Document:

exv4w14

 

Exhibit 4.14

EXECUTION COPY

 

 

INDENTURE

by and between

CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1,

as the Issuer,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

not in its individual capacity but solely in its capacity

as the Indenture Trustee

Dated as of April 11, 2006

 

 

CapitalSource Commercial Loan Trust 2006-1 Asset Backed Notes

Class A, Class B, Class C, Class D, Class E and Class F Notes

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I     DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	2	 
	Section 1.02. Rules of Construction
	 	 	8	 
	 
	 	 	 	 
	ARTICLE II     THE NOTES
	 	 	9	 
	 
	 	 	 	 
	Section 2.01. Form
	 	 	9	 
	Section 2.02. Execution, Authentication and Delivery
	 	 	9	 
	Section 2.03. Opinions of Counsel
	 	 	10	 
	 
	 	 	 	 
	ARTICLE III     COVENANTS
	 	 	10	 
	 
	 	 	 	 
	Section 3.01. Collection of Payments on Loans; Trust Accounts
	 	 	10	 
	Section 3.02. Maintenance of Office or Agency
	 	 	10	 
	Section 3.03. Money for Payments To Be Held in Trust; Paying Agent
	 	 	11	 
	Section 3.04. Existence; Separate Legal Existence
	 	 	12	 
	Section 3.05. Payment of Principal and Interest
	 	 	13	 
	Section 3.06. Protection of Indenture Collateral
	 	 	14	 
	Section 3.07. Opinions as to Indenture Collateral
	 	 	15	 
	Section 3.08. Furnishing of Rule 144A Information
	 	 	15	 
	Section 3.09. Performance of Obligations; Sale and Servicing Agreement
	 	 	16	 
	Section 3.10. Negative Covenants
	 	 	16	 
	Section 3.11. Annual Statement as to Compliance
	 	 	17	 
	Section 3.12. Recording of Assignments
	 	 	17	 
	Section 3.13. Representations and Warranties Concerning the Loans
	 	 	17	 
	Section 3.14. Indenture Trustee’s Review of Loan Files
	 	 	18	 
	Section 3.15. Indenture Collateral; Related Documents
	 	 	18	 
	Section 3.16. Amendments to Sale and Servicing Agreement
	 	 	18	 
	Section 3.17. Servicer as Agent and Bailee of Indenture Trustee
	 	 	18	 
	Section 3.18. Investment Company Act
	 	 	19	 
	Section 3.19. Issuer May Consolidate, etc., Only on Certain Terms
	 	 	19	 
	Section 3.20. Successor or Transferee
	 	 	21	 
	Section 3.21. No Other Business
	 	 	21	 
	Section 3.22. No Borrowing
	 	 	21	 
	Section 3.23. Guarantees, Loans, Advances and Other Liabilities
	 	 	21	 
	Section 3.24. Capital Expenditures
	 	 	21	 
	Section 3.25. Representations and Warranties of the Issuer
	 	 	21	 
	Section 3.26. Restricted Payments
	 	 	24	 
	Section 3.27. Notice of Events of Default
	 	 	24	 
	Section 3.28. Further Instruments and Acts
	 	 	24	 
	Section 3.29. Statements to Noteholders
	 	 	24	 
	Section 3.30. Grant of Substitute Loans
	 	 	25	 
	Section 3.31. Determination of LIBOR; Note Interest Rate; Interest
Distributable
	 	 	25	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 3.32. Covenants of the Issuer Relating to Hedge Agreements
	 	 	25	 
	Section 3.33. Payments from Obligor Lock– Boxes and Obligor Lock– Box
Accounts
	 	 	28	 
	Section 3.34. Maintenance of Listing
	 	 	28	 
	 
	 	 	 	 
	ARTICLE IV     THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	28	 
	 
	 	 	 	 
	Section 4.01. The Notes
	 	 	28	 
	Section 4.02. Registration of Transfer and Exchange of Notes
	 	 	28	 
	Section 4.03. Mutilated, Destroyed, Lost or Stolen Notes
	 	 	38	 
	Section 4.04. Payment of Principal and Interest; Defaulted Interest
	 	 	39	 
	Section 4.05. Tax Treatment
	 	 	40	 
	Section 4.06. Satisfaction and Discharge of Indenture
	 	 	41	 
	Section 4.07. Application of Trust Money
	 	 	43	 
	Section 4.08. Repayment of Moneys Held by Paying Agent
	 	 	43	 
	 
	 	 	 	 
	ARTICLE V      REMEDIES
	 	 	43	 
	 
	 	 	 	 
	Section 5.01. Events of Default
	 	 	43	 
	Section 5.02. Acceleration of Maturity; Rescission and Annulment
	 	 	45	 
	Section 5.03. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee
	 	 	45	 
	Section 5.04. Remedies; Priorities
	 	 	48	 
	Section 5.05. Optional Preservation of the Indenture Collateral
	 	 	49	 
	Section 5.06. Limitation of Suits
	 	 	49	 
	Section 5.07. Unconditional Rights of Noteholders To Receive Principal and
Interest
	 	 	50	 
	Section 5.08. Restoration of Rights and Remedies
	 	 	50	 
	Section 5.09. Rights and Remedies Cumulative
	 	 	51	 
	Section 5.10. Delay or Omission Not a Waiver
	 	 	51	 
	Section 5.11. Control by Noteholders
	 	 	51	 
	Section 5.12. Waiver of Past Defaults
	 	 	52	 
	Section 5.13. Undertaking for Costs
	 	 	52	 
	Section 5.14. Waiver of Stay or Extension Laws
	 	 	53	 
	Section 5.15. Sale of Indenture Collateral
	 	 	53	 
	Section 5.16. Action on Notes
	 	 	54	 
	Section 5.17. Performance and Enforcement of Certain Obligations
	 	 	54	 
	 
	 	 	 	 
	ARTICLE VI     THE INDENTURE TRUSTEE
	 	 	55	 
	 
	 	 	 	 
	Section 6.01. Duties of Indenture Trustee
	 	 	55	 
	Section 6.02. Rights of Indenture Trustee
	 	 	56	 
	Section 6.03. Individual Rights of Indenture Trustee
	 	 	57	 
	Section 6.04. Indenture Trustee’s Disclaimer
	 	 	57	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 6.05. Notice of Event of Default
	 	 	58	 
	Section 6.06. Reports by Indenture Trustee to Holders and S&P
	 	 	58	 
	Section 6.07. Compensation and Indemnity
	 	 	58	 
	Section 6.08. Replacement of Indenture Trustee
	 	 	59	 
	Section 6.09. Successor Indenture Trustee by Merger
	 	 	61	 
	Section 6.10. Appointment of Co–Indenture Trustee or Separate Indenture
Trustee
	 	 	61	 
	Section 6.11. Eligibility; Disqualification
	 	 	62	 
	Section 6.12. Representations, Warranties and Covenants of Indenture
Trustee
	 	 	63	 
	Section 6.13. Directions to Indenture Trustee
	 	 	64	 
	Section 6.14. Conflicts
	 	 	64	 
	 
	 	 	 	 
	ARTICLE VII     NOTEHOLDERS’ LISTS AND REPORTS
	 	 	64	 
	 
	 	 	 	 
	Section 7.01. Issuer To Furnish Indenture Trustee Names and Addresses of
Noteholders
	 	 	64	 
	Section 7.02. Preservation of Information; Communications to Noteholders
	 	 	65	 
	Section 7.03. Fiscal Year
	 	 	65	 
	Section 7.04. Reports to Irish Stock Exchange, Etc
	 	 	65	 
	 
	 	 	 	 
	ARTICLE VIII    TRUST ACCOUNTS, DISBURSEMENTS AND RELEASES
	 	 	65	 
	 
	 	 	 	 
	Section 8.01. Collection of Money
	 	 	65	 
	Section 8.02. Trust Accounts
	 	 	66	 
	Section 8.03. Opinion of Counsel
	 	 	66	 
	Section 8.04. Termination Upon Distribution to Noteholders
	 	 	67	 
	Section 8.05. Release of Indenture Collateral
	 	 	67	 
	Section 8.06. Surrender of Notes Upon Final Payment
	 	 	67	 
	 
	 	 	 	 
	ARTICLE IX      SUPPLEMENTAL INDENTURES
	 	 	67	 
	 
	 	 	 	 
	Section 9.01. Supplemental Indentures Without Consent of Noteholders
	 	 	67	 
	Section 9.02. Supplemental Indentures With Consent of Noteholders
	 	 	69	 
	Section 9.03. Execution of Supplemental Indentures
	 	 	71	 
	Section 9.04. Effect of Supplemental Indenture
	 	 	71	 
	Section 9.05. Reference in Notes to Supplemental Indentures
	 	 	71	 
	 
	 	 	 	 
	ARTICLE X
       OPTIONAL REPURCHASE OF NOTES
	 	 	71	 
	 
	 	 	 	 
	Section 10.01. Optional Repurchase
	 	 	71	 
	Section 10.02. Form of Repurchase Notice
	 	 	72	 
	Section 10.03. Notes Payable on Repurchase Date
	 	 	72	 
	 
	 	 	 	 
	ARTICLE XI
      MISCELLANEOUS
	 	 	73	 
	 
	 	 	 	 
	Section 11.01. Compliance Certificates and Opinions, etc
	 	 	73	 

-iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	Page	 	 
	 

	 	Section 11.02.
	 	Form of Documents Delivered to Indenture Trustee
	 	 	74	 
	 

	 	Section 11.03.
	 	Acts of Noteholders
	 	 	75	 
	 

	 	Section 11.04.
	 	Notices, etc., to Indenture Trustee and Others
	 	 	75	 
	 

	 	Section 11.05.
	 	Notices to Noteholders; Waiver
	 	 	76	 
	 

	 	Section 11.06.
	 	Alternate Payment and Notice Provisions
	 	 	77	 
	 

	 	Section 11.07.
	 	Effect of Headings
	 	 	77	 
	 

	 	Section 11.08.
	 	Successors and Assigns
	 	 	77	 
	 

	 	Section 11.09.
	 	Severability
	 	 	77	 
	 

	 	Section 11.10.
	 	Benefits of Indenture
	 	 	77	 
	 

	 	Section 11.11.
	 	Legal Holidays
	 	 	77	 
	 

	 	Section 11.12.
	 	GOVERNING LAW
	 	 	77	 
	 

	 	Section 11.13.
	 	Counterparts
	 	 	78	 
	 

	 	Section 11.14.
	 	Issuer Obligation
	 	 	78	 
	 

	 	Section 11.15.
	 	No Petition, Limited Recourse
	 	 	78	 
	 

	 	Section 11.16.
	 	Inspection; Confidentiality
	 	 	79	 
	 

	 	Section 11.17.
	 	Limitation of Liability
	 	 	79	 
	 

	 	Section 11.18.
	 	Disclaimer and Subordination
	 	 	80	 

EXHIBITS

	 	 	 	 	 	 	 
	Exhibit A–1
	 	 	—	 	 	Form of Class A Note
	Exhibit A–2
	 	 	—	 	 	Form of Class B Note
	Exhibit A–3
	 	 	—	 	 	Form of Class C Note
	Exhibit A–4
	 	 	—	 	 	Form of Class D Note
	Exhibit A–5
	 	 	—	 	 	Form of Class E Note
	Exhibit A–6
	 	 	—	 	 	Form of Class F Note
	Exhibit B
	 	 	—	 	 	List of Loans
	Exhibit C
	 	 	—	 	 	Form of Wiring Instructions
	Exhibit D–1
	 	 	—	 	 	Form of Transferee Letter [Non–Rule 144A]
	Exhibit D–2
	 	 	—	 	 	Form of Rule 144A Certification
	Exhibit E
	 	 	—	 	 	Form of Transfer Certificate for Rule 144A Global Note to Regulation S
	 
	 	 	 	 	 	Global Note during Distribution Compliance Period
	Exhibit F
	 	 	—	 	 	Form of Transfer Certificate for Rule 144A Global Note to Regulation S
	 
	 	 	 	 	 	Global Note after Distribution Compliance Period
	Exhibit G
	 	 	—	 	 	Form of Transfer Certificate for Regulation S Global Note to Rule 144A
	 
	 	 	 	 	 	Global Note during Distribution Compliance Period
	Exhibit H
	 	 	—	 	 	Form of Transfer Certificate for Regulation S Global Note during
	 
	 	 	 	 	 	Distribution Compliance Period

-iv-

 

INDENTURE 

     THIS INDENTURE, dated as of April 11, 2006 (as amended, modified, restated, supplemented or
waived from time to time, the “Indenture”), is by and between CAPITALSOURCE COMMERCIAL LOAN
TRUST 2006-1, a Delaware statutory trust, as the issuer (together with its successors and assigns
in such capacity, the “Issuer”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual
capacity but solely in its capacity as the indenture trustee (together with its successors and
assigns, in such capacity, the “Indenture Trustee”).

     Each party hereto agrees as follows for the benefit of the other party and for the equal and
ratable benefit of the Holders of the Issuer’s Notes and the Hedge Counterparties.

GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee, on behalf of and for the benefit
of the Holders of the Notes and the Hedge Counterparties, a continuing security interest in
and lien on all of its right, title and interest in and to all accounts, cash and currency, chattel
paper, electronic chattel paper, tangible 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 rights or property consisting of, arising out of, or related to (i) the Loans and all other
assets included or to be included from time to time in the Loan Assets, whether now existing or
hereafter arising or acquired, other than the Retained Interest, if any, as it may exist from time
to time, (ii) all payments under any Hedge Agreement, (iii) all of the Issuer’s right, title and
interest (but none of its obligations) under the Sale and Servicing Agreement, including but not
limited to the Issuer’s right to exercise the remedies created by the Sale and Servicing Agreement,
and (iv) all present and future claims, demands, causes and choses in action in respect of any or
all of the foregoing and all payments on or under and all proceeds of every kind and nature
whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion,
voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance
proceeds, condemnation awards, rights to payment of any and every kind and other forms of
obligations and receivables, instruments and other property which at any time constitute all or
part of or are included in the proceeds of any of the foregoing (collectively, the “Indenture
Collateral”).

     The foregoing Grant is made in trust to secure (x) the payment of principal of and interest
on, and any other amounts owing in respect of, the Notes and all other sums owing by the Issuer
hereunder or under any other Transaction Document or under any Hedge Transaction, and (y) to secure
compliance with the covenants and agreement in this Indenture, the Hedge Agreement and the other
Transaction Documents.

     The Indenture Trustee, on behalf of the Noteholders and on behalf of the Hedge Counterparties
(1) acknowledges such Grant, and (2) accepts the trusts under this Indenture in accordance with
this Indenture and agrees to perform its duties required in this Indenture to the best of its
ability to the end that the interests of the Noteholders and Hedge Counterparties may be adequately
and effectively protected.

 

 

ARTICLE I

DEFINITIONS

     Section 1.01. Definitions.

     Certain defined terms used throughout the Indenture are defined above or in this Section
1.01. In addition, except as otherwise expressly provided herein or unless the context
otherwise requires, capitalized terms used but not otherwise defined herein shall have the meanings
given to such terms in the Sale and Servicing Agreement (as defined below), which are incorporated
by reference herein.

     “Applicable Procedures” has the meaning given to such term in Section 4.02(l)(i).

     “Authorized Newspaper” means a newspaper of general circulation in the
Borough of Manhattan, The City of New York, printed in the English language and customarily
published on each Business Day, whether or not published on Saturdays, Sundays or holidays.

     “Authorized Officer” means, (i) with respect to any Person, any person who is
authorized to act for such Person in matters relating to the Transaction Documents and whose action
is binding upon such Person, (ii) with respect to the Issuer, any officer of the Owner Trustee who
is authorized to act for the Owner Trustee in matters relating to the Issuer, (iii) with respect to
the Trust Depositor or the Servicer, initially those individuals the names of whom appear on the
lists of Authorized Officers delivered on the Closing Date (as such list may be modified or
supplemented from time to time thereafter), and (iv) with respect to the Indenture Trustee, the
Chairman or Vice President of the Board of Directors or Trustees, the Chairman or Vice Chairman of
the Executive or Standing Committee of the Board of Directors or Trustees, the President, the
Chairman of the Committee on Trust Matters, any vice president, any assistant vice president, the
Secretary, any assistant secretary, the Treasurer, any assistant treasurer, the Cashier, any
assistant cashier, any trust officer, the Controller and any assistant controller or any other
officer of the Indenture Trustee customarily performing functions similar to those performed by any
of the above designated officers and also, with respect to a particular matter, any other officer
to whom such matter is referred because of such officer’s knowledge of and familiarity with
particular subject.

     “Beneficial Owner” means, with respect to a Note, the Person who is the beneficial
owner of such Note, as reflected on the books of the Depository or on the books of a Person
maintaining an account with such Depository (directly or as an indirect participant, in accordance
with the rules of such Depository), as the case may be.

     “CapitalSource” means CapitalSource Finance LLC, together with its successors and
assigns.

     “Certificate Registrar” means initially, the Indenture Trustee, and thereafter, any
successor appointed pursuant to the Trust Agreement.

     “Clearstream” means Clearstream Banking, a société anonyme, a limited liability
company organized under the laws of Luxembourg.

2

 

     “Corporate Trust Office” means in the case of Owner Trustee: Wilmington Trust
Company, 1100 North Market Street, Wilmington, Delaware 19801, Attention: Corporate Trust
Administration and in the case of the Indenture Trustee: Wells Fargo Bank, National Association,
Sixth and Marquette Avenue, MAC N9311–161, Minneapolis, Minnesota 55479, Attention: Corporate
Trust Services/Asset Backed Administration, or at such other address as the Owner Trustee or the
Indenture Trustee may designate from time to time by notice to the Issuer, or the principal
corporate trust officer of any successor Owner Trustee or Indenture Trustee at the address
designated by such successor by notice to the Issuer.

     “Credit Support Provider” means, in respect of a Hedge Counterparty, any Person
providing credit support on behalf of such Hedge Counterparty.

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

     “Depository” means The Depository Trust Company or its successors or assigns.

     “Depository Participant” means a Person for whom, from time to time, the Depository
effects book-entry transfers and pledges of securities deposited with the Depository.

     “Direct Participant “ means any broker-dealer, bank or other financial institution for
whom the nominee of the Depository holds an interest in any Note.

     “Distribution Compliance Period” means the 40-day period prescribed by Regulation S
commencing on the later of (a) the date upon which Notes are first offered to Persons other than
the Initial Purchasers and any other distributor (as such term is defined in Regulation S) of the
Notes and (b) the Closing Date.

     “DTC” means The Depository Trust Company, and its successors.

     “DTC Custodian” means the Indenture Trustee as a custodian for DTC.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, or any successor legislation thereto and the regulations promulgated and the rulings
issued thereunder.

     “Euroclear” means the Euroclear System, operated by Morgan Guaranty Trust Company of
New York, Brussels office.

     “Event of Default” has the meaning given to such term in Section 5.01.

     “Final Maturity Date” means August 22, 2016.

     “Fixed Rate Permitted Excess Amount “ means, with respect to Fixed Rate Loans,
$250,000.

     “Floating Prime Rate Permitted Excess Amount “ means, with respect to Floating Prime
Rate Loans, $250,000.

3

 

     “Global Note” means any Note registered in the name of the Depository or its nominee,
beneficial interests of which are reflected on the books of the Depository or on the books of a
Person maintaining any account with such Depository (directly or as an indirect participant in
accordance with the rules of such Depository). The Global Note shall include the Rule 144A Global
Notes and the Regulation S Global Notes.

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

     “Indenture Collateral” has the meaning given to such term in the Granting Clauses.

     “Indenture Trustee” has the meaning given to such term in the Preamble.

     “Indirect Participant” means any financial institution for whom any Direct
Participant holds an interest in any Note.

     “Individual Note” means any Note in permanent certificated form registered in the name
of a holder other than the Depository or its nominee.

     “Initial Purchasers” means Citigroup Global Markets Inc., Wachovia Capital Markets,
LLC, Harris Nesbitt Corp., J.P. Morgan Securities Inc., SunTrust Capital Markets, Inc., SG Americas
Securities, LLC and Barclays Capital Inc..

     “Institutional Accredited Investor” means any Person meeting the requirements of Rule
501 (a) (1) – (3) or (7) of Regulation D under the Securities Act.

     “Issuer Documents” has the meaning given to such term in Section 3.25(a).

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

     “Letter
of Representations” means the Letter of Representations, dated as of April
11, 2006 by and among the Issuer, the Indenture Trustee and the Depository.

     “Note Register” has the meaning given to such term in Section 4.02(a).

     “Note Registrar” has the meaning given to such term in Section 4.02(a).

     “Other Assets” has the meaning given to such term in Section 11.18.

4

 

     “Outstanding” means as of the date of determination, all Notes theretofore executed,
authenticated and delivered under the Indenture except:

     (i) Notes in exchange for or in lieu of which other Notes have been executed, authenticated
and delivered pursuant to the Indenture unless proof satisfactory to the Indenture Trustee is
presented that any such Notes are held by a holder in due course;

     (ii) Notes to be repurchased and in respect of which money in the necessary amount to pay the
Repurchase Price has been theretofore deposited with the Indenture Trustee in trust for the
Noteholders (provided, however, that notice of such repurchase has been duly given pursuant to
Section 10.02 hereof); and

     (iii) Notes theretofore canceled by the Note Registrar or delivered to the Indenture Trustee
for cancellation.

     “Owner” means each Holder of a Note.

     “Owner Trustee” means Wilmington Trust Company, not in its individual capacity but
solely as owner trustee under the Trust Agreement, and any successor Owner Trustee thereunder.

     “Participant” means a Person that has an account with DTC.

     “Paying
Agent ” means, with respect to the Notes, any paying agent or co-paying agent
appointed pursuant to Section 3.03 of the Indenture, which initially shall be (i) the
Indenture Trustee and (ii) with respect to the payment of principal and interest on those Class A
Notes, Class B Notes, Class C Notes and Class D Notes listed on the Irish Stock Exchange only, JP
Morgan Bank (Ireland) PLC. With respect to the Trust Certificates, any paying agent or co-paying
agent appointed pursuant to Section 3.09 of the Trust Agreement which initially shall be Wells
Fargo Bank, National Association.

     “Percentage Interest” means, with respect to a Class A Note, Class B Note, Class C
Note, Class D Note, Class E Note or Class F Note, the fraction, expressed as a percentage, the
numerator of which is the denomination represented by such Class A Note, Class B Note, Class C
Note, Class D Note, Class E Note or Class F Note and the denominator of which is the Initial Class
A Principal Balance, the Initial Class B Principal Balance, the Initial Class C Principal Balance,
the Initial Class D Principal Balance, the Initial Class E Principal Balance or the Initial Class F
Principal Balance, as the case may be. With respect to a Trust Certificate, the percentage set
forth on the face thereof.

     “Plan” has the meaning given to such term in Section 4.02(y).

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

     “Qualified Institutional Buyer” has the meaning given to such term in Rule 144A
under the Securities Act.

     “Qualified Purchaser” has the meaning given to such term in Section 2(a)51 under the
1940 Act.

5

 

     “Regulation S” means Regulation S under the Securities Act.

     “Regulation S Global Notes” means the Notes sold in offshore transactions in reliance
on Regulation S and represented by one or more Global Notes deposited with the Indenture Trustee as
custodian for the Depository.

     “Regulation S Investor” means, with respect to a transferee of a Regulation S Global
Note pursuant to Regulation S.

     “Repurchase Date” means in the case of a repurchase of the Notes pursuant to
Section 10.01 of this Indenture, the Payment Date specified by the Issuer pursuant to
Section 10.01 of this Indenture.

     “Repurchase Price” means, in the case of a repurchase of the Notes pursuant to
Section 10.01 of this Indenture, an amount equal to the then outstanding principal amount
of each Class of Offered Notes being repurchased plus accrued and unpaid interest thereon to but
excluding the Repurchase Date plus all other amounts accrued and unpaid with respect thereto,
together with all amounts then owing to each Hedge Counterparty, including Hedge Breakage Costs,
plus, without duplication, all amounts payable to each Hedge Counterparty upon termination of all
Hedge Transactions in connection with a repurchase of the Notes, including Hedge Breakage Costs.

     “Rule 144A Certification” means a letter substantially in the form attached to the
Indenture as Exhibit D–2.

     “Rule 144A Global Notes” means the Notes sold within the United States to U.S.
Persons, initially issued to Qualified Institutional Buyers in the form of beneficial interests in
one or more Global Notes, deposited with the Indenture Trustee as custodian for the Depository.

     “Sale” has the meaning given to such term in Section 5.15.

     “Sale and Servicing Agreement” means the Sale and Servicing Agreement, dated as of
April 11, 2006, by and among CapitalSource Commercial Loan Trust 2006-1, as the Trust,
CapitalSource Commercial Loan LLC, 2006-1, as the Trust Depositor, CapitalSource Finance LLC, as
the Originator and as the Servicer, and Wells Fargo Bank, National Association, as the Indenture
Trustee and the Backup Servicer.

     “Securities Legend” “THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE
SKY LAW OF ANY STATE. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE
REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND
OTHER REQUIREMENTS OF LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”) WHO IS A QUALIFIED PURCHASER FOR
PURPOSES OF SECTION 3(c)(7) UNDER THE INVESTMENT COMPANY ACT OF 1940 (A “QUALIFIED

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PURCHASER”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB WHO IS A QUALIFIED PURCHASER
PURCHASING FOR THE ACCOUNT OF A QIB WHO IS A QUALIFIED PURCHASER, WHOM THE HOLDER HAS INFORMED THAT
THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) IN
CERTIFICATED FORM TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING OF RULE 501
(a)(1)–(3) OR (7) UNDER THE SECURITIES ACT) WHO IS ALSO A QUALIFIED PURCHASER, PURCHASING FOR
INVESTMENT AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, IN EACH CASE, SUBJECT TO
(A) THE RECEIPT BY THE INDENTURE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE
INDENTURE AND (B) THE RECEIPT BY THE INDENTURE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE
INDENTURE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF ANY STATE OF THE UNITED
STATES AND ANY OTHER APPLICABLE JURISDICTION, (3) OTHER THAN IN THE CASE OF THE CLASS E NOTES, IN
AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, (4) PURSUANT TO ANOTHER EXEMPTION AVAILABLE UNDER THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR (5) PURSUANT TO A VALID REGISTRATION
STATEMENT. THE PURCHASE OF THIS NOTE WILL BE DEEMED A REPRESENTATION BY THE ACQUIRER THAT EITHER:
(I) IT IS NOT, AND IS NOT ACQUIRING OR HOLDING THIS NOTE, DIRECTLY OR INDIRECTLY, ON BEHALF OF OR
WITH ANY ASSETS OF, AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF ERISA, THAT IS SUBJECT
TO TITLE I OF ERISA, OR A “PLAN” DESCRIBED IN AND SUBJECT TO SECTION 4975 OF THE CODE
(COLLECTIVELY, A “PLAN ”),OR OTHER PLAN OR ARRANGEMENT SUBJECT TO ANY FEDERAL, STATE,
LOCAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE
(“SIMILAR LAW”); OR (II)(A) IN THE CASE OF A LISTED NOTE, ITS ACQUISITION AND HOLDING OF
THIS NOTE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION TITLE I OF ERISA OR
SECTION 4975 OF THE CODE OR A VIOLATION OF SIMILAR LAW, AND (B) IN THE CASE OF A CLASS E NOTE OR
CLASS F NOTE, IT IS A PLAN THAT IS NOT SUBJECT TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE AND
ITS ACQUISITION AND HOLDING OF THE CLASS E NOTE OR CLASS F NOTE WILL NOT CONSTITUTE OR RESULT IN A
VIOLATION OF SIMILAR LAW.”

     “Series” means 2006-1.

     “Servicer’s Certificate” means the certificate as defined in Section 9.02 of the Sale
and Servicing Agreement.

     “Similar Law” has the meaning given to such term in Section 4.02(y).

     “Transfer” has the meaning given to such term in Section 4.02(w).

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     “Transferee
Letter” means the letter set forth in Exhibit D–1 to the Indenture.

     “Trust Certificate” means a certificate evidencing the beneficial interest of a
Certificateholder in the Issuer, substantially in the form of Exhibit A attached to the
Trust Agreement.

     “Trust Company” means Wilmington Trust Company (and any successor thereto or assign
thereof), in its individual capacity, and any other Person who shall act as Owner Trustee under the
Trust Agreement, in its individual capacity.

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as
amended from time to time, as in effect on any relevant date.

     “U.S. Person” means a person that is a citizen or resident of the United States, a
corporation or partnership (except as provided in applicable Treasury regulations) created or
organized in or under the laws of the United States, any State or the District of Columbia,
including any entity treated as a corporation or partnership for federal income tax purposes, an
estate whose income is subject to United States federal income tax regardless of its source, or a
trust if a court within the United States is able to exercise primary supervision over the
administration of such trust, and one or more such U.S. Persons have the authority to control all
substantial decisions of such trust (or, to the extent provided as applicable Treasury regulations,
certain trusts in existence on August 20, 1996 which are eligible to elect to be treated as a U.S.
Person).

     “USA PATRIOT Act” means the United States Uniting and Strengthening America By
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, signed into
law on and effective as of October 26, 2001, which, among other things, requires that financial
institutions, a term that includes banks, broker-dealers and investment companies, establish and
maintain compliance programs to guard against money laundering activities.

     Section 1.02. Rules of Construction.

     Unless the context otherwise requires:

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

     (ii) an accounting term not otherwise defined has the meaning given to it in
accordance with generally accepted accounting principles;

     (iii) “or” is not exclusive;

     (iv) “including” means including without limitation;

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

     (vi) any pronouns shall be deemed to cover all genders; and

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

ARTICLE II

THE NOTES

     Section 2.01. Form.

     The Notes, together with the Indenture Trustee’s certificate of authentication, shall be in
substantially the forms set forth as Exhibits A–1 through A-6 to this Indenture
with such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of identification and
such legends or endorsements placed thereon as may, consistently herewith, be determined by the
appropriate Authorized Officers executing such Notes, as evidenced by their execution of the Notes.
Any portion of the text of any Note may be set forth on the reverse thereof, with an appropriate
reference thereto on the face of the Note.

     The Notes shall be typewritten, printed, lithographed or engraved or produced by any
combination of these methods (with or without steel engraved borders), all as determined by the
Authorized Officers executing such Notes, as evidenced by their execution of such Notes.

     The
terms of the Notes set forth in Exhibits A–1 through A-6 are part of the
terms of this Indenture.

     Section 2.02. Execution, Authentication and Delivery.

     The Notes shall be executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or facsimile.

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

     The Indenture Trustee shall upon receipt of an Issuer Order authenticate and deliver Class A
Notes for original issue in an aggregate amount equal to the Initial Class A Principal Balance,
Class B Notes for original issue in an aggregate amount equal to the Initial Class B Principal
Balance, Class C Notes for original issue in an aggregate amount equal to the Initial Class C
Principal Balance, Class D Notes for original issue in an aggregate amount equal to the Initial
Class D Principal Balance, Class E Notes for
original issue in an aggregate amount equal to the Initial Class E Principal Balance and a
Class F Note for original issue in an aggregate amount equal to the Initial Class F Principal
Balance.

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     Each Note shall be dated the date of its authentication. The Notes shall be issuable as
registered Notes in the minimum initial denominations of $500,000 and in integral multiples of
$1,000 in excess thereof; provided, however, that one Note of each Class may be issued in a
different denomination.

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

     Section 2.03. Opinions of Counsel.

     On the Closing Date, the Indenture Trustee shall have received: (i) an Opinion of Counsel,
with respect to securities law matters; (ii) an Opinion of Counsel, with respect to the tax status
of the arrangement created by this Indenture and the tax treatment of the Class A Notes, the Class
B Notes, the Class C Notes, the Class D Notes and the Class E Notes; and (iii) an Opinion of
Counsel to the Issuer, with respect to the due authorization, valid execution and delivery of this
Indenture and with respect to its binding effect on the Issuer.

ARTICLE III

COVENANTS

     Section 3.01. Collection of Payments on Loans; Trust Accounts.

     The Servicer shall establish with the Indenture Trustee and cause to be maintained each of the
Trust Accounts specified in Section 7.01 of the Sale and Servicing Agreement. The Indenture
Trustee shall ensure that each of the Trust Accounts is established and maintained as an Eligible
Deposit Account with a Qualified Institution. If any institution with which any of the Trust
Accounts established pursuant to Section 7.01(a) of the Sale and Servicing Agreement are
established ceases to be a Qualified Institution, the Servicer, or if the Servicer fails to do so,
the Indenture Trustee (as the case may be) shall within ten Business Days establish a replacement
account at a Qualified Institution after notice of such event. The Indenture Trustee shall make all
payments of principal of and interest on the Notes, subject to Section 3.03 and as provided in
Section 3.05 herein from moneys on deposit in the Note Distribution Account.

     Section 3.02. Maintenance of Office or Agency.

     The Issuer will maintain with the Indenture Trustee an office or agency where, subject to
satisfaction of conditions set forth herein, Notes may be surrendered for registration of transfer
or exchange, and where notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture Trustee to serve as its
agent for the foregoing purposes. The Issuer will give prompt written notice to the Indenture
Trustee of the location, and of any change in the location, of any such office or agency. If at any
time the Issuer shall fail to
maintain any such office or agency or shall fail to furnish the Indenture Trustee with the
address thereof, such surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Indenture Trustee, and the Issuer hereby appoints the Indenture Trustee as its agent
to receive all such surrenders, notices and demands.

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     Section 3.03. Money for Payments To Be Held in Trust; Paying Agent.

     The Issuer hereby appoints the Indenture Trustee as Paying Agent for the payment of principal
and interest on the Notes. As provided in Section 3.01, all payments of amounts due and
payable with respect to any Notes or Hedge Agreements that are to be made from amounts withdrawn
from the Note Distribution Account pursuant to Section 3.01 shall be made on behalf of the
Issuer by the Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from the
Note Distribution Account for payments of Notes or any Hedge Agreements shall be paid over to the
Issuer except as provided in this Section 3.03. The Issuer shall have for so long as any
Notes are listed on the Irish Stock Exchange, a Paying Agent for the payment of principal and
interest on such Notes in Ireland and where notices and demands to or upon the Issuer in respect of
such Notes or this Indenture may be served and where such securities may be surrendered for
registration of transfer or exchange. The Issuer hereby appoints JP Morgan Bank (Ireland) PLC as
Paying Agent for the payment of principal and interest with respect to only those securities listed
on the Irish Stock Exchange.

     The Issuer may at any time and from time to time vary or terminate the appointment of any such
agent or appoint any additional agents for any or all of such purposes; provided, that (A) no
Paying Agent shall be appointed in a jurisdiction that subjects payments on the Notes to
withholding tax and (B) so long as any Notes are listed on the Irish Stock Exchange and the rules
of such exchange so require, the Issuer will maintain in Ireland a Paying Agent and an office or
agency where notices and demands to or upon the Issuer in respect of such securities and this
Indenture may be served and where such Notes may be surrendered for registration of transfer or
exchange. The Issuer shall give prompt written notice to the Indenture Trustee, the Rating
Agencies and the Noteholders of the appointment or termination of any such agent and of the
location and any change in the location of any such office or agency.

     On or before the Business Day immediately preceding each Payment Date and the Repurchase Date,
the Issuer shall deposit or cause to be deposited in the Note Distribution Account from amounts
(except in the case of the Repurchase Date) on deposit in the Principal and Interest Account an
aggregate sum sufficient to pay the amounts then becoming due, such sum to be held in trust for the
benefit of the Persons entitled thereto and (unless the Paying Agent is the Indenture Trustee)
shall promptly notify the Indenture Trustee in writing of its action or failure so to act.

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

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

     (ii) give the Indenture Trustee notice of any default by the Issuer in the making of any
payment required to be made with respect to the Notes or the Hedge Agreements;

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

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

     (v) comply with all requirements of the Code with respect to the withholding from any payments
made by it on any Notes or the Hedge Agreements of any applicable withholding taxes imposed thereon
and with respect to any applicable reporting requirements in connection therewith.

     The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, by Issuer Order direct any Paying Agent to pay to the
Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the
Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent;
and upon such payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

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

     Section 3.04. Existence; Separate Legal Existence.

     (a) The Issuer will keep in full effect its existence, rights and franchises as a statutory
trust under the laws of the State of Delaware (unless it becomes, or any
successor Issuer hereunder is or becomes, organized under the laws of any other state or of
the United States, in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and preserve its
qualification to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and

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enforceability of this Indenture, the Notes, the Hedge Agreements, the other Transaction Documents,
the Indenture Collateral and each other instrument or agreement included in the Indenture
Collateral.

     (b) The Issuer shall:

     (i) Maintain its own deposit account or accounts, separate from those of any
Affiliate, with commercial banking institutions and in accordance with the terms of this
Indenture. The funds of the Issuer will not be diverted to any other Person or for other than
authorized uses of the Issuer.

     (ii) Ensure that it is at all times in compliance with Section 4.01 of the Trust Agreement.

     (iii) Ensure that, to the extent that it jointly contracts with any of its members or
Affiliates to do business with vendors or service providers or to share overhead expenses, the
costs incurred in so doing shall be allocated fairly among such entities, and each such entity
shall bear its fair share of such costs. To the extent that the Issuer contracts or does business
with vendors or service providers when the goods and services provided are partially for the
benefit of any other Person, the costs incurred in so doing shall be fairly allocated to or among
such entities for whose benefit the goods and services are provided, and each such entity shall
bear its fair share of such costs. All material transactions between Issuer and any of its
Affiliates shall be only on an arm’s length basis.

     (iv) Conduct its affairs strictly in accordance with its organizational documents and observe
all necessary, appropriate and customary statutory trust formalities, including, but not limited
to, holding all regular and special board of trustees meetings appropriate to authorize all
statutory trust action, keeping separate and accurate minutes of its meetings, passing all
resolutions or consents necessary to authorize actions taken or to be taken, and maintaining
accurate and separate books, records and accounts, including, but not limited to, payroll and
intercompany transaction accounts.

     Section 3.05. Payment of Principal and Interest.

     The Issuer will duly and punctually pay (i) the principal of and interest on the Notes in
accordance with the terms of such Notes, this Indenture and the Sale and Servicing Agreement and
(ii) all amounts payable under the Hedge Agreements in accordance with the terms thereof. The
Issuer will cause to be distributed all amounts on deposit in the Note Distribution Account on a
Payment Date deposited therein pursuant to the Sale and Servicing Agreement for the benefit of the
Notes, to the applicable Noteholders, and for the benefit of the Hedge Agreements, to the
applicable Hedge Counterparties. Amounts properly withheld under the Code or any applicable state
law by any Person from a payment to any Noteholder of interest and/or principal shall be considered
as having been paid by the Issuer to such Noteholder for all purposes of this Indenture.

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     Section 3.06. Protection of Indenture Collateral.

     (a) The Issuer intends the security interest Granted pursuant to this Indenture in favor of
the Indenture Trustee on behalf of the Noteholders and the Hedge Counterparties to be prior to all
other liens in respect of the Indenture Collateral, and the Issuer shall take or shall cause the
Servicer to take all actions necessary to obtain and maintain, for the benefit of the Indenture
Trustee on behalf of the Noteholders and the Hedge Counterparties, a first lien on and a first
priority, perfected security interest in the Indenture Collateral. In connection therewith,
pursuant to Section 2.07 of the Sale and Servicing Agreement, the Issuer shall cause to be
delivered into the possession of the Indenture Trustee as pledgee hereunder, indorsed in blank, any
“instruments” (within the meaning of the UCC), not constituting part of chattel paper, evidencing
any Loan which is part of the Indenture Collateral and all other portions of the Loan Files. The
Indenture Trustee acknowledges and agrees that (i) it holds the Loan Assets delivered to it under
the Loan Sale Agreement for the benefit of the Trust Depositor, (ii) it holds the Loan Assets
delivered to it under the Sale and Servicing Agreement for the benefit of the Issuer, and (iii) it
holds the Indenture Collateral delivered to it pursuant to this Indenture for the benefit of the
Noteholders and the Hedge Counterparties. The Indenture Trustee agrees to maintain continuous
possession of such delivered instruments and the Loan Files as pledgee hereunder until this
Indenture shall have terminated in accordance with its terms or until, pursuant to the terms hereof
or of the Sale and Servicing Agreement, the Indenture Trustee is otherwise authorized to release
such instrument from the Indenture Collateral. The Servicer, on behalf of the Issuer, will from
time to time prepare (or shall cause to be prepared), execute and deliver all such supplements and
amendments hereto and all such financing statements, continuation statements, instruments of
further assurance and other instruments, and will take such other action necessary or advisable to:

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

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

     (iii) enforce any of the Loans transferred to the Issuer as and to the extent commercially
reasonable; or

     (iv) preserve and defend title to the Indenture Collateral and the rights of the Indenture
Trustee, the Noteholders and the Hedge Counterparties in such Indenture Collateral against the
claims of all persons and parties.

     Except as otherwise provided in or permitted by the Sale and Servicing Agreement or this
Indenture, the Indenture Trustee shall not remove any portion of the Indenture Collateral that
consists of money or is evidenced by an instrument, certificate or other writing from the
jurisdiction in which it was held at the date of the most recent Opinion of Counsel delivered
pursuant to Section 3.07 (or from the jurisdiction in which it was held as described in the
Opinion of Counsel delivered at the Closing Date pursuant to Section 3.07(a), if no Opinion of Counsel has yet been delivered pursuant to
Section 3.07(b)) unless the Indenture Trustee shall have first received an Opinion of
Counsel to the effect that the lien and security interest created

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by this Indenture with respect to such property will continue to be maintained after giving effect
to such action or actions.

     The Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact to execute
any financing statement, continuation statement or other instrument required to be executed
pursuant to this Section 3.06.

     Section 3.07. Opinions as to Indenture Collateral.

     (a) On or before the Closing Date, the Issuer shall furnish to the Indenture Trustee and Hedge
Counterparties an Opinion of Counsel either stating that, in the opinion of such counsel, such
action has been taken with respect to the delivery of the Underlying Notes (or, in the case of
Noteless Loans, a copy of the applicable Loan Register certified by a Responsible Officer of the
Servicer) and any other requisite documents, and with respect to the execution and filing of any
financing statements and continuation statements, as are necessary to perfect and make effective
the lien and security interest of this Indenture and reciting the details of such action, or
stating that, in the opinion of such counsel, no such action is necessary to make such lien and
security interest effective.

     (b) On or before March 31 in each calendar year, beginning in 2007, the Servicer on behalf of
the Issuer will furnish to the Indenture Trustee and Hedge Counterparties an Opinion of Counsel at
the expense of the Issuer either stating that, in the opinion of such counsel, such action has been
taken with respect to any other requisite documents and with respect to the execution and filing of
any financing statements and continuation statements as is necessary to maintain the perfection of
the lien and security interest created by this Indenture and reciting the details of such action or
stating that in the opinion of such counsel no such action is necessary to maintain the perfection
of such lien and security interest. Such Opinion of Counsel shall also describe any other requisite
documents and the execution and filing of any financing statements and continuation statements that
will, in the opinion of such counsel, be required to maintain the lien and security interest of
this Indenture until December 31 in the following calendar year.

     Section 3.08. Furnishing of Rule 144A Information.

     The Issuer will furnish, upon the written request of any Noteholder or of any owner of a
beneficial interest therein, such information as is specified in paragraph (d)(4) of Rule 144A
under the Securities Act (i) to such Noteholder or beneficial owner, (ii) to a prospective
purchaser of such Note or interest therein who is a Qualified Institutional Buyer and a Qualified
Purchaser designated by such Noteholder or beneficial owner, or (iii) to the Indenture Trustee for
delivery to such Noteholder, beneficial owner or prospective purchaser, in order to permit
compliance by such Noteholder or beneficial owner with Rule 144A in connection with the resale of
such Note or beneficial interest therein by such Noteholder or beneficial owner in reliance on Rule
144A unless, at the time of such request, the Issuer is subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, or exempt from reporting pursuant to Rule 12g3-2(b) under
the Exchange Act.

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     Section 3.09. Performance of Obligations; Sale and Servicing Agreement.

     (a) The Issuer will punctually perform and observe all of its obligations and agreements
contained in this Indenture, the Transaction Documents and in the instruments and agreements
included in the Indenture Collateral.

     (b) The Issuer may contract with other Persons to assist it in performing its duties under
this Indenture, the Transaction Documents and in the instruments and agreements included in the
Indenture Collateral, and any performance of such duties by a Person identified to the Indenture
Trustee in an Officer’s Certificate of the Issuer shall be deemed to be action taken by the Issuer.
Initially, the Issuer has contracted with the Servicer to assist the Issuer in performing its
duties under this Indenture, the Transaction Documents and in the instruments and agreements
included in the Indenture Collateral.

     (c) The Issuer will not take any action or permit any action to be taken by others which would
release any Person from any of such Person’s covenants or obligations under any of the documents
relating to the Loans or under any instrument included in the Indenture Collateral, or which would
result in the amendment, hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any of the documents relating to the Loans or any such instrument,
except such actions as the Servicer is expressly permitted to take in the Transaction Documents.

     (d) If the Issuer shall have knowledge of the occurrence of a Servicer Default, the Issuer
shall promptly notify in writing the Indenture Trustee, each Hedge Counterparty and the Rating
Agencies thereof, and shall specify in such notice the action, if any, the Issuer is taking in
respect of such Servicer Default. If such Servicer Default arises from the failure of the Servicer
to perform any of its duties or obligations under the Sale and Servicing Agreement with respect to
the Loans, the Issuer may remedy such failure. So long as any such Servicer Default shall be
continuing, the Indenture Trustee may exercise its remedies set forth in Section 8.02 of the Sale
and Servicing Agreement. Unless granted or permitted by the Holders of the Notes and the Hedge
Counterparties to the extent provided above, the Issuer may not waive any such Servicer Default or
terminate the rights and powers of the Servicer under the Sale and Servicing Agreement.

     Section 3.10. Negative Covenants.

     So long as any Notes are Outstanding, the Issuer shall not:

     (i) except as expressly permitted by this Indenture or any other Transaction
Document, sell, transfer, exchange or otherwise dispose of the Indenture Collateral,
unless directed to do so by the Indenture Trustee;

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

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     (iii) permit the validity or effectiveness of this Indenture to be impaired, or permit the
lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or
permit any Person to be released from any covenants or obligations with respect to the Notes or
Hedge Agreements under this Indenture except as may be expressly permitted hereby, permit any lien,
charge, excise, claim, security interest, mortgage or other encumbrance (other than the lien of
this Indenture or any other Transaction Document) to be created on or extend to or otherwise arise
upon or burden the Indenture Collateral or any part thereof or any interest therein or the proceeds
thereof or permit the lien of this Indenture not to constitute a valid first priority security
interest in the Indenture Collateral;

     (iv) except as contemplated in the Transaction Documents, dissolve or liquidate in whole or in
part;

     (v) enter into any agreement which does not contain non-petition and limited recourse
provisions substantially to the effect of Section 11.15 hereof and will not consent to any
amendment or waiver of such provisions;

     (vi) create any subsidiaries; or

     (vii) make any payment or distribution with respect to the Certificates other than as
permitted under this Indenture and the other Transaction Documents.

     Section 3.11. Annual Statement as to Compliance.

     The Issuer will deliver to the Indenture Trustee, the Hedge Counterparties and the Rating
Agencies, within 90 days after the end of each calendar year (commencing with the calendar year
ending 2006), an Officer’s Certificate stating, as to the Person signing such Officer’s
Certificate, that:

     (i) a review of the activities of the Issuer during such year and of its performance
under this Indenture has been made under such Person’s supervision or direction; and

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

     Section 3.12. Recording of Assignments.

     The Issuer shall submit or cause to be submitted for recording all Assignments of Mortgages
within the time period set forth in the Sale and Servicing Agreement.

     Section 3.13. Representations and Warranties Concerning the Loans.

     The Issuer has pledged to the Indenture Trustee for the benefit of the Noteholders and the
Hedge Counterparties all of its rights under the Loan Sale Agreement and the Sale and Servicing

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Agreement and the Indenture Trustee has the benefit of the representations and warranties made by
the Originator and the Trust Depositor in such documents concerning the Loans transferred into the
Loan Assets and the right to enforce any remedy against the Originator and the Trust Depositor
provided in the Loan Sale Agreement and the Sale and Servicing Agreement, to the same extent as
though such representations and warranties were made directly to the Indenture Trustee.

     Section 3.14. Indenture Trustee’s Review of Loan Files.

     The Indenture Trustee agrees, for the benefit of the Noteholders and the Hedge Counterparties,
to review the Loan Files as provided in Section 2.09 of the Sale and Servicing Agreement.

     Section 3.15. Indenture Collateral; Related Documents.

     (a) When instructed to do so by the Issuer or the Servicer, the Indenture Trustee shall
execute instruments to release property from the lien of this Indenture, or convey the Indenture
Trustee’s interest in the same, in a manner and under circumstances which are not inconsistent with
the provisions of this Indenture or the Sale and Servicing Agreement. No party relying upon an
instrument executed by the Indenture Trustee as provided in this Article III shall be bound to
ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions
precedent or see to the application of any moneys.

     (b) In order to facilitate the servicing of the Loans, the Indenture Trustee authorizes the
Servicer in the name and on behalf of the Indenture Trustee and the Issuer, to perform its
respective duties and obligations under the Sale and Servicing Agreement and the Indenture Trustee
agrees to perform its obligations thereunder in accordance with the terms thereof.

     (c) The Indenture Trustee shall, at such time as there are no Notes Outstanding and after
terminating of each Hedge Agreement and payment of all amounts payable thereunder in connection
with such termination, including Hedge Breakage Costs, release all of the Indenture Collateral to
the Issuer (other than any cash held for the payment of the Notes or the Hedge Agreements pursuant
to Section 3.03 or 4.06), subject, however, to the rights of the Indenture Trustee
under Section 6.07.

     Section 3.16. Amendments to Sale and Servicing Agreement.

     The Indenture Trustee may enter into any amendment or supplement to the Sale and Servicing
Agreement only in accordance with Section 13.01 of the Sale and Servicing Agreement. The Indenture
Trustee may, in its reasonable discretion, decline to enter into or consent to any such supplement
or amendment if its own rights, duties or immunities shall be adversely affected in any material
respect.

     Section 3.17. Servicer as Agent and Bailee of Indenture Trustee.

     (a) Solely for purposes of perfection under Section 9-313 of the UCC or other similar
applicable law, rule or regulation of the state in which such property is held by the Servicer, the
Indenture Trustee hereby acknowledges that the Servicer is acting as agent and bailee of the

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Indenture Trustee in holding amounts on deposit in the Principal and Interest Accounts pursuant to
Section 7.01 of the Sale and Servicing Agreement, and the Indenture Trustee hereby acknowledges
that the Servicer is acting as its agent and bailee of the Indenture Trustee in holding any
documents released to the Servicer pursuant to the Sale and Servicing Agreement as well as any
other items constituting a part of the Indenture Collateral which from time to time come into the
possession of the Servicer. It is intended that, by the Servicer’s execution and delivery of the
Sale and Servicing Agreement, the Indenture Trustee, as a secured party, will be deemed to have
possession of such documents, such moneys and such other items for purposes of Section 9-313 of the
UCC of the state in which such property is held by the Servicer.

     (b) Solely for purposes of perfection under Section 9-313 of the UCC or other similar
applicable law, rule or regulation of the state in which such property is held by the Indenture
Trustee, if the transfer of the Loans and the other assets in the Indenture Collateral by the
Trust Depositor to the Issuer is deemed to be a loan, the Indenture Trustee hereby acknowledges it
is acting as agent and bailee of the Issuer in holding items constituting a part of the Indenture
Collateral which from time to time come into the possession of the Indenture Trustee.

     Section 3.18. Investment Company Act.

     The Issuer shall not and none of the Issuer or the Indenture Trustee shall take any action
that would cause the Issuer to be required to register as an “investment company” under the 1940
Act (or any successor or amendatory statute).

     Section 3.19. Issuer May Consolidate, etc., Only on Certain Terms.

     (a) The Issuer shall not consolidate or merge with or into any other Person, unless:

     (i) the Person (if other than the Issuer) formed by or surviving such
consolidation or merger shall be a Person organized and existing under the laws of the United
States or any state or the District of Columbia and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Indenture Trustee and each Hedge Counterparty,
in form satisfactory to the Indenture Trustee and the Hedge Counterparties, the due and punctual
payment of the principal of and interest on all Notes and all amounts payable under the Hedge
Agreements and the performance or observance of every agreement and covenant of this Indenture, the
Hedge Agreements, the Trust Certificates and each other Transaction Document on the part of the
Issuer to be performed or observed, all as provided herein and therein;

     (ii) immediately after giving effect to such transaction, no Default or Event of Default
shall have occurred and be continuing;

     (iii) the Rating Agency Condition shall have been satisfied with respect to such transaction;

     (iv) the Issuer shall have received an Opinion of Counsel (and shall have
delivered copies thereof to the Indenture Trustee and the Hedge Counterparties) to the effect
that such transaction will not have any material adverse tax consequence to the Issuer, any
Noteholder, any Hedge Counterparty and any Certificateholder;

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     (v) any action that is necessary to maintain the lien and security interest created by
this Indenture shall have been taken; and

     (vi) the Issuer shall have delivered to the Indenture Trustee and each Hedge
Counterparty an Officer’s Certificate and an Opinion of Counsel each stating that such
consolidation or merger and such supplemental indenture comply with this Article
III and that all conditions precedent herein provided for relating to such transaction
have been complied with.

     (b) Except as otherwise permitted hereunder or under the Transaction Documents, the Issuer
shall not convey or transfer all or substantially all of its properties or assets, including those
included in the Indenture Collateral, to any Person, unless:

     (i) the Person that acquires by conveyance or transfer the properties and assets of the Issuer
the conveyance or transfer of which is hereby restricted shall be a United States citizen or a
Person organized and existing under the laws of the United States or any state, expressly assumes,
by an indenture supplemental hereto, executed and delivered to the Indenture Trustee and each Hedge
Counterparty, in form and substance reasonably satisfactory to the Indenture Trustee and the Hedge
Counterparties, the due and punctual payment of the principal of and interest on all Notes, the
amounts payable under the Hedge Agreements and each other Transaction Document, and the performance
or observance of every agreement and covenant of this Indenture and the Hedge Agreements on the
part of the Issuer to be performed or observed, all as provided herein, expressly agrees by means
of such supplemental indenture that all right, title and interest so conveyed or transferred shall
be subject and subordinate to the rights of the Holders of the Notes and the Hedge Counterparties,
unless otherwise provided in such supplemental indenture, expressly agrees to indemnify, defend and
hold harmless the Issuer against and from any loss, liability or expense arising under or related
to this Indenture and the Notes;

     (ii) immediately after giving effect to such transaction, no Default or Event of Default
shall have occurred and be continuing;

     (iii) the Rating Agency Condition shall have been satisfied with respect to such transaction;

     (iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered copies
thereof to the Indenture Trustee and each Hedge Counterparty) to the effect that such transaction
will not have any material adverse tax consequence to the Issuer, any Noteholder, any Hedge
Counterparty and any Certificateholder;

     (v) any action that is necessary to maintain the lien and security interest created by this
Indenture shall have been taken; and

     (vi) the Issuer shall have delivered to the Indenture Trustee and each Hedge Counterparty an
Officer’s Certificate and an Opinion of Counsel each stating that such conveyance or transfer and
such supplemental indenture comply with this Article III and that all conditions precedent
herein provided for relating to such transaction have been
complied with.

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     Section 3.20.
Successor or Transferee.

     (a) Upon any consolidation or merger of the Issuer in accordance with Section 3.19(a), the
Person formed by or surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, the Issuer under this
Indenture with the same effect as if such Person had been named as the Issuer herein.

     (b) Upon a conveyance or transfer of all or substantially all of the assets and properties of
the Issuer pursuant to Section 3.19(b), the Issuer will be released from every covenant and
agreement of this Indenture to be observed or performed on the part of the Issuer with respect to
the Notes or the Hedge Agreements immediately upon the delivery of written notice to the Indenture
Trustee stating that the Issuer is to be so released.

     Section 3.21. No Other Business.

     The Issuer shall not engage in any business other than financing, purchasing, owning, selling,
managing and enforcing the Loans in the manner contemplated by this Indenture and the Transaction
Documents, issuing the Notes and the Trust Certificates and entering into and performing its
obligations under the Hedge Agreements and all activities incidental thereto.

     Section 3.22. No Borrowing.

     The Issuer shall not issue, incur, assume, guarantee or otherwise become liable, directly or
indirectly, for any indebtedness except for the Notes, the Hedge Agreements and any other
indebtedness permitted by the Transaction Documents. The proceeds from the initial sale of the
Notes and the Trust Certificates shall be used exclusively to fund the Issuer’s purchase of the
Loans and other assets specified in the Sale and Servicing Agreement, to fund the Reserve Fund and
to pay the transactional expenses of the Issuer.

     Section 3.23. Guarantees, Loans, Advances and Other Liabilities.

     Except as contemplated by this Indenture or the other Transaction Documents, the Issuer shall
not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument
having the effect of assuring another’s payment or performance on any obligation or capability of
so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire
(or agree contingently to do so) any stock, obligations, assets or securities of, or any other
interest in, or make any capital contribution to, any other Person.

     Section 3.24. Capital Expenditures.

     The Issuer shall not make any expenditure (by long–term or operating lease or otherwise) for
capital assets (either realty or personalty).

     Section 3.25. Representations and Warranties of the Issuer.

     The Issuer represents and warrants as follows:

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     (a) Power and Authority. It has full power, authority and legal right to execute, deliver and
perform its obligations as Issuer under this Indenture and the Notes (the foregoing documents, the
“Issuer Documents”) and under each of the other Transaction Documents to which the Issuer is a
party.

     (b) Due Authorization and Binding Obligation. The execution and delivery of the Issuer
Documents and the Transaction Documents to which the Issuer is a party, and the consummation of the
transactions provided for therein have been duly authorized by all necessary action on its part.
Each of the Issuer Documents and the other Transaction Documents to which the Issuer is a party
constitutes the legal, valid and binding obligation of the Issuer and is enforceable in accordance
with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency or
similar laws affecting the enforcement of creditors’ rights generally and by the availability of
equitable remedies.

     (c) No Conflict. The execution and delivery of the Issuer Documents and the other Transaction
Documents to which the Issuer is a party, the performance of the transactions contemplated thereby
and the fulfillment of the terms thereof will not conflict with, result in any breach of any of the
materials 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 Issuer is a party or by which it or any of its property is bound.

     (d) No Violation. The execution and delivery of the Issuer Documents and the other Transaction
Documents to which the Issuer is a party, the performance of the transactions contemplated thereby
and the fulfillment of the terms thereof will not conflict with or violate, in any material
respect, any Requirements of Law applicable to the Issuer.

     (e) All Consents Required. All approvals, authorizations, consents, orders or other actions
of any Person or any Governmental Authority required in connection with the execution and delivery
of the Issuer Documents and the other Transaction Documents to which the Issuer is a party, the
performance of the transactions contemplated thereby and the fulfillment of the terms thereof have
been obtained.

     (f) No Proceedings. No litigation or administrative proceeding of or before any court,
tribunal or governmental body is currently pending, or to the knowledge of the Issuer, threatened,
against the Issuer or any of its respective properties or with respect to
the Issuer Documents or any other Transaction Document to which the Issuer is a party that, if
adversely determined, would have a material adverse effect on the business, properties, assets or
condition (financial or otherwise) of the Issuer or the transactions contemplated by the Issuer
Documents or any of the other Transaction Documents to which the Issuer is a party.

     (g) Organization and Good Standing. The Issuer is a statutory trust duly organized, validly
existing and in good standing under the laws of Delaware and has the requisite power to own its
assets and to transact the business in which it is currently engaged, and had at all relevant
times, and now has, all necessary power, authority and legal right to acquire, own and pledge the
Indenture Collateral.

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     (h) 1940 Act. The Issuer is not an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

     (i) Location. The Issuer is located (within the meaning of Article 9 of the UCC) in Delaware.
The Issuer agrees that it will not change its location (within the meaning of Article 9 of the UCC)
without at least 30 days prior written notice to the Originator, the Servicer, the Indenture
Trustee and the Rating Agencies.

     (j) Security Interest in Collateral.

     (i) This Indenture creates a valid, continuing and enforceable security interest (as
defined in the applicable UCC) in the Indenture Collateral in favor of the Indenture
Trustee, 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 Issuer;

     (ii) such Indenture Collateral constitutes either a “general intangible,” an
“instrument,” an “account,” “investment property,” or “chattel paper,” within the meaning
of the applicable UCC;

     (iii) the Issuer owns and has good and marketable title to such Indenture Collateral
free and clear of any Lien (other than Permitted Liens), claim or encumbrance of any
Person;

     (iv) the Issuer has received all consents and approvals required by the terms of the
Indenture Collateral to the pledge of the Indenture Collateral hereunder to the Indenture
Trustee;

     (v) the Issuer has caused the filing of all appropriate financing statements in the
proper filing office in the appropriate jurisdictions under Requirements of Law in order to
perfect the security interest in such Indenture Collateral granted to the Indenture Trustee
under this Indenture;

     (vi) other than the security interest granted by the Issuer pursuant to this
Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in or
otherwise conveyed any of such Indenture Collateral. The Issuer has not authorized the
filing of and is not aware of any financing statements against the Issuer that include a
description of collateral covering such Indenture Collateral other than any financing
statement (A) relating to the security interest granted by the Issuer under this Indenture,
or (B) that has been terminated. The Issuer is not aware of the filing of any judgment or
tax Lien filings against the Issuer;

     (vii) all original executed copies of each Underlying Note that constitute or evidence
the Indenture Collateral have been delivered to and to the knowledge of the Issuer are in
the possession of the Indenture Trustee;

     (viii) the Issuer has received a written acknowledgment from the Indenture Trustee
that the Indenture Trustee or its bailee is holding the Underlying Notes that

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constitute or evidence the Indenture Collateral solely on behalf of and for the benefit of
the Securityholders and the Hedge Counterparties; and

     (ix) none of the Underlying Notes that constitute or evidence the Indenture Collateral
has any marks or notations indicating that they have been pledged, assigned or otherwise
conveyed to any Person other than the Issuer and the Indenture Trustee.

     The representations and warranties in Section 3.25(j) shall survive the termination of this
Agreement and such representations and warranties may not be waived by any party hereto and shall
be deemed re-made as of each Subsequent Transfer Date with respect to any Substitute Loan.

     Section 3.26. Restricted Payments.

     The Issuer shall not, directly or indirectly, (i) pay any dividend or make any distribution
(by reduction of capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the Issuer or otherwise with
respect to any ownership or equity interest or security in or of the Issuer, (ii) redeem, purchase,
retire or otherwise acquire for value any such ownership or equity interest or security or (iii)
set aside or otherwise segregate any amounts for any such purpose; provided, however, that the
Issuer may make, or cause to be made, (w) distributions to the Owner Trustee, the Trust Company and
the Certificateholders as contemplated by, and to the extent funds are available for such purpose
under the Trust Agreement and the Sale and Servicing Agreement, (x) payment to the Servicer and/or
Trust Depositor pursuant to the terms of the Sale and Servicing Agreement or the other Transaction
Documents and (y) payments to the Indenture Trustee pursuant to terms of the Sale and Servicing
Agreement. The Issuer will not, directly or indirectly, make payments to or distributions from the
Note Distribution Account except in accordance with this Indenture and the Transaction Documents.

     Section 3.27. Notice of Events of Default.

     The Issuer shall give the Indenture Trustee, each Hedge Counterparty and the Rating Agencies
prompt written notice of each Event of Default hereunder and under the Trust Agreement and of each
Servicer Default under the Sale and Servicing Agreement and of any event of default of any
Transaction Document and of any other amendment or waiver of any Transaction Document.

     Section 3.28. Further Instruments and Acts.

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

     Section 3.29. Statements to Noteholders.

     The Indenture Trustee shall forward by electronic mail to each Noteholder and each Hedge
Counterparty the statements delivered to it pursuant to Article IX of the Sale
and Servicing Agreement except for the Monthly Report. On each Payment Date, the Indenture

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Trustee may make available to the Noteholders, the Hedge Counterparties, the parties to the
Transaction Documents and the Rating Agencies, via the Indenture Trustee’s Internet website, each
Monthly Report and, with the consent or at the direction of the Trust Depositor, such other
information regarding the Notes and/or the Loans as the Indenture Trustee may have in its
possession, but only with the use of a password provided by the Indenture Trustee; provided,
however, the Indenture Trustee shall have no obligation to provide such information described in
this Section 3.29 until it has received the requisite information from the Trust Depositor or the
Servicer. The Indenture Trustee will make no representation or warranties as to the accuracy or
completeness of such documents and will assume no responsibility therefor.

     The Indenture Trustee’s Internet website shall be initially located at “www.CTSLink.com” or at
such other address as shall be specified by the Indenture Trustee from time to time in writing to
the Noteholders, the Hedge Counterparties, the parties to the Transaction Documents and the Rating
Agencies. In connection with providing access to the Indenture Trustee’s Internet website, the
Indenture Trustee may (other than with respect to the parties to the Transaction Documents and the
Rating Agencies) require registration and the acceptance of a disclaimer. The Indenture Trustee
shall not be liable for the dissemination of information in accordance with this Agreement.

     Section 3.30. Grant of Substitute Loans.

     In consideration of the delivery on each Subsequent Transfer Date pursuant to and in
accordance with the terms of Section 2.04 of the Sale and Servicing Agreement, the Issuer grants to
the Indenture Trustee a security interest in all of its right, title and interest in the Loans
transferred on such Subsequent Transfer Date and simultaneously with the transfer of the Substitute
Loans to the extent of the availability thereof, the Issuer will cause the related Loan File to be
delivered to the Indenture Trustee.

     Section 3.31. Determination of LIBOR; Note Interest Rate; Interest Distributable.

     Until the Outstanding Principal Balance of each Class of Notes has been reduced to zero, the
Indenture Trustee shall determine LIBOR for each Interest Accrual Period as provided in Section
7.06 of the Sale and Servicing Agreement, and based upon such determination of LIBOR, the Trustee
shall calculate the Class A Note Interest Rate, the Class B Note Interest Rate, the Class C Note
Interest Rate, the Class D Note Interest Rate and the Class E Note Interest Rate for such Interest
Accrual Period, and shall inform the Issuer, the Trust Depositor and the Servicer at their
respective email addresses given to the Indenture Trustee in writing thereof. Any such
determination by the Indenture Trustee of the amount of interest distributable on the Class A
Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E Notes shall be
binding on the parties absent manifest error.

     Section 3.32. Covenants of the Issuer Relating to Hedge Agreements.

     (a) On each day, the Issuer shall maintain one or more Hedge Transactions, provided that each
such Hedge Transaction shall:

     (i) be entered into with a Hedge Counterparty and governed by a Hedge Agreement;

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     (ii) have a schedule of periodic payment periods which terminate not later than the
date on which the Outstanding Amount of the Notes is expected to be reduced to zero based
on an assumed constant prepayment rate of (A) 10% with respect to the Floating Prime Rate
Loans and (B) 0% with respect to the Fixed Rate Loans;

     (iii) on the Closing Date, have an amortizing notional amount such that the Aggregate
Notional Amount during any current or future calculation period thereunder shall be not
less than the sum of (A) the product of 100% and the Outstanding Loan Balance of the Fixed
Rate Loans for the corresponding Due Period, based on an assumed constant prepayment rate
of 0% with respect to the Fixed Rate Loans; and (B) the product of 100% and the Outstanding
Loan Balance of the Floating Prime Rate Loans for the corresponding Due Period, based on an
assumed constant prepayment rate of 10% with respect to the Floating Prime Rate Loans;

     (iv) be maintained so that (A) the Aggregate Notional Amount of all Hedge Transactions
hedging the Fixed Rate Loans for any current or future calculation period will not be
greater than the Outstanding Loan Balance of the Fixed Rate Loans at the end of the
corresponding Due Period by more than the Fixed Rate Permitted Excess Amount, (B) the
Aggregate Notional Amount of all Hedge Transactions (excluding any interest rate cap
transactions) hedging the Floating Prime Rate Loans for any current or future calculation
period will not be greater than the Outstanding Loan Balance of the Floating Prime Rate
Loans at the end of the corresponding Due Period by more than the Floating Prime Rate
Permitted Excess Amount and (C) the Aggregate Notional Amount of all Hedge Transactions
(excluding any interest rate cap transactions) under all Hedge Agreements then in effect
for any current or future calculation period shall not exceed the Aggregate Outstanding
Principal Balance for the corresponding Interest Accrual Period; and

     (v) each Hedge Agreement will provide that any scheduled periodic payments required to
be made by the Issuer and the Hedge Counterparty on the same date with respect to a Hedge
Transaction will be netted so that only the net difference between such payments will be
paid, with any net periodic payments to be paid into the Principal and Interest Account (if
payable by the Hedge Counterparty) or from the Principal and Interest Account (if payable
by the Issuer) and distributed pursuant to the terms of this Indenture and the Sale and
Servicing Agreement.

     (b) As additional security hereunder, the Issuer hereby assigns to the Indenture Trustee, on
behalf of the Noteholders and each Hedge Counterparty, all right, title and interest of the Issuer
in each Hedge Agreement, each Hedge Transaction, and all present and future amounts payable by a
Hedge Counterparty to the Issuer in accordance with the terms of the respective Hedge Agreement and
Hedge Transaction(s) with that Hedge Counterparty (“Hedge Collateral”), and Grants a security
interest to the Indenture Trustee, as agent for the Noteholders and each Hedge Counterparty, in the
Hedge Collateral. The Issuer acknowledges that, as a result of that assignment, the Issuer may not,
without the prior written consent of the Indenture Trustee, exercise any rights under any Hedge
Agreement or Hedge Transaction, except for the Issuer’s right under any Hedge Agreement to enter
into Hedge Transactions in order to meet the Issuer’s obligations under Section 3.32 hereof or
except as otherwise contemplated in this Section 3.32 and in Section 5.02(g) of the Sale and
Servicing Agreement. Nothing herein shall have the effect

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of releasing the Issuer from any of its obligations under any Hedge Agreement or any Hedge
Transaction, nor be construed as requiring the consent of the Indenture Trustee, any Noteholder or
any Hedge Counterparty for the performance by the Issuer of any such obligations.

     (c) The Issuer hereby agrees to maintain a register of outstanding Hedge Agreements. Such
register shall contain the name of each Hedge Counterparty as well as the address of each Hedge
Counterparty. The Issuer shall provide such names and addresses to the Indenture Trustee, the
Backup Servicer and each Rating Agency on a current basis.

     (d) The Indenture Trustee shall, upon notice from the Issuer, establish a single, segregated
trust account which shall be designated as the Hedge Counterparty Collateral Account, which shall
be held in trust in the name of the Indenture Trustee for the benefit of the Noteholders and the
Hedge Counterparties and over which the Trustee shall have the exclusive control and the sole right
of withdrawal. The Indenture Trustee shall deposit all collateral received from a Hedge
Counterparty under a Hedge Agreement in the Hedge Counterparty Collateral Account. Any and all
funds at any time on deposit in, or otherwise to the credit of, the Hedge Counterparty Collateral
Account shall be held in trust by the Indenture Trustee for the benefit of the Noteholders and the
Hedge Counterparties. The only permitted withdrawal from or application of funds on deposit in, or
otherwise to the credit of, the Hedge Counterparty Collateral Account shall be upon Issuer Order
(i) for application to obligations of a Hedge Counterparty to the Issuer under Hedge Agreement if
such Hedge Agreement becomes subject to early termination or (ii) to return collateral to such
Hedge Counterparty when and as required by such Hedge Agreement. The Indenture Trustee shall be
fully protected in relying upon such Issuer Order. Each Hedge Counterparty Collateral Account shall
be held in accordance with the terms of the related Hedge Agreement.

     (e) Each Hedge Agreement will provide that if at any time the Hedge Counterparty or the Hedge
Counterparty’s credit support provider (i) does not have the long-term or short-term ratings
required to be a Qualified Hedge Counterparty then the Hedge Counterparty shall, within ten days of
such failure to maintain the required ratings, transfer (at its own cost) all of its rights and
obligations under the Hedge Agreement to another Person in accordance with the terms of the Hedge
Agreement or (ii) has the long-term or short-term ratings required to be a Qualified Hedge
Counterparty but has a long-term senior unsecured debt rating by S&P of below “A+” or a short-term
debt rating by S&P of below “A-1”, then the Hedge Counterparty shall either post collateral within
30 days as provided in the Credit Support Annex to the Hedge Agreement or transfer (at its own
cost) all of its rights and obligations under the Hedge Agreement to another Person in accordance
with the terms of the Hedge Agreement; provided, however, that notwithstanding the foregoing, if the Hedge Counterparty has a long-term senior unsecured debt
rating by Moody’s of below “A3” or “A3” on watch or a short-term debt rating by Moody’s of below
“P-1” (for so long as any Class of Offered Notes is deemed Outstanding hereunder and are rated by
Moody’s), the Hedge Counterparty shall transfer (at its own cost) all of its rights and obligations
under the Hedge Agreements to another Person in accordance with the terms of this Agreement;
provided, further, that each Hedge Agreement shall provide that any amendments thereto or
replacements thereof shall be subject to the satisfaction of the Rating Agency Condition with
respect to such amendment or replacement, as the case may be.

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     Section 3.33. Payments from Obligor Lock–Boxes and Obligor Lock–Box Accounts.

     The Issuer agrees not to make, or permit to be made, any change, in the direction of, or
instructions with respect to, any payments to be made by an Obligor Lock–Box Bank from any Obligor
Lock–Box or any Obligor Lock–Box Account in any manner that would diminish, impair, delay or
otherwise adversely effect the timing or receipt of such payments by the Lock–Box Bank or to change
the name in which an Obligor Lock-Box or Obligor Lock-Box Account is maintained without the prior
written consent of the Indenture Trustee and with the consent of the Majority Noteholders and the
Hedge Counterparties. The Issuer further agrees to provide the Indenture Trustee promptly, but in
no case later than one Business Day after the Issuer’s receipt, any notice it receives that an
Obligor is changing the direction of or instructions with respect to any payments from any Obligor
Lock–Box or any Obligor Lock–Box Account or the name in which an Obligor Lock-Box or Obligor
Lock-Box Account is maintained.

     Section 3.34. Maintenance of Listing.

     So long as any of the Listed Notes remain Outstanding, the Issuer shall use all commercially
reasonable efforts to maintain the listing of such Listed Notes on the Irish Stock Exchange. If,
despite such efforts, such listing cannot be maintained, the Issuer shall instead use reasonable
efforts to promptly obtain and thereafter maintain a listing of such Listed Notes on any other
stock exchange located within a member country of the European Union.

ARTICLE IV

THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

     Section 4.01. The Notes.

     Certain of the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the
Class E Notes shall be registered initially in the name of Cede & Co. Beneficial Owners will hold
interests in the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the
Class E Notes through the book–entry facilities of the Depository in minimum denominations of
$500,000 and integral multiples of $1,000 in excess thereof. Subject
to Sections 4.02(b) (p), (q) and
(r), the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes, the Class E Note
and the Class F Note shall be issued in such names and denominations as may be set forth on an
Issuer Order delivered to the Indenture Trustee.

     The Notes shall, on original issue, be executed on behalf of the Issuer by the Owner Trustee,
not in its individual capacity but solely as Owner Trustee, authenticated by the Note Registrar and delivered by the Indenture Trustee to or upon the order of the
Issuer.

     Section 4.02. Registration of Transfer and Exchange of Notes.

     (a) The Indenture Trustee shall cause to be kept a Note Register (the “Note Register”) in
which, subject to such reasonable regulations as it may prescribe, the Issuer shall provide for the
registration of Notes and the registration of transfers and exchanges of Notes as herein provided.
The Indenture Trustee shall be “Note Registrar” for the purpose of registering Notes

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and transfers of Notes as herein provided. The Note Register shall contain the name, remittance
instructions, Class of each Noteholder, as well as the Series and the number in the Series.

     (b) Each Class of Notes shall be issued in minimum denominations of $500,000 initial principal
amount and integral multiples of $1,000 in excess thereof, except that one Note of each Class may
be in a different denomination so that the sum of the denominations of all outstanding Notes of
such Class shall equal the applicable Initial Class A Principal Balance, the Initial Class B
Principal Balance, the Initial Class C Principal Balance, the Initial Class D Principal Balance,
the Initial Class E Principal Balance and the Initial Class F Principal Balance, respectively. On
the Closing Date, the Indenture Trustee will execute and authenticate (i) one or more Global Notes
and /or (ii) Individual Notes all in an aggregate principal amount that shall equal the applicable
Initial Class A Principal Balance, the applicable Initial Class B Principal Balance, the applicable
Initial Class C Principal Balance, the applicable Initial Class D Principal Balance, the
applicable Initial Class E Principal Balance and the applicable Initial Class F Principal Balance.

     (c) The Global Notes (i) shall be delivered by the Issuer to the Depository or, pursuant to
the Depository’s instructions, shall be delivered by the Issuer on behalf of the Depository to and
deposited with the DTC Custodian, and in each case shall be registered in the name of Cede & Co.
and (ii) with respect to the Rule 144A Global Notes, shall bear a legend substantially to the
following effect:

“Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation (“DTC ”), to the Note
Registrar or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other entity as is requested by an
authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.”

     The Global Notes may be deposited with such other Depository as the Issuer may from time to
time designate, and shall bear such legend as may be appropriate; provided, that, such successor
Depository maintains a book–entry system that qualifies to be treated as “registered form” under
Section 163(f)(3) of the Code.

     The Issuer and the Indenture Trustee are hereby authorized to execute and deliver a Letter of
Representations with the Depository relating to the Notes.

     (d) With respect to Notes registered in the Note Register in the name of Cede & Co., as
nominee of the Depository, the Issuer, the Servicer, the Owner Trustee (as such and in its
individual capacity) and the Indenture Trustee shall have no responsibility or obligation to Direct
or Indirect Participants or Beneficial Owners for which the Depository holds Notes from time to
time as a Depository. Without limiting the immediately preceding sentence, the Issuer, the
Servicer, the Owner Trustee, (as such and in its individual capacity), and the Indenture Trustee

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shall have no responsibility or obligation with respect to (a) the accuracy of the records of the
Depository, Cede & Co., or any Direct or Indirect Participant with respect to the ownership
interest in the Notes, (b) the delivery to any Direct or Indirect Participant or any other Person,
other than a registered Holder of a Note, (c) the payment to any Direct or Indirect Participant or
any other Person, other than a registered Holder of a Note as shown in the Note Register, of any
amount with respect to any distribution of principal or interest on the Notes or (d) the making of
book–entry transfers among Participants of the Depository with respect to Notes registered in the
Note Register in the name of the nominee of the Depository. No Person other than a registered
Holder of a Note as shown in the Note Register shall receive a Note evidencing such Note.

     (e) Upon delivery by the Depository to the Indenture Trustee of written notice to the effect
that the Depository has determined to substitute a new nominee in place of Cede & Co., and subject
to the provisions hereof with respect to the payment of distributions by the mailing of checks or
drafts to the registered Holders of Notes appearing as registered Owners in the Note Register on a
Record Date, the name “Cede & Co.” in this Indenture shall refer to such new nominee of the
Depository.

     (f) In the event that (i) the Depository or the Servicer advises the Indenture Trustee in
writing that the Depository is no longer willing or able to discharge properly its responsibilities
as nominee and depository with respect to the Global Notes and the Servicer is unable to locate a
qualified successor or (ii) the Servicer at its sole option elects to terminate the book–entry
system through the Depository, the Global Notes shall no longer be restricted to being registered
in the Note Register in the name of Cede & Co. (or a successor no minee) as nominee of the
Depository. At that time, the Servicer may determine that the Global Notes shall be registered in
the name of and deposited with a successor depository operating a global book–entry system, as may
be acceptable to the Servicer, or such depository’s agent or designee but, if the Servicer does not
select such alternative global book–entry system, then upon surrender to the Note Registrar of the
Global Notes by the Depository, accompanied by the registration instructions from the Depository
for registration, the Indenture Trustee shall at the Servicer’s expense authenticate Individual
Notes. Neither the Servicer nor the Indenture Trustee shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in relying on, such
instructions. Upon the issuance of Individual Notes, the Indenture Trustee, the Note Registrar, the
Servicer, any Paying Agent and the Issuer shall recognize the Holders of the Individual Notes as
Noteholders hereunder.

     (g) Notwithstanding any other provision of this Agreement to the contrary, so long as any
Global Notes are registered in the name of Cede & Co., as nominee of the
Depository, all distributions of principal and interest on such Global Notes and all notices
with respect to such Global Notes shall be made and given, respectively, in the manner provided in
the Letter of Representations.

     (h) Subject to the preceding paragraphs, upon surrender for registration of transfer of any
Note at the office of the Note Registrar and, upon satisfaction of the conditions set forth below,
the Issuer shall execute in the name of the designated transferee or transferees, a new Note or
Notes of the same Percentage Interest and dated the date of authentication by the Indenture
Trustee. The Note Registrar shall notify the Servicer and the Indenture Trustee of any such
transfer.

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     (i) At the option of the Noteholders, Notes may be exchanged for other Notes in authorized
denominations of a like Class, upon surrender of the Notes to be exchanged at such office. Whenever
any Notes are so surrendered for exchange, the Issuer shall execute the Notes which the Noteholder
making the exchange is entitled to receive. Every Note presented or surrendered for transfer or
exchange shall be accompanied by wiring instructions, if applicable,
in the form of Exhibit C. The
preceding provisions of this section notwithstanding, the Issuer shall not be required to make and
the Note Registrar shall not register transfers or exchanges of Notes called for repurchase.

     (j) No service charge shall be made for any transfer or exchange of Notes, but prior to
transfer the Note Registrar may require payment by the transferor of a sum sufficient to cover any
tax or governmental charge that may be imposed in connection with any transfer or exchange of
Notes.

     All Notes surrendered for payment, transfer and exchange or repurchase shall be marked
canceled by the Note Registrar and retained for one year and destroyed thereafter.

     (k) By acceptance of an Individual Note, whether upon original issuance or subsequent
transfer, each holder of such a Note acknowledges the restrictions on the transfer of such Note set
forth in the Securities Legend and agrees that it will transfer such a Note only as provided
herein. In addition to the provisions of Section 4.02(m) and (n) the following restrictions shall
apply with respect to the transfer and registration of transfer of an Individual Note to a
transferee that takes delivery in the form of an Individual Note:

     (i) The Note Registrar shall register the transfer of an Individual Note if the
requested transfer is being made to a transferee who has provided the Note Registrar with a
Rule 144A Certification or to a transferee who is an Affiliate of the Originator in a
transfer which otherwise complies with Section 4.02(s); or

     (ii) The Note Registrar shall register the transfer of any Individual Note if (I) such
transfer is made to a transferee who is an Affiliate of the Originator and such transfer
otherwise complies with Section 4.02(s), or (II) (x) the transferor has advised the Note Registrar
in writing that the Note is being transferred to a Person that is both an Institutional
Accredited Investor and a Qualified Purchaser; and (y) prior to the transfer the transferee
furnishes to the Note Registrar a Transferee Letter; provided, that, if based upon an
Opinion of Counsel to the effect that the delivery of (x) and (y) above are not sufficient
to confirm that the proposed transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act and other
applicable laws, the Note Registrar may as a condition of the registration of any such
transfer require the transferor to furnish other certifications, legal opinions or other
information prior to registering the transfer of an Individual Note.

     (l) Subject
to Section 4.02(n), so long as a Global Note remains outstanding and is held by or on
behalf of the Depository, transfers of beneficial interests in the Global Note, or transfers by
holders of Individual Notes to transferees that take delivery in the form of beneficial interests
in the Global Note, may be made only in accordance with this Section 4.02(l) and in accordance with
the rules of the Depository.

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     (i) Rule 144A Global Note to Regulation S Global Note During the Distribution Compliance
Period. If, during the Distribution Compliance Period, a Beneficial Owner of an interest in a Rule
144A Global Note wishes at any time to transfer its beneficial interest in such Rule 144A Global
Note to a Person who wishes to take delivery thereof in the form of a beneficial interest in a
Regulation S Global Note, such Beneficial Owner may, in addition to complying with all applicable
rules and procedures of the Depository and Clearstream or Euroclear applicable to transfers by
their respective participants (the “Applicable Procedures”), transfer or cause the transfer of such
beneficial interest for an equivalent beneficial interest in the Regulation S Global Note only upon
compliance with the provisions of this Section 4.02(l)(i) . Upon receipt by the Note Registrar at
its Corporate Trust Office of (1) written instructions given in accordance with the Applicable
Procedures from a Depository Participant directing the Note Registrar to credit or cause to be
credited to another specified Depository Participant’s account a beneficial interest in the
Regulation S Global Note in an amount equal to the denomination of the beneficial interest in the
Rule 144A Global Note to be transferred, (2) a written order given in accordance with the
Applicable Procedures containing information regarding the account of the Depository Participant
(and the Euroclear or Clearstream account, as the case may be) to be credited with, and the account
of the Depository Participant to be debited for, such beneficial interest, and (3) a certificate
in the form of Exhibit E hereto given by the Beneficial Owner that is transferring such interest,
the Note Registrar shall instruct the Depository to reduce the denomination of the Rule 144A Global
Note by the denomination of the beneficial interest in the Rule 144A Global Note to be so
transferred and, concurrently with such reduction, to increase the denomination of the Regulation S
Global Note by the denomination of the beneficial interest in the Rule 144A Global Note to be so
transferred, and to credit or cause to be credited to the account of the Person specified in such
instructions (who shall be a Depository Participant acting for or on behalf of Euroclear or
Clearstream, or both, as the case may be) a beneficial interest in the Regulation S Global Note
having a denomination equal to the amount by which the denomination of the Rule 144A Global Note
was reduced upon such transfer.

     (ii) Rule 144A Global Note to Regulation S Global Note After the Distribution Compliance
Period. If, after the Distribution Compliance Period, a Beneficial Owner of an interest in a Rule
144A Global Note wishes at any time to transfer its beneficial interest in such Rule 144A Global
Note to a Person who wishes to take delivery thereof in the form of a beneficial interest in a
Regulation S Global Note, such holder may, in addition to complying with all Applicable Procedures,
transfer or cause the transfer of such beneficial interest for an equivalent beneficial interest in
a Regulation S Global Note only upon compliance with the provisions of this Section 4.02(l)(ii) . Upon receipt by the Note Registrar at its Corporate Trust Office of (1) written instructions
given in accordance with the Applicable Procedures from a Depository Participant directing the Note
Registrar to credit or cause to be credited to another specified Depository Participant’s account a
beneficial interest in the Regulation S Global Note in an amount equal to the denomination of the
beneficial interest in the Rule 144A Global Note to be transferred, (2) a written order given in
accordance with the Applicable Procedures containing information regarding the account of the
Depository Participant (and, in the case of a transfer pursuant to and in accordance with
Regulation S, the

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Euroclear or Clearstream account, as the case may be) to be credited with, and the account of the
Depository Participant to be debited for, such beneficial interest, and (3) a certificate in the
form of Exhibit F hereto given by the Beneficial Owner that is transferring such interest, the Note
Registrar shall instruct the Depository to reduce the denomination of the Rule 144A Global Note by
the aggregate denomination of the beneficial interest in the Rule 144A Global Note to be so
transferred and, concurrently with such reduction, to increase the denomination of the Regulation S
Global Note by the aggregate denomination of the beneficial interest in the Rule 144A Global Note
to be so transferred, and to credit or cause to be credited to the account of the Person specified
in such instructions (who shall be a Depository Participant acting for or on behalf of Euroclear or
Clearstream, or both, as the case may be) a beneficial interest in the Regulation S Global Note
having a denomination equal to the amount by which the denomination of the Rule 144A Global Note
was reduced upon such transfer.

     (iii) Regulation S Global Note to Rule 144A Global Note. If the Beneficial Owner of an
interest in a Regulation S Global Note wishes at any time to transfer its beneficial interest in
such Regulation S Global Note to a Person who wishes to take delivery thereof in the form of a
beneficial interest in the Rule 144A Global Note, such holder may, in addition to complying with
all Applicable Procedures, transfer or cause the transfer of such beneficial interest for an
equivalent beneficial interest in the Rule 144A Global Note only upon compliance with the
provisions of this Section 4.02(l)(iii). Upon receipt by the Note Registrar at its Corporate Trust Office of
(1) written instructions given in accordance with the Applicable Procedures from a Depository
Participant directing the Note Registrar to credit or cause to be credited to another specified
Depository Participant’s account a beneficial interest in the Rule 144A Global Note in an amount
equal to the denomination of the beneficial interest in the Regulation S Global Note to be
transferred, (2) a written order given in accordance with the Applicable Procedures containing
information regarding the account of the Depository Participant to be credited with, and the
account of the Depository Participant (or, if such account is held for Euroclear or Clearstream,
the Euroclear or Clearstream account, as the case may be) to be debited for such beneficial
interest, and (3) with respect to a transfer of a beneficial interest in the Regulation S Global
Note for a beneficial interest in the related Rule 144A Global Note (i) during the Distribution
Compliance Period, a certificate in the form of Exhibit G hereto given by the Beneficial Owner that
is transferring such interest, or (ii) after the Distribution Compliance Period, a Rule 144A
Certification from the transferee of such interest to the effect that such transferee is a
Qualified Institutional Buyer who is a Qualified Purchaser, the Note Registrar shall instruct the
Depository to reduce the denomination of the Regulation S Global Note by the denomination of the
beneficial interest in the Regulation S Global Note to be transferred and, concurrently with such
reduction, to increase the denomination of the Rule 144A Global Note by the aggregate denomination
of the beneficial interest in the Regulation S Global Note to be so transferred, and to credit or
cause to be credited to the account of the Person specified in such instructions (who shall be a
Depository Participant acting for or on behalf of Euroclear or Clearstream, or both, as the case
may be) a beneficial interest in the Rule 144A Global Note having a denomination equal to the
amount by which the denomination of the Regulation S Global Note was reduced upon such transfer.

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     (iv) Transfers Within Regulation S Global Notes During Distribution Compliance Period.
If, during the Distribution Compliance Period, the Beneficial Owner of an interest in a
Regulation S Global Note wishes at any time to transfer its beneficial interest in such
Note to a Person who wishes to take delivery thereof in the form of a Regulation S Global
Note, such Beneficial Owner may transfer or cause the transfer of such beneficial interest
for an equivalent beneficial interest in such Regulation S Global Note only upon compliance
with the provisions of this Section 4.02(l)(iv) and all Applicable Procedures. Upon receipt
by the Note Registrar at its Corporate Trust Office of (1) written instructions given in
accordance with the Applicable Procedures from a Depository Participant directing the Note
Registrar to credit or cause to be credited to another specified Depository Participant’s
account a beneficial interest in such Regulation S Global Note in an amount equal to the
denomination of the beneficial interest to be transferred, (2) a written order given in
accordance with the Applicable Procedures containing information regarding the account of
the Depository Participant to be credited with, and the account of the Depository
Participant (or, if such account is held for Euroclear or Clearstream, the Euroclear or
Clearstream account, as the case may be) to be debited for, such beneficial interest and
(3) a certificate in the form of Exhibit H hereto given by the Beneficial Owner that is
transferring such interest, the Note Registrar shall instruct the Depository to credit or
cause to be credited to the account of the Person specified in such instructions (who shall
be a Depository Participant acting for or on behalf of Euroclear or Clearstream, or both,
as the case may be) a beneficial interest in the Regulation S Global Note having a
denomination equal to the amount specified in such instructions by which the account to be
debited was reduced upon such transfer. The Note Registrar shall not be required to
monitor compliance by Beneficial Owners of the provisions of this
Section 4.02(l)(iv).

     (m) Transfers of Interests in Global Notes to Individual Notes. Any and all transfers from a
Global Note to a transferee wishing to take delivery in the form of an Individual Note will require
the transferee to take delivery subject to the restrictions on the transfer of such Individual Note
described on the face of such Note, and such transferee agrees that it will transfer such
Individual Note only as provided therein and herein. No such transfer shall be made and the Note
Registrar shall not register any such transfer unless such transfer is made in accordance with this
Section 4.02(m) or is made to an Affiliate of the Originator in a transfer which otherwise complies
with Section 4.02(s).

     (i) Transfers of a beneficial interest in a Global Note to a Person who is both an
Institutional Accredited Investor and a Qualified Purchaser will require delivery of such
Note to the transferee in the form of an Individual Note and the Note Registrar shall
register such transfer only if prior to the transfer such transferee furnishes to the Note
Registrar (1) a Transferee Letter to the effect that the transfer is being made to an
Institutional Accredited Investor who is a Qualified Purchaser in accordance with an
applicable exemption under the Securities Act, and (2) an Opinion of Counsel acceptable to
the Indenture Trustee that such transfer is in compliance with the Securities Act.

     (ii) Transfers of a beneficial interest in a Global Note to a Qualified Institutional
Buyer who is a Qualified Purchaser or a Regulation S Investor wishing to take delivery in
the form of an Individual Note will be registered by the Note Registrar

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only upon compliance with the provisions of Section 4.02(l) and if the Note Registrar is
provided with a Rule 144A Certification or a Regulation S Transfer Certificate, as
applicable.

     (iii) Notwithstanding the foregoing, no transfer of a beneficial interest in a
Regulation S Global Note to an Individual Note pursuant to subparagraph 4.02(m)(ii) above
shall be made prior to the expiration of the Distribution Compliance Period and compliance
with the certification requirements of Rule 903(b)(3)(ii)(B) under the Securities Act.
Upon acceptance for exchange or transfer of a beneficial interest in a Global Note for an
Individual Note, as provided herein, the Note Registrar shall endorse on the schedule
affixed to the related Global Note Registrar (or on a continuation of such schedule affixed
to such Global Note Registrar and made a part thereof) an appropriate notation evidencing
the date of such exchange or transfer and a decrease in the denomination of such Global
Note Registrar equal to the denomination of such Individual Note Registrar issued in
exchange therefor or upon transfer thereof. Unless determined otherwise by the Company in
accordance with applicable law, an Individual Note Registrar issued upon transfer of or
exchange for a beneficial interest in the Global Note Registrar shall bear the Securities
Legend.

     (n) Transfers of Individual Note to the Global Notes. If a Holder of an Individual Note
wishes at any time to transfer such Note to a Person who wishes to take delivery thereof in the
form of a beneficial interest in the related Regulation S Global Note or the related Rule 144A
Global Note, such transfer may be effected only in accordance with the Applicable Procedures, and
this Section 4.02(n). Upon receipt by the Note Registrar at the Corporate Trust Office of (1) the
Individual Note to be transferred with an assignment and transfer, (2) written instructions given
in accordance with the Applicable Procedures from a Depository Participant directing the Note
Registrar to credit or cause to be credited to another specified Depository Participant’s account a
beneficial interest in such Regulation S Global Note or such Rule 144A Global Note, as the case may
be, in an amount equal to the denomination of the Individual Note to be so transferred, (3) a
written order given in accordance with the Applicable Procedures containing information regarding
the account of the Depository Participant (and, in the case of any transfer pursuant to Regulation
S, the Euroclear or Clearstream account, as the case may be) to be credited with such beneficial interest, and (4) (x) if delivery is to
be taken in the form of a beneficial interest in the Regulation S Global Note, a certificate in the
form of Exhibit H hereto, given by the Beneficial Owner that is transferring such interest, if
delivery is to be taken in the form of a beneficial interest in the Regulation S Global Note or (y)
a Transferee Letter from the transferee of such interest to the effect that such transferee is a
Qualified Institutional Buyer who is a Qualified Purchaser, if delivery is to be taken in the form
of a beneficial interest in the Rule 144A Global Note, the Note Registrar shall cancel such
Individual Note, execute and deliver a new Individual Note for the denomination of the Individual
Note not so transferred, registered in the name of the Holder, and the Note Registrar shall
instruct the Depository to increase the denomination of the Regulation S Global Note or the Rule
144A Global Note, as the case may be, by the denomination of the Individual Note to be so
transferred, and to credit or cause to be credited to the account of the Person specified in such
instructions (who, in the case of any increase in the Regulation S Global Note during the
Distribution Compliance Period, shall be a Depository Participant acting for or on behalf of
Euroclear or Clearstream, or both, as the case

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may be) a corresponding denomination of the Rule 144A Global Note or the Regulation S Global Note,
as the case may be.

     It is the intent of the foregoing that under no circumstances may an Institutional Accredited
Investor that is not a Qualified Institutional Buyer take delivery in the form of a beneficial
interest in a Global Note.

     (o) An exchange of a beneficial interest in a Global Note for an Individual Note or Notes, an
exchange of an Individual Note or Notes for a beneficial interest in a Global Note and an exchange
of an Individual Note or Notes for another Individual Note or Notes (in each case, whether or not
such exchange is made in anticipation of subsequent transfer, and in the case of the Global Notes,
so long as the Global Notes remain outstanding and are held by or on behalf of the Depository), may
be made only in accordance with this Section 4.02 and in accordance with the rules of the
Depository and Applicable Procedures.

     (p)      (i) Upon acceptance for exchange or transfer of an Individual Note for a beneficial
interest in the Global Note as provided herein, the Note Registrar shall cancel such Individual
Note and shall (or shall request the Depository to) endorse on the schedule affixed to the
applicable Global Note (or on a continuation of such schedule affixed to the Global Note and made a
part thereof) an appropriate notation evidencing the date of such exchange or transfer and an
increase in the Note balance of the Global Note equal to the Note balance of such Individual Note
exchanged or transferred therefor.

               (ii) Upon acceptance for exchange or transfer of a beneficial interest in the Global
Note for an Individual Note as provided herein, the Note Registrar shall (or shall request
the Depository to) endorse on the schedule affixed to the Global Note (or on a continuation
of such schedule affixed to the Global Note and made a part thereof) an appropriate
notation evidencing the date of such exchange or transfer and a decrease in the Note
balance of the Global Note equal to the Note balance of such Individual Note issued in
exchange therefor or upon transfer thereof.

     (q) The Securities Legend shall be placed on any Individual Note issued in exchange for or
upon transfer of another Individual Note or of a beneficial interest in the Global Note.

     (r) Subject to the restrictions on transfer and exchange set forth in this Section 4.02, the
holder of any Individual Note may transfer or exchange the same in whole or in part (in an initial
Note balance equal to the minimum authorized denomination of $500,000 or any integral multiple of
$1,000 in excess thereof) by surrendering such Note at the Corporate Trust Office, or at the office
of any transfer agent, together with an executed instrument of assignment and transfer satisfactory
in form and substance to the Note Registrar in the case of transfer and a written request for
exchange in the case of exchange. The holder of a beneficial interest in a Global Note may,
subject to the rules and procedures of the Depository, cause the Depository (or its nominee) to
notify the Note Registrar in writing of a request for transfer or exchange of such beneficial
interest for an Individual Note or Notes. Following a proper request for transfer or exchange, the
Note Registrar shall, within five Business Days of such request made at such Corporate Trust
Office, cause the Indenture Trustee to authenticate and the Note Registrar to deliver at such
Corporate Trust Office, to the transferee (in the case of transfer) or holder (in the case of
exchange) or send by first class mail at the risk of the transferee (in the case of transfer)

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or holder (in the case of exchange) to such address as the transferee or holder, as applicable, may
request, an Individual Note or Notes, as the case may require, for a like aggregate Percentage
Interest and in such authorized denomination or denominations as may be requested. The
presentation for transfer or exchange of any Individual Note shall not be valid unless made at the
Corporate Trust Office by the registered holder in person, or by a duly authorