay) to the
Purchasers such additional amount or amounts as may be necessary to reimburse the Purchasers for
any amounts paid by them.

     (f) Without prejudice to the survival of any other agreement of the Seller and the Servicer
hereunder, the agreements and obligations of the Seller and the Servicer contained in this
Section 2.16 shall survive the termination of this Agreement.

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     Section 2.17 Assignment of the Sale Agreement.

     The Seller hereby assigns to the Administrative Agent, for the ratable benefit of the Secured
Parties hereunder, all of the Seller’s right, title and interest in and to, but none of its
obligations under, the Sale Agreement and any UCC financing statements filed under or in connection
therewith. In furtherance and not in limitation of the foregoing, the Seller hereby assigns to the
Administrative Agent for the benefit of the Secured Parties its right to indemnification under
Article VIII of the Sale Agreement. The Seller confirms that the Administrative Agent on
behalf of the Secured Parties shall have the sole right to enforce the Seller’s rights and remedies
under the Sale Agreement and any UCC financing statements filed under or in connection therewith
for the benefit of the Secured Parties.

     Section 2.18 Substitution of Assets.

     On any day prior to the occurrence of a Termination Event (and after the Termination Date at
the discretion of the Administrative Agent with the consent of the Purchaser Agents), the Seller
may, subject to the conditions set forth in this Section 2.18 and subject to the other
restrictions contained herein, replace any Asset with one or more Eligible Assets (each, a
“Substitute Asset”); provided that no such replacement shall occur unless each of the following
conditions is satisfied as of the date of such replacement and substitution:

     (a) the Seller has recommended to the Administrative Agent (with a copy to the Collateral
Custodian) in writing that the Asset to be replaced should be replaced (each a “Replaced Asset”);

     (b) each Substitute Asset is an Eligible Asset on the date of substitution;

     (c) after giving effect to any such substitution, the Advances Outstanding do not exceed the
lesser of (i) the Facility Amount and (ii) the Maximum Availability;

     (d) for purposes only of substitutions pursuant to Section 4.6 undertaken because an
Asset has become a Warranty Asset, the aggregate Outstanding Asset Balance of such Substitute
Assets shall be equal to or greater than the aggregate Outstanding Asset Balances of the Replaced
Assets;

     (e) for purposes only of substitutions pursuant to Section 4.6 undertaken because an
Asset has become a Warranty Asset, such Substitute Assets, at the time of substitution by the
Seller, shall have no greater weighted average life than the Replaced Asset;

     (f) all representations and warranties of the Seller contained in Section 4.1 and
Section 4.2 shall be true and correct as of the date of substitution of any such Substitute
Asset;

     (g) the substitution of any Substitute Asset does not cause a Termination Event or Unmatured
Termination Event to occur;

     (h) the sum of the Outstanding Asset Balance of all Assets that are Substitute Assets does not
exceed 20% of the Facility Amount, calculated on an annualized basis commencing with the Closing
Date;

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     (i) the sum of the Outstanding Asset Balance of all Substitute Assets substituted for
Delinquent Assets, Charged-Off Assets and Warranty Assets shall not exceed 10% of the Facility
Amount, calculated on an annualized basis commencing with the Closing Date;

     (j) the Seller shall deliver to the Administrative Agent on the date of such substitution a
certificate of a Responsible Officer certifying that each of the foregoing is true and correct as
of such date; and

     (k) each Asset that is replaced pursuant to the terms of this Section 2.18 shall be
substituted only with another Asset that meets the foregoing conditions.

     In addition, the Seller shall in connection with such substitution deliver to the Collateral
Custodian the related Required Asset Documents. In connection with any such substitution, the
Administrative Agent, as agent for the Secured Parties, shall, automatically and without further
action, be deemed to transfer to the Seller, free and clear of any Lien created pursuant to this
Agreement, all of the right, title and interest of the Administrative Agent, as agent for the
Secured Parties, in, to and under such Replaced Asset, but without any representation and warranty
of any kind, express or implied.

     Section 2.19 Optional Sales.

     (a) On any Optional Sale Date, the Seller shall have the right to prepay all or a portion of
the Advances Outstanding in connection with the sale and assignment to the Seller by the
Administrative Agent, on behalf of the Secured Parties, of the Collateral (each, an “Optional
Sale”), subject to the following terms and conditions:

     (i) The Seller shall have given the Administrative Agent at least ten (10) Business
Days’ prior written notice of its intent to effect an Optional Sale, unless such notice is
waived or reduced by the Administrative Agent;

     (ii) Any Optional Sale shall be in connection with a Permitted Securitization
Transaction;

     (iii) Unless an Optional Sale is to be effected on a Payment Date (in which case the
relevant calculations with respect to such Optional Sale shall be reflected on the
applicable Monthly Report), the Servicer shall deliver to the Administrative Agent a
certificate and evidence to the reasonable satisfaction of the Administrative Agent (which
evidence may consist solely of a certificate from the Servicer) that the Seller shall have
sufficient funds on the related Optional Sale Date to effect the contemplated Optional Sale
in accordance with this Agreement. In effecting an Optional Sale, the Seller may use the
Proceeds of sales of the Collateral;

     (iv) After giving effect to the Optional Sale and the assignment to the Seller of the
Collateral on any Optional Sale Date, (a) the remaining Advances Outstanding shall not
exceed the lesser of the Facility Amount and the Maximum Availability, (b) the
representations and warranties contained in Section 4.1 hereof shall continue to be
correct in all material respects, except to the extent relating to an earlier date, (c) the
eligibility of any Asset remaining as part of the Collateral after the Optional Sale will be
redetermined

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as of the Optional Sale Date, (d) the Pool Concentration Criteria will be redetermined
as of the Optional Sale Date, and (e) neither an Unmatured Termination Event nor a
Termination Event shall have resulted;

     (v) On the related Optional Sale Date, the Administrative Agent, each Purchaser Agent,
on behalf of the applicable Purchaser and the Hedge Counterparties, shall have received, as
applicable, in immediately available funds, an amount equal to the sum of (a) the portion of
the Advances Outstanding to be prepaid plus (b) an amount equal to all unpaid Interest to
the extent reasonably determined by the Administrative Agent and the Purchaser Agents to be
attributable to that portion of the Advances Outstanding to be paid in connection with the
Optional Sale plus (c) an aggregate amount equal to the sum of all other amounts due and
owing to the Administrative Agent, the Collateral Custodian, the Backup Servicer, the
Purchaser Agents, the applicable Purchaser, the Affected Parties and the Hedge
Counterparties, as applicable, under this Agreement and the other Transaction Documents, to
the extent accrued to such date and to accrue thereafter (including, without limitation,
Breakage Costs, Hedge Breakage Costs and any other payments owing to the applicable Hedge
Counterparty in respect of the termination of any Hedge Transaction); provided that the
Administrative Agent and each Purchaser Agent shall have the right to determine whether the
amount paid (or proposed to be paid) by the Seller on the Optional Sale Date is sufficient
to satisfy the requirements of clauses (iii), (iv) and (v) and is
sufficient to reduce the Advances Outstanding to the extent requested by the Seller in
connection with the Optional Sale; and

     (vi) On or prior to each Optional Sale Date, the Seller shall have delivered to the
Administrative Agent a list specifying all Assets to be sold and assigned pursuant to such
Optional Sale.

     (b) In connection with any Optional Sale, following receipt by the Purchaser Agents of the
amounts referred to in clause (v) above, there shall be sold and assigned to the Seller
without recourse, representation or warranty all of the right, title and interest of the
Administrative Agent, the Purchaser Agents, the Purchasers and the Secured Parties in, to and under
the portion of the Collateral so retransferred and such portion of the Collateral so retransferred
shall be released from the Lien of this Agreement (subject to the requirements of clause
(iv) above).

     (c) The Seller hereby agrees to pay the reasonable legal fees and expenses of the
Administrative Agent, each Purchaser Agent and the Secured Parties in connection with any Optional
Sale (including, but not limited to, expenses incurred in connection with the release of the Lien
of the Administrative Agent, the Secured Parties and any other party having an interest in the
Collateral in connection with such Optional Sale).

     (d) In connection with any Optional Sale, on the related Optional Sale Date, the
Administrative Agent, on behalf of the Secured Parties, shall, at the expense of the Seller (i)
execute such instruments of release with respect to the portion of the Collateral to be
retransferred to the Seller, in recordable form if necessary, in favor of the Seller as the Seller
may reasonably request, (ii) deliver any portion of the Collateral to be retransferred to the
Seller

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in its possession to the Seller and (iii) otherwise take such actions, and cause or permit the
Collateral Custodian to take such actions, as are necessary and appropriate to release the Lien of
the Administrative Agent and the Secured Parties on the portion of the Collateral to be
retransferred to the Seller and release and deliver to the Seller such portion of the Collateral to
be retransferred to the Seller.

     Section 2.20 Discretionary Sales.

     Prior to the occurrence of an Unmatured Termination Event or a Termination Event, on any
Discretionary Sale Date, the Seller shall have the right to prepay all or a portion of the Advances
Outstanding in connection with the transfer and assignment to the Seller by the Administrative
Agent, on behalf of the Secured Parties, of the Collateral (each, a “Discretionary Sale”), subject
to the following terms and conditions:

     (a) At least one Business Day prior to each Discretionary Sale Date, the Servicer, on behalf
of the Seller, shall have given the Administrative Agent and each Hedge Counterparty written notice
of its intent to effect a Discretionary Sale (each such notice a “Discretionary Sale Notice”),
specifying the Discretionary Sale Date and including a list of all Assets to be sold and assigned
pursuant to such Discretionary Sale, and a revised Borrowing Base Certificate;

     (b) Any Discretionary Sale shall be made by the Servicer, on behalf of the Seller, to an
unaffiliated third party purchaser in a transaction (i) reflecting arms-length market terms and
(ii) in which the Seller makes no representations, warranties or covenants for the benefit of any
other party to the Discretionary Sale and provides no indemnification for the benefit of any other
party to the Discretionary Sale;

     (c) After giving effect to the Discretionary Sale and the assignment to the Seller of the
Collateral on any Discretionary Sale Date, (a) the Availability is greater than or equal to zero,
(b) the representations and warranties contained in Section 4.1 hereof shall continue to be
correct in all material respects, except to the extent relating to an earlier date and (c) neither
an Unmatured Termination Event nor a Termination Event shall have resulted;

     (d) On the related Discretionary Sale Date, the Administrative Agent, each Purchaser Agent, on
behalf of the applicable Purchaser, the Hedge Counterparties, the Collateral Custodian and the
Backup Servicer, as applicable, shall have received, as applicable, in immediately available funds,
an amount equal to the sum of (a) an amount sufficient to reduce the Advances Outstanding such
that, after giving effect to the transfer of the Assets that are the subject of such Discretionary
Sale, the Availability will be equal to or greater than $0 plus (b) an amount equal to all unpaid
Interest to the extent reasonably determined by the Administrative Agent and the Purchaser Agents
to be attributable to that portion of the Advances Outstanding to be repaid in connection with the
Discretionary Sale plus (c) an aggregate amount equal to the sum of all other Aggregate Unpaids due
and owing to the Administrative Agent, the Purchaser Agents, each applicable Purchaser, the
Affected Parties, the Indemnified Parties and the Hedge Counterparties, as applicable, under this
Agreement and the other Transaction Documents, to the extent accrued to such date; provided that,
the Administrative Agent and each Purchaser Agent shall have the right to determine whether the
amount paid (or proposed to be paid) by the Seller on the Discretionary Sale Date is sufficient to
satisfy the requirements of clauses (a) through (c) and is

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sufficient to reduce the Advances Outstanding to the extent requested by the Seller in
connection with the Discretionary Sale;

     (e) The Outstanding Asset Balance of the Asset(s) which are the subject of the proposed
Discretionary Sale, together with the Outstanding Asset Balance of the Asset(s) sold in all other
Discretionary Sales made in the preceding 12 month period, shall not exceed 20% of the Facility
Amount; and

     (f) On the related Discretionary Sale Date, the proceeds from such Discretionary Sale have
been sent directly into the Collection Account.

     Section 2.21 Required Equity Requirements.

     The Originator hereby agrees, upon receipt of a Required Equity Contribution Notice delivered
pursuant to and in accordance with the terms of this Agreement, to deposit into the Excess Spread
Account or to otherwise cure within two Business Days the related Required Equity Shortfall as
provided in the Required Equity Contribution Notice after giving effect to any deposits to the
Excess Spread Account made by the Seller pursuant to Section 6.4(g). The Originator
further agrees to pay any and all reasonable expenses (including reasonable counsel fees and
expenses) incurred by the Administrative Agent, the Purchaser Agents and the Secured Parties in
enforcing any rights under this Section 2.21. In the event that the Originator shall fail
to pay the Required Equity Shortfall when required to be paid pursuant to the terms hereof, the
Originator shall indemnify and hold harmless the Administrative Agent, the Purchaser Agents and
each Secured Party from and against any and all damages, losses, claims, liabilities and related
costs and expenses, including attorney’s fees and disbursements awarded against or incurred by them
or any of them as a result of such failure of the Originator. Notwithstanding anything herein to
the contrary, the maximum amount of payments (other than indemnification ) made by the Originator
pursuant to this Section 2.21 shall not exceed $75,000,000 in the aggregate regardless of
the number of such payments made hereunder.

ARTICLE III

CONDITIONS TO ADVANCES

     Section 3.1 Conditions to Closing and Initial Advance.

     The Purchasers shall not be obligated to make any Advance hereunder on the occasion of the
Initial Advance, nor shall any Purchaser, Administrative Agent, the Purchaser Agents, the Backup
Servicer and the Collateral Custodian be obligated to take, fulfill or perform any other action
hereunder, until the following conditions have been satisfied, in the sole discretion of, or waived
in writing by, the Administrative Agent and each Purchaser Agent:

     (a) Each Transaction Document shall have been duly executed by, and delivered to, the parties
thereto, and the Administrative Agent and each Purchaser Agent shall have received such other
documents, instruments, agreements and legal opinions as the Administrative Agent and each
Purchaser Agent shall reasonably request in connection with the transactions contemplated by this
Agreement, including, without limitation, all those specified in the

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Schedule of Documents attached hereto as Schedule I, each in form and substance
satisfactory to the Administrative Agent and each Purchaser Agent;

     (b) The Administrative Agent and each Purchaser Agent shall have received (i) satisfactory
evidence that the Seller and the Servicer have obtained all required consents and approvals of all
Persons, including all requisite Governmental Authorities, to the execution, delivery and
performance of this Agreement and the other Transaction Documents to which each is a party and the
consummation of the transactions contemplated hereby or thereby or (ii) an Officer’s Certificate
from each of the Seller and the Servicer in form and substance reasonably satisfactory to the
Administrative Agent and each Purchaser Agent affirming that no such consents or approvals are
required; it being understood that the acceptance of such evidence or officer’s certificate shall
in no way limit the recourse of the Administrative Agent, each Purchaser Agent or any Secured Party
against the Originator or the Seller for a breach of the Originator’s and the Seller’s
representation or warranty that all such consents and approvals have, in fact, been obtained;

     (c) The Seller, the Servicer and the Originator shall each be in compliance in all material
respects with all Applicable Laws and shall have delivered to the Administrative Agent and each
Purchaser Agent as to this and other closing matters certification in the form of Exhibits
F-1 and F-2;

     (d) The Seller and the Servicer shall have delivered to the Administrative Agent and each
Purchaser Agent duly executed Powers of Attorney in the form of Exhibits G-1 and
G-2;

     (e) The Seller and the Servicer shall each have delivered to the Administrative Agent and each
Purchaser Agent a certificate as to Solvency in the form of Exhibits E-1 and E-2
and a perfection certificate in form reasonably acceptable to the Administrative Agent; and

     (f) On or prior to the date of the Initial Advance, each Purchaser Agent (excluding Three
Pillars Purchaser Agent) shall have received, in immediately available funds, an amount by or on
behalf of Three Pillars representing its respective Pro Rata Share of previously funded Advances.

     Section 3.2 Conditions Precedent to All Advances.

     Each Advance to the Seller by the applicable Purchaser (each, a “Transaction”) shall be
subject to the further conditions precedent that:

     (a) (i) With respect to any Advance (including the Initial Advance), the Servicer shall have
delivered to the Administrative Agent and each Purchaser Agent (with a copy to the Collateral
Custodian and the Backup Servicer), in the case of an Advance, no later than 2:00 p.m. (Charlotte,
North Carolina time), one Business Day prior to the related Funding Date in a form and substance
satisfactory to the Administrative Agent and each Purchaser Agent, (1) a Borrowing Notice
(Exhibit A-1), Borrowing Base Certificate (Exhibit A-3), Asset List and Monthly
Report, if applicable, and (2) a Certificate of Assignment (Exhibit A to the Sale Agreement
including Schedule I, thereto) and containing such additional information as may be
reasonably requested by the Administrative Agent and each Purchaser Agent, and (ii) with respect to
any reduction in Advances Outstanding pursuant to Section 2.4(b) or any reinvestment

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of Principal Collections permitted by Section 2.9(b), the Servicer shall have
delivered to the Administrative Agent and each Purchaser Agent (with a copy to the Backup Servicer)
at least one Business Day prior to any reduction of Advances Outstanding or same day notice no
later than 2:00 p.m. (Charlotte, North Carolina time) on such day for any reinvestment of Principal
Collections a Borrowing Notice (Exhibit A-2) and a Borrowing Base Certificate (Exhibit
A-3) executed by the Servicer and the Seller;

     (b) On the date of such Transaction the following statements shall be true, and the Seller
shall be deemed to have certified that:

     (i) The representations and warranties contained in Section 4.1, Section
4.2 and Section 4.3 are true and correct on and as of such day as though made on
and as of such day and shall be deemed to have been made on such day;

     (ii) No event has occurred and is continuing, or would result from such Transaction,
that constitutes a Termination Event or Unmatured Termination Event;

     (iii) On and as of such day, after giving effect to such Transaction, the Advances
Outstanding shall not exceed the lesser of (x) the Facility Amount and (y) the Maximum
Availability;

     (iv) On and as of such day, the Seller and the Servicer each has performed all of the
covenants and agreements contained in this Agreement to be performed by such person at or
prior to such day;

     (v) No law or regulation shall prohibit, and no order, judgment or decree of any
federal, state or local court or governmental body, agency or instrumentality shall prohibit
or enjoin, the making of such Advance or incremental Advance by the Purchaser in accordance
with the provisions hereof, the reduction of Advances Outstanding, the reinvestment of
Principal Collections or any other transaction contemplated herein; and

     (vi) Such date is an Amsterdam Business Day;

     (c) The Seller shall have delivered to the Collateral Custodian (with a copy to the Backup
Servicer and the Administrative Agent) in the case of an Advance, no later than 2:00 p.m.
(Charlotte, North Carolina time) one Business Day prior to any Funding Date a faxed copy of the
duly executed original promissory notes, master purchase agreement and purchase statements or a
copy of the Loan Register, as applicable, for the Loans, and, if any Assets are closed in escrow, a
certificate (in the form of Exhibit L) from the counsel to the Originator or the Obligor of
such Assets certifying the possession of the Required Asset Documents, provided that
notwithstanding the foregoing, the Required Asset Documents (including any UCCs included in the
Required Asset Documents) shall be in the possession of the Collateral Custodian within two
Business Days of any related Funding Date as to any Additional Assets;

     (d) The Seller shall not have requested the Termination Date to occur;

     (e) The Facility Termination Date shall not have occurred;

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     (f) On the date of such Transaction, the Administrative Agent and each Purchaser Agent shall
have received such other approvals, opinions or documents as the Administrative Agent and each
Purchaser Agent may reasonably require;

     (g) The Required Equity Contribution, if any, shall have been made to the Seller;

     (h) The Administrative Agent shall have received from the Seller all hedging confirms related
to any Hedging Agreement required by this Agreement;

     (i) The Seller and Servicer shall have delivered to the Administrative Agent and each
Purchaser Agent all reports required to be delivered as of the date of such Transaction including,
without limitation, all deliveries required by Section 2.3;

     (j) With respect to any Acquired Loan intended to be included as a part of the Collateral, the
Administrative Agent and each Purchaser Agent shall have received an opinion of counsel in
accordance with Schedule I;

     (k) The Seller shall have paid all fees required to be paid, including all fees required
hereunder and under the Purchaser Fee Letters and any Additional Agent Fee Letter and shall have
reimbursed the Purchasers, the Administrative Agent and each Purchaser Agent for all fees, costs
and expenses of closing the transactions contemplated hereunder and under the other Transaction
Documents, including the reasonable attorney fees and any other legal and document preparation
costs incurred by the Purchasers, the Administrative Agent and each Purchaser Agent; and

     (l) The Seller shall have delivered to the Administrative Agent and each Purchaser Agent an
Officer’s Certificate (which may be part of the Borrowing Notice) in form and substance reasonably
satisfactory to the Administrative Agent and each Purchaser Agent certifying that each of the
foregoing conditions precedent has been satisfied.

     The failure of the Seller to satisfy any of the foregoing conditions precedent in respect of
any Advance shall give rise to a right of the Administrative Agent and the applicable Purchaser
Agent, which right may be exercised at any time on the demand of the applicable Purchaser Agent, to
rescind the related Advance and direct the Seller to pay to the Administrative Agent for the
benefit of the applicable Purchaser an amount equal to the Advances made during any such time that
any of the foregoing conditions precedent were not satisfied.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.1 Representations and Warranties of the Seller.

     The Seller represents and warrants as follows:

     (a) Organization and Good Standing. The Seller has been duly organized, and is
validly existing as a limited liability company in good standing, under the laws of the State of
Delaware, with all requisite company power and authority to own or lease its properties and

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conduct its business as such business is presently conducted, and had at all relevant times,
and now has all necessary power, authority and legal right to acquire, own and sell the Collateral.

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

     (c) Power and Authority; Due Authorization; Execution and Delivery. The Seller (i)
has all necessary power, authority and legal right to (a) execute and deliver this Agreement and
the other Transaction Documents to which it is a party, (b) carry out the terms of the Transaction
Documents to which it is a party, (c) sell and assign an ownership interest in the Collateral, and
(d) receive Advances and sell the Collateral on the terms and conditions provided herein and (ii)
has duly authorized by all necessary company action the execution, delivery and performance of this
Agreement and the other Transaction Documents to which it is a party and the sale and assignment of
an ownership interest in the Collateral on the terms and conditions herein provided. This
Agreement and each other Transaction Document to which the Seller is a party have been duly
executed and delivered by the Seller.

     (d) Binding Obligation. This Agreement and each other Transaction Document to which
the Seller is a party constitutes a legal, valid and binding obligation of the Seller enforceable
against the Seller in accordance with its respective terms, except as such enforceability may be
limited by Insolvency Laws and by general principles of equity (whether considered in a suit at law
or in equity).

     (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the other Transaction Documents to which it is a party and the fulfillment of the terms hereof
and thereof will not (i) conflict with, result in any breach of any of the terms and provisions of,
or constitute (with or without notice or lapse of time or both) a default under, the Seller’s
operating agreement or any Contractual Obligation of the Seller, (ii) result in the creation or
imposition of any Lien (other than Permitted Liens) upon any of the Seller’s properties pursuant to
the terms of any such Contractual Obligation, other than this Agreement, or (iii) violate any
Applicable Law.

     (f) No Proceedings. There is no litigation, proceeding or investigation pending or,
to the best knowledge of the Seller, threatened against the Seller, before any Governmental
Authority (i) asserting the invalidity of this Agreement or any other Transaction Document to which
the Seller is a party, (ii) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or any other Transaction Document to which the Seller is a party or
(iii) seeking any determination or ruling that could reasonably be expected to have Material
Adverse Effect.

     (g) All Consents Required. All approvals, authorizations, consents, orders or other
actions of any Person or of any Governmental Authority (if any) required for the due execution,
delivery and performance by the Seller of this Agreement and any other Transaction Document to
which the Seller is a party have been obtained.

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     (h) Bulk Sales. The execution, delivery and performance of this Agreement and the
transactions contemplated hereby do not require compliance with any “bulk sales” act or similar law
by Seller.

     (i) Solvency. The Seller is not the subject of any Insolvency Proceedings or
Insolvency Event. The transactions under this Agreement and any other Transaction Document to
which the Seller is a party do not and will not render the Seller not Solvent and the Seller shall
deliver to the Administrative Agent and each Purchaser Agent on the Closing Date a certification in
the form of Exhibit E-1.

     (j) Selection Procedures. No procedures believed by the Seller to be adverse to the
interests of the Purchaser were utilized by the Seller in identifying and/or selecting the Assets
in the Collateral. In addition, each Asset shall have been underwritten in accordance with and
satisfy the standards of any Credit and Collection Policy that has been established by the Seller
or the Originator and is then in effect.

     (k) Taxes. The Seller has filed or caused to be filed all tax returns that are
required to be filed by it. The Seller has paid or made adequate provisions for the payment of all
Taxes and all assessments made against it or any of its property (other than any amount of Tax the
validity of which is currently being contested in good faith by appropriate proceedings and with
respect to which reserves in accordance with GAAP have been provided on the books of the Seller),
and no tax lien has been filed and, to the Seller’s knowledge, no claim is being asserted, with
respect to any such Tax, fee or other charge.

     (l) Exchange Act Compliance; Regulations T, U and X. None of the transactions
contemplated herein (including, without limitation, the use of the proceeds from the sale of the
Collateral) will violate or result in a violation of Section 7 of the Securities Exchange Act, or
any regulations issued pursuant thereto, including, without limitation, Regulations T, U and X of
the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. The Seller does not
own or intend to carry or purchase, and no proceeds from the Advances will be used to carry or
purchase, any “margin stock” within the meaning of Regulation U or to extend “purpose credit”
within the meaning of Regulation U.

     (m) Security Interest.

     (i) This Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Collateral in favor of the Administrative Agent, on behalf of the
Secured Parties, which security interest is prior to all other Liens (except for Permitted
Liens), and is enforceable as such against creditors of and purchasers from the Seller;

     (ii) the Asset, along with the related Asset Files, constitute a “general intangible,”
an “instrument,” an “account,” or “chattel paper,” within the meaning of the applicable UCC;

     (iii) the Seller owns and has good and marketable title to the Collateral free and
clear of any Lien (other than Permitted Liens), claim or encumbrance of any Person;

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     (iv) the Seller has received all consents and approvals required by the terms of any
Asset to the sale and granting of a security interest in the Assets hereunder to the
Administrative Agent, on behalf of the Secured Parties;

     (v) the Seller has caused the filing of all appropriate financing statements in the
proper filing office in the appropriate jurisdictions under Applicable Law in order to
perfect the security interest in the Collateral granted to the Administrative Agent, on
behalf of the Secured Parties, under this Agreement;

     (vi) other than the security interest granted to the Administrative Agent, on behalf of
the Secured Parties, pursuant to this Agreement, the Seller has not pledged, assigned, sold,
granted a security interest in or otherwise conveyed any of the Collateral. The Seller has
not authorized the filing of and is not aware of any financing statements against the Seller
that include a description of collateral covering the Collateral other than any financing
statement (A) relating to the security interest granted to the Seller under the Sale
Agreement, or (B) that have been terminated. The Seller is not aware of the filing of any
judgment or tax lien filings against the Seller;

     (vii) all original executed copies of each underlying promissory note or copies of each
Loan Register, as applicable, that constitute or evidence each Loan has been, or subject to
the delivery requirements contained herein, will be delivered to the Collateral Custodian;

     (viii) the Seller has received a written acknowledgment from the Collateral Custodian
that the Collateral Custodian or its bailee is holding the underlying promissory notes (if
any), the copies of the Loan Registers that constitute or evidence the Assets solely on
behalf of and for the benefit of the Secured Parties;

     (ix) none of the underlying promissory notes or Loan Registers, as applicable, that
constitute or evidence the Assets has any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Administrative Agent,
on behalf of the Secured Parties; and

     (x) none of the Collateral has been pledged or otherwise made subject to a Lien.

     (n) Reports Accurate. All Monthly Reports (if prepared by the Seller, or to the
extent that information contained therein is supplied by the Seller), information, exhibits,
financial statements, documents, books, records or reports furnished or to be furnished by the
Seller to the Administrative Agent, each Purchaser Agent or any Purchaser in connection with this
Agreement are true, complete and correct.

     (o) Location of Offices. The Seller’s location (within the meaning of Article 9 of
the UCC) is Delaware. The office where the Seller keeps all the Records is at the address of the
Seller referred to in Section 13.2 hereof (or at such other locations as to which the
notice and other requirements specified in Section 5.2(g) shall have been satisfied). The
Seller’s Federal Employee Identification Number is 30-3991722. The Seller has not changed its
name, whether

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by amendment of its certificate of formation, by reorganization or otherwise, and has not
changed its location within the four months preceding the Closing Date.

     (p) Lock-Boxes. The names and addresses of all the Lock-Box Banks, together with the
account numbers of the Lock-Box Accounts of the Seller at such Lock-Box Banks and the names,
addresses and account numbers of all accounts to which Collections of the Collateral outstanding
before the Initial Advance hereunder have been sent, are specified in Schedule II (which
shall be deemed to be amended in respect of terminating or adding any Lock-Box Account or Lock-Box
Bank upon satisfaction of the notice and other requirements specified in Section 5.2(k)).
The Seller has not granted any Person other than the Administrative Agent and Collateral Custodian
an interest in any Lock-Box Account at a future time or upon the occurrence of a future event.

     (q) Tradenames. The Seller has no trade names, fictitious names, assumed names or
“doing business as” names or other names under which it has done or is doing business.

     (r) Sale Agreement. The Sale Agreement is the only agreement pursuant to which the
Seller purchases Collateral.

     (s) Value Given. The Seller shall have given reasonably equivalent value to the
Originator in consideration for the transfer to the Seller of the Collateral under the Sale
Agreement, no such transfer shall have been made for or on account of an antecedent debt owed by
the Originator to the Seller, and no such transfer is or may be voidable or subject to avoidance
under any section of the Bankruptcy Code.

     (t) Accounting. The Seller accounts for the transfers to it from the Originator of
interests in Collateral under the Sale Agreement as financings of such Collateral for tax and
consolidated accounting purposes (with a notation that it is treating the transfers as a sale for
legal and all other purposes on its books, records and financial statements, in each case
consistent with GAAP and with the requirements set forth herein).

     (u) Special Purpose Entity. The Seller has not and shall not:

     (i) engage in any business or activity other than the purchase and receipt of
Collateral and related assets from the Originator under the Sale Agreement, the sale of
Collateral under the Transaction Documents, and such other activities as are incidental
thereto;

     (ii) acquire or own any material assets other than (a) the Collateral and related
assets from the Originator under the Sale Agreement and (b) incidental property as may be
necessary for the operation of the Seller;

     (iii) merge into or consolidate with any Person or dissolve, terminate or liquidate in
whole or in part, transfer or otherwise dispose of all or substantially all of its assets or
change its legal structure, without in each case first obtaining the consent of the
Administrative Agent and each Purchaser Agent;

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     (iv) fail to preserve its existence as an entity duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization or formation, or
without the prior written consent of the Administrative Agent and each Purchaser Agent,
amend, modify, terminate or fail to comply with the provisions of its operating agreement,
or fail to observe limited liability company formalities;

     (v) own any Subsidiary or make any investment in any Person without the consent of the
Administrative Agent and each Purchaser Agent;

     (vi) except as permitted by this Agreement and the Lock-Box Agreement, commingle its
assets with the assets of any of its Affiliates, or of any other Person;

     (vii) incur any debt, secured or unsecured, direct or contingent (including
guaranteeing any obligation), other than indebtedness to the Secured Parties hereunder or in
conjunction with a repayment of all Advances owed to the Purchasers, except for trade
payables in the ordinary course of its business; provided that such debt is not evidenced by
a note and is paid when due;

     (viii) become insolvent or fail to pay its debts and liabilities from its assets as the
same shall become due;

     (ix) fail to maintain its records, books of account and bank accounts separate and
apart from those of any other Person;

     (x) enter into any contract or agreement with any Person, except upon terms and
conditions that are commercially reasonable and intrinsically fair and substantially similar
to those that would be available on an arms-length basis with third parties other than such
Person;

     (xi) seek its dissolution or winding up in whole or in part;

     (xii) fail to correct any known misunderstandings regarding the separate identity of
Seller and the Originator or any principal or Affiliate thereof or any other Person;

     (xiii) guarantee, become obligated for, or hold itself out to be responsible for the
debt of another Person;

     (xiv) make any loan or advances to any third party, including any principal or
Affiliate, or hold evidence of indebtedness issued by any other Person (other than cash and
investment-grade securities);

     (xv) fail to file its own separate tax return, or file a consolidated federal income
tax return with any other Person, except as may be required by the Internal Revenue Code and
regulations;

     (xvi) fail either to hold itself out to the public as a legal entity separate and
distinct from any other Person or to conduct its business solely in its own name in order

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not (a) to mislead others as to the identity with which such other party is transacting
business, or (b) to suggest that it is responsible for the debts of any third party
(including any of its principals or Affiliates);

     (xvii) fail to maintain adequate capital for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its contemplated
business operations;

     (xviii) file or consent to the filing of any petition, either voluntary or involuntary,
to take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization
statute, or make an assignment for the benefit of creditors;

     (xix) except as may be required by the Internal Revenue Code and regulations, share any
common logo with or hold itself out as or be considered as a department or division of (a)
any of its principals or affiliates, (b) any Affiliate of a principal or (c) any other
Person;

     (xx) permit any transfer (whether in one or more transactions) of any direct or
indirect ownership interest in the Seller to the extent it has the ability to control the
same, unless the Seller delivers to the Administrative Agent and each Purchaser Agent an
acceptable non-consolidation opinion and the Administrative Agent consents to such transfer;

     (xxi) fail to maintain separate financial statements, showing its assets and
liabilities separate and apart from those of any other Person;

     (xxii) fail to pay its own liabilities and expenses only out of its own funds;

     (xxiii) fail to pay the salaries of its own employees in light of its contemplated
business operations;

     (xxiv) acquire the obligations or securities of its Affiliates or stockholders;

     (xxv) fail to allocate fairly and reasonably any overhead expenses that are shared with
an Affiliate, including paying for office space and services performed by any employee of an
Affiliate;

     (xxvi) fail to use separate invoices and checks bearing its own name;

     (xxvii) pledge its assets for the benefit of any other Person, other than with respect
to payment of the indebtedness to the Secured Parties hereunder;

     (xxviii) fail at any time to have at least one independent director who is not and has
not been for at least five years a director, officer, employee, trade credit or shareholder
(or spouse, parent, sibling or child of the foregoing) of (a) the Servicer, (b) the Seller,
(c) any principal of the Servicer, (d) any Affiliate of the Servicer, or (e) any Affiliate
of any principal of the Servicer (an “Independent Director”); provided that such Independent
Director may be an independent director of another special purpose entity

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affiliated with the Servicer or fail to ensure that all limited liability company
action relating to the selection, maintenance or replacement of the Independent Director are
duly authorized by the unanimous vote of the board of directors (including the Independent
Director);

     (xxix) to provide that the unanimous consent of all directors (including the consent of
the Independent Director) is required for the Seller to (a) dissolve or liquidate, in whole
or part, or institute proceedings to be adjudicated bankrupt or insolvent, (b) institute or
consent to the institution of bankruptcy or insolvency proceedings against it, (c) file a
petition seeking or consent to reorganization or relief under any applicable federal or
state law relating to bankruptcy or insolvency, (d) seek or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for
the Seller, (e) make any assignment for the benefit of the Seller’s creditors, (f) admit in
writing its inability to pay its debts generally as they become due, or (g) take any action
in furtherance of any of the foregoing; and

     (xxx) take or refrain from taking, as applicable, each of the activities specified in
the non-consolidation opinion of Patton Boggs LLP, dated as of the date hereof.

     (v) Confirmation from the Originator. The Seller has received in writing from the
Originator confirmation that the Originator will not cause the Seller to file a voluntary petition
under the Bankruptcy Code or Insolvency Laws. Each of the Seller and the Originator is aware that
in light of the circumstances described in the preceding sentence and other relevant facts, the
filing of a voluntary petition under the Bankruptcy Code for the purpose of making any Collateral
or any other assets of the Seller available to satisfy claims of the creditors of the Originator
would not result in making such assets available to satisfy such creditors under the Bankruptcy
Code.

     (w) Investment Company Act. The Seller is not, and is not controlled by, an
“investment company” within the meaning of the 1940 Act, as amended, or is exempt from the
provisions of the 1940 Act.

     (x) ERISA. The present value of all benefits vested under all “employee pension
benefit plans,” as such term is defined in Section 3 of ERISA, maintained by the Seller, or
in which employees of the Seller are entitled to participate, as from time to time in effect
(herein called the “Pension Plans”), does not exceed the value of the assets of the Pension Plan
allocable to such vested benefits (based on the value of such assets as of the last annual
valuation date). No prohibited transactions, accumulated funding deficiencies, withdrawals or
reportable events have occurred with respect to any Pension Plans that, in the aggregate, could
subject the Seller to any material tax, penalty or other liability. No notice of intent to
terminate a Pension Plan has been billed, nor has any Pension Plan been terminated under Section
4041(f) of ERISA, nor has the Pension Benefit Guaranty Corporation instituted proceedings to
terminate, or appoint a trustee to administer a Pension Plan and no event has occurred or condition
exists that might constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan.

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     (y) PUHCA. The Seller is not a “holding company” or a “subsidiary holding company” of
a “holding company” within the meaning of the Public Utility Holding Company Act of 1935, as
amended, or any successor statute.

     (z) Compliance with Law. The Seller has complied in all respects with all Applicable
Laws to which it may be subject, and no item of Collateral contravenes any Applicable Laws
(including, without limitation, all applicable predatory and abusive lending laws and all laws,
rules and regulations relating to licensing, truth in lending, fair credit billing, fair credit
reporting, equal credit opportunity, fair debt collection practices, and privacy).

     (aa) Credit and Collection Policy. The Seller has complied in all material respects
with the Credit and Collection Policy with respect to all of the Collateral.

     (bb) Collections. The Seller acknowledges that all Collections received by it or its
Affiliates with respect to the Collateral sold hereunder are held and shall be held in trust for
the benefit of the Secured Parties until deposited into the Collection Account within two Business
Days from receipt as required herein.

     (cc) Set-Off, etc. Other than B-Note Loans or Mezzanine Loans, no Collateral has been
compromised, adjusted, extended, satisfied, subordinated, rescinded, set-off or modified by the
Seller, the Originator or the Obligor thereof, and no Collateral is subject to compromise,
adjustment, extension, satisfaction, subordination, rescission, set-off, counterclaim, defense,
abatement, suspension, deferment, deduction, reduction, termination or modification, whether
arising out of transactions concerning the Collateral or otherwise, by the Seller, the Originator
or the Obligor with respect thereto, except for amendments to such Collateral otherwise permitted
under Section 6.4(a) of this Agreement and in accordance with the Credit and Collection
Policy.

     (dd) Full Payment. The Seller has no knowledge of any fact which should lead it to
expect that any Collateral will not be paid in full.

     (ee) Accuracy of Representations and Warranties. Each representation or warranty by
the Seller contained herein or in any certificate or other document furnished by the Seller
pursuant hereto or in connection herewith is true and correct in all material respects.

     (ff) Representations and Warranties in Sale Agreement. The representations and
warranties made by the Originator to the Seller in the Sale Agreement are hereby remade by the
Seller on each date to which they speak in the Sale Agreement as if such representations and
warranties were set forth herein. For purposes of this Section 4.1(ff), such
representations and warranties are incorporated herein by reference as if made by the Seller to the
Administrative Agent, each Purchaser Agent and each of the Secured Parties under the terms hereof
mutatis mutandis.

     (gg) Reaffirmation of Representations and Warranties by the Seller. On each day that
any Advance is made hereunder, the Seller shall be deemed to have certified that all
representations and warranties described in Section 4.1 hereof are correct on and as of
such day as though made on and as of such day.

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     (hh) Participation, Acquired and Assigned Loans. The participations created with
respect to the Participation Loans and the sale to the Originator with respect to the Acquired and
Assigned Loans do not violate any provisions of the underlying Required Asset Documents and such
documents do not contain any express or implied prohibitions on participations or sales of such
Loans.

     (ii) Environmental.

     (i) Each item of the Related Property is in compliance with all applicable
Environmental Laws, and there is no violation of any Environmental Law with respect to such
Related Property and there are no conditions relating to such Related Property that could
give rise to liability under any applicable Environmental Laws.

     (ii) None of the Related Property contains, or has previously contained, any Materials
of Environmental Concern at, on or under the Related Property in amounts or concentrations
that constitute or constituted a violation of, or could give rise to liability under,
Environmental Laws.

     (iii) None of the Seller, the Originator nor the Servicer has received any written or
verbal notice of, or inquiry from any Governmental Authority regarding, any violation,
alleged violation, non-compliance, liability or potential liability regarding environmental
matters or compliance with Environmental Laws with regard to any of the Related Property,
nor does any such Person have knowledge or reason to believe that any such notice will be
received or is being threatened.

     (iv) Materials of Environmental Concern have not been transported or disposed of from
the Related Property, or generated, treated, stored or disposed of at, on or under any of
the Related Property or any other location, in each case by or on behalf of the Seller, the
Originator and/or the Servicer in violation of, or in a manner that would be reasonably
likely to give rise to liability under, any applicable Environmental Law.

     (v) No judicial proceeding or governmental or administrative action is pending or, to
the best knowledge of the Seller, the Originator and/or the Servicer, threatened, under any
Environmental Law to which any of the Seller, the Originator and/or the Servicer is or will
be named as a party, nor are there any consent decrees or other decrees, consent orders,
administrative orders or other orders, or other administrative or judicial requirements,
outstanding under any Environmental Law with respect to any of the Seller, the Originator,
the Servicer or the Related Property.

     (vi) There has been no release or threat of release of Materials of Environmental
Concern at or from any of the Related Property, or arising from or related to the operations
(including, without limitation, disposal) of any of the Seller, the Originator and/or the
Servicer in connection with the Related Property in violation of or in amounts or in a
manner that could give rise to liability under Environmental Laws.

     (jj) USA PATRIOT Act. Neither the Seller nor any Affiliate of the Seller is (i) a
country, territory, organization, person or entity named on an Office of Foreign Asset Control
(OFAC) list, (ii) a Person that resides or has a place of business in a country or territory named

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on such lists or which is designated as a “Non-Cooperative Jurisdiction” by the Financial
Action Task Force on Money Laundering, or whose subscription funds are transferred from or through
such a jurisdiction; (iii) a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act, i.e.,
a foreign bank that does not have a physical presence in any country and that is not affiliated
with a bank that has a physical presence and an acceptable level of regulation and supervision; or
(iv) a person or entity that resides in or is organized under the laws of a jurisdiction designated
by the United States Secretary of the Treasury under Sections 311 or 312 of the USA PATRIOT Act as
warranting special measures due to money laundering concerns.

     The representations and warranties in Section 4.1(m) shall survive the termination of
this Agreement and such representations and warranties may not be waived by any party hereto.

			
	     Section 4.2	 	Representations and Warranties of the Seller Relating to the Agreement and
the Collateral.

     The Seller hereby represents and warrants, as of the Closing Date and as of each Addition
Date:

     (a) Binding Obligation, Valid Transfer and Security Interest.

     (i) This Agreement and each other Transaction Document to which the Seller is a party
each constitute a legal, valid and binding obligation of the Seller, enforceable against the
Seller in accordance with its respective terms, except as such enforceability may be limited
by Insolvency Laws and except as such enforceability may be limited by general principles of
equity (whether considered in a suit at law or in equity).

     (ii) This Agreement constitutes a valid transfer to the Administrative Agent, as agent
for the Secured Parties, of all right, title and interest of the Seller in, to and under all
of the Collateral, free and clear of any Lien of any Person claiming through or under the
Seller or its Affiliates, except for Permitted Liens. If the conveyances contemplated by
this Agreement are determined to be transfer for security, then this Agreement constitutes a
grant of a security interest in all of the Collateral to the Administrative Agent, as agent
for the Secured Parties, which upon the delivery of the Required Asset Documents to the
Collateral Custodian and the filing of the financing statements described in Section
4.1(m) and, in the case of Additional Assets on the applicable Addition Date, shall be a
first priority perfected security interest in all Collateral, subject only to Permitted
Liens. Neither the Seller nor any Person claiming through or under Seller shall have any
claim to or interest in the Collection Account and, if this Agreement constitutes the grant
of a security interest in such property, except for the interest of Seller in such property
as a debtor for purposes of the UCC.

     (b) Eligibility of Collateral. As of the Closing Date and each Addition Date, (i) the
Asset List and the information contained in the Borrowing Notice delivered pursuant to Section
2.3 is an accurate and complete listing in all material respects of all Collateral as of the
Cut-Off Date and the information contained therein with respect to the identity of such Collateral
and the amounts owing thereunder is true and correct in all material respects as of the related
Cut-Off

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Date, (ii) each such Asset that is part of the Borrowing Base is an Eligible Asset as of such
date, (iii) each such item of Collateral is free and clear of any Lien of any Person (other than
Permitted Liens) and in compliance with all Applicable Laws, (iv) with respect to each such item of
Collateral, all consents, licenses, approvals or authorizations of or registrations or declarations
of any Governmental Authority required to be obtained, effected or given by the Seller in
connection with the transfer of an ownership interest in such Collateral to the Administrative
Agent as agent for the Secured Parties have been duly obtained, effected or given and are in full
force and effect, and (v) the representations and warranties set forth in Section 4.2(a)
are true and correct with respect to each item of Collateral.

     (c) No Fraud. Each Asset was originated without any fraud or material
misrepresentation by the Originator or, to the best of the Seller’s knowledge, on the part of the
Obligor.

     Section 4.3 Representations and Warranties of the Servicer.

     The Servicer represents and warrants as follows:

     (a) Organization and Good Standing. The Servicer has been duly organized and is
validly existing as a limited liability company in good standing under the laws of the State of
Delaware, with all requisite company power and authority to own or lease its properties and to
conduct its business as such business is presently conducted and to enter into and perform its
obligations pursuant to this Agreement.

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

     (c) Power and Authority; Due Authorization; Execution and Delivery. The Servicer (i)
has all necessary power, authority and legal right to (a) execute and deliver this Agreement and
the other Transaction Documents to which it is a party, (b) carry out the terms of the Transaction
Documents to which it is a party, and (ii) has duly authorized by all necessary company action the
execution, delivery and performance of this Agreement and the other Transaction Documents to which
it is a party. This Agreement and each other Transaction Document to which the Servicer is a party
have been duly executed and delivered by the Servicer.

     (d) Binding Obligation. This Agreement and each other Transaction Document to which
the Servicer is a party constitutes a legal, valid and binding obligation of the Servicer
enforceable against the Servicer in accordance with its respective terms, except as such
enforceability may be limited by Insolvency Laws and general principles of equity (whether
considered in a suit at law or in equity).

     (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the other Transaction Documents to which it is a party and the fulfillment of the terms hereof
and thereof will not (i) conflict with, result in any breach of any of the terms and provisions of,
or constitute (with or without notice or lapse of time or both) a default under, the

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Servicer’s operating agreement or any Contractual Obligation of the Servicer, (ii) result in
the creation or imposition of any Lien upon any of the Servicer’s properties pursuant to the terms
of any such Contractual Obligation, other than this Agreement, or (iii) violate any Applicable Law.

     (f) No Proceedings. There is no litigation, proceedings or investigations pending or,
to the best knowledge of the Servicer, threatened against the Servicer, before any Governmental
Authority (i) asserting the invalidity of this Agreement or any other Transaction Document to which
the Servicer is a party, (ii) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or any other Transaction Document to which the Servicer is a party
or (iii) seeking any determination or ruling that could reasonably be expected to have Material
Adverse Effect.

     (g) All Consents Required. All approvals, authorizations, consents, orders, licenses
or other actions of any Person or of any Governmental Authority (if any) required for the due
execution, delivery and performance by the Servicer of this Agreement and any other Transaction
Document to which the Servicer is a party have been obtained.

     (h) Reports Accurate. All Servicer Certificates and other written and electronic
information, exhibits, financial statements, documents, books, records or reports furnished by the
Servicer to the Administrative Agent, each Purchaser Agent or any Purchaser in connection with this
Agreement are accurate, true and correct.

     (i) Credit and Collection Policy. The Servicer has complied in all material respects
with the Credit and Collection Policy with regard to the origination, underwriting and servicing of
the Assets.

     (j) Collections. The Servicer acknowledges that all Collections received by it or its
Affiliates with respect to the Collateral sold hereunder are held and shall be held in trust for
the benefit of the Secured Parties until deposited into the Collection Account within two Business
Days from receipt as required herein.

     (k) Bulk Sales. The execution, delivery and performance of this Agreement do not
require compliance with any “bulk sales” act or similar law by the Servicer.

     (l) Solvency. The Servicer is not the subject of any Insolvency Proceedings or
Insolvency Event. The transactions under this Agreement and any other Transaction Document to
which the Servicer is a party do not and will not render the Servicer not Solvent and the Servicer
shall deliver to the Administrative Agent and each Purchaser Agent on the Closing Date a
certification in the form of Exhibit E-2.

     (m) Taxes. The Servicer has filed or caused to be filed all tax returns that are
required to be filed by it. The Servicer has paid or made adequate provisions for the payment of
all Taxes and all assessments made against it or any of its property (other than any amount of Tax
the validity of which is currently being contested in good faith by appropriate proceedings and
with respect to which reserves in accordance with GAAP have been provided on the books of the
Servicer), and no tax lien has been filed and, to the Servicer’s knowledge, no claim is being
asserted, with respect to any such Tax, fee or other charge.

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     (n) Exchange Act Compliance; Regulations T, U and X. None of the transactions
contemplated herein (including, without limitation, the use of the Proceeds from the sale of the
Collateral) will violate or result in a violation of Section 7 of the Securities Exchange Act, or
any regulations issued pursuant thereto, including, without limitation, Regulations T, U and X of
the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. The Servicer does not
own or intend to carry or purchase, and no proceeds from the Advances will be used to carry or
purchase, any “margin stock” within the meaning of Regulation U or to extend “purpose credit”
within the meaning of Regulation U.

     (o) Security Interest. The Servicer will take all steps necessary to ensure that the
Seller has granted a security interest (as defined in the UCC) to the Administrative Agent, as
agent for the Secured Parties, in the Collateral, which is enforceable in accordance with
Applicable Law upon execution and delivery of this Agreement. Upon the filing of UCC-1 financing
statements naming the Administrative Agent as secured party and the Seller as debtor, the
Administrative Agent, as agent for the Secured Parties, shall have a first priority perfected
security interest in the Collateral (except for any Permitted Liens). All filings (including,
without limitation, such UCC filings) as are necessary for the perfection of the Secured Parties’
security interest in the Collateral have been (or prior to the date of the applicable will be)
made.

     (p) ERISA. The present value of all benefits vested under all “employee pension
benefit plans,” as such term is defined in Section 3 of ERISA, maintained by the Servicer,
or in which employees of the Servicer are entitled to participate, as from time to time in effect
(herein called the “Pension Plans”), does not exceed the value of the assets of the Pension Plan
allocable to such vested benefits (based on the value of such assets as of the last annual
valuation date). No prohibited transactions, accumulated funding deficiencies, withdrawals or
reportable events have occurred with respect to any Pension Plans that, in the aggregate, could
subject the Servicer to any material tax, penalty or other liability. No notice of intent to
terminate a Pension Plan has been billed, nor has any Pension Plan been terminated under Section
4041(f) of ERISA, nor has the Pension Benefit Guaranty Corporation instituted proceedings to
terminate, or appoint a trustee to administer, a Pension Plan and no event has occurred or
condition exists that might constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan.

     (q) Investment Company Act. The Servicer is not, and is not controlled by, an
“investment company” within the meaning of the 1940 Act, as amended, or is exempt from the
provisions of the 1940 Act.

     (r) USA PATRIOT Act. Neither the Servicer nor any Affiliate of the Servicer is (i) a
country, territory, organization, person or entity named on an OFAC list, (ii) a Person that
resides or has a place of business in a country or territory named on such lists or which is
designated as a “Non-Cooperative Jurisdiction” by the Financial Action Task Force on Money
Laundering, or whose subscription funds are transferred from or through such a jurisdiction;
(iii) a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act, i.e., a foreign bank
that does not have a physical presence in any country and that is not affiliated with a bank that
has a physical presence and an acceptable level of regulation and supervision; or (iv) a person or
entity that resides in or is organized under the laws of a jurisdiction designated by the United

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States Secretary of the Treasury under Sections 311 or 312 of the USA PATRIOT Act as
warranting special measures due to money laundering concerns.

     Section 4.4 Representations and Warranties of the Backup Servicer.

     The Backup Servicer in its individual capacity and as Backup Servicer represents and warrants
as follows:

     (a) Organization and Corporate Power. It is a duly organized and validly existing
national banking association in good standing under the laws of the United States. It has full
corporate power, authority and legal right to execute, deliver and perform its obligations as
Backup Servicer under this Agreement.

     (b) Due Authorization. The execution and delivery of this Agreement and the
consummation of the transactions provided for herein have been duly authorized by all necessary
association action on its part, either in its individual capacity or as Backup Servicer, as the
case may be.

     (c) No Conflict. The execution and delivery of this Agreement, the performance of the
transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with,
result in any breach of any of the material terms and provisions of, or constitute (with or without
notice or lapse of time or both) a default under any indenture, contract, agreement, mortgage, deed
of trust, or other instrument to which the Backup Servicer is a party or by which it or any of its
property is bound.

     (d) No Violation. The execution and delivery of this Agreement, the performance of
the transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with
or violate, in any material respect, any Applicable Law.

     (e) All Consents Required. All approvals, authorizations, consents, orders or other
actions of any Person or Governmental Authority applicable to the Backup Servicer, required in
connection with the execution and delivery of this Agreement, the performance by the Backup
Servicer of the transactions contemplated hereby and the fulfillment by the Backup Servicer of the
terms hereof have been obtained.

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

     Section 4.5 Representations and Warranties of the Collateral Custodian.

     The Collateral Custodian in its individual capacity and as Collateral Custodian represents and
warrants as follows:

     (a) Organization and Corporate Power. It is a duly organized and validly existing
national banking association in good standing under the laws of the United States. It has full

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corporate power, authority and legal right to execute, deliver and perform its obligations as
Collateral Custodian under this Agreement.

     (b) Due Authorization. The execution and delivery of this Agreement and the
consummation of the transactions provided for herein have been duly authorized by all necessary
association action on its part, either in its individual capacity or as Collateral Custodian, as
the case may be.

     (c) No Conflict. The execution and delivery of this Agreement, the performance of the
transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with,
result in any breach of any of the material terms and provisions of, or constitute (with or without
notice or lapse of time or both) a default under any indenture, contract, agreement, mortgage, deed
of trust, or other instrument to which the Collateral Custodian is a party or by which it or any of
its property is bound.

     (d) No Violation. The execution and delivery of this Agreement, the performance of
the Transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with
or violate, in any material respect, any Applicable Law.

     (e) All Consents Required. All approvals, authorizations, consents, orders or other
actions of any Person or Governmental Authority applicable to the Collateral Custodian, required in
connection with the execution and delivery of this Agreement, the performance by the Collateral
Custodian of the transactions contemplated hereby and the fulfillment by the Collateral Custodian
of the terms hereof have been obtained.

     (f) Validity, Etc. The Agreement constitutes the legal, valid and binding obligation
of the Collateral Custodian, enforceable against the Collateral Custodian in accordance with its
terms, except as such enforceability may be limited by applicable Insolvency Laws and general
principles of equity (whether considered in a suit at law or in equity).

     Section 4.6 Breach of Certain Representations and Warranties.

     If on any day an Asset is (or becomes) a Warranty Asset, no later than two Business Days
following the earlier of knowledge by the Seller of such Asset becoming a Warranty Asset or receipt
by the Seller from the Administrative Agent or the Servicer of written notice thereof, the Seller
shall either: (a) make a deposit to the Collection Account (for allocation pursuant to Section
2.9 or Section 2.10, as applicable) in immediately available funds in an amount equal
to the sum of (i) the amount which, if deposited to the Collection Account on such date, would
cause the Availability as of such date (after giving effect to such Warranty Asset) to be greater
than or equal to zero, (ii) any outstanding Servicer Advances thereon, (iii) any accrued and unpaid
interest, (iv) all Hedge Breakage Costs owed to the relevant Hedge Counterparty for any termination
of one or more Hedge Transactions, in whole or in part, as required by the terms of any Hedging
Agreement and (v) in the case of a Loan, any costs and damages incurred in connection with any
violation by such Loan of any predatory- or abusive-lending law; or (b) subject to the satisfaction
of the conditions in Section 2.18, substitute for such Warranty Asset a Substitute Asset.
In either of the foregoing instances, the Seller may (in its discretion) accept retransfer of each
such Warranty Asset and any Related Security and the Borrowing Base shall

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be reduced by the Outstanding Asset Balance of each such Warranty Asset and, if applicable,
increased by the Outstanding Asset Balance of each Substitute Asset. Upon confirmation of the
deposit of such Retransfer Price into the Collection Account or the delivery by the Seller of a
Substitute Asset for each Warranty Asset (the “Retransfer Date”), such Warranty Asset shall not be
included in the Borrowing Base (and, if and when the Seller elects to accept the retransfer of such
Warranty Asset, the Collateral) and, as applicable, the Substitute Asset shall be included in the
Collateral. Upon the Retransfer Date of each Warranty Asset, the Administrative Agent, as agent
for the Secured Parties, shall (if and when the Seller elects to accept the retransfer of such
Warranty Asset) automatically and without further action be deemed to transfer, assign and set-over
to the Seller, without recourse, representation or warranty, all the right, title and interest of
the Administrative Agent, as agent for the Secured Parties in, to and under such Warranty Asset and
all future monies due or to become due with respect thereto, the Related Security, all Proceeds of
such Warranty Asset, Recoveries and Insurance Proceeds relating thereto, all rights to security for
any such Warranty Asset, and all Proceeds and products of the foregoing. The Administrative Agent,
as agent for the Secured Parties, shall (if and when the Seller elects to accept the retransfer of
such Warranty Asset), at the sole expense of the Servicer, execute such documents and instruments
of transfer as may be prepared by the Servicer on behalf of the Seller and take other such actions
as shall reasonably be requested by the Seller to effect the transfer of such Warranty Asset
pursuant to this Section 4.6.

ARTICLE V

GENERAL COVENANTS

     Section 5.1 Affirmative Covenants of the Seller.

     From the date hereof until the Collection Date:

     (a) Compliance with Laws. The Seller will comply in all material respects with all
Applicable Laws, including those with respect to the Collateral or any part thereof.

     (b) Preservation of Company Existence. The Seller will preserve and maintain its
company existence, rights, franchises and privileges in the jurisdiction of its formation, and
qualify and remain qualified in good standing as a limited liability company in each jurisdiction
where the failure to preserve and maintain such existence, rights, franchises, privileges and
qualification has had, or could reasonably be expected to have, a Material Adverse Effect.

     (c) Performance and Compliance with Collateral. The Seller will, at its expense,
timely and fully perform and comply (or cause the Originator to perform and comply pursuant to the
Sale Agreement) with all provisions, covenants and other promises required to be observed by it
under the Collateral and all other agreements related to such Collateral.

     (d) Keeping of Records and Books of Account. The Seller will maintain and implement
administrative and operating procedures (including, without limitation, an ability to recreate
records evidencing the Collateral in the event of the destruction of the originals thereof), and
keep and maintain all documents, books, records and other information reasonably necessary or
advisable for the collection of all or any portion of the Collateral.

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     (e) Originator’s Collateral. With respect to the Collateral acquired by the Seller,
the Seller will (i) acquire such Collateral pursuant to and in accordance with the terms of the
Sale Agreement, (ii) (at the Servicer’s expense) take all action necessary to perfect, protect and
more fully evidence the Seller’s ownership of such Collateral free and clear of any Lien other than
the Lien created hereunder and Permitted Liens, including, without limitation, (a) filing and
maintaining (at the Servicer’s expense), effective financing statements against the Originator in
all necessary or appropriate filing offices, and filing continuation statements, amendments or
assignments with respect thereto in such filing offices, and (b) executing or causing to be
executed such other instruments or notices as may be necessary or appropriate, (iii) permit the
Administrative Agent, each Purchaser Agent or their respective agents or representatives to visit
the offices of the Seller during normal office hours and upon reasonable notice examine and make
copies of all documents, books, records and other information concerning the Collateral and discuss
matters related thereto with any of the officers or employees of the Seller having knowledge of
such matters, and (iv) take all additional action that the Administrative Agent or any Purchaser
Agent may reasonably request to perfect, protect and more fully evidence the respective interests
of the parties to this Agreement in the Collateral.

     (f) Delivery of Collections. The Seller will pay to the Servicer promptly (but in no
event later than two Business Days after receipt) all Collections received by Seller in respect of
the Collateral and cause the same to be promptly deposited into the Collection Account by the
Servicer in accordance with Section 5.4(l).

     (g) Separate Limited Liability Company Existence. The Seller shall be in compliance
with the Special Purpose Entity requirements set forth in Section 4.1(u).

     (h) Credit and Collection Policy. The Seller will (a) comply in all material respects
with the Credit and Collection Policy in regard to the Collateral, and (b) furnish to the
Administrative Agent and each Purchaser Agent, prior to its effective date, prompt notice of any
material changes in the Credit and Collection Policy. The Seller will not agree to or otherwise
permit to occur any material change in the Credit and Collection Policy, which change would impair
the collectibility of any of the Collateral or otherwise adversely affect the interests or remedies
of the Administrative Agent, each Purchaser Agent or the Secured Parties under this Agreement or
any other Transaction Document, without the prior consent of the Administrative Agent and each
Purchaser Agent (which consent shall not be unreasonably withheld).

     (i) Termination Events. The Seller will provide the Administrative Agent and each
Purchaser Agent with immediate written notice of the occurrence of each Termination Event and each
Unmatured Termination Event of which the Seller has knowledge or has received notice. In addition,
no later than two Business Days following the Seller’s knowledge or notice of the occurrence of any
Termination Event or Unmatured Termination Event, the Seller will provide to the Administrative
Agent and each Purchaser Agent a written statement of the chief financial officer or chief
accounting officer of Seller setting forth the details of such event and the action that the Seller
proposes to take with respect thereto.

     (j) Taxes. The Seller will file and pay any and all Taxes required to meet the
obligations of the Transaction Documents.

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     (k) Use of Proceeds. The Seller will use the proceeds of the Advances only to acquire
Collateral or to make distributions to its members in accordance with the terms hereof.

     (l) Obligor Notification Forms. The Seller shall furnish the Administrative Agent
with an appropriate power of attorney to send (at the Administrative Agent’s discretion after the
occurrence of a Termination Event or an Unmatured Termination Event) Obligor notification forms to
give notice to the Obligors of the Secured Parties’ interest in the Collateral and the obligation
to make payments as directed by the Administrative Agent.

     (m) Adverse Claims. The Seller will not create, or participate in the creation of, or
permit to exist, any Liens in relation to each Lock-Box Account other than as disclosed to the
Administrative Agent and each Purchaser Agent.

     (n) Seller’s Collateral. With respect to each item of Collateral acquired by the
Secured Parties, the Seller will (i) take all action necessary to perfect, protect and more fully
evidence the Secured Parties’ ownership of such Collateral, including, without limitation, (a)
filing and maintaining (at the Servicer’s expense), effective financing statements against the
Seller in all necessary or appropriate filing offices, and filing continuation statements,
amendments or assignments with respect thereto in such filing offices, and (b) executing or causing
to be executed such other instruments or notices as may be necessary or appropriate and (ii) take
all additional action that the Administrative Agent may reasonably request to perfect, protect and
more fully evidence the respective interests of the parties to this Agreement in such Collateral.

     (o) Notices. The Seller will furnish to the Administrative Agent and each Purchaser
Agent:

     (i) Income Tax Liability. Within ten Business Days after the receipt of
revenue agent reports or other written proposals, determinations or assessments of the
Internal Revenue Service or any other taxing authority which propose, determine or otherwise
set forth positive adjustments to the Tax liability of any Affiliated group (within the
meaning of Section 1504(a)(l) of the Internal Revenue Code of 1986 (as amended from time to
time)) which equal or exceed $1,000,000 in the aggregate, telephonic, telex or telecopy
notice (confirmed in writing within five Business Days) specifying the nature of the items
giving rise to such adjustments and the amounts thereof;

     (ii) Auditors’ Management Letters. Promptly after the receipt thereof, any
auditors’ management letters are received by the Seller or by its accountants;

     (iii) Representations. Forthwith upon receiving knowledge of same, the Seller
shall notify the Administrative Agent and each Purchaser Agent if any representation or
warranty set forth in Section 4.1 was incorrect at the time it was given or deemed
to have been given and at the same time deliver to the Administrative Agent and each
Purchaser Agent a written notice setting forth in reasonable detail the nature of such facts
and circumstances. In particular, but without limiting the foregoing, the Seller shall
notify the Administrative Agent and each Purchaser Agent in the manner set forth in

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the preceding sentence before any Funding Date of any facts or circumstances within the
knowledge of the Seller which would render any of the said representations and warranties
untrue at the date when such representations and warranties were made or deemed to have been
made;

     (iv) ERISA. Promptly after receiving notice of any “reportable event” (as
defined in Title IV of ERISA) with respect to the Seller (or any Affiliate thereof), a copy
of such notice;

     (v) Proceedings. As soon as possible and in any event within three Business
Days after any executive officer of the Seller receives notice or obtains knowledge thereof,
of any settlement of, material judgment (including a material judgment with respect to the
liability phase of a bifurcated trial) in or commencement of any material labor controversy,
material litigation, material action, material suit or material proceeding before any court
or governmental department, commission, board, bureau, agency or instrumentality, domestic
or foreign, affecting the Collateral, the Transaction Documents, the Secured Parties’
interest in the Collateral, or the Seller, the Servicer or the Originator or any of their
Affiliates; provided that, notwithstanding the foregoing, any settlement, judgment, labor
controversy, litigation, action, suit or proceeding affecting the Collateral, the
Transaction Documents, the Secured Parties’ interest in the Collateral, or the Seller, the
Servicer or the Originator or any of their Affiliates in excess of $2,500,000 or more shall
be deemed to be material for purposes of this Section 5.1(o); and

     (vi) Notice of Material Events. Promptly upon becoming aware thereof, notice
of any other event or circumstances that, in the reasonable judgment of the Seller, is
likely to have a Material Adverse Effect.

     (p) Other. The Seller will furnish to the Administrative Agent and each Purchaser
Agent promptly, from time to time, such other information, documents, records or reports respecting
the Collateral or the condition or operations, financial or otherwise, of Seller or Originator as
the Administrative Agent and each Purchaser Agent may from time to time reasonably request in order
to protect the interests of the Administrative Agent, each Purchaser Agent or the Secured Parties
under or as contemplated by this Agreement.

     Section 5.2 Negative Covenants of the Seller.

     From the date hereof until the Collection Date:

     (a) Other Business. Seller will not (i) engage in any business other than the
transactions contemplated by the Transaction Documents, (ii) incur any Indebtedness, obligation,
liability or contingent obligation of any kind other than pursuant to this Agreement or under any
Hedging Agreement required by Section 5.3(a), or (iii) form any Subsidiary or make any
Investments in any other Person.

     (b) Collateral Not to be Evidenced by Instruments. The Seller will take no action to
cause any Collateral that is not, as of the Closing Date or the related Addition Date, as the case
may be, evidenced by an Instrument, to be so evidenced except in connection with the enforcement or
collection of such Collateral.

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     (c) Security Interests. Except as otherwise permitted herein and in respect of any
Optional Sale and Permitted Securitization, the Seller will not sell, pledge, assign or transfer to
any other Person, or grant, create, incur, assume or suffer to exist any Lien on any Collateral,
whether now existing or hereafter transferred hereunder, or any interest therein, and the Seller
will not sell, pledge, assign or suffer to exist any Lien on its interest, if any, hereunder. The
Seller will promptly notify the Administrative Agent and each Purchaser Agent of the existence of
any Lien on any Collateral and the Seller shall defend the right, title and interest of the
Administrative Agent as agent for the Secured Parties in, to and under the Collateral against all
claims of third parties; provided that nothing in this Section 5.2(c) shall prevent or be
deemed to prohibit the Seller from suffering to exist Permitted Liens upon any of the Collateral.

     (d) Mergers, Acquisitions, Sales, etc. The Seller will not be a party to any merger
or consolidation, or purchase or otherwise acquire any of the assets or any stock of any class of,
or any partnership or joint venture interest in, any other Person, or sell, transfer, convey or
lease any of its assets, or sell or assign with or without recourse any Collateral or any interest
therein (other than pursuant hereto or to the Sale Agreement).

     (e) Deposits to Special Accounts. Except as otherwise provided in the Lock-Box
Agreement, the Seller will not deposit or otherwise credit, or cause or permit to be so deposited
or credited, to any Lock-Box Account cash or cash proceeds other than Collections in respect of the
Collateral.

     (f) Restricted Payments. The Seller shall not make any Restricted Junior Payment,
except that, so long as no Termination Event or Unmatured Termination Event has occurred and is
continuing or would result therefrom, the Seller may declare and make distributions to its members
on their membership interests.

     (g) Change of Name or Location of Loan Files. The Seller shall not (x) change its
name, move the location of its principal place of business and chief executive office, change the
offices where it keeps the records from the location referred to in Section 13.2, or change
the jurisdiction of its formation, or (y) move, or consent to the Collateral Custodian or Servicer
moving, the Required Asset Documents and the Asset Files from the location thereof on the Closing
Date, unless the Seller has given at least thirty (30) days’ written notice to the Administrative
Agent and has taken all actions required under the UCC of each relevant jurisdiction in order to
continue the first priority perfected security interest of the Administrative Agent, as agent for
the Secured Parties, in the Collateral.

     (h) Accounting of Purchases. Other than for tax and consolidated accounting purposes,
the Seller will not account for or treat (whether in financial statements or otherwise) the
transactions contemplated hereby in any manner other than as a sale of the Collateral by the Seller
to the Secured Parties. Other than for tax and consolidated accounting purposes, the Seller will
not account for or treat (whether in financial statements or otherwise) the transactions
contemplated by the Sale Agreement in any manner other than as a sale of the Collateral by the
Originator to the Seller.

     (i) ERISA Matters. The Seller will not (a) engage or permit any ERISA Affiliate to
engage in any prohibited transaction for which an exemption is not available or has not

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previously been obtained from the United States Department of Labor, (b) permit to exist any
accumulated funding deficiency, as defined in Section 302(a) of ERISA and Section 412(a) of the
Code, or funding deficiency with respect to any Benefit Plan other than a Multiemployer Plan, (c)
fail to make any payments to a Multiemployer Plan that the Seller or any ERISA Affiliate may be
required to make under the agreement relating to such Multiemployer Plan or any law pertaining
thereto, (d) terminate any Benefit Plan so as to result in any liability, or (e) permit to exist
any occurrence of any reportable event described in Title IV of ERISA.

     (j) Operating Agreement; Sale Agreement. The Seller will not amend, modify, waive or
terminate any provision of its operating agreement or the Sale Agreement without the prior written
consent of the Administrative Agent and each Purchaser Agent.

     (k) Changes in Payment Instructions to Obligors. The Seller will not add or terminate
any bank as a Lock-Box Bank or any Lock-Box Account from those listed in Schedule II or
make any change, or permit Servicer to make any change, in its instructions to Obligors regarding
payments to be made to Seller or Servicer or payments to be made to any Lock-Box Bank, unless the
Administrative Agent has consented to such addition, termination or change (which consent shall not
be unreasonably withheld) and has received duly executed copies of Lock-Box Agreements with each
new Lock-Box Bank or with respect to each new Lock-Box Account, as the case may be.

     (l) Extension or Amendment of Collateral. The Seller will not, except as otherwise
permitted in Section 6.4(a), waive, extend, amend or otherwise modify, or permit the
Servicer to extend, amend or otherwise modify, the terms of any Collateral (including the Related
Security) provided that no waiver, extension, modification or alteration otherwise permitted under
Section 6.4(a) shall (i) alter the status of any Asset as a Delinquent Asset or Charged-Off
Asset, (ii) in the reasonable judgment of the Administrative Agent, prevent or delay any Asset from
becoming a Delinquent Asset or Charged-Off Asset, or (iii) limit and/or impair the rights of the
Administrative Agent or the Secured Parties under this Agreement.

     (m) Credit and Collection Policy. The Seller will not materially amend, modify,
restate or replace, in whole or in part, the Credit and Collection Policy, which amendment,
modification, restatement or replacement would impair the collectibility of any of the Collateral
or otherwise adversely affect the interests or remedies of the Administrative Agent, each Purchaser
Agent or the Secured Parties under this Agreement or any other Transaction Document, without the
prior written consent of the Administrative Agent and each Purchaser Agent (which consent will not
be unreasonably withheld).

     (n) Other Indebtedness. The Seller will not issue or extend any class or type of
Indebtedness whether senior, pari passu or subordinated to the Indebtedness arising under this
Agreement, unless an opinion of special tax counsel is first rendered to the effect that such
issuance of additional Indebtedness will not cause the Seller to be treated as a taxable mortgage
pool.

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     Section 5.3 Covenants of the Seller Relating to the Hedging of Assets.

     (a) On or prior to each Funding Date, the Seller shall enter into one or more Hedge
Transactions for that Advance; provided that each such Hedge Transaction shall:

     (i) be entered into with a Hedge Counterparty and governed by a Hedging Agreement;

     (ii) have a schedule of monthly calculation periods the first of which commences on the
Funding Date of that Advance and the last of which ends on the last Scheduled Payment due to
occur under or with respect to the Assets included in the Aggregate Outstanding Asset
Balance to which that Advance relates;

     (iii) have an amortizing notional amount such that the Hedge Notional Amount shall be
at least equal to the product of the Hedge Percentage and the portion of the Hedge Amount
represented by such Advance; and

     (iv) provide for two series of monthly payments to be netted against each other, one
such series being payments to be made by the Seller to a Hedge Counterparty (solely on a net
basis) by reference to a fixed rate for that Advance, and the other such series being
payments to be made by such Hedge Counterparty to the Administrative Agent (solely on a net
basis) at a floating rate equal to “USD-LIBOR-BBA” (as defined in the ISDA Definitions), the
net amount of which shall be paid into the Collection Account (if payable by such Hedge
Counterparty) or from the Collection Account to the extent funds are available under
Section 2.9(a)(1) and Section 2.10(a)(1) (if payable by the Seller).

     (b) As additional security hereunder, Seller hereby assigns to the Administrative Agent, as
agent for the Secured Parties, all right, title and interest but none of the obligations of the
Seller in each Hedging Agreement, each Hedge Transaction, and all present and future amounts
payable by a Hedge Counterparty to Seller under or in connection with the respective Hedging
Agreement and Hedge Transaction(s) with that Hedge Counterparty (“Hedge Collateral”), and grants a
security interest to the Administrative Agent, as agent for the Secured Parties, in the Hedge
Collateral. Seller acknowledges that, as a result of that assignment, Seller may not, without the
prior written consent of the Administrative Agent, exercise any rights under any Hedging Agreement
or Hedge Transaction, except for Seller’s right under any Hedging Agreement to enter into Hedge
Transactions in order to meet the Seller’s obligations under Section 5.3(a) hereof.
Nothing herein shall have the effect of releasing the Seller from any of its obligations under any
Hedging Agreement or any Hedge Transaction, nor be construed as requiring the consent of the
Administrative Agent or any Secured Party for the performance by Seller of any such obligations.

     Section 5.4 Affirmative Covenants of the Servicer.

     From the date hereof until the Collection Date:

     (a) Compliance with Law. The Servicer will comply in all material respects with all
Applicable Laws, including those with respect to the Collateral or any part thereof.

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

     (c) Obligations and Compliance with Collateral. The Servicer will duly fulfill and
comply with all obligations on the part of the Seller to be fulfilled or complied with under or in
connection with each Collateral and will do nothing to impair the rights of the Administrative
Agent, as agent for the Secured Parties, or of the Secured Parties in, to and under the Collateral.

     (d) Keeping of Records and Books of Account.

     (i) The Servicer will maintain and implement administrative and operating procedures
(including without limitation, an ability to recreate records evidencing Collateral in the
event of the destruction of the originals thereof), and keep and maintain all documents,
books, records and other information reasonably necessary or advisable for the collection of
all Collateral and the identification of the Collateral.

     (ii) The Servicer shall permit the Administrative Agent, each Purchaser Agent or their
respective agents or representatives, to visit the offices of the Servicer during normal
office hours and upon reasonable notice and examine and make copies of all documents, books,
records and other information concerning the Collateral and discuss matters related thereto
with any of the officers or employees of the Servicer having knowledge of such matters.

     (iii) The Servicer will on or prior to the date hereof, mark its master data processing
records and other books and records relating to the Collateral with a legend, acceptable to
the Administrative Agent and each Purchaser Agent, describing the sale of the Collateral (A)
from the Originator to the Seller, and (B) from the Seller to the Purchaser.

     (e) Preservation of Security Interest. The Servicer (at its own expense) will execute
and file such financing and continuation statements and any other documents that may be required by
any law or regulation of any Governmental Authority to preserve and protect fully the security
interest of the Administrative Agent as agent for the Secured Parties in, to and under the
Collateral.

     (f) Credit and Collection Policy. The Servicer will (i) comply in all material
respects with the Credit and Collection Policy in regard to the Collateral, and (ii) furnish to the
Administrative Agent and each Purchaser Agent, prior to its effective date, prompt notice of any
proposed material change in the Credit and Collection Policy. Without the prior written consent of
the Administrative Agent and each Purchaser Agent (which consent will not be unreasonably
withheld), the Servicer will not agree to or otherwise permit to occur any material change in the
Credit and Collection Policy, which change would impair the collectibility of any of the Collateral
or otherwise adversely affect the interests or remedies of the Administrative Agent,

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each Purchaser Agent or the Secured Parties under this Agreement or any other Transaction
Document.

     (g) Termination Events. The Servicer will provide the Administrative Agent and each
Purchaser Agent with immediate written notice of the occurrence of each Termination Event and each
Unmatured Termination Event of which the Servicer has knowledge or has received notice. In
addition, no later than two Business Days following the Servicer’s knowledge or notice of the
occurrence of any Termination Event or Unmatured Termination Event, the Servicer will provide to
the Administrative Agent and each Purchaser Agent a written statement of the chief financial
officer or chief accounting officer of the Servicer setting forth the details of such event and the
action that the Servicer proposes to take with respect thereto.

     (h) Taxes. The Servicer will file and pay any and all Taxes required to meet the
obligations of the Seller and the Servicer under the Transaction Documents.

     (i) Other. The Servicer will promptly furnish to the Administrative Agent and each
Purchaser Agent such other information, documents, records or reports respecting the Collateral or
the condition or operations, financial or otherwise, of the Seller or the Servicer as the
Administrative Agent and each Purchaser Agent may from time to time reasonably request in order to
protect the interests of the Administrative Agent, each Purchaser Agent or Secured Parties under or
as contemplated by this Agreement.

     (j) Proceedings. As soon as possible and in any event within three Business Days
after any executive officer of the Servicer receives notice or obtains knowledge thereof, of any
settlement of, material judgment (including a material judgment with respect to the liability phase
of a bifurcated trial) in or commencement of any material labor controversy material litigation,
material action, material suit or material proceeding before any court or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, affecting the
Collateral, the Transaction Documents, the Secured Parties’ interest in the Collateral, or the
Seller, the Servicer or the Originator or any of their Affiliates; provided that, notwithstanding
the foregoing, any settlement, judgment, labor controversy, litigation, action, suit or proceeding
affecting the Collateral, the Transaction Documents, the Secured Parties’ interest in the
Collateral, or the Seller, the Servicer or the Originator or any of their Affiliates in excess of
$2,500,000 or more shall be deemed to be material for purposes of this Section 5.4(j).

     (k) Deposit of Collections. The Servicer shall promptly (but in no event later than
two Business Days after receipt) deposit into the Collection Account any and all Collections
received by the Seller, the Servicer or any of their Affiliates.

     (l) Servicing of Participation, Acquired and Assigned Loans. With respect to
Participation Loans, Acquired Loans and Assigned Loans, the Servicer shall: (i) segregate all Loan
Files with respect to such Loans; (ii) keep separate records with respect to such Loans; and (iii)
identify each such Type of Loan on the Servicing Reports required hereunder with respect to such
Loans.

     (m) Change-in-Control. Upon the occurrence of a Change-in-Control (including any
merger or consolidation of the Originator or transfer of substantially all of its assets and its

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business), the Servicer shall provide the Administrative Agent, each Purchaser Agent and the
Hedge Counterparties with notice of such Change-in-Control within thirty (30) days after completion
of the same.

     (n) Loan Register.

     (i) The Servicer shall maintain with respect to each Noteless Loan a register (each, a
“Loan Register”) in which it will record (v) the amount of such Loan, (w) the amount of any
principal or interest due and payable or to become due and payable from the Obligor
thereunder, (x) the amount of any sum in respect of such Loan received from the Obligor and
each Purchaser’s share thereof, (y) the date of origination of such Loan and (z) the
maturity date of such Loan. The entries made in each Loan Register maintained pursuant to
this Section 5.04(n) shall be prima facie evidence of the existence and amounts of
the obligations therein recorded; provided that the failure of the Servicer to maintain any
such Loan Register or any error therein shall not in any manner affect the obligations of
the Obligor to repay the related Loans in accordance with their terms or any Purchaser’s
interest therein.

     (ii) At any time a Noteless Loan is included as part of the Collateral pursuant to this
Agreement, the Servicer shall deliver to the Collateral Custodian a copy of the related Loan
Register, together with a certificate of a Responsible Officer of the Servicer certifying to
the accuracy of such Loan Register as of the date such Loan is included as part of the
Collateral.

     Section 5.5 Negative Covenants of the Servicer.

     From the date hereof until the Collection Date.

     (a) Deposits to Special Accounts. Except as otherwise provided in the Lock-Box
Agreement, the Servicer will not deposit or otherwise credit, or cause or permit to be so deposited
or credited, to any Lock-Box Account cash or cash proceeds other than Collections in respect of the
Collateral.

     (b) Mergers, Acquisition, Sales, etc. The Servicer will not consolidate with or merge
into any other Person or convey or transfer its properties and assets substantially as an entirety
to any Person, unless the Servicer is the surviving entity and unless:

     (i) the Servicer has delivered to the Administrative Agent and each Purchaser Agent an
Officer’s Certificate and an Opinion of Counsel each stating that any consolidation, merger,
conveyance or transfer and such supplemental agreement comply with this Section 5.5
and that all conditions precedent herein provided for relating to such transaction have been
complied with and, in the case of the Opinion of Counsel, that such supplemental agreement
is legal, valid and binding with respect to the Servicer and such other matters as the
Administrative Agent may reasonably request;

     (ii) the Servicer shall have delivered notice of such consolidation, merger, conveyance
or transfer to the Administrative Agent and each Purchaser Agent;

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     (iii) after giving effect thereto, no Termination Event or Servicer Default or event
that with notice or lapse of time would constitute either a Termination Event or a Servicer
Default shall have occurred; and

     (iv) the Administrative Agent and each Purchaser Agent have consented in writing to
such consolidation, merger, conveyance or transfer.

     (c) Change of Name or Location of Loan Files. The Servicer shall not (x) change its
name, move the location of its principal place of business and chief executive office, change the
offices where it keeps records concerning the Collateral from the location referred to in
Section 13.2, or change the jurisdiction of its formation, or (y) move, or consent to the
Collateral Custodian moving, the Required Asset Documents and Asset Files from the location thereof
on the Closing Date, unless the Servicer has given at least thirty (30) days’ written notice to the
Administrative Agent and has taken all actions required under the UCC of each relevant jurisdiction
in order to continue the first priority perfected security interest of the Administrative Agent as
agent for the Secured Parties in the Collateral.

     (d) Change in Payment Instructions to Obligors. The Servicer will not add or
terminate any bank as a Lock-Box Bank or any Lock-Box Account from those listed in Schedule
II or make any change in its instructions to Obligors regarding payments to be made to the
Seller or the Servicer or payments to be made to any Lock-Box Bank, unless the Administrative Agent
has consented to such addition, termination or change (which consent shall not be unreasonably
withheld) and has received duly executed copies of Lock-Box Agreements with each new Lock-Box Bank
or with respect to each new Lock-Box Account, as the case may be.

     (e) Extension or Amendment of Assets. The Servicer will not, except as otherwise
permitted in Section 6.4(a), extend, amend or otherwise modify the terms of any Assets;
provided that no waiver, extension, modification or alteration otherwise permitted under
Section 6.4(a) shall (i) alter the status of any Asset as a Delinquent Asset or Charged-Off
Asset, (ii) in the reasonable judgment of the Administrative Agent, prevent or delay any Asset from
becoming a Delinquent Asset or Charged-Off Asset, or (iii) limit and/or impair the rights of the
Administrative Agent or the Secured Parties under this Agreement.

     Section 5.6 Affirmative Covenants of the Backup Servicer.

     From the date hereof until the Collection Date:

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

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

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     Section 5.7 Negative Covenants of the Backup Servicer.

     From the date hereof until the Collection Date:

     No Changes in Backup Servicer Fee. The Backup Servicer will not make any changes to
the Backup Servicer Fee set forth in the Backup Servicer Fee Letter without the prior written
approval of the Administrative Agent and each Purchaser Agent.

     Section 5.8 Affirmative Covenants of the Collateral Custodian.

     From the date hereof until the Collection Date:

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

     (b) Preservation of Existence. The Collateral Custodian will preserve and maintain
its existence, rights, franchises and privileges in the jurisdiction of its formation and qualify
and remain qualified in good standing in each jurisdiction where failure to preserve and maintain
such existence, rights, franchises, privileges and qualification has had, or could reasonably be
expected to have, a Material Adverse Effect.

     (c) Location of Required Asset Documents. The Required Asset Documents shall remain
at all times in the possession of the Collateral Custodian at the address set forth herein unless
notice of a different address is given in accordance with the terms hereof or unless the
Administrative Agent agrees to allow certain Required Asset Documents to be released to the
Servicer on a temporary basis in accordance with the terms hereof.

     Section 5.9 Negative Covenants of the Collateral Custodian.

     From the date hereof until the Collection Date:

     (a) Required Asset Documents. The Collateral Custodian will not dispose of any
documents constituting the Required Asset Documents in any manner that is inconsistent with the
performance of its obligations as the Collateral Custodian pursuant to this Agreement and will not
dispose of any Collateral except as contemplated by this Agreement.

     (b) No Changes in Collateral Custodian Fee. The Collateral Custodian will not make
any changes to the Collateral Custodian Fee set forth in the Collateral Custodian Fee Letter
without the prior written approval of the Administrative Agent and each Purchaser Agent.

ARTICLE VI

ADMINISTRATION AND SERVICING OF CONTRACTS

     Section 6.1 Designation of the Servicer.

     (a) Initial Servicer. The servicing, administering and collection of the Collateral
shall be conducted by the Person designated as the Servicer hereunder from time to time in
accordance

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with this Section 6.1. Until the Administrative Agent gives to the Originator a
Servicer Termination Notice, the Originator is hereby designated as, and hereby agrees to perform
the duties and responsibilities of, the Servicer pursuant to the terms hereof.

     (b) Successor Servicer. Upon the Servicer’s receipt of a Servicer Termination Notice
(with a copy to the Backup Servicer) from the Administrative Agent pursuant to the terms of
Section 6.15, the Servicer agrees that it will terminate its activities as Servicer
hereunder in a manner that the Administrative Agent reasonably believes will facilitate the
transition of the performance of such activities to a successor Servicer, and the successor
Servicer shall assume each and all of the Servicer’s obligations to service and administer the
Collateral, on the terms and subject to the conditions herein set forth, and the Servicer shall use
its best reasonable efforts to assist the successor Servicer in assuming such obligations.

     (c) Subcontracts. The Servicer may, with the prior consent of the Administrative
Agent, subcontract with any other Person for servicing, administering or collecting the Collateral;
provided that the Servicer shall remain liable for the performance of the duties and obligations of
the Servicer pursuant to the terms hereof and that any such subcontract may be terminated upon the
occurrence of a Servicer Default.

     (d) Servicing Programs. In the event that the Servicer uses any software program in
servicing the Collateral that it licenses from a third party, the Servicer shall use its best
reasonable efforts to obtain, either before the Closing Date or as soon as possible thereafter,
whatever licenses or approvals are necessary to allow the Administrative Agent or the Servicer to
use such program.

     Section 6.2 Duties of the Servicer.

     (a) Appointment. The Seller hereby appoints the Servicer as its agent, as from time
to time designated pursuant to Section 6.1, to service the Collateral and enforce its
respective rights in and under such Collateral. The Servicer hereby accepts such appointment and
agrees to perform the duties and obligations with respect thereto as set forth herein. The
Servicer and the Seller hereby acknowledge that the Administrative Agent, each Purchaser Agent and
the Secured Parties are third party beneficiaries of the obligations undertaken by the Servicer
hereunder.

     (b) Duties. The Servicer shall take or cause to be taken all such actions as may be
necessary or advisable to collect on the Collateral from time to time, all in accordance with
Applicable Laws, with reasonable care and diligence, and in accordance with the Credit and
Collection Policy. Without limiting the foregoing, the duties of the Servicer shall include the
following:

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

     (ii) maintaining all necessary servicing records with respect to the Collateral and
providing such reports to the Administrative Agent and each Purchaser Agent in respect of
the servicing of the Collateral (including information relating to its performance under
this Agreement) as may be required hereunder or as the Administrative Agent and each
Purchaser Agent may reasonably request;

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     (iii) maintaining and implementing administrative and operating procedures (including,
without limitation, an ability to recreate servicing records evidencing the Collateral in
the event of the destruction of the originals thereof) and keeping and maintaining all
documents, books, records and other information reasonably necessary or advisable for the
collection of the Collateral;

     (iv) promptly delivering to the Administrative Agent, each Purchaser Agent or the
Collateral Custodian, from time to time, such information and servicing records (including
information relating to its performance under this Agreement) as the Administrative Agent,
each Purchaser Agent or the Collateral Custodian may from time to time reasonably request;

     (v) identifying each Asset clearly and unambiguously in its servicing records to
reflect that such Asset is owned by the Seller and that the Seller is selling an undivided
ownership interest therein to the Secured Parties pursuant to this Agreement;

     (vi) notifying the Administrative Agent and each Purchaser Agent of any material
action, suit, proceeding, dispute, offset, deduction, defense or counterclaim (1) that is or
is threatened to be asserted by an Obligor with respect to any Asset (or portion thereof) of
which it has knowledge or has received notice; or (2) that is reasonably expected to have a
Material Adverse Effect;

     (vii) notifying the Administrative Agent and each Purchaser Agent of any proposed
change in the Credit and Collection Policy that could have an adverse effect on the
collectibility of the Collateral, on the Seller or on the interests of the Administrative
Agent, each Purchaser Agent or any Secured Party;

     (viii) using its reasonable best efforts to maintain the perfected security interest of
the Administrative Agent, as agent for the Secured Parties, in the Collateral;

     (ix) maintaining in the same manner as the Collateral Custodian holds the Required
Asset Documents, the Asset File (other than Required Asset Documents) with respect to each
Asset included as part of the Collateral; and

     (x) the Servicer shall make payments pursuant to the terms of the Monthly Report in
accordance with Section 2.9 and Section 2.10.

     (c) Notwithstanding anything to the contrary contained herein, the exercise by the
Administrative Agent, each Purchaser Agent and the Secured Parties of their rights hereunder shall
not release the Servicer, the Originator or the Seller from any of their duties or responsibilities
with respect to the Collateral. The Secured Parties, the Administrative Agent, each Purchaser
Agent and the Collateral Custodian (except in the role of Backup Servicer) shall not have any
obligation or liability with respect to any Collateral, nor shall any of them be obligated to
perform any of the obligations of the Servicer hereunder.

     (d) Any payment by an Obligor in respect of any Indebtedness owed by it to the Originator or
the Seller shall, except as otherwise specified by such Obligor or otherwise required by contract
or law and unless otherwise instructed by the Administrative Agent, be

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applied as a Collection of an item of Collateral of such Obligor (starting with the oldest
such Collateral) to the extent of any amounts then due and payable thereunder before being applied
to any other receivable or other obligation of such Obligor.

     Section 6.3 Authorization of the Servicer.

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

     (b) After a Termination Event has occurred and is continuing, at the direction the
Administrative Agent, the Servicer shall take such action as the Administrative Agent may deem
necessary or advisable to enforce collection of the Collateral; provided that the Administrative
Agent may, at any time that a Termination Event or Unmatured Termination Event has occurred and is
continuing, notify any Obligor with respect to any Collateral of the assignment of such Collateral
to the Administrative Agent and direct that payments of all amounts due or to become due be made
directly to the Administrative Agent and each Purchaser Agent or any servicer, collection agent or
lock-box or other account designated by the Administrative Agent and each Purchaser Agent and, upon
such notification and at the expense of the Seller, the Administrative Agent may enforce collection
of any such Collateral, and adjust, settle or compromise the amount or payment thereof.

     Section 6.4 Collection of Payments.

     (a) Collection Efforts, Modification of Collateral. The Servicer will use its
reasonable best efforts to collect all payments called for under the terms and provisions of the
Assets included in the Collateral as and when the same become due in accordance with the Credit and
Collection Policy, and will follow those collection procedures that it follows with respect to all
comparable Collateral that it services for itself or others. The Servicer may not

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waive, modify or otherwise vary any provision of an item of Collateral in a manner that, in
its reasonable judgment, would impair the collectibility of the Collateral or in any manner
contrary to the Credit and Collection Policy.

     (b) Prepaid Asset. Prior to a Termination Event, upon any Asset becoming a Prepaid
Asset, the Servicer shall either (x) provide a Substitute Asset in accordance with Section
2.18 or (y) deposit to the Collection Account (in addition to all amounts received from the
related Obligor upon the prepayment of such Asset) an amount equal to the excess, if any, of the
sum of (a) the Outstanding Asset Balance on the date of such payment, (b) any outstanding Servicer
Advances thereon, (c) any accrued and unpaid interest, and (d) all Hedge Breakage Costs owing to
the relevant Hedge Counterparty for any termination of one or more Hedge Transactions, in whole or
in part, as required by the terms of any Hedging Agreement as the result of any such Asset becoming
a Prepaid Asset, over the amount received from the related Obligor upon such prepayment
(such excess, the “Prepayment Amount”), in each case, only to the extent necessary to cause the
Availability as of such date (after giving effect to such substitution or deposit, as applicable)
to be greater than or equal to zero. After a Termination Event has occurred, upon any Asset
becoming a Prepaid Asset, the Servicer shall deposit to the Collection Account all amounts received
from the related Obligor upon the prepayment of such Asset plus the Prepayment Amount, if any.

     (c) Acceleration. If required by the Credit and Collection Policy, the Servicer shall
accelerate the maturity of all or any Scheduled Payments and other amounts due under any Asset in
which a default under the terms thereof has occurred and is continuing (after the lapse of any
applicable grace period) promptly after such Asset becomes a Charged-Off Asset.

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

     (e) Payments to Lock-Box Account. Subject to Section 5.1(p), on or before the
applicable Cut-Off Date, the Servicer shall have instructed all Obligors to make all payments in
respect of the Collateral to the Lock-Box or directly to the Lock-Box Account.

     (f) Establishment of the Collection Account. The Servicer shall cause to be
established, on or before the Closing Date, with the Collateral Custodian, and maintained in the
name of the Administrative Agent as agent for the Secured Parties, with an office or branch of a
depository institution or trust company a segregated corporate trust account entitled Collection
Account for Wachovia Capital Markets, LLC, as Administrative Agent for the Secured Parties (the
“Collection Account”), and the Servicer shall further maintain a subaccount within the Collection
Account for the purpose of segregating, within two Business Days of the receipt of any Collections,
Principal Collections (the “Principal Collections Account”), over which the Collateral Custodian as
agent for the Secured Parties shall have control and from which neither the Originator, Servicer
nor the Seller shall have any right of withdrawal except in accordance with Section 2.9(b);
provided that at all times such depository institution or trust company shall be acceptable to the
Administrative Agent and a depository institution organized under the laws of the United States of
America or any one of the States thereof or the District of Columbia (or

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any domestic branch of a foreign bank), (i) (a) that has either (1) a long-term unsecured debt
rating of “A” or better by S&P and “A2” or better by Moody’s or (2) a short-term unsecured debt
rating or certificate of deposit rating of “A-1” or better by S&P or “P-1” or better by Moody’s,
(b) the parent corporation of which has either (1) a long-term unsecured debt rating of “A” or
better by S&P and “A2” or better by Moody’s or (2) a short-term unsecured debt rating or
certificate of deposit rating of “A-1” or better by S&P and “P-1” or better by Moody’s or (c) is
otherwise acceptable to the Administrative Agent and (ii) whose deposits are insured by the Federal
Deposit Insurance Corporation (any such depository institution or trust company, a “Qualified
Institution”).

     (g) Establishment of the Excess Spread Account. The Seller or the Servicer on its
behalf shall establish, on or before the Closing Date, with the Collateral Custodian, and cause to
be maintained in the name of the Seller and assigned to the Administrative Agent, with a Qualified
Institution an account into which all amounts paid by the Originator pursuant to Section
2.21 of this Agreement shall be deposited (the “Excess Spread Account”). Upon receipt of the
Required Equity Contribution Notice the Seller shall deposit within the timeframe set forth in
Section 2.21 an amount of cash into the Excess Spread Account equal to the Required Equity
Shortfall. To the extent that, on any Payment Date during the Amortization Period, there are funds
on deposit in the Excess Spread Account, such funds shall be applied on such Payment Date in
accordance with Section 2.10.

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

     Section 6.5 Servicer Advances.

     For each Collection Period, if the Servicer determines that any Scheduled Payment (or portion
thereof) that was due and payable pursuant to an Asset during such Collection Period was not
received prior to the last day of such Collection Period, the Servicer may (in its sole and
absolute discretion) make an advance in an amount up to the amount of such delinquent Scheduled
Payment. The Servicer will deposit any Servicer Advances into the Collection Account on or prior
to 9:00 a.m. (Charlotte, North Carolina time) on the Business Day prior to the related Payment
Date, in immediately available funds. Notwithstanding anything to the contrary contained herein,
no Successor Servicer shall have any responsibility to make Servicer Advances.

     Section 6.6 Realization Upon Charged-Off Assets.

     The Servicer will use reasonable efforts to repossess or otherwise comparably convert the
ownership of any Related Property relating to a Charged-Off Asset and will act as sales and
processing agent for Related Property that it repossesses. The Servicer will follow such other

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practices and procedures as it deems necessary or advisable and as are customary and usual in
its servicing of contracts and other actions by the Servicer in order to realize upon such Related
Property, which practices and procedures may include reasonable efforts to enforce all obligations
of Obligors and repossessing and selling such Related Property at public or private sale in
circumstances other than those described in the preceding sentence. Without limiting the
generality of the foregoing, unless the Administrative Agent has specifically given instruction to
the contrary, the Servicer may sell any such Related Property to the Servicer or its Affiliates for
a purchase price equal to the then fair market value thereof, any such sale to be evidenced by a
certificate of a Responsible Officer of the Servicer delivered to the Administrative Agent setting
forth the Asset, the Related Property, the sale price of the Related Property and certifying that
such sale price is the fair market value of such Related Property. In any case in which any such
Related Property has suffered damage, the Servicer will not expend funds in connection with any
repair or toward the repossession of such Related Property unless it reasonably determines that
such repair and/or repossession will increase the Recoveries by an amount greater than the amount
of such expenses. The Servicer will remit to the Collection Account the Recoveries received in
connection with the sale or disposition of Related Property relating to a Charged-Off Asset.

     Section 6.7 Maintenance of Insurance Policies.

     The Servicer will use its reasonable best efforts to ensure that each Obligor maintains an
Insurance Policy with respect to any Related Property (other than accounts receivable) in an amount
at least equal to the Servicer’s good faith and commercially reasonable estimate of the value of
the real property, inventory, and/or equipment constituting such Related Property and shall ensure
that each such Insurance Policy names the Servicer as loss payee and as an insured thereunder and
all of the Seller’s right, title and interest therein is fully assigned to the Administrative
Agent, as agent for the Secured Parties. Additionally, the Servicer will require that each Obligor
maintain property damage liability insurance during the term of each Asset in amounts and against
risks customarily insured against by the Obligor on property owned by it. If an Obligor fails to
maintain property damage insurance, the Servicer may in its discretion purchase and maintain such
insurance on behalf of, and at the expense of, the Obligor. In connection with its activities as
Servicer, the Servicer agrees to present, on behalf of the Administrative Agent, claims to the
insurer under each Insurance Policy and any such liability policy, and to settle, adjust and
compromise such claims, in each case, consistent with the terms of each Asset. The Servicer’s
Insurance Policies with respect to the Related Property will insure against liability for physical
damage relating to such Related Property in accordance with the requirements of the Credit and
Collection Policy. The Servicer hereby disclaims any and all right, title and interest in and to
any Insurance Policy and Insurance Proceeds with respect to any Related Property, including any
Insurance Policy with respect to which it is named as loss payee and as an insured, and agrees that
it has no equitable, beneficial or other interest in the Insurance Polices and Insurance Proceeds
other than being named as loss payee and as an insured. The Servicer acknowledges that with
respect to the Insurance Policies and Insurance Proceeds thereof that it is acting solely in the
capacity as agent for the Administrative Agent, as agent for the Secured Parties.

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     Section 6.8 Servicing Compensation.

     As compensation for its servicing activities hereunder and reimbursement for its expenses, the
Servicer shall be entitled to receive the Servicing Fee to the extent of funds available therefor
pursuant to the provisions of Section 2.9(a)(3) or Section 2.10(a)(3), as
applicable.

     Section 6.9 Payment of Certain Expenses by Servicer.

     The Servicer will be required to pay all expenses incurred by it in connection with its
activities under this Agreement, including fees and disbursements of independent accountants, Taxes
imposed on the Servicer, expenses incurred in connection with payments and reports pursuant to this
Agreement, and all other fees and expenses not expressly stated under this Agreement for the
account of the Seller, but excluding Liquidation Expenses incurred as a result of activities
contemplated by Section 6.6; provided that for avoidance of doubt, to the extent
Liquidation Expenses relate to a Loan and a Retained Interest such Liquidation Expenses shall be
allocated pro rata. The Servicer will be required to pay all reasonable fees and expenses owing to
any bank or trust company in connection with the maintenance of the Collection Account and the
Lock-Box Account. The Servicer shall be required to pay such expenses for its own account and
shall not be entitled to any payment therefor other than the Servicing Fee.

     Section 6.10 Reports.

     (a) Borrowing Notice. On each Funding Date, on each reduction of Advances Outstanding
pursuant to Section 2.4(b) and on each reinvestment of Principal Collections pursuant to
Section 2.9(b), the Seller (and the Servicer on its behalf) will provide a Borrowing
Notice, updated as of such date, to the Administrative Agent and each Purchaser Agent (with a copy
to the Collateral Custodian).

     (b) Monthly Report. On each Reporting Date, the Servicer will provide to the Seller,
the Administrative Agent, each Purchaser Agent, the Backup Servicer and any Liquidity Bank, a
monthly statement including a Borrowing Base calculated as of the most recent Determination Date,
with respect to the related Collection Period signed by a Responsible Officer of the Servicer and
the Seller and substantially in the form of Exhibit C (a “Monthly Report”).

     (c) Servicer’s Certificate. Together with each Monthly Report, the Servicer shall
submit to the Administrative Agent, each Purchaser Agent and any Liquidity Bank a certificate (a
“Servicer’s Certificate”), signed by a Responsible Officer of the Servicer and substantially in the
form of Exhibit J.

     (d) Financial Statements. The Servicer will submit to the Administrative Agent, each
Purchaser Agent, each Purchaser, the Backup Servicer and any Liquidity Bank, (i) within forty-five
(45) days after the end of each of its first three fiscal quarters, commencing with the fiscal
quarter ending March 31, 2006, a copy of the quarterly report on Form 10-Q of CapitalSource Inc.
for the most recent fiscal quarter and unaudited consolidating statements, and (ii) within ninety
(90) days after the end of each fiscal year, commencing with the fiscal year ending December 31,
2006, a copy of the annual report on Form 10-K of CapitalSource Inc., in each

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case in the form as filed with the Securities and Exchange Commission and unaudited
consolidating statements.

     (e) Tax Returns. Upon demand by the Administrative Agent, each Purchaser Agent and
any Liquidity Bank, copies of all federal, state and local Tax returns and reports filed by the
Seller and Servicer, or in which the Seller or Servicer was included on a consolidated or combined
basis (excluding sales, use and like taxes).

     (f) Financial Statements of Obligors. Upon demand by the Administrative Agent, each
Purchaser Agent and any Liquidity Bank, the Servicer will provide to such party the financial
statements of any Obligor.

     (g) Other Reports. The Servicer will provide any other reports requested by the
Administrative Agent and reasonably acceptable to the Originator.

     Section 6.11 Annual Statement as to Compliance.

     The Servicer will provide to the Administrative Agent and each Purchaser Agent, within ninety
(90) days following the end of each fiscal year of the Servicer, commencing with the fiscal year
ending on December 31, 2006, a fiscal report signed by a Responsible Officer of the Servicer
certifying that (a) a review of the activities of the Servicer, and the Servicer’s performance
pursuant to this Agreement, for the fiscal period ending on the last day of such fiscal year has
been made under such Person’s supervision and (b) the Servicer has performed or has caused to be
performed in all material respects all of its obligations under this Agreement throughout such year
and no Servicer Default has occurred and is continuing.

     Section 6.12 Annual Independent Public Accountant’s Servicing Reports.

     The Servicer will cause a firm of nationally recognized independent public accountants (who
may also render other services to the Servicer) to furnish to the Administrative Agent, each
Purchaser Agent, the Collateral Custodian and the Backup Servicer, within ninety (90) days
following the end of each fiscal year of the Servicer, commencing with the fiscal year ending on
December 31, 2006: (i) a report relating to such fiscal year to the effect that (a) such firm has
reviewed certain documents and records relating to the servicing of the Collateral, and (b) based
on such examination, such firm is of the opinion that the Monthly Reports for such year were
prepared in compliance with this Agreement, except for such exceptions as it believes to be
immaterial and such other exceptions as will be set forth in such firm’s report and (ii) a report
covering such fiscal year to the effect that such accountants have applied certain agreed-upon
procedures (which procedures shall have been approved by the Administrative Agent and each
Purchaser Agent) to certain documents and records relating to the Collateral under any Transaction
Document, compared the information contained in the Monthly Reports and the Servicer’s Certificates
delivered during the period covered by such report with such documents and records and that no
matters came to the attention of such accountants that caused them to believe that such servicing
was not conducted in compliance with this Article VI, except for such exceptions as such
accountants shall believe to be immaterial and such other exception as shall be set forth in such
statement.

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     Section 6.13 Limitation on Liability of the Servicer and Others

     Except as provided herein, the Servicer shall not be under any liability to the Administrative
Agent, each Purchaser Agent, the Secured Parties or any other Person for any action taken or for
refraining from the taking of any action pursuant to this Agreement whether arising from express or
implied duties under this Agreement; provided that notwithstanding anything to the contrary
contained herein nothing shall protect the Servicer against any liability that would otherwise be
imposed by reason of its willful misfeasance, bad faith or negligence in the performance of duties
or by reason of its willful misconduct hereunder.

     Section 6.14 The Servicer Not to Resign.

     The Servicer shall not resign from the obligations and duties hereby imposed on it except upon
the Servicer’s determination that (i) the performance of its duties hereunder is or becomes
impermissible under Applicable Law and (ii) there is no reasonable action that the Servicer could
take to make the performance of its duties hereunder permissible under Applicable Law. Any such
determination permitting the resignation of the Servicer shall be evidenced as to clause (i) above
by an Opinion of Counsel to such effect delivered to the Administrative Agent, each Purchaser Agent
and the Backup Servicer. No such resignation shall become effective until a Successor Servicer
shall have assumed the responsibilities and obligations of the Servicer in accordance with
Section 6.2.

     Section 6.15 Servicer Defaults.

     If any one of the following events (a “Servicer Default”) shall occur and be continuing:

     (a) any failure by the Servicer to make any payment, transfer or deposit (including without
limitation with respect to Collections) as required by this Agreement which continues unremedied
for a period of one Business Day;

     (b) any failure by the Servicer to give instructions or notice to the Administrative Agent and
each Purchaser Agent as required by this Agreement, or to deliver any required Monthly Report or
other Required Reports hereunder on or before the date occurring two Business Days after the date
such instruction, notice or report is required to be made or given, as the case may be, under the
terms of this Agreement;

     (c) any failure on the part of the Servicer duly to observe or perform in any material respect
any other covenants or agreements of the Servicer set forth in this Agreement or the other
Transaction Documents to which the Servicer is a party and the same continues unremedied for a
period of thirty (30) days after the earlier to occur of (i) the date on which written notice of
such failure requiring the same to be remedied shall have been given to the Servicer by the
Administrative Agent and each Purchaser Agent and (ii) the date on which the Servicer becomes aware
thereof;

     (d) any representation, warranty or certification made by the Servicer in any Transaction
Document or in any certificate delivered pursuant to any Transaction Document shall prove to have
been incorrect when made, which has a Material Adverse Effect on the Administrative Agent, any
Purchaser Agent or the Secured Parties and which continues to be

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unremedied for a period of thirty (30) days after the earlier to occur of (i) the date on
which written notice of such incorrectness requiring the same to be remedied shall have been given
to the Servicer by the Administrative Agent or any Purchaser Agent and (ii) the date on which the
Servicer becomes aware thereof;

     (e) an Insolvency Event shall occur with respect to the Servicer;

     (f) any material delegation of the Servicer’s duties that is not permitted by Section
6.1;

     (g) any financial or other information reasonably requested by the Administrative Agent, any
Purchaser Agent or any Purchaser is not provided as requested within a reasonable amount of time
following such request;

     (h) the rendering against the Servicer of one or more final judgments, decrees or orders for
the payment of money in excess of $10,000,000, individually or in the aggregate, and the
continuance of such judgment, decree or order unsatisfied and in effect for any period of more than
sixty (60) consecutive days without a stay of execution;

     (i) the failure of the Servicer to make any payment due with respect to any recourse debt or
other obligations, which debt or other obligations are in excess of $10,000,000, individually or in
the aggregate, or the occurrence of any event or condition that would permit acceleration of such
recourse debt or other obligations whether or not waived;

     (j) CapitalSource Inc.’s Consolidated Tangible Net Worth is less than (i) $1,015,000,000 plus
(ii) 70% of the cumulative Net Proceeds of Capital Stock/Conversion of Debt received at any time
after December 31, 2005;

     (k) [Reserved];

     (l) the Servicer fails in any material respect to comply with the Credit and Collection Policy
regarding the servicing of the Collateral;

     (m) the Servicer consents or agrees to, or otherwise permits to occur, any amendment,
modification, change, supplement or rescission of or to the Credit and Collection Policy (after the
adoption of same) in whole or in part that could be reasonably expected to have a Material Adverse
Effect upon the Collateral, the Administrative Agent, any Purchaser Agent or the Secured Parties,
without the prior written consent of the Administrative Agent and each Purchaser Agent; or

     (n) CSE Mortgage ceases to be the Servicer.

     then notwithstanding anything herein to the contrary, so long as any such Servicer Default shall
not have been remedied within any applicable cure period prior to the date of the Servicer
Termination Notice (defined below), the Administrative Agent, by written notice to the Servicer
(with a copy to the Backup Servicer) (a “Servicer Termination Notice”), may terminate all of the
rights and obligations of the Servicer as Servicer under this Agreement.

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     Section 6.16 Appointment of Successor Servicer.

     (a) On and after the receipt by the Servicer of a Servicer Termination Notice pursuant to
Section 6.15, the Servicer shall continue to perform all servicing functions under this
Agreement until the date specified in the Servicer Termination Notice or otherwise specified by the
Administrative Agent in writing or, if no such date is specified in such Servicer Termination
Notice or otherwise specified by the Administrative Agent, until a date mutually agreed upon by the
Servicer and the Administrative Agent. The Administrative Agent may at the time described in the
immediately preceding sentence in its sole discretion, appoint the Backup Servicer as the Servicer
hereunder, and the Backup Servicer shall on such date assume all obligations of the Servicer
hereunder, and all authority and power of the Servicer under this Agreement shall pass to and be
vested in the Backup Servicer. As compensation therefor, the Backup Servicer shall be entitled to
the Servicing Fee, together with other servicing compensation in the form of assumption fees, late
payment charges or otherwise as provided herein; including, without limitation, Transition
Expenses. In the event that the Administrative Agent does not so appoint the Backup Servicer,
there is no Backup Servicer or the Backup Servicer is unable to assume such obligations on such
date, the Administrative Agent shall as promptly as possible appoint a successor servicer (the
“Successor Servicer”), and such Successor Servicer shall accept its appointment by a written
assumption in a form acceptable to the Administrative Agent and each Purchaser Agent. In the event
that a Successor Servicer has not accepted its appointment at the time when the Servicer ceases to
act as Servicer, the Administrative Agent shall petition a court of competent jurisdiction to
appoint any established financial institution, having a net worth of not less than $50,000,000 and
whose regular business includes the servicing of Collateral, as the Successor Servicer hereunder.

     (b) Upon its appointment, the Backup Servicer (subject to Section 6.16(a)) or the
Successor Servicer, as applicable, shall be the successor in all respects to the Servicer with
respect to servicing functions under this Agreement and shall be subject to all the
responsibilities, duties and liabilities relating thereto placed on the Servicer by the terms and
provisions hereof, and all references in this Agreement to the Servicer shall be deemed to refer to
the Backup Servicer or the Successor Servicer, as applicable; provided that the Backup Servicer or
Successor Servicer, as applicable, shall have (i) no liability with respect to any action performed
by the terminated Servicer prior to the date that the Backup Servicer or Successor Servicer, as
applicable, becomes the successor to the Servicer or any claim of a third party based on any
alleged action or inaction of the terminated Servicer, (ii) no obligation to perform any advancing
obligations, if any, of the Servicer unless it elects to in its sole discretion, (iii) no
obligation to pay any taxes required to be paid by the Servicer (provided that the Backup Servicer
or Successor Servicer, as applicable, shall pay any income taxes for which it is liable), (iv) no
obligation to pay any of the fees and expenses of any other party to the transactions contemplated
hereby, and (v) no liability or obligation with respect to any Servicer indemnification obligations
of any prior Servicer, including the original Servicer. The indemnification obligations of the
Backup Servicer or the Successor Servicer, as applicable, upon becoming a Successor Servicer, are
expressly limited to those arising on account of its failure to act in good faith and with
reasonable care under the circumstances. In addition, the Backup Servicer or Successor Servicer,
as applicable, shall have no liability relating to the representations and warranties of the
Servicer contained in Article IV. Further, for so long as the

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Backup Servicer shall be the Successor Servicer, the provisions of Section 2.15,
Section 2.16(b) and Section 2.16(e) of this Agreement shall not apply to it in its
capacity as Servicer.

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

     (d) Upon the Backup Servicer receiving notice that it is required to serve as the Servicer
hereunder pursuant to the foregoing provisions of this Section 6.16, the Backup Servicer
will promptly begin the transition to its role as Servicer. Notwithstanding the foregoing, the
Backup Servicer may, in its discretion, appoint, or petition a court of competent jurisdiction to
appoint, any established servicing institution as the successor to the Servicer hereunder in the
assumption of all or any part of the responsibilities, duties or liabilities of the Servicer
hereunder. As compensation, any Successor Servicer (including, without limitation, the
Administrative Agent) so appointed shall be entitled to receive the Servicing Fee, together with
any other servicing compensation in the form of assumption fees, late payment charges or otherwise
as provided herein that accrued prior thereto, including, without limitation, Transition Expenses.
In the event the Backup Servicer is required to solicit bids as provided herein, the Backup
Servicer shall solicit, by public announcement, bids from banks and mortgage servicing institutions
meeting the qualifications set forth in Section 6.16(a). Such public announcement shall
specify that the Successor Servicer shall be entitled to the full amount of the Servicing Fee as
servicing compensation, together with the other servicing compensation in the form of assumption
fees, late payment charges or otherwise that accrued prior thereto. Within thirty (30) days after
any such public announcement, the Backup Servicer shall negotiate and effect the sale, transfer and
assignment of the servicing rights and responsibilities hereunder to the qualified party submitting
the highest qualifying bid. The Backup Servicer shall deduct from any sum received by the Backup
Servicer from the successor to the Servicer in respect of such sale, transfer and assignment all
costs and expenses of any public announcement and of any sale, transfer and assignment of the
servicing rights and responsibilities hereunder and the amount of any unreimbursed Servicing
Advances. After such deductions, the remainder of such sum shall be paid by the Backup Servicer to
the Servicer at the time of such sale, transfer and assignment to the Servicer’s successor. The
Backup Servicer and such successor shall take such action, consistent with this Agreement, as shall
be necessary to effectuate any such succession. No appointment of a successor to the Servicer
hereunder shall be effective until written notice of such proposed appointment shall have been
provided by the Backup Servicer to the Administrative Agent and each Purchaser Agent and the Backup
Servicer shall have consented thereto. The Backup Servicer shall not resign as servicer until a
Successor Servicer has been appointed and accepted such appointment. Notwithstanding anything to
the contrary contained herein, in no event shall Wells Fargo, in any capacity, be liable for any
Servicing Fee or for any differential in the amount of the Servicing Fee paid hereunder and the
amount necessary to induce any Successor Servicer under this Agreement and the transactions set
forth or provided for by this Agreement.

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ARTICLE VII

THE BACKUP SERVICER

     Section 7.1 Designation of the Backup Servicer.

     (a) Initial Backup Servicer. The backup servicing role with respect to the Collateral
shall be conducted by the Person designated as Backup Servicer hereunder from time to time in
accordance with this Section 7.1. Until the Administrative Agent shall give to Wells Fargo
a Backup Servicer Termination Notice, Wells Fargo is hereby designated as, and hereby agrees to
perform the duties and obligations of, a Backup Servicer pursuant to the terms hereof.

     (b) Successor Backup Servicer. Upon the Backup Servicer’s receipt of Backup Servicer
Termination Notice from the Administrative Agent of the designation of a replacement Backup
Servicer pursuant to the provisions of Section 7.5, the Backup Servicer agrees that it will
terminate its activities as Backup Servicer hereunder.

     Section 7.2 Duties of the Backup Servicer.

     (a) Appointment. The Seller and the Administrative Agent, as agent for the Secured
Parties, each hereby appoints Wells Fargo to act as Backup Servicer, for the benefit of the
Administrative Agent, each Purchaser Agent and the Secured Parties, as from time to time designated
pursuant to Section 7.1. The Backup Servicer hereby accepts such appointment and agrees to
perform the duties and obligations with respect thereto set forth herein.

     (b) Duties. On or before the initial Funding Date, and until its removal pursuant to
Section 7.5, the Backup Servicer shall perform, on behalf of the Administrative Agent and
the Secured Parties, the following duties and obligations:

     (i) On or before the Closing Date, the Backup Servicer shall accept from the Servicer
delivery of the information required to be set forth in the Monthly Reports (if any) in hard
copy and on computer tape; provided that the computer tape is in an MS DOS, PC readable
ASCII format or other format to be agreed upon by the Backup Servicer and the Servicer on or
prior to closing.

     (ii) Not later than 12:00 noon Charlotte, North Carolina time on each Reporting Date,
the Servicer shall deliver to the Backup Servicer the asset tape, which shall include but
not be limited to the following information: (x) for each Asset, the name and number of the
related Obligor, the collection status, the loan status, the date of each Scheduled Payment
and the Outstanding Asset Balance, (y) the Borrowing Base and (z) the Aggregate Outstanding
Asset Balance (the “Tape”). The Backup Servicer shall accept delivery of the Tape.

     (iii) Prior to the related Payment Date, the Backup Servicer shall review the Monthly
Report to ensure that it is complete on its face and that the following items in such
Monthly Report have been accurately calculated, if applicable, and reported: (A) the
Borrowing Base, (B) the Backup Servicing Fee, (C) the Assets that are current and not past
due, (D) the Assets that are 1 - 30 days past due, (E) the Assets that are 31 - 60

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days past due, (F) the Assets that are 61 — 90 days past due, (G) the Assets that are
90+ days past due, (H) the Pool Charged-Off Ratio, and (I) the Aggregate Outstanding Asset
Balance. The Backup Servicer by a separate written report shall notify the Administrative
Agent and the Servicer of any disagreements with the Monthly Report based on such review not
later than the Business Day preceding such Payment Date to such Persons.

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

     (c) Reliance on Tape. With respect to the duties described in Section 7.2(b),
the Backup Servicer, is entitled to rely conclusively, and shall be fully protected in so relying,
on the contents of each Tape, including, but not limited to, the completeness and accuracy thereof,
provided by the Servicer.

     Section 7.3 Merger or Consolidation.

     Any Person (i) into which the Backup Servicer may be merged or consolidated, (ii) that may
result from any merger or consolidation to which the Backup Servicer shall be a party, or (iii)
that may succeed to the properties and assets of the Backup Servicer substantially as a whole,
which Person in any of the foregoing cases executes an agreement of assumption to perform every
obligation of the Backup Servicer hereunder, shall be the successor to the Backup Servicer under
this Agreement without further act on the part of any of the parties to this Agreement provided
such Person is organized under the laws of the United States of America or any one of the States
thereof or the District of Columbia (or any domestic branch of a foreign bank), (i) (a) that has
either (1) a long-term unsecured debt rating of “A” or better by S&P and “A2” or better by Moody’s
or (2) a short-term unsecured debt rating or certificate of deposit rating of “A-1” or better by
S&P or “P-1” or better by Moody’s, (b) the parent corporation which has either (1) a long-term
unsecured debt rating of “A” or better by S&P and “A2” or better by Moody’s or (2) a short-term
unsecured debt rating or certificate of deposit rating of “A-1” or better by S&P and “P-1” or
better by Moody’s or (c) is otherwise acceptable to the Administrative Agent.

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     Section 7.4 Backup Servicing Compensation.

     As compensation for its back-up servicing activities hereunder, the Backup Servicer shall be
entitled to receive the Backup Servicing Fee from the Servicer. To the extent that such Backup
Servicing Fee is not paid by the Servicer, the Backup Servicer shall be entitled to receive the
unpaid balance of its Backup Servicing Fee to the extent of funds available therefor pursuant to
Section 2.9(a)(4) and Section 2.10(a)(4), as applicable. The Backup Servicer’s
entitlement to receive the Backup Servicing Fee shall cease (excluding any unpaid outstanding
amounts as of that date) on the earliest to occur of: (i) it becoming the Successor Servicer, (ii)
its removal as Backup Servicer pursuant to Section 7.5, or (iii) the termination of this
Agreement. Upon becoming Successor Servicer pursuant to Section 6.16, the Backup Servicer
shall be entitled to the Servicing Fee.

     Section 7.5 Backup Servicer Removal.

     The Backup Servicer may be removed, with or without cause, by the Administrative Agent by
notice given in writing to the Backup Servicer (the “Backup Servicer Termination Notice”). In the
event of any such removal, a replacement Backup Servicer may be appointed by the Administrative
Agent.

     Section 7.6 Limitation on Liability.

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

     (b) The Backup Servicer shall not be liable for any obligation of the Servicer contained in
this Agreement or for any errors of the Servicer contained in any computer tape, certificate or
other data or document delivered to the Backup Servicer hereunder or on which the Backup Servicer
must rely in order to perform its obligations hereunder, and the Secured Parties, the
Administrative Agent and the Collateral Custodian each agree to look only to the Servicer to
perform such obligations. The Backup Servicer shall have no responsibility and shall not be in
default hereunder or incur any liability for any failure, error, malfunction or any delay in
carrying out any of its duties under this Agreement if such failure or delay results from the
Backup Servicer acting in accordance with information prepared or supplied by a Person other than
the Backup Servicer or the failure of any such other Person to prepare or provide such

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information. The Backup Servicer shall have no responsibility, shall not be in default and
shall incur no liability for (i) any act or failure to act of any third party, including the
Servicer, (ii) any inaccuracy or omission in a notice or communication received by the Backup
Servicer from any third party, (iii) the invalidity or unenforceability of any Collateral under
Applicable Law, (iv) the breach or inaccuracy of any representation or warranty made with respect
to any Collateral, or (v) the acts or omissions of any successor Backup Servicer.

     Section 7.7 The Backup Servicer Not to Resign.

     The Backup Servicer shall not resign (except with prior consent of the Administrative Agent
which consent shall not be unreasonably withheld) from the obligations and duties hereby imposed on
it except upon the Backup Servicer’s determination that (i) the performance of its duties hereunder
is or becomes impermissible under Applicable Law and (ii) there is no reasonable action that the
Backup Servicer could take to make the performance of its duties hereunder permissible under
Applicable Law. Any such determination permitting the resignation of the Backup Servicer shall be
evidenced as to clause (i) above by an Opinion of Counsel to such effect delivered to the
Administrative Agent and each Purchaser Agent. No such resignation shall become effective until a
successor Backup Servicer shall have assumed the responsibilities and obligations of the Backup
Servicer hereunder.

ARTICLE VIII

THE COLLATERAL CUSTODIAN

     Section 8.1 Designation of Collateral Custodian.

     (a) Initial Collateral Custodian. The role of collateral custodian with respect to
the Required Asset Documents shall be conducted by the Person designated as Collateral Custodian
hereunder from time to time in accordance with this Section 8.1. Until the Administrative
Agent shall give to Wells Fargo a Collateral Custodian Termination Notice, Wells Fargo is hereby
designated as, and hereby agrees to perform the duties and obligations of, Collateral Custodian
pursuant to the terms hereof.

     (b) Successor Collateral Custodian. Upon the Collateral Custodian’s receipt of a
Collateral Custodian Termination Notice from the Administrative Agent of the designation of a
successor Collateral Custodian pursuant to the provisions of Section 8.5, the Collateral
Custodian agrees that it will terminate its activities as Collateral Custodian hereunder.

     Section 8.2 Duties of Collateral Custodian.

     (a) Appointment. The Seller and the Administrative Agent each hereby appoints Wells
Fargo to act as Collateral Custodian, for the benefit of the Administrative Agent, as agent for the
Secured Parties. The Collateral Custodian hereby accepts such appointment and agrees to perform
the duties and obligation with respect thereto set forth herein.

     (b) Duties. On or before the initial Funding Date, and until its removal pursuant to
Section 8.5, the Collateral Custodian shall perform on behalf of the Administrative Agent
and the Secured Parties, the following duties and obligations:

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     (i) The Collateral Custodian shall take and retain custody of the Required Asset
Documents delivered by the Seller pursuant to Section 3.2 in accordance with the
terms and conditions of this Agreement, all for the benefit of the Secured Parties and
subject to the Lien thereon in favor of the Administrative Agent as agent for the Secured
Parties. Within five Business Days of its receipt of any Required Asset Documents, the
Collateral Custodian shall review the related Collateral and Required Asset Documents to
confirm that (A) such Collateral has been properly executed and has no missing or mutilated
pages, (B) any UCC and other filings (as set forth on the Asset Checklists) have been made,
(C) an Insurance Policy exists with respect to any real or personal property constituting
the Related Property, and (D) confirming the related Outstanding Asset Balance, Asset number
and Obligor name with respect to such Asset is referenced on the related Asset List and is
not a duplicate Asset (collectively, the “Review Criteria”). In order to facilitate the
foregoing review by the Collateral Custodian, in connection with each delivery of Required
Asset Documents hereunder to the Collateral Custodian, the Servicer shall provide to the
Collateral Custodian an electronic file (in EXCEL or a comparable format) that contains the
related Asset List or that otherwise contains the Asset identification number and the name
of the Obligor with respect to each related Asset. If, at the conclusion of such review,
the Collateral Custodian shall determine that (i) the Outstanding Asset Balances of the
Collateral it has received Required Asset Documents with respect to is less than as set
forth on the electronic file, the Collateral Custodian shall immediately notify the
Administrative Agent of such discrepancy, and (ii) any Review Criteria is not satisfied, the
Collateral Custodian shall within one Business Day notify the Servicer of such determination
and provide the Servicer with a list of the non-complying Assets and the applicable Review
Criteria that they fail to satisfy. The Servicer shall have five Business Days to correct
any non-compliance with a Review Criteria. If after the conclusion of such time period the
Servicer has still not cured any non-compliance by an Asset with a Review Criteria, the
Collateral Custodian shall promptly notify the Seller and the Administrative Agent of such
determination by providing a written report to such persons identifying, with particularity,
each Asset and each of the applicable Review Criteria that such Asset fails to satisfy. In
addition, if requested in writing by the Servicer and approved by the Administrative Agent
within ten Business Days of the Collateral Custodian’s delivery of such report, the
Collateral Custodian shall return any Asset which fails to satisfy a Review Criteria to the
Seller. Other than the foregoing, the Collateral Custodian shall not have any
responsibility for reviewing any Required Asset Documents.

     (ii) In taking and retaining custody of the Required Asset Documents, the Collateral
Custodian shall be deemed to be acting as the agent of the Administrative Agent and the
Secured Parties; provided that the Collateral Custodian makes no representations as to the
existence, perfection or priority of any Lien on the Required Asset Documents or the
instruments therein; and provided further that, the Collateral Custodian’s duties as agent
shall be limited to those expressly contemplated herein.

     (iii) All Required Asset Document shall be kept in fire resistant vaults, rooms or
cabinets at the locations specified on Schedule III attached hereto, or at such
other office as shall be specified to the Administrative Agent by the Collateral Custodian
in a written notice delivered at least forty-five (45) days prior to such change. All
Required

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Asset Documents shall be placed together with an appropriate identifying label and
maintained in such a manner so as to permit retrieval and access. All Required Asset
Documents shall be clearly segregated from any other documents or instruments maintained by
the Collateral Custodian.

     (iv) The Collateral Custodian shall make payments pursuant to the terms of the Monthly
Report in accordance with Section 2.9 and Section 2.10 (the “Payment
Duties”).

     (v) On each Reporting Date, the Collateral Custodian shall provide a written report to
the Administrative Agent and the Servicer (in a form acceptable to the Administrative Agent)
identifying each Asset for which it holds Required Asset Documents, the non-complying Assets
and the applicable Review Criteria that any non-complying Asset fails to satisfy.

     (vi) In performing its duties, the Collateral Custodian shall use the same degree of
care and attention as it employs with respect to similar Collateral that it holds as
Collateral Custodian.

     Section 8.3 Merger or Consolidation.

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

     Section 8.4 Collateral Custodian Compensation.

     As compensation for its collateral custodian activities hereunder, the Collateral Custodian
shall be entitled to a Collateral Custodian Fee (the “Collateral Custodian Fee”) from the Servicer.
To the extent that such Collateral Custodian Fee is not paid by the Servicer, the Collateral
Custodian shall be entitled to receive the unpaid balance of its Collateral Custodian Fee to the
extent of funds available therefor pursuant to the provision of Section 2.9(a)(4) or
Section 2.10(a)(4), as applicable. The Collateral Custodian’s entitlement to receive the
Collateral Custodian Fee shall cease on the earlier to occur of: (i) its removal as Collateral
Custodian pursuant to Section 8.5 or (ii) the termination of this Agreement.

     Section 8.5 Collateral Custodian Removal.

     The Collateral Custodian may be removed, with or without cause, by the Administrative Agent by
notice given in writing to the Collateral Custodian (the “Collateral Custodian Termination
Notice”); provided that, notwithstanding its receipt of a Collateral Custodian Termination Notice,
the Collateral Custodian shall continue to act in such capacity until a successor Collateral
Custodian has been appointed, has agreed to act as Collateral Custodian

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hereunder, and has received all Required Asset Documents held by the previous Collateral
Custodian.

     Section 8.6 Limitation on Liability.

     (i) The Collateral Custodian may conclusively rely on and shall be fully protected in
acting upon any certificate, instrument, opinion, notice, letter, telegram or other document
delivered to it and that in good faith it reasonably believes to be genuine and that has
been signed by the proper party or parties. The Collateral Custodian may rely conclusively
on and shall be fully protected in acting upon (a) the written instructions of any
designated officer of the Administrative Agent or (b) the verbal instructions of the
Administrative Agent.

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

     (iii) The Collateral Custodian shall not be liable for any error of judgment, or for
any act done or step taken or omitted by it, in good faith, or for any mistakes of fact or
law, or for anything that it may do or refrain from doing in connection herewith except in
the case of its willful misconduct or grossly negligent performance or omission of its
duties and in the case of the negligent performance of its Payment Duties and in the case of
its negligent performance of its duties in taking and retaining custody of the Required
Asset Documents.

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

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

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

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

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     Section 8.7 The Collateral Custodian Not to Resign.

     The Collateral Custodian shall not resign from the obligations and duties hereby imposed on it
except upon the Collateral Custodian’s determination that (i) the performance of its duties
hereunder is or becomes impermissible under Applicable Law and (ii) there is no reasonable action
that the Collateral Custodian could take to make the performance of its duties hereunder
permissible under Applicable Law. Any such determination permitting the resignation of the
Collateral Custodian shall be evidenced as to clause (i) above by an Opinion of Counsel to
such effect delivered to the Administrative Agent and each Purchaser Agent. No such resignation
shall become effective until a successor Collateral Custodian shall have assumed the
responsibilities and obligations of the Collateral Custodian hereunder.

     Section 8.8 Release of Documents.

     (a) Release for Servicing. From time to time and as appropriate for the enforcement
or servicing any of the Collateral, the Collateral Custodian is hereby authorized (unless and until
such authorization is revoked by the Administrative Agent), upon written receipt from the Servicer
of a request for release of documents and receipt in the form annexed hereto as Exhibit H
to release to the Servicer the related Required Asset Documents or the documents set forth in such
request and receipt to the Servicer. All documents so released to the Servicer shall be held by
the Servicer in trust for the benefit of the Administrative Agent in accordance with the terms of
this Agreement. The Servicer shall return to the Collateral Custodian the Required Asset Documents
or other such documents (i) immediately upon the request of the Administrative Agent, or (ii) when
the Servicer’s need therefor in connection with such foreclosure or servicing no longer exists,
unless the Asset shall be liquidated, in which case, upon receipt of an additional request for
release of documents and receipt certifying such liquidation from the Servicer to the Collateral
Custodian in the form annexed hereto as Exhibit H, the Servicer’s request and receipt
submitted pursuant to the first sentence of this subsection shall be released by the Collateral
Custodian to the Servicer.

     (b) Limitation on Release. The foregoing provision respecting release to the Servicer
of the Required Asset Documents and documents by the Collateral Custodian upon request by the
Servicer shall be operative only to the extent that at any time the Collateral Custodian shall not
have released to the Servicer active Required Asset Documents (including those requested)
pertaining to more than fifteen (15) Assets at the time being serviced by the Servicer under this
Agreement. Any additional Required Asset Documents or documents requested to be released by the
Servicer may be released only upon written authorization of the Administrative Agent. The
limitations of this paragraph shall not apply to the release of Required Asset Documents to the
Servicer pursuant to the immediately succeeding subsection.

     (c) Release for Payment. Upon receipt by the Collateral Custodian of the Servicer’s
request for release of documents and receipt in the form annexed hereto as Exhibit H(which
certification shall include a statement to the effect that all amounts received in connection with
such payment or repurchase have been credited to the Collection Account as provided in this
Agreement), the Collateral Custodian shall promptly release the related Required Asset Documents to
the Servicer.

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     Section 8.9 Return of Required Asset Documents.

     The Seller may, with the prior written consent of the Administrative Agent (such consent not
to be unreasonably withheld), require that the Collateral Custodian return each Required Asset
Document (a) delivered to the Collateral Custodian in error, (b) for which a Substitute Asset has
been substituted in accordance with Section 2.18, (c) as to which the lien on the Related
Property has been so released pursuant to Section 9.2, (d) that has been repaid by the
Seller pursuant to Section 4.6 or (e) that is required to be redelivered to the Seller in
connection with the termination of this Agreement, in each case by submitting to the Collateral
Custodian and the Administrative Agent a written request in the form of Exhibit H hereto
(signed by both the Seller and the Administrative Agent) specifying the Collateral to be so
returned and reciting that the conditions to such release have been met (and specifying the Section
or Sections of this Agreement being relied upon for such release). The Collateral Custodian shall
upon its receipt of each such request for return executed by the Seller and the Administrative
Agent promptly, but in any event within five Business Days, return the Required Asset Documents so
requested to the Seller.

     Section 8.10 Access to Certain Documentation and Information Regarding the Collateral;
Audits.

     The Collateral Custodian shall provide to the Administrative Agent and each Purchaser Agent
access to the Required Asset Documents and all other documentation regarding the Collateral
including in such cases where the Administrative Agent and each Purchaser Agent is required in
connection with the enforcement of the rights or interests of the Secured Parties, or by applicable
statutes or regulations, to review such documentation, such access being afforded without charge
but only (i) upon two Business Days prior written request, (ii) during normal business hours and
(iii) subject to the Servicer’s and Collateral Custodian’s normal security and confidentiality
procedures. Prior to the Closing Date and periodically thereafter at the discretion of the
Administrative Agent and each Purchaser Agent, the Administrative Agent and each Purchaser Agent
may review the Servicer’s collection and administration of the Collateral in order to assess
compliance by the Servicer with the Credit and Collection Policy, as well as with this Agreement
and may conduct an audit of the Collateral, Required Asset Documents in conjunction with such a
review. Such review shall be reasonable in scope and shall be completed in a reasonable period of
time. Without limiting the foregoing provisions of this Section 8.10, from time to time on
request of the Administrative Agent, the Collateral Custodian shall permit certified public
accountants or other auditors acceptable to the Administrative Agent to conduct, at the Servicer’s
expense, a review of the Required Asset Documents and all other documentation regarding the
Collateral.

ARTICLE IX

SECURITY INTEREST

     Section 9.1 Grant of Security Interest.

     The parties to this Agreement intend that the conveyance of the Collateral by the Seller to
the applicable Purchasers be treated as sales for all purposes (other than for the purposes

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described in Section 13.19). If, despite such intention, a determination is made that
such transactions not be treated as sales, then the parties hereto intend that this Agreement
constitute a security agreement and the transactions effected hereby constitute secured loans by
the applicable Purchasers to the Seller under Applicable Law. For such purpose, the Seller hereby
transfers, conveys, assigns and grants as of the Closing Date to the Administrative Agent, as agent
for the Secured Parties, a lien and continuing security interest in all of the Seller’s right,
title and interest in, to and under (but none of the obligations under) all Collateral (including
any Hedging Agreements), whether now existing or hereafter arising or acquired by the Seller, and
wherever the same may be located, to secure the prompt, complete and indefeasible payment and
performance in full when due, whether by lapse of time, acceleration or otherwise, of the Aggregate
Unpaids of the Seller arising in connection with this Agreement and each other Transaction
Document, whether now or hereafter existing, due or to become due, direct or indirect, or absolute
or contingent, including, without limitation, all Aggregate Unpaids. The assignment under this
Section 9.1 does not constitute and is not intended to result in a creation or an
assumption by the Administrative Agent, the Purchaser Agents, any Hedge Counterparty, the Liquidity
Banks or any of the Secured Parties of any obligation of the Seller or any other Person in
connection with any or all of the Collateral or under any agreement or instrument relating thereto.
Anything herein to the contrary notwithstanding, (a) the Seller shall remain liable under the
Collateral to the extent set forth therein to perform all of its duties and obligations thereunder
to the same extent as if this Agreement had not been executed, (b) the exercise by the
Administrative Agent, as agent for the Secured Parties, of any of its rights in the Collateral
shall not release the Seller from any of its duties or obligations under the Collateral, and (c)
none of the Administrative Agent, the Purchaser Agents, any Hedge Counterparty, the Liquidity Banks
or any Secured Party shall have any obligations or liability under the Collateral by reason of this
Agreement, nor shall the Administrative Agent, the Purchaser Agents, any Hedge Counterparty, the
Liquidity Banks or any Secured Party be obligated to perform any of the obligations or duties of
the Seller thereunder or to take any action to collect or enforce any claim for payment assigned
hereunder.

     Section 9.2 Release of Lien on Collateral.

     At the same time as (i) any Collateral expires by its terms and all amounts in respect thereof
have been paid in full by the related Obligor and deposited in the Collection Account, (ii) any
Asset becomes a Prepaid Asset and all amounts in respect thereof have been paid in full by the
related Obligor and deposited in the Collection Account, (iii) such Asset is replaced in accordance
with Section 2.18, or (iv) this agreement terminates in accordance with Section
13.6, the Administrative Agent as agent for the Secured Parties will, to the extent requested
by the Servicer, release its interest in such Collateral. In connection with any sale of such
Related Property, the Administrative Agent as agent for the Secured Parties will after the deposit
by the Servicer of the Proceeds of such sale into the Collection Account, at the sole expense of
the Servicer, execute and deliver to the Servicer any assignments, bills of sale, termination
statements and any other releases and instruments as the Servicer may reasonably request in order
to effect the release and transfer of such Related Property; provided that the Administrative Agent
as agent for the Secured Parties will make no representation or warranty, express or implied, with
respect to any such Related Property in connection with such sale or transfer and assignment.
Nothing in this section shall diminish the Servicer’s obligations pursuant to Section 6.6
with respect to the Proceeds of any such sale.

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     Section 9.3 Further Assurances.

     The provisions of Section 13.12 shall apply to the security interest granted under
Section 9.1 as well as to the Advances hereunder.

     Section 9.4 Remedies.

     Upon the occurrence of a Termination Event, the Administrative Agent and Secured Parties shall
have, with respect to the Collateral granted pursuant to Section 9.1, and in addition to
all other rights and remedies available to the Administrative Agent and Secured Parties under this
Agreement or other Applicable Law, all rights and remedies of a secured party upon default under
the UCC.

     Section 9.5 Waiver of Certain Laws.

     Each of the Seller and the Servicer agrees, to the full extent that it may lawfully so agree,
that neither it nor anyone claiming through or under it will set up, claim or seek to take
advantage of any appraisement, valuation, stay, extension or redemption law now or hereafter in
force in any locality where any Collateral may be situated in order to prevent, hinder or delay the
enforcement or foreclosure of this Agreement, or the absolute sale of any of the Collateral or any
part thereof, or the final and absolute putting into possession thereof, immediately after such
sale, of the purchasers thereof, and each of the Seller and the Servicer, for itself and all who
may at any time claim through or under it, hereby waives, to the full extent that it may be lawful
so to do, the benefit of all such laws, and any and all right to have any of the properties or
assets constituting the Collateral marshaled upon any such sale, and agrees that the Administrative
Agent or any court having jurisdiction to foreclose the security interests granted in this
Agreement may sell the Collateral as an entirety or in such parcels as the Administrative Agent or
such court may determine.

     Section 9.6 Power of Attorney.

     Each of the Seller and the Servicer hereby irrevocably appoints the Administrative Agent its
true and lawful attorney (with full power of substitution) in its name, place and stead and at is
expense, in connection with the enforcement of the rights and remedies provided for in this
Agreement, including without limitation the following powers: (a) to give any necessary receipts
or acquittance for amounts collected or received hereunder, (b) to make all necessary transfers of
the Collateral in connection with any such sale or other disposition made pursuant hereto, (c) to
execute and deliver for value all necessary or appropriate bills of sale, assignments and other
instruments in connection with any such sale or other disposition, the Seller and the Servicer
hereby ratifying and confirming all that such attorney (or any substitute) shall lawfully do
hereunder and pursuant hereto, and (d) to sign any agreements, orders or other documents in
connection with or pursuant to any Transaction Document or Hedging Agreement. Nevertheless, if so
requested by the Administrative Agent or a Purchaser Agent, the Seller shall ratify and confirm any
such sale or other disposition by executing and delivering to the Administrative Agent or such
purchaser all proper bills of sale, assignments, releases and other instruments as may be
designated in any such request.

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ARTICLE X

TERMINATION EVENTS

     Section 10.1 Termination Events.

     The following events shall be Termination Events (“Termination Events”) hereunder:

     (a) as of any Determination Date, the Average Portfolio Delinquency Ratio exceeds 6.5%; or

     (b) as of any Determination Date, the Average Pool Charged-Off Ratio exceeds 3.0%; or

     (c) as of any Determination Date, the Average Portfolio Charged-Off Ratio exceeds 4.0%; or

     (d) the Advances Outstanding on any day exceeds the lesser of the Facility Amount and Maximum
Availability and the same continues unremedied for two Business Days; provided that during the
period of time that such event remains unremedied, no additional Advances will be made under this
Agreement and any payments required to be made by the Servicer on a Payment Date shall be made
under Section 2.10; or

     (e) a Servicer Default occurs and is continuing; or

     (f) the Facility Termination Date shall have occurred; or

     (g) failure on the part of the Seller or Originator to make any payment or deposit (including
without limitation with respect to Collections) required by the terms of any Transaction Document
on the day such payment or deposit is required to be made and the same continues unremedied for two
Business Days; or

     (h) the occurrence of an Insolvency Event relating to the Originator, the Seller, the Servicer
or any Affiliate of the Originator which is a party to a Permitted Securitization Transaction; or

     (i) the Seller shall become required to register as an “investment company” within the meaning
of the Investment Company Act of 1940, as amended or the arrangements contemplated by the
Transaction Documents shall require registration as an “investment company” within the meaning of
the 1940 Act; or

     (j) a regulatory, tax or accounting body has ordered that the activities of the Seller or any
Affiliate of the Seller contemplated hereby be terminated or, as a result of any other event or
circumstance, the activities of the Seller contemplated hereby may reasonably be expected to cause
the Seller or any of its respective Affiliates to suffer materially adverse regulatory, accounting
or tax consequences; or

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     (k) there shall exist any event or occurrence that has caused a Material Adverse Effect; or

     (l) the Internal Revenue Service shall file notice of a lien pursuant to Section 6323
of the Code with regard to any assets of the Seller or the Originator and such lien shall not have
been released within five Business Days, or the Pension Benefit Guaranty Corporation shall file
notice of a lien pursuant to Section 4068 of ERISA with regard to any of the assets of the Seller
or the Originator and such lien shall not have been released within five Business Days; or

     (m) any Change-in-Control shall occur; or

     (n) (i) any Transaction Document, or any lien or security interest granted thereunder, shall
(except in accordance with its terms), in whole or in part, terminate, cease to be effective or
cease to be the legally valid, binding and enforceable obligation of the Seller, the Originator, or
the Servicer,

     (ii) the Seller, the Originator, the Servicer or any other party shall, directly or
indirectly, contest in any manner the effectiveness, validity, binding nature or
enforceability of any Transaction Document or any lien or security interest thereunder, or

     (iii) any security interest securing any obligation under any Transaction Document
shall, in whole or in part, cease to be a perfected first priority security interest; or

     (o) on any date of determination, the aggregate Hedge Notional Amount in effect for that day
under all Hedge Transactions is less than the product of the Hedge Percentage on such day and the
Hedge Amount on that day, and the same continues unremedied for a period of two Business Days; or

     (p) any failure on the part of the Seller or the Originator duly to observe or perform in any
material respect any other covenants or agreements of the Seller or the Originator set forth in
this Agreement or the other Transaction Documents to which the Seller or the Originator is a party
and the same continues unremedied for a period of thirty (30) days after the earlier to occur of
(i) the date on which written notice of such failure requiring the same to be remedied shall have
been given to the Seller or the Originator by the Administrative Agent and (ii) the date on which
the Seller or the Originator becomes aware thereof; or

     (q) any representation, warranty or certification made by the Seller or the Originator in any
Transaction Document or in any certificate delivered pursuant to any Transaction Document shall
prove to have been incorrect when made, which has a Material Adverse Effect on the Secured Parties
and which continues to be unremedied for a period of thirty (30) days after the earlier to occur of
(i) the date on which written notice of such incorrectness requiring the same to be remedied shall
have been given to the Seller or the Originator by the Administrative Agent and (ii) the date on
which the Seller or the Originator becomes aware thereof; or

     (r) any failure by the Seller to give instructions or notice to the Administrative Agent as
required by this Agreement, or to deliver any required Monthly Report or other Required

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Reports hereunder on or before the date occurring two Business Days after the date such
instruction, notice or report is required to be made or given, as the case may be, under the terms
of this Agreement; or

     (s) the failure of the Seller, the Servicer or the Originator to make any payment due with
respect to recourse debt or other obligations, in the case of the Servicer or the Originator, in
excess of $10,000,000, or the occurrence of any event or condition that would permit acceleration
of such recourse debt or other obligations whether or not such event or condition has been waived;
or

     (t) (1) the rendering of one or more final judgments, decrees or orders by a court or
arbitrator of competent jurisdiction for the payment of money in excess of $10,000,000,
individually or in the aggregate, against the Originator, or $2,000,000 against the Seller,
individually or in the aggregate, and the Originator shall not have either (i) discharged or
provided for the discharge of any such judgment, decree or order in accordance with its terms or
(ii) perfected a timely appeal of such judgment, decree or order and caused the execution of same
to be stayed during the pendency of the appeal or (2) the failure of the Originator or the Seller
to make any payments due of amounts in excess of $7,500,000 by the Originator, or $2,000,000 by the
Seller, in the settlement of any litigation, claim or dispute (excluding payments made from
insurance proceeds); or

     (u) as of any Determination Date, the Pool Yield does not equal or exceed the Minimum Pool
Yield and the same continues unremedied by the following Determination Date; or

     (v) on any day an Overcollateralization Shortfall exists and continues unremedied for two
Business Days; or

     (w) as of any Quarterly Determination Date, the Originator’s ratio of Consolidated Funded
Indebtedness to Consolidated Tangible Net Worth is more than 6 to 1; provided that such calculation
shall exclude the effects of any Liquid Real Estate Assets that are acquired and levered by the
Originator solely to satisfy REIT asset and income tests.

     Section 10.2 Remedies.

     (a) Upon the occurrence of a Termination Event (other than a Termination Event described in
Section 10.1(h)), the Administrative Agent shall, at the request of, or may, with the
consent of, any of the Purchasers, by notice to the Seller, declare the Termination Date to have
occurred and the Amortization Period to have commenced.

     (b) Upon the occurrence of a Termination Event described in Section 10.1(h), the
Termination Date shall occur immediately and the Amortization Period shall commence automatically.

     (c) Upon the occurrence of any Termination Event described in Section 10.1, no
Advances will thereafter be made, and the Administrative Agent and the Secured Parties shall have,
in addition to all other rights and remedies under this Agreement or otherwise, all other rights
and remedies provided under the UCC of each applicable jurisdiction and other Applicable

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Laws, which rights shall be cumulative, and also may require the Seller and Servicer to, and
the Seller and Servicer hereby agree that they will at the Servicer’s expense and upon request of
the Administrative Agent forthwith, (i) assemble all or any part of the Collateral as directed by
the Administrative Agent and make the same available to the Administrative Agent at a place to be
designated by the Administrative Agent and (ii) without notice except as specified below, sell the
Collateral or any part thereof in one or more parcels at a public or private sale, at any of the
Administrative Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon
such other terms as the Administrative Agent may deem commercially reasonable. The Seller agrees
that, to the extent notice of sale shall be required by law, at least ten days’ notice to the
Seller of the time and place of any public sale or the time after which any private sale is to be
made shall constitute reasonable notification. The Administrative Agent shall not be obligated to
make any sale of Collateral regardless of notice of sale having been given. The Administrative
Agent may adjourn any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the time and place to
which it was so adjourned. All cash Proceeds received by the Administrative Agent in respect of
any sale of, collection from, or other realization upon, all or any part of the Collateral (after
payment of any amounts incurred in connection with such sale) shall be deposited into the
Collection Account and to be applied against all or any part of the Aggregate Unpaids pursuant to
Section 2.10 or otherwise in such order as the Administrative Agent shall elect in its
discretion.

ARTICLE XI

INDEMNIFICATION

     Section 11.1 Indemnities by the Seller.

     (a) Without limiting any other rights that any such Person may have hereunder or under
Applicable Law, the Seller hereby agrees to indemnify the Administrative Agent, the Purchaser
Agents, the Backup Servicer, the Collateral Custodian, the Secured Parties, the Affected Parties
and each of their respective assigns and officers, directors, employees and agents thereof
(collectively, the “Indemnified Parties”), forthwith on demand, from and against any and all
damages, losses, claims, liabilities and related costs and expenses, including attorneys’ fees and
disbursements (all of the foregoing being collectively referred to as the “Indemnified Amounts”)
awarded against or incurred by such Indemnified Party and other non-monetary damages of any such
Indemnified Party or any of them arising out of or as a result of this Agreement or the ownership
of an interest in the Collateral or in respect of any Asset included in the Collateral, excluding,
however, (a) Indemnified Amounts to the extent resulting from gross negligence or willful
misconduct on the part of such Indemnified Party or (b) Indemnified Amounts that have the effect of
recourse for non-payment of the Assets included in the Collateral due to credit problems of the
Obligors (except as otherwise specifically provided in this Agreement). If the Seller has made any
indemnity payment pursuant to this Section 11.1 and such payment fully indemnified the
recipient thereof and the recipient thereafter collects any payments from others in respect of such
Indemnified Amounts then, the recipient shall repay to the Seller an amount equal to the amount it
has collected from others in respect of such indemnified amounts. Without limiting the foregoing,
the Seller shall indemnify each Indemnified Party for Indemnified Amounts relating to or resulting
from:

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     (i) any representation or warranty made or deemed made by the Seller, the Servicer (if
the Originator or one of its Affiliates is the Servicer) or any of their respective officers
under or in connection with this Agreement or any other Transaction Document, which shall
have been false or incorrect in any material respect when made or deemed made or delivered;

     (ii) the failure by the Seller or the Servicer (if the Originator or one of its
Affiliates is the Servicer) to comply with any term, provision or covenant contained in this
Agreement or any agreement executed in connection with this Agreement, or with any
Applicable Law, with respect to any Collateral or the nonconformity of any Collateral with
any such Applicable Law;

     (iii) the failure to vest and maintain vested in the Administrative Agent, as agent for
the Secured Parties, an undivided ownership interest in the Collateral, together with all
Collections, free and clear of any Lien (other than Permitted Liens) whether existing at the
time of any Advance or at any time thereafter;

     (iv) the failure to maintain, as of the close of business on each Business Day prior to
the Termination Date, an amount of Advances Outstanding that is less than or equal to the
lesser of (x) the Facility Amount and (y) the Maximum Availability on such Business Day;

     (v) the failure to file, or any delay in filing, financing statements, continuation
statements or other similar instruments or documents under the UCC of any applicable
jurisdiction or other Applicable Laws with respect to any Collateral, whether at the time of
any Advance or at any subsequent time;

     (vi) any dispute, claim, offset or defense (other than the discharge in bankruptcy of
the Obligor) of the Obligor to the payment with respect to any Collateral (including,
without limitation, a defense based on the Collateral not being a legal, valid and binding
obligation of such Obligor enforceable against it in accordance with its terms), or any
other claim resulting from the sale of the merchandise or services related to such
Collateral or the furnishing or failure to furnish such merchandise or services;

     (vii) any failure of the Seller or the Servicer (if the Originator or one of its
Affiliates is the Servicer) to perform its duties or obligations in accordance with the
provisions of this Agreement or any of the other Transaction Documents to which it is a
party or any failure by the Originator, the Seller or any Affiliate thereof to perform its
respective duties under any Collateral;

     (viii) the failure of any Lock-Box Bank to remit any amounts held in a Lock-Box Account
pursuant to the instructions of the Servicer or the Administrative Agent (to the extent such
Person is entitled to give such instructions in accordance with the terms hereof and of any
applicable Lock-Box Agreement) whether by reason of the exercise of set-off rights or
otherwise;

     (ix) any inability to obtain any judgment in, or utilize the court or other
adjudication system of, any state in which an Obligor may be located as a result of the

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failure of the Seller or the Originator to qualify to do business or file any notice or
business activity report or any similar report;

     (x) any action taken by the Seller or the Originator (in its capacity as Servicer) in
the enforcement or collection of any Collateral;

     (xi) any products liability claim or personal injury or property damage suit or other
similar or related claim or action of whatever sort arising out of or in connection with the
Related Property or services that are the subject of any Collateral;

     (xii) any claim, suit or action of any kind arising out of or in connection with
Environmental Laws including any vicarious liability;

     (xiii) the failure by Seller to pay when due any Taxes for which the Seller is liable,
including without limitation, sales, excise or personal property taxes payable in connection
with the Collateral;

     (xiv) any repayment by the Administrative Agent, the Purchaser Agents or a Secured
Party of any amount previously distributed in reduction of Advances Outstanding or payment
of Interest or any other amount due hereunder or under any Hedging Agreement, in each case
which amount the Administrative Agent, the Purchaser Agents or a Secured Party believes in
good faith is required to be repaid;

     (xv) the commingling of Collections on the Collateral at any time with other funds;

     (xvi) any investigation, litigation or proceeding related to this Agreement or the use
of proceeds of Advances or the security interest in the Collateral;

     (xvii) any failure by the Seller to give reasonably equivalent value to the Originator
in consideration for the transfer by the Originator to the Seller of any item of Collateral
or any attempt by any Person to void or otherwise avoid any such transfer under any
statutory provision or common law or equitable action, including, without limitation, any
provision of the Bankruptcy Code;

     (xviii) the use of the proceeds of any Advance in a manner other than as provided in
this Agreement and the Sale Agreement;

     (xix) the failure of the Seller, the Originator or any of their respective agents or
representatives to remit to the Servicer or the Administrative Agent or the Purchaser
Agents, Collections on the Collateral remitted to the Seller, the Originator, the Servicer
or any such agent or representative;

     (xx) the failure by the Seller to comply with any of the covenants relating to any
Hedging Agreement in accordance with the Transaction Documents; or

     (xxi) the failure of the Seller to comply with any of the covenants relating to the
Required Equity Contribution in accordance with the Transaction Documents.

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     (b) Any amounts subject to the indemnification provisions of this Section 11.1 shall
be paid by the Seller to the Indemnified Party within five Business Days following such Person’s
demand therefor.

     (c) If for any reason the indemnification provided above in this Section 11.1 is
unavailable to the Indemnified Party or is insufficient to hold an Indemnified Party harmless, then
the Seller or the Servicer, as the case may be, shall contribute to the amount paid or payable by
such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as
is appropriate to reflect not only the relative benefits received by such Indemnified Party on the
one hand and the Seller or the Servicer, as the case may be, on the other hand but also the
relative fault of such Indemnified Party as well as any other relevant equitable considerations.

     (d) The obligations of the Seller under this Section 11.1 shall survive the
resignation or removal of the Administrative Agent, the Purchaser Agents, the Servicer, the Backup
Servicer or the Collateral Custodian and the termination of this Agreement.

     Section 11.2 Indemnities by the Servicer.

     (a) Without limiting any other rights that any such Person may have hereunder or under
Applicable Law, the Servicer hereby agrees to indemnify each Indemnified Party, forthwith on
demand, from and against any and all Indemnified Amounts awarded against or incurred by any such
Indemnified Party by reason of any acts, omissions or alleged acts or omissions of the Servicer,
including, but not limited to (i) any representation or warranty made by the Servicer under or in
connection with any Transaction Document, any Monthly Report, Servicer’s Certificate or any other
information or report delivered by or on behalf of the Servicer pursuant hereto, which shall have
been false, incorrect or misleading in any material respect when made or deemed made, (ii) the
failure by the Servicer to comply with any Applicable Law, (iii) the failure of the Servicer to
comply with its duties or obligations in accordance with the Agreement, (iv) the failure by the
Servicer to comply with any of the covenants relating to any Hedging Agreement in accordance with
the Transaction Documents, or (v) any litigation, proceedings or investigation against the
Servicer. The provisions of this indemnity shall run directly to and be enforceable by an injured
party subject to the limitations hereof.

     (b) Any amounts subject to the indemnification provisions of this Section 11.2 shall
be paid by the Servicer to the Indemnified Party within five Business Days following such Person’s
demand therefor.

     (c) The Servicer shall have no liability for making indemnification hereunder to the extent
any such indemnification constitutes recourse for uncollectible or uncollected Assets.

     (d) The obligations of the Servicer under this Section 11.2 shall survive the
resignation or removal of the Administrative Agent, the Purchaser Agents, the Backup Servicer or
the Collateral Custodian and the termination of this Agreement.

     (e) Any indemnification pursuant to this Section 11.2 shall not be payable from the
Collateral.

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     Section 11.3 After-Tax Basis.

     Indemnification under Section 11.1 and Section 11.2 shall be in an amount
necessary to make the Indemnified Party whole after taking into account any tax consequences to the
Indemnified Party of the receipt of the indemnity provided hereunder, including the effect of such
tax or refund on the amount of tax measured by net income or profits that is or was payable by the
Indemnified Party.

ARTICLE XII

THE ADMINISTRATIVE AGENT

AND PURCHASER AGENTS

     Section 12.1 The Administrative Agent.

     (a) Each Purchaser Agent and each Secured Party hereby appoints and authorizes the
Administrative Agent as its agent and bailee for purposes of perfection pursuant to the applicable
UCC or other Applicable Law and hereby further authorizes the Administrative Agent to appoint
additional agents and bailees to act on its behalf and for the benefit of each of the Purchaser
Agents and each Secured Party. Each of the Purchaser Agents and each Secured Party further
authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such
powers under this Agreement and the other Transaction Documents as are delegated to the
Administrative Agent by the terms hereof and thereof, together with such powers as are reasonably
incidental thereto. In furtherance, and without limiting the generality, of the foregoing, each
Secured Party hereby appoints the Administrative Agent as its agent to execute and deliver all
further instruments and documents, and take all further action that the Administrative Agent may
deem necessary or appropriate or that a Secured Party may reasonably request in order to perfect,
protect or more fully evidence the security interests granted by the Seller hereunder, or to enable
any of them to exercise or enforce any of their respective rights hereunder, including, without
limitation, the execution by the Administrative Agent as secured party/assignee of such financing
or continuation statements, or amendments thereto or assignments thereof, relative to all or any of
the Collateral now existing or hereafter arising, and such other instruments or notices, as may be
necessary or appropriate for the purposes stated hereinabove. The Purchaser Agents and the
Purchasers may direct the Administrative Agent to take any such incidental action hereunder. With
respect to other actions which are incidental to the actions specifically delegated to the
Administrative Agent hereunder, the Administrative Agent shall not be required to take any such
incidental action hereunder, but shall be required to act or to refrain from acting (and shall be
fully protected in acting or refraining from acting) upon the direction of the Purchaser Agents and
the Purchasers; provided that that the Administrative Agent shall not be required to take any
action hereunder if the taking of such action, in the reasonable determination of the
Administrative Agent, shall be in violation of any Applicable Law or contrary to any provision of
this Agreement or shall expose the Administrative Agent to liability hereunder or otherwise. In
the event the Administrative Agent requests the consent of a Purchaser Agent or a Purchaser
pursuant to the foregoing provisions and the Administrative Agent does not receive a consent
(either positive or negative) from such Person within ten Business Days of such Person’s receipt of
such request, then such Purchaser Agent or Purchaser shall be deemed to have declined to consent to
the relevant amendments.

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     (b) The Administrative Agent shall exercise such rights and powers vested in it by this
Agreement and the other Transaction Documents, and use the same degree of care and skill in their
exercise as a prudent person would exercise or use under the circumstances in the conduct of such
person’s own affairs.

     (c) Administrative Agent’s Reliance, Etc. Neither the Administrative Agent nor any of
its directors, officers, agents or employees shall be liable for any action taken or omitted to be
taken by it or them as Administrative Agent under or in connection with this Agreement or any of
the other Transaction Documents, except for its or their own gross negligence or willful
misconduct. Without limiting the foregoing, the Administrative Agent: (i) may consult with legal
counsel (including counsel for the Seller or the Originator), independent public accountants and
other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes
no warranty or representation and shall not be responsible for any statements, warranties or
representations made in or in connection with this Agreement; (iii) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement or any of the other Transaction Documents on the part of the Seller,
the Originator, or the Servicer or to inspect the property (including the books and records) of the
Seller, the Originator, or the Servicer; (iv) shall not be responsible for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of this Agreement, any of the
other Transaction Documents or any other instrument or document furnished pursuant hereto or
thereto; and (v) shall incur no liability under or in respect of this Agreement or any of the other
Transaction Documents by acting upon any notice (including notice by telephone), consent,
certificate or other instrument or writing (which may be by telex) believed by it to be genuine and
signed or sent by the proper party or parties.

     (d) Credit Decision with Respect to the Administrative Agent. Each Purchaser Agent
and Secured Party acknowledges that it has, independently and without reliance upon the
Administrative Agent, or any of the Administrative Agent’s Affiliates, and based upon such
documents and information as it has deemed appropriate, made its own evaluation and decision to
enter into this Agreement and the other Transaction Documents to which it is a party. Each
Purchaser Agent and Secured Party also acknowledges that it will, independently and without
reliance upon the Administrative Agent, or any of the Administrative Agent’s Affiliates, and based
on such documents and information as it shall deem appropriate at the time, continue to make its
own decisions in taking or not taking action under this Agreement and the other Transaction
Documents to which it is a party.

     (e) Indemnification of the Administrative Agent. Each Purchaser Agent and Purchaser
agrees to indemnify the Administrative Agent (to the extent not reimbursed by the Seller or the
Servicer), ratably in accordance with its Pro Rata Share from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted
against the Administrative Agent in any way relating to or arising out of this Agreement or any of
the other Transaction Documents, or any action taken or omitted by the Administrative Agent
hereunder or thereunder; provided that none of the Purchaser Agents or Purchasers shall be liable
for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the Administrative Agent’s

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gross negligence or willful misconduct. Without limitation of the foregoing, each Purchaser
Agent and Purchaser agrees to reimburse the Administrative Agent, ratably in accordance with its
Pro Rata Share promptly upon demand for any out-of-pocket expenses (including counsel fees)
incurred by the Administrative Agent in connection with the administration, modification, amendment
or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice
in respect of rights or responsibilities under, this Agreement and the other Transaction Documents,
to the extent that such expenses are incurred in the interests of or otherwise in respect of the
Purchaser Agents, or the Purchasers hereunder and/or thereunder and to the extent that the
Administrative Agent is not reimbursed for such expenses by the Seller or the Servicer.

     (f) Successor Administrative Agent. The Administrative Agent may resign at any time,
effective upon the appointment and acceptance of a successor Administrative Agent as provided
below, by giving at least five days’ written notice thereof to each Purchaser Agent and the Seller
and may be removed at any time with cause by the Purchaser Agents acting jointly. Upon any such
resignation or removal, the Purchaser Agents acting jointly shall appoint a successor
Administrative Agent. Each of the Purchaser Agents agrees that it shall not unreasonably withhold
or delay its approval of the appointment of a successor Administrative Agent. If no such successor
Administrative Agent shall have been so appointed, and shall have accepted such appointment, within
thirty (30) days after the retiring Administrative Agent’s giving of notice of resignation or the
removal of the retiring Administrative Agent, then the retiring Administrative Agent may, on behalf
of the Secured Parties, appoint a successor Administrative Agent which successor Administrative
Agent shall be either (i) a commercial bank organized under the laws of the United States or of any
state thereof and have a combined capital and surplus of at least $50,000,000 or (ii) an Affiliate
of such a bank. Upon the acceptance of any appointment as Administrative Agent hereunder by a
successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
under this Agreement. After any retiring Administrative Agent’s resignation or removal hereunder
as Administrative Agent, the provisions of this Article XII shall continue to inure to its
benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent
under this Agreement.

     (g) Payments by the Administrative Agent. Unless specifically allocated to a specific
Purchaser Agent pursuant to the terms of this Agreement, all amounts received by the Administrative
Agent on behalf of the Purchaser Agents shall be paid by the Administrative Agent to the Purchaser
Agents in accordance with their respective Pro Rata Shares in the applicable Advances Outstanding,
or if there are no Advances Outstanding then to the Purchaser Agents in accordance with the most
recent applicable Commitment, on the Business Day received by the Administrative Agent, unless such
amounts are received after 12:00 noon on such Business Day, in which case the Administrative Agent
shall use its reasonable efforts to pay such amounts to each Purchaser Agent on such Business Day,
but, in any event, shall pay such amounts to such Purchaser Agent not later than the following
Business Day.

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     Section 12.2 The Purchaser Agents.

     (a) Authorization and Action. Each Purchaser hereby designates and appoints its
applicable Purchaser Agent to act as its agent hereunder and under each other Transaction Document,
and authorizes such Purchaser Agent to take such actions as agent on its behalf and to exercise
such powers as are delegated to such Purchaser Agent by the terms of this Agreement together and
the other Transaction Documents with such powers as are reasonably incidental thereto. Such
Purchaser Agent shall not have any duties or responsibilities, except those expressly set forth
herein, or any fiduciary relationship with its related Purchaser, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities on the part of such Purchaser Agent
shall be read into this Agreement or any other Transaction Document or otherwise exist for such
Purchaser Agent. In performing its functions and duties hereunder and under the other Transaction
Documents, such Purchaser Agent shall act solely as agent for its related Purchaser and does not
assume nor shall be deemed to have assumed any obligation or relationship of trust or agency with
or for the Seller or any of its successors or assigns. Such Purchaser Agent shall not be required
to take any action that exposes such Purchaser Agent to personal liability or that is contrary to
this Agreement, or any other Transaction Document or Applicable Law. The appointment and authority
of such Purchaser Agent hereunder shall terminate at the indefeasible payment in full of the
Aggregate Unpaids. Each Purchaser Agent, respectively, hereby authorizes the Administrative Agent
to execute each of the UCC Financing Statements on behalf of such Purchaser (the terms of which
shall be binding on such Purchaser).

     (b) Delegation of Duties. Each applicable Purchaser Agent may execute any of its
duties under this Agreement by or through agents or attorneys-in-fact and shall be entitled to
advice of counsel concerning all matters pertaining to such duties. Such Purchaser Agent shall not
be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it
with reasonable care.

     (c) Exculpatory Provisions. Neither any applicable Purchaser Agent nor any of its
directors, officers, agents or employees shall be (i) liable for any action lawfully taken or
omitted to be taken by it or them under or in connection with this Agreement or any other
Transaction Document (except for its, their or such Person’s own gross negligence or willful
misconduct or, in the case of such Purchaser Agent, the breach of its obligations expressly set
forth in this Agreement or any other Transaction Document), or (ii) responsible in any manner to
its related Purchaser for any recitals, statements, representations or warranties made by the
Seller contained in this Agreement or any other Transaction Document, for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement, any other Transaction
Document or any other document furnished in connection herewith, for any failure of the Seller to
perform its obligations hereunder, or for the satisfaction of any condition specified in
Article III. Such Purchaser Agent shall not be under any obligation to its related
Purchaser to ascertain or to inquire as to the observance or performance of any of the agreements
or covenants contained in, or conditions of, this Agreement or any other Transaction Document, or
to inspect the properties, books or records of the Seller. Such Purchaser Agent shall not be
deemed to have knowledge of any Unmatured Termination Event, Termination Event or Servicer Default
unless such Purchaser Agent has received notice from the Seller or a Secured Party.

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     (d) Reliance. Such Purchaser Agent shall in all cases be entitled to rely, and shall
be fully protected in relying, upon any document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including, without limitation, counsel to the Seller), independent
accountants and other experts selected by such Purchaser Agent. Such Purchaser Agent shall in all
cases be fully justified in failing or refusing to take any action under this Agreement, any other
Transaction Document or any other document furnished in connection herewith unless it shall first
receive such advice or concurrence of its related Purchaser, as it deems appropriate, or it shall
first be indemnified to its satisfaction by its related Purchaser; provided that unless and until
such Purchaser Agent shall have received such advice, such Purchaser Agent may take or refrain from
taking any action as such Purchaser Agent shall deem advisable and in the best interests of its
related Purchaser. Such Purchaser Agent shall in all cases be fully protected in acting, or in
refraining from acting, in accordance with a request of its related Purchaser, and such request and
any action taken or failure to act pursuant thereto shall be binding upon its related Purchaser.

     (e) Non-Reliance on the Purchaser Agent and Other Purchasers. Each applicable
Purchaser, respectively, expressly acknowledges that neither its related Purchaser Agent nor any of
its officers, directors, employees, agents, attorneys-in-fact or affiliates has made any
representations or warranties to it and that no act by such Purchaser Agent hereafter taken,
including, without limitation, any review of the affairs of the Seller, shall be deemed to
constitute any representation or warranty by the such Purchaser Agent. Each applicable Purchaser,
respectively, represents and warrants to its related Purchaser Agent that it has and will,
independently and without reliance upon such Purchaser Agent, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, prospects, financial and other conditions and creditworthiness of
the Seller and made its own decision to enter into this Agreement, the other Transaction Documents
or any Hedging Agreement, as the case may be.

     (f) Purchaser Agents in their Respective Capacities. Each applicable Purchaser Agent,
respectively, and any of its Affiliates may make loans to, accept deposits from and generally
engage in any kind of business with the Seller or any Affiliate of the Seller as though such
Purchaser Agent were not a Purchaser Agent hereunder. With respect to the Advances made pursuant
to this Agreement, such Purchaser Agent and each of its Affiliates shall have the same rights and
powers under this Agreement as any Purchaser and may exercise the same as though it were not a
Purchaser Agent and the terms “Purchaser” and “Purchasers” shall include such Purchaser Agent in
its individual capacity.

     (g) Successor Purchaser Agent. Each applicable Purchaser Agent, respectively, may,
upon five days’ notice to the Seller and its related Purchaser, and such Purchaser Agent will, upon
the direction of its related Purchaser, resign as Purchaser Agent for such Purchaser. If such
Purchaser Agent shall resign, then its related Purchaser, during such five day period, shall
appoint a successor agent. If for any reason no successor Agent is appointed by such Purchaser
during such five day period, then effective upon the expiration of such five day period, the Seller
shall make all payments in respect of the Aggregate Unpaids directly to such Purchaser and for all
purposes shall deal directly with such Purchaser. After any retiring Purchaser Agent’s resignation
hereunder as Purchaser Agent, the provisions of Articles XI and XII shall inure to its

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benefit as to any actions taken or omitted to be taken by it while it was a Purchaser Agent
under this Agreement. Notwithstanding the resignation or removal of the Purchaser Agent for VFCC,
Wachovia, as Hedge Counterparty, shall continue to be a Secured Party hereunder.

     Section 12.3 Additional Agent.

     (a) Authorization and Action. Each Additional Purchaser hereby designates and appoints
the relevant Additional Agent designated in the related Additional Purchaser Agreement to act as
its agent hereunder and under each other Transaction Document, and authorizes such Additional Agent
to take such actions as agent on its behalf and to exercise such powers as are delegated to the
Additional Agent by the terms of this Agreement and the other Transaction Documents together with
such powers as are reasonably incidental thereto. No Additional Agent shall have any duties or
responsibilities, except those expressly set forth herein or in any other Transaction Document, or
any fiduciary relationship with such related Additional Purchaser, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities on the part of such Additional
Agent shall be read into this Agreement or any other Transaction Document or otherwise exist for
such Additional Agent. In performing its functions and duties hereunder and under the other
Transaction Documents, each Additional Agent shall act solely as agent for the related Additional
Purchaser and does not assume nor shall be deemed to have assumed any obligation or relationship of
trust or agency with or for the Seller or the Servicer or any of the Seller’s or the Servicer’s
successors or assigns. No Additional Agent shall be required to take any action that exposes the
Additional Agent to personal liability or that is contrary to this Agreement, any other Transaction
Document or Applicable Law. The appointment and authority of each Additional Agent hereunder shall
terminate upon the indefeasible payment in full of all Aggregate Unpaids. Each Additional Agent
hereby authorizes the Administrative Agent to execute each of the UCC financing statements on
behalf of such Additional Agent (the terms of which shall be binding on such Additional Agent).

     (b) Delegation of Duties. Any of the Additional Agents may execute any of its duties
under this Agreement and each other Transaction Document by or through agents or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No
Additional Agent shall be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

     (c) Exculpatory Provisions. Neither any Additional Agent nor any of its directors,
officers, agents or employees shall be (i) liable for any action lawfully taken or omitted to be
taken by it or them under or in connection with this Agreement or any other Transaction Document
(except for its, their or such Person’s own gross negligence or willful misconduct), or (ii)
responsible in any manner to any Additional Purchaser for any recitals, statements, representations
or warranties made by the Seller or the Servicer contained in Article IV, any other
Transaction Document or any certificate, report, statement or other document referred to or
provided for in, or received under or in connection with, this Agreement or any other Transaction
Document, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement, any other Transaction Document or any other document furnished in connection
herewith or therewith, or for any failure of the Seller or the Servicer to perform its obligations
hereunder or thereunder, or for the satisfaction of any condition specified in this Agreement, or
for the perfection, priority, condition, value or sufficiency of any collateral pledged in
connection

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herewith. No Additional Agent shall be under any obligation to any Additional Purchaser to
ascertain or to inquire as to the observance or performance of any of the agreements or covenants
contained in, or conditions of, this Agreement or any other Transaction Document, or to inspect the
properties, books or records of the Seller or the Servicer. No Additional Agent shall be deemed to
have knowledge of any Termination Event or Unmatured Termination Event unless such Additional Agent
has received notice from the Seller or the related Additional Purchaser.

     (d) Reliance by Additional Agent. Each Additional Agent shall in all cases be
entitled to rely, and shall be fully protected in relying, upon any document or conversation
believed by it to be genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel (including, without limitation, counsel
to the Seller), independent accountants and other experts selected by such Additional Agent. Each
Additional Agent shall in all cases be fully justified in failing or refusing to take any action
under this Agreement or any other Transaction Document unless it shall first receive such advice or
concurrence of the related Additional Purchaser as it deems appropriate and it shall first be
indemnified to its satisfaction by such Additional Purchaser; provided that unless and until such
Additional Agent shall have received such advice, the Additional Agent may take or refrain from
taking any action, as the Additional Agent shall deem advisable and in the best interests of the
Related Additional Purchaser. Each Additional Agent shall in all cases be fully protected in
acting, or in refraining from acting, in accordance with a request of the related Additional
Purchaser, and such request and any action taken or failure to act pursuant thereto shall be
binding upon such Additional Purchaser.

     (e) Non-Reliance on Additional Agent. Each Additional Purchaser expressly
acknowledges that neither any Additional Agent, nor any of its officers, directors, employees,
agents, attorneys-in-fact or affiliates has made any representations or warranties to it and that
no act by such Additional Agent hereafter taken, including, without limitation, any review of the
affairs of the Seller or the Servicer, shall be deemed to constitute any representation or warranty
by such Additional Agent. Each Additional Purchaser represents and warrants to the related
Additional Agent that it has and will, independently and without reliance upon such Additional
Agent, such Additional Purchaser and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, operations, property,
prospects, financial and other conditions and creditworthiness of the Seller and made its own
decision to enter into this Agreement, the other Transaction Documents and all other documents
related hereto or thereto.

     (f) Additional Agent in its Individual Capacity. Each Additional Agent and its
Affiliates may make loans to, accept deposits from and generally engage in any kind of business
with the Seller or any Affiliate of the Seller as though such Additional Agent were not an
Additional Agent hereunder. With respect to Advances pursuant to this Agreement, each Additional
Agent shall have the same rights and powers under this Agreement in its individual capacity as any
Purchaser and may exercise the same as though it were not an Additional Agent, and the terms
“Purchaser,” and “Purchasers,” shall include the Additional Agent in its individual capacity.

     (g) Successor Additional Agent. Each Additional Agent may, upon five days’ notice to
the Seller, and the related Additional Purchaser, and such Additional Agent will, upon the

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direction of such Additional Purchaser (other than such Additional Agent, in its individual
capacity) resign as Additional Agent. If any Additional Agent shall resign, then the related
Additional Purchaser during such five day period shall appoint a successor agent. If for any
reason no successor Additional Agent is appointed by the related Additional Purchaser during such
five day period, then effective upon the termination of such five day period, and the Seller shall
make all payments in respect of the Aggregate Unpaids directly to such Additional Purchaser, and
for all purposes shall deal directly with such Additional Purchaser. After any retiring Additional
Agent’s resignation hereunder as an Additional Agent, the provisions of Articles XI and
XII shall inure to its benefit with respect to any actions taken or omitted to be taken by
it while it was an Additional Agent under this Agreement.

ARTICLE XIII

MISCELLANEOUS

     Section 13.1 Amendments and Waivers.

     (a) Except as provided in this Section 13.1, no amendment, waiver or other
modification of any provision of this Agreement shall be effective without the written agreement of
the Seller, the Servicer, the Backup Servicer, the Collateral Custodian, the Administrative Agent
and the Secured Parties; provided that no such amendment, waiver or modification adversely
affecting the rights or obligations of any Hedge Counterparty shall be effective without the
written agreement of such Person.

     (b) The parties hereto acknowledge and agree that after the Closing Date the Agreement may
need to be amended to correct certain ambiguities or errors as well as to correct inconsistencies
with the terms of the other Transaction Documents and each such party agrees to cooperate in good
faith to effectuate, and not to unreasonably withhold, delay or condition its consent to, any such
amendments; provided that, notwithstanding the foregoing, to the extent any such amendment would
have a adverse effect on any Secured Party, such Secured Party shall have the right to consent or
withhold consent in its sole discretion.

     (c) The parties hereby acknowledge and agree that if any Purchaser (the “Affected Purchaser”)
fails to consent to an amendment, waiver or other modification of any provision of this Agreement
that requires the consent of such Purchaser and such amendment, waiver or other modification is
otherwise consented to by Purchasers holding more than 50% of the Advances Outstanding, the Seller
may, at its sole cost and expense, within 15 days of receipt by the Seller of notice of such
failure to consent, give notice in writing (a “Replacement Notice”) to the Administrative Agent and
such Affected Purchaser of its intention to cause such Affected Purchaser to sell all or any
portion of its Commitment and its Pro Rata Share of the Advances Outstanding to another financial
institution or other Person (a “Replacement Purchaser”) designated in such Replacement Notice;
provided that no Replacement Notice may be given by the Seller if (i) such replacement conflicts
with any applicable law or regulation or (ii) any Termination Event shall have occurred and be
continuing at the time of such replacement. If the Administrative Agent shall, in the exercise of
its reasonable discretion and within 15 days of its receipt of such Replacement Notice, notify the
Seller and such Affected Purchaser in writing that the Replacement Purchaser is satisfactory to the
Administrative Agent (such consent not being

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required where the Replacement Purchaser is already a Purchaser), then such Affected Purchaser
shall assign the portion of its Commitment and its Pro Rata Share of the Advances Outstanding and
other rights and obligations under this Agreement and all other Transaction Documents designated in
the Replacement Notice to such Replacement Purchaser; provided that (i) in the case of an
assignment of the Purchaser Variable Funding Certificate or Additional Purchaser Variable Funding
Certificate, the Replacement Purchaser shall execute and deliver to the Servicer and the
Administrative Agent a Transferee Letter, (ii) such assignment shall be without recourse,
representation or warranty and shall be on terms and conditions reasonably satisfactory to such
Affected Purchaser and such Replacement Purchaser, (iii) the purchase price paid by such
Replacement Purchaser shall be in the amount of such Affected Purchaser’s Pro Rata Share of
Advances Outstanding designated in the Replacement Notice, together with all accrued and unpaid
interest and fees in respect thereof, plus all other amounts then owing to such Affected Purchaser
hereunder and (iv) the Seller shall pay to the Affected Purchaser and the Administrative Agent all
reasonable out-of-pocket expenses incurred by the Affected Purchaser and the Administrative Agent
in connection with such assignment and assumption. Upon the effective date of the assignment
described above, the Replacement Purchaser shall become a “Purchaser” for all purposes under the
Transaction Documents. Each Purchaser hereby grants to the Administrative Agent an irrevocable
power of attorney (which power is coupled with an interest) to execute and deliver, on behalf of
such Purchaser as assignor, any assignment agreement necessary to effectuate any assignment of such
Purchaser’s interests hereunder in the circumstances contemplated by this Section 13.1(c).

     Section 13.2 Notices, Etc.

     All notices, reports and other communications provided for hereunder shall, unless otherwise
stated herein, be in writing (including telex communication and communication by facsimile copy)
and mailed, telexed, transmitted or delivered, as to each party hereto, at its address set forth
under its name on the signature pages hereof or at such other address as shall be designated by
such party in a written notice to the other parties hereto (provided that, for avoidance of doubt,
Lord Securities Corp. shall not receive notices, reports and other communications provided pursuant
to Article II, and Section 6.10, Section 6.11 and Section 6.12
hereof). All such notices and communications shall be effective, upon receipt, or in the case
of (a) notice by mail, five days after being deposited in the United States mail, first class
postage prepaid, (b) notice by telex, when telexed against receipt of answer back, or (c) notice by
facsimile copy, when verbal communication of receipt is obtained.

     Section 13.3 Ratable Payments.

     If any Secured Party, whether by setoff or otherwise, has payment made to it with respect to
any portion of the Aggregate Unpaids owing to such Secured Party (other than payments received
pursuant to Section 11.1) in a greater proportion than that received by any other Secured
Party, such Secured Party agrees, promptly upon demand, to purchase for cash without recourse or
warranty a portion of the Aggregate Unpaids held by the other Secured Parties so that after such
purchase each Secured Party will hold its ratable proportion of the Aggregate Unpaids; provided
that if all or any portion of such excess amount is thereafter recovered from such Secured Party,
such purchase shall be rescinded and the purchase price restored to the extent of such recovery,
but without interest.

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     Section 13.4 No Waiver; Remedies.

     No failure on the part of the Administrative Agent, the Purchaser Agents, the Collateral
Custodian, the Backup Servicer or a Secured Party to exercise, and no delay in exercising, any
right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right or remedy hereunder preclude any other or further exercise thereof or the
exercise of any other right. The rights and remedies herein provided are cumulative and not
exclusive of any rights and remedies provided by law.

     Section 13.5 Binding Effect; Benefit of Agreement.

     This Agreement shall be binding upon and inure to the benefit of the Seller, the Servicer, the
Administrative Agent, the Purchaser Agents, the Backup Servicer, the Collateral Custodian, the
Secured Parties and their respective successors and permitted assigns and, in addition, the
provisions of Section 2.9(a)(1) and Section 2.10(a)(1) shall inure to the benefit
of each Hedge Counterparty, whether or not that Hedge Counterparty is a Secured Party.

     Section 13.6 Term of this Agreement.

     This Agreement, including, without limitation, the Seller’s representations and covenants set
forth in Articles IV and V, and the Servicer’s representations, covenants and
duties set forth in Articles VI, VII and VIII, create and constitute the
continuing obligation of the parties hereto in accordance with its terms, and shall remain in full
force and effect until the Collection Date; provided that the rights and remedies with respect to
any breach of any representation and warranty made or deemed made by the Seller pursuant to
Articles III and IV the indemnification and payment provisions of Article
XI and the provisions of Section 13.9, Section 13.10 and Section 13.11,
shall be continuing and shall survive any termination of this Agreement.

     Section 13.7 Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue.

     THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK. EACH OF THE PARTIES HERETO AND EACH HEDGE COUNTERPARTY HEREBY AGREES TO THE
NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL COURT LOCATED WITHIN THE STATE OF NEW YORK. EACH OF THE
PARTIES HERETO AND EACH SECURED PARTY HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS,
AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS
AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH
COURT.

     Section 13.8 Waiver of Jury Trial.

     TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO AND EACH HEDGE
COUNTERPARTY HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE PARTIES HERETO ARISING

151

 

OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF THEM IN
CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE
RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

     Section 13.9 Costs, Expenses and Taxes.

     (a) In addition to the rights of indemnification granted to the Administrative Agent, the
Purchaser Agents, the Backup Servicer, the Collateral Custodian, the Secured Parties and its or
their Affiliates and officers, directors, employees and agents thereof under Article XI hereof, the
Seller and Originator agrees to pay on demand all reasonable costs and expenses of the
Administrative Agent, the Purchaser Agents, the Backup Servicer, the Collateral Custodian and the
Secured Parties incurred in connection with the preparation, execution, delivery, administration
(including periodic auditing, which shall be limited to two audits per year prior to the occurrence
of a Termination Event), renewal, amendment or modification of, or any waiver or consent issued in
connection with, this Agreement and the other documents to be delivered hereunder or in connection
herewith (including any Hedging Agreement), including, without limitation, the reasonable fees and
out-of-pocket expenses of counsel for the Administrative Agent, the Purchaser Agents, the Backup
Servicer, the Collateral Custodian and the Secured Parties with respect thereto and with respect to
advising the Administrative Agent, the Purchaser Agents, the Backup Servicer, the Collateral
Custodian and the Secured Parties as to their respective rights and remedies under this Agreement
and the other documents to be delivered hereunder or in connection herewith (including any Hedging
Agreement), and all costs and expenses, if any (including reasonable counsel fees and expenses),
incurred by the Administrative Agent, the Purchaser Agents, the Backup Servicer, the Collateral
Custodian or the Secured Parties in connection with the enforcement of this Agreement and the other
documents to be delivered hereunder or in connection herewith (including any Hedging Agreement).

     (b) The Seller and Originator shall pay on demand any and all stamp, sales, excise and other
taxes and fees payable or determined to be payable in connection with the execution, delivery,
filing and recording of this Agreement, the other documents to be delivered hereunder or any
agreement or other document providing liquidity support, credit enhancement or other similar
support to the Purchasers in connection with this Agreement or the funding or maintenance of
Advances hereunder.

     (c) The Seller and Originator shall pay on demand all other reasonable costs, expenses and
Taxes (excluding income taxes) incurred by the Administrative Agent, the Purchaser Agents, the
Secured Parties (“Other Costs”), including, without limitation, all costs and expenses incurred by
the Administrative Agent and the Purchaser Agents in connection with periodic audits of the
Seller’s or the Servicer’s books and records.

     Section 13.10 No Proceedings.

     (a) Each of the parties hereto (other than a particular Purchaser) and each Hedge Counterparty
(by accepting the benefits of this Agreement) hereby agrees that it will not institute

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against, or join any other Person in instituting against, such Purchaser, the Administrative
Agent, the related Purchaser Agent or any Liquidity Banks any Insolvency Proceeding so long as any
commercial paper issued by such Purchaser shall be outstanding and there shall not have elapsed one
year and one day since the last day on which any such commercial paper shall have been outstanding.

     (b) Each of the parties hereto (other than a particular Additional Purchaser) hereby agrees
that it will not institute against, or join any other Person in instituting against such Additional
Purchaser, the related Additional Agent or any of its Liquidity Banks any Insolvency Proceeding so
long as any commercial paper issued by such Additional Purchaser shall be outstanding and there
shall not have elapsed one year and one day since the last day on which any such commercial paper
shall have been outstanding.

     (c) Each of the parties hereto (other than the Administrative Agent without the consent of the
Purchaser Agents) hereby agrees that it will not institute against, or join any other Person in
instituting against, the Seller any Insolvency Proceeding so long as there shall not have elapsed
one year and one day since the Collection Date; provided that nothing in this Section 13.10
shall limit any party’s right to file any claim in or otherwise take any action with respect to any
insolvency proceeding that was instituted by any other Person.

     Section 13.11 Recourse Against Certain Parties.

     (a) No recourse under or with respect to any obligation, covenant or agreement (including,
without limitation, the payment of any fees or any other obligations) of the Administrative Agent,
the Purchaser Agents, or any Secured Party as contained in this Agreement or any other agreement,
instrument or document entered into by it pursuant hereto or in connection herewith shall be had
against any administrator of the Administrative Agent, the Purchaser Agents, or any Secured Party,
or any incorporator, affiliate, stockholder, officer, employee or director of the Administrative
Agent, the Purchaser Agents, or any Secured Party, or of any such administrator, as such, by the
enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or
otherwise; it being expressly agreed and understood
that the agreements of the Administrative Agent, the Purchaser Agents, or any Secured Party
contained in this Agreement and all of the other agreements, instruments and documents entered into
by it pursuant hereto or in connection herewith are, in each case, solely the corporate obligations
of the Administrative Agent, the Purchaser Agents, or any Secured Party, and that no personal
liability whatsoever shall attach to or be incurred by any administrator of the Administrative
Agent, the Purchaser Agents, or any Secured Party or any incorporator, stockholder, affiliate,
officer, employee or director of the Administrative Agent, the Purchaser Agents, or any Secured
Party or of any such administrator, as such, or any other of them, under or by reason of any of the
obligations, covenants or agreements of the Administrative Agent, the Purchaser Agents, or any
Secured Party contained in this Agreement or in any other such instruments, documents or
agreements, or that are implied therefrom, and that any and all personal liability of every such
administrator of the Administrative Agent, the Purchaser Agents, or any Secured Party and each
incorporator, stockholder, affiliate, officer, employee or director of the Administrative Agent,
the Purchaser Agents, or any Secured Party or of any such administrator, or any of them, for
breaches by the Administrative Agent, the Purchaser Agents, or any Secured Party of any such
obligations, covenants or agreements, which

153

 

liability may arise either at common law or at equity, by statute or constitution, or
otherwise, is hereby expressly waived as a condition of and in consideration for the execution of
this Agreement. The provisions of this Section 13.11 shall survive the termination of this
Agreement.

     (b) Notwithstanding anything in this Agreement to the contrary, no Purchaser or Additional
Purchaser shall have any obligation to pay any amount required to be paid by it hereunder in excess
of any amount available to such Purchaser or such Additional Purchaser, as applicable, after paying
or making provision for the payment of its Commercial Paper Notes. All payment obligations of each
Purchaser and each Additional Purchaser, as applicable, hereunder are contingent on the
availability of funds in excess of the amounts necessary to pay its Commercial Paper Notes; and
each of the other parties hereto agrees that it will not have a claim under Section 101(5) of the
Bankruptcy Code if and to the extent that any such payment obligation owed to it by a Purchaser or
an Additional Purchaser, as applicable, exceeds the amount available to such Purchaser or such
Additional Purchaser, as applicable, to pay such amount after paying or making provision for the
payment of its Commercial Paper Notes.

     (c) Notwithstanding any contrary provision set forth herein, no claim may be made by the
Seller, the Originator or the Servicer or any other Person against the Administrative Agent and the
Secured Parties or their respective Affiliates, directors, officers, employees, attorneys or agents
for any special, indirect, consequential or punitive damages in respect to any claim for breach of
contract or any other theory of liability arising out of or related to the transactions
contemplated by this Agreement, or any act, omission or event occurring in connection therewith;
and the Seller, the Originator and the Servicer each hereby waives, releases, and agrees not to sue
upon any claim for any such damages, whether or not accrued and whether or not known or suspected.

     (d) No obligation or liability to any Obligor under any of the Assets is intended to be
assumed by the Administrative Agent and the Secured Parties under or as a result of this Agreement
and the transactions contemplated hereby

	 	 	Section 13.12 Protection of Right, Title and Interest in the Collateral; Further Action
Evidencing Advances .

     (a) The Servicer shall cause this Agreement, all amendments hereto and/or all financing
statements and continuation statements and any other necessary documents covering the right, title
and interest of the Administrative Agent as agent for the Secured Parties and of the Secured
Parties to the Collateral to be promptly recorded, registered and filed, and at all times to be
kept recorded, registered and filed, all in such manner and in such places as may be required by
law fully to preserve and protect the right, title and interest of the Administrative Agent as
agent for the Secured Parties hereunder to all property comprising the Collateral. The Servicer
shall deliver to the Administrative Agent file-stamped copies of, or filing receipts for, any
document recorded, registered or filed as provided above, as soon as available following such
recording, registration or filing. The Seller shall cooperate fully with the Servicer in
connection with the obligations set forth above and will execute any and all documents reasonably
required to fulfill the intent of this Section 13.12(a).

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     (b) The Seller agrees that from time to time, at its expense, it will promptly execute and
deliver all instruments and documents, and take all actions, that the Administrative Agent may
reasonably request in order to perfect, protect or more fully evidence the Advances hereunder and
the security interest granted in the Collateral, or to enable the Administrative Agent or the
Secured Parties to exercise and enforce their rights and remedies hereunder or under any
Transaction Document.

     (c) If the Seller or the Servicer fails to perform any of its obligations hereunder, the
Administrative Agent or any Secured Party may (but shall not be required to) perform, or cause
performance of, such obligation; and the Administrative Agent’s or such Secured Party’s costs and
expenses incurred in connection therewith shall be payable by the Seller as provided in Article
XI. The Seller irrevocably authorizes the Administrative Agent and appoints the Administrative
Agent as its attorney-in-fact to act on behalf of the Seller (i) to execute on behalf of the Seller
as debtor and to file financing statements necessary or desirable in the Administrative Agent’s
sole discretion to perfect and to maintain the perfection and priority of the interest of the
Secured Parties in the Collateral and (ii) to file a carbon, photographic or other reproduction of
this Agreement or any financing statement with respect to the Collateral as a financing statement
in such offices as the Administrative Agent in its sole discretion deems necessary or desirable to
perfect and to maintain the perfection and priority of the interests of the Secured Parties in the
Collateral. This appointment is coupled with an interest and is irrevocable.

     (d) Without limiting the generality of the foregoing, Seller will, not earlier than six months
and not later than three months prior to the fifth anniversary of the date of filing of the
financing statement referred to in Section 3.1 or any other financing statement filed
pursuant to this Agreement or in connection with any Advance hereunder, unless the Collection Date
shall have occurred:

     (i) execute and deliver and file or cause to be filed an appropriate continuation
statement with respect to such financing statement; and

     (ii) deliver or cause to be delivered to the Administrative Agent an opinion of the
counsel for Seller, in form and substance reasonably satisfactory to the Administrative
Agent, confirming and updating the opinion delivered pursuant to Section 3.1 with
respect to perfection and otherwise to the effect that the security interest hereunder
continues to be an enforceable and perfected security interest, subject to no other Liens of
record except as provided herein or otherwise permitted hereunder, which opinion may contain
usual and customary assumptions, limitations and exceptions.

     Section 13.13 Confidentiality

     (a) Each of the Administrative Agent, the Purchaser Agents, the Secured Parties, the Servicer,
the Collateral Custodian, the Backup Servicer and the Seller shall maintain and shall cause each of
its employees and officers to maintain the confidentiality of the Agreement and all information
with respect to the other parties, including all information regarding the business of the Seller
and the Servicer hereto and their respective businesses obtained by it or them in connection with
the structuring, negotiating and execution of the transactions contemplated

155

 

herein or related to any of the underlying Obligors, except that each such party and its
officers and employees may (i) disclose such information to its external accountants, attorneys,
rating agencies, investors, potential investors parties that provide or may in the future provide
first loss or credit enhancement to such Person and the agents of such Persons (“Excepted
Persons”); (ii) disclose the existence of the Agreement, but not the financial terms thereof, (iii)
disclose such information as is required by Applicable Law and (iv) disclose the Agreement and such
information in any suit, action, proceeding or investigation (whether in law or in equity or
pursuant to arbitration) involving any of the Transaction Documents or any Hedging Agreement for
the purpose of defending itself, reducing its liability, or protecting or exercising any of its
claims, rights, remedies, or interests under or in connection with any of the Transaction Documents
or any Hedging Agreement. It is understood that the financial terms that may not be disclosed
except in compliance with this Section 13.13(a) include, without limitation, all fees and
other pricing terms, and all Termination Events, Servicer Defaults, and priority of payment
provisions. Each of the Administrative Agent, the Purchaser Agents, the Secured Parties, the
Collateral Custodian and the Backup Servicer will not use any such information referenced in this
clause (a) regarding the business of the Seller and the Servicer hereto and their respective
businesses related to any of the underlying Obligors for the purpose of their own (or their
Affiliates) business development with such underlying Obligor without the prior written consent of
the Seller and the Servicer (provided that such consent shall not be unreasonably withheld).

     (b) Anything herein to the contrary notwithstanding, the Seller and the Servicer each hereby
consents to the disclosure of any nonpublic information with respect to it (i) to the
Administrative Agent, the Purchaser Agents, the Collateral Custodian, the Backup Servicer or the
Secured Parties by each other, (ii) by the Administrative Agent, the Purchaser Agents, the
Collateral Custodian, the Backup Servicer and the Secured Parties to any prospective or actual
assignee or participant of any of them provided such Person agrees to hold such information
confidential, or (iii) by the Administrative Agent, the Purchaser Agents, and the Secured Parties
to any commercial paper dealer or provider of a surety, guaranty or credit or liquidity enhancement
to any Purchaser, as applicable, and to any officers, directors, employees, outside accountants and
attorneys of any of the foregoing, provided each such Person is informed of the confidential nature
of such information. In addition, the Secured Parties, the Administrative Agent and the Purchaser
Agents, may disclose any such nonpublic information as required pursuant to any law, rule,
regulation, direction, request or order of any judicial, administrative or regulatory authority or
proceedings (whether or not having the force or effect of law).

     (c) Notwithstanding anything herein to the contrary, the foregoing shall not be construed to
prohibit (i) disclosure of any and all information that is or becomes publicly known; (ii)
disclosure of any and all information (a) if required to do so by any applicable statute, law, rule
or regulation, (b) to any government agency or regulatory body having or claiming authority to
regulate or oversee any respects of the Administrative Agents’, the Purchaser Agents’, the Secured
Parties’, the Collateral Custodian’s or the Backup Servicer’s business or that of their affiliates,
(c) pursuant to any subpoena, civil investigative demand or similar demand or request of any court,
regulatory authority, arbitrator or arbitration to which the Administrative Agent, the Purchaser
Agents, the Secured Parties, the Collateral Custodian or the Backup Servicer or an officer,
director, employer, shareholder or affiliate of any of the foregoing is a party, (d) in any
preliminary or final offering circular, registration statement or contract or other document
approved in advance by the Seller, the Servicer or the Originator or (e) to any affiliate,

156

 

independent or internal auditor, agent, employee or attorney of the Collateral Custodian or
Backup Servicer having a need to know the same, provided that the Collateral Custodian or Backup
Servicer advises such recipient of the confidential nature of the information being disclosed; or
(iii) any other disclosure authorized by the Seller, Servicer or Originator.

     Section 13.14 Execution in Counterparts; Severability; Integration.

     This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts (including by facsimile), each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one and the same agreement.
In case any provision in or obligation under this Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not
in any way be affected or impaired thereby. This Agreement and any agreements or letters
(including fee letters) executed in connection herewith contains the final and complete integration
of all prior expressions by the parties hereto with respect to the subject matter hereof and shall
constitute the entire agreement among the parties hereto with respect to the subject matter hereof,
superseding all prior oral or written understandings other than any fee letter delivered by the
Originator to the Administrative Agent, the Purchaser Agents, and the Secured Parties.

     Section 13.15 Waiver of Setoff.

     (a) Each of the parties hereto (other than any one of the Purchasers) hereby waives any right
of setoff it may have or to which it may be entitled under this Agreement from time to time against
such Purchaser or its assets.

     (b) Each of the parties hereto (other than any one of the Additional Purchasers) hereby waives
any right of setoff it may have or to which it may be entitled under this Agreement from time to
time against such Additional Purchaser or its assets.

     Section 13.16 Assignments.

     (a) The Purchasers may at any time assign, or grant a security interest or sell a
participation interest in, with the prior written consent of the Seller and Administrative Agent
provided that no Termination Event has occurred and is continuing (provided that such consent shall
not be required after a Termination Event or in connection with any assignment, grant of a security
interest or sale of a participation interest in an Advance or Commitment to any other Purchaser,
any Purchaser Agent, any Purchaser Affiliate, any Liquidity Bank or Affiliate of such Liquidity
Bank providing liquidity to a purchaser that is a commercial paper conduit, or any other purchaser
that is a commercial paper conduit sponsored by any Purchaser or Purchaser Affiliate), in any
Advance or Commitment (or portion thereof) to any Person (such Person other than any Liquidity
Bank, pledgee or Participant (as defined below), an “Additional Purchaser”); provided that in the
case of an assignment of a Variable Funding Certificate, the assignee (other than any assignee that
is a Liquidity Bank) shall execute and deliver to the Servicer, the Administrative Agent and each
Purchaser Agent a Transferee Letter substantially in the form of Exhibit K hereto (the
“Transferee Letter”). The parties to any such assignment, grant or sale of

157

 

participation interest shall execute and deliver to the applicable Purchaser Agent, for its
acceptance and recording in its books and records, such agreement or document as may be
satisfactory to such parties and such Purchaser Agent. Any assignment of a Variable Funding
Certificate shall be deemed to amend this Agreement to the extent, and only to the extent,
necessary to reflect the addition of such Additional Purchaser and the resulting adjustment of
Commitments arising from the purchase by such Additional Purchaser of all or a portion of the
rights and obligations of such transferor Purchaser under this Agreement its Variable Funding
Certificate. The Seller shall not assign or delegate, or grant any interest in, or permit any Lien
(other than any Permitted Lien) to exist upon, any of the Seller’s rights, obligations or duties
under this Agreement without the prior written consent of the Administrative Agent, each Purchaser
Agent and each Hedge Counterparty.

     (b) The Originator may, with the written consent of the Administrative Agent, add additional
Persons as Additional Purchasers and Additional Agents or cause an existing Purchaser to increase
its Commitment; provided however that the Commitment of any Purchaser may only be increased with
the prior written consent of such Purchaser and the Administrative Agent. Each new Additional
Purchaser and Additional Agent (other than any Liquidity Bank, pledgee, or Participant (as defined
below)) shall become a party hereto by executing and delivering to the Administrative Agent and the
Originator an Assumption Agreement substantially in the form of Exhibit M hereto (the
“Assumption Agreement”).

     (c) Any Person to whom a participation has been sold by a Purchaser pursuant to Section
13.16(a) (each a “Participant”) shall not be entitled to receive any greater payment under
Sections 2.14 through 2.16 or Article XI than the applicable Purchaser would have
been entitled to receive with respect to the participation interest sold to such Participant.

     (d) The Administrative Agent, on behalf of the Seller, shall maintain a copy of each
Additional Purchaser Agreement delivered to it and a register (the “Register”) for the recordation
of the names and addresses of the Purchasers and the principal amount of the Variable Funding
Certificates owned by each Purchaser from time to time. The entries in the Register shall be
prima facie evidence of the accuracy thereof, and the Seller, the Purchaser Agents
and the Purchasers shall treat each Person whose name is recorded in the Register as the owner of a
Variable Funding Certificate hereunder as the owner thereof for all purposes of the Sale and
Servicing Agreement, notwithstanding any notice to the contrary. Any assignment of a Variable
Funding Certificate hereunder shall be effective only upon appropriate entries with respect thereto
being made in the Register. Any assignment or transfer of all or part of any Variable Funding
Certificate shall be registered on the Register only upon surrender for registration of assignment
or transfer of the related Variable Funding Certificate, duly endorsed by (or accompanied by a
written instrument of assignment or transfer duly executed by) the holder thereof, and thereupon
one or more new Variable Funding Certificate(s) in the same aggregate principal amount shall be
issued to the designated Additional Purchaser(s) and the old Variable Funding Certificate shall be
returned to the Seller marked “cancelled”. The Register shall be available for inspection by the
Seller or any Purchaser at any reasonable time and from time to time upon reasonable prior notice.

158

 

     Section 13.17 Heading and Exhibits.

     The headings herein are for purposes of references only and shall not otherwise affect the
meaning or interpretation of any provision hereof. The schedules and exhibits attached hereto and
referred to herein shall constitute a part of this Agreement and are incorporated into this
Agreement for all purposes.

     Section 13.18 Loans Subject to Retained Interest Provisions.

     (a) With respect to any Loan included in the Collateral subject to the Retained Interest
provisions of this Agreement, the Seller will own only the principal portion of such Loans
outstanding as of the applicable Cut-Off Date. Principal Collections received by the Seller or the
Servicer on any Revolving Loans will be allocated first to the portion of such Revolving Loan owned
by the Seller, until the principal amount of such portion is reduced to zero, and then to the
portion not owned by the Seller; provided that if (i) a payment default occurs with respect to any
of the related Loans, (ii) a Liquidity Factor Reduction Event occurs and continues, (iii) the
Originator has determined in its sole discretion that an Obligor’s credit has deteriorated or the
Originator has determined in its sole discretion to reduce its commitment to an Obligor, or (iv) an
Allocation Adjustment Event occurs, then Principal Collections received on (x) the applicable Loan
(in the case of clause (i) or (iii) above or during the time that a Liquidity
Factor Reduction Event exists and continues in the case of clause (ii) above) or (y) all the
Revolving Loans (in the case of clauses (iv) above) will be allocated between the portion
owned by the Seller and the portion not owned by the Seller, pro rata based upon the outstanding
principal amount of each such portion.

     (b) With respect to any Term Loans included in the Collateral subject to the Retained Interest
provisions of this Agreement, Principal Collections and Interest Collections received by the
Servicer will be allocated between the portion owned by the Seller and to the portion not owned by
the Seller (if any) on a pro rata basis according to the outstanding principal amount of such
portion.

     Section 13.19 Tax Treatment of Advances.

     It is the intention of the Seller and the Purchasers that, for U.S. federal, state and local
income and franchise tax purposes only, the Advances made hereunder will be treated as indebtedness
secured by the Collateral. The Seller, by entering into this Agreement, and the Purchasers, by
making the Advances described herein, agree to treat the Advances for U.S. federal, state and local
income and franchise tax purposes as indebtedness. The provisions of this Agreement and all
related Transaction Documents shall be construed to further these intentions of the parties.

     Section 13.20 Original Sale and Servicing Agreement.

     This Agreement shall become effective, and shall amend and restate the Original Sale and
Servicing Agreement, upon the execution of this Agreement by Seller, the Originator, the Servicer,
the Purchasers, the Purchaser Agents, the Administrative Agent, the Backup Servicer and the
Collateral Custodian and upon the satisfaction of the conditions contained in Article III hereof;
and from and after such effective time, (i) all references made to the Original Sale and

159

 

Servicing Agreement in the Transaction Documents or in any other instrument or document executed
and/or delivered pursuant thereto shall, without anything further, be deemed to refer to this
Agreement and (ii) the Original Sale and Servicing Agreement shall be deemed amended and restated
in its entirety hereby.

     This Agreement is entered into and delivered to Purchaser Agents and the Purchasers in
replacement of and substitution for, and not in termination of or satisfaction for the Original
Sale and Servicing Agreement. All Transaction Documents, including, the other instruments,
documents and agreements executed and delivered in connection with the Original Sale and Servicing
Agreement, are hereby reaffirmed and shall continue in full force and effect, as may be amended,
restated or otherwise modified in connection herewith. Seller acknowledges that the Assets and
other Collateral evidenced by the Original Sale and Servicing Agreement have not been satisfied but
instead have become part of the Assets and the Collateral under this Agreement.

[Remainder of Page Intentionally Left Blank.]

160

 

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

	 	 	 	 	 
	 	CSE QRS FUNDING I LLC, as Seller

 	 
	 	By:  	/s/ JEFFREY
A. LIPSON	 
	 	 	Name: 	Jeffrey
A. Lipson 	 
	 	 	Title:  	Vice
President and Treasurer 	 
	 

	 	 	 	 	 
	 	CSE MORTGAGE LLC, as Originator
and as Server

 	 
	 	By:  	/s/ JEFFREY
A. LIPSON	 
	 	 	Name: 	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice
President and Treasurer 	 
	 

[Signatures Continued on the Following Page]

 

 

	 	 	 	 	 
	 	VARIABLE FUNDING CAPITAL COMPANY LLC

 	 
	 	By:  	Wachovia Capital Markets, LLC,
 	 
	 	 	as attorney-in-fact 	 
	 	 	 	 
	 	 	 
	 	By:  	/s/ DOUGLAS
R. WILSON, SR.	 
	 	 	Name: 	Douglas R. Wilson, Sr. 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	   	WACHOVIA CAPITAL MARKETS,
LLC, as the Administrative Agent and as the VFCC Agent

 	 
	 	By:  	/s/ BRIAN SMITH	 
	 	 	Name: 	Brian Smith 	 
	 	 	Title:  	Vice President 	 

[Signatures Continued on the Following Page]

 

 

	 	 	 	 	 
	 	PARK AVENUE RECEIVABLES COMPANY, LLC

 	 
	 	By:  	JPMorgan Chase Bank, N.A., its attorney-in-fact
 	 
	 
	 	 	 
	 	By:  	/s/ GEORGE S. WILKINS	 
	 	 	Name: 	George
S. Wilkins 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	JPMORGAN CHASE BANK, NATIONAL 

ASSOCIATION, as the Park Avenue Agent

 	 
	 	By:  	/s/ GEORGE S. WILKINS	 
	 	 	Name: 	George S. Wilkins 	 
	 	 	Title:  	Vice President 	 

[Signatures Continued on the Following Page]

 

 

	 	 	 	 	 
	 	FAIRWAY FINANCE COMPANY, LLC
 	 
	 	By:  	/s/ PHILIP A. MARTONE	 
	 	 	Name: 	Philip A. Martone	 
	 	 	Title:  	Vice President	 
	 

	 	 	 	 	 
	 	BMO CAPITAL MARKETS
CORP.
(f/k/a Harris Nesbitt Corp.), as the Fairway Agent

 	 
	 	By:  	/s/ MATTHEW PETERS	 
	 	 	Name: 	Matthew Peters	 
	 	 	Title:  	Managing Director	 
	 

 

 

	 	 	 	 	 
	 	THREE PILLARS FUNDING LLC
 	 
	 	By:  	/s/ DORIS J. HEARN	 
	 	 	Name: 	Doris J. Hearn	 
	 	 	Title:  	Vice President	 
	 

	 	 	 	 	 
	 	 SUNTRUST CAPITAL MARKETS, INC.,
as the Three Pillars Agent

 	 
	 	By:  	/s/ MICHAEL G. MAZA	 
	 	 	Name: 	Michael G. Maza	 
	 	 	Title:  	Managing Director	 
	 

[Signatures Continued on the Following Page]

 

 

	 	 	 	 	 
	 

 
	SCALDIS CAPITAL LIMITED

 	 
	 	By:  	/s/ NICHOLAS JOHN WARD	 
	 	 	Name: 	Nicholas John Ward	 
	 	 	Title:  	Alternate Director	 
	 

	 	 	 	 	 
	 	 FORTIS BANK S.A./N.V. as the Scaldis
Agent

 	 
	 	By:  	/s/ KRISTOF MOENS	 
	 	 	Name: 	Kristof Moens	 
	 	 	Title:  	Executive Director Co-Head Securitisation	 
	 
	 	By:  	/s/ RALPH BAUER	 
	 	 	Name: 	Ralph
Bauer	 
	 	 	Title:  	Global Head of Capital Markets Group	 
	 	 	  	Global Markets	 
	 

[Signatures Continued on the Following Page]

 

 

	 	 	 	 	 
	 

 
	SYMPHONY NO. 4, LLC

 	 
	 	By:  	/s/ DAVID V. DEANGELIS	 
	 	 	Name: 	David V. DeAngelis	 
	 	 	Title:  	Vice President	 
	 

	 	 	 	 	 
	 	 DRESDNER BANK AG, NEW YORK BRANCH
as the Symphony Agent

 	 
	 	By:  	/s/ BRAD ELLIS	 
	 	 	Name: 	Brad Ellis	 
	 	 	Title:  	Vice President	 
	 
	 	By:  	/s/ ROMAN MAZO	 
	 	 	Name: 	Roman Mazo	 
	 	 	Title:  	Vice President	 
	 

[Signatures Continued on the Following Page]

 

 

	 	 	 	 	 
	 
 
 	WELLS FARGO BANK, NATIONAL
ASSOCIATION,  not in its individual capacity but solely as Backup
Servicer and as the Collateral Custodian

 	 
	 	By:  	/s/ JENNIFER C. DAVIS	 
	 	 	Name: 	Jennifer C. Davis	 
	 	 	Title:  	Assistant Vice President	 
	 

[Signatures Continued on the Following Page]

 

 

	 	 	 	 	 
	Acknowledged and Agreed to

as of the date first written above.

WACHOVIA BANK, NATIONAL ASSOCIATION,

as the Hedge Counterparty

 	 	 
	By:  	/s/        KIM
FARR	 	 
	 	Name: 	 Kim
Farr	 	 
	 	Title:  	 Director

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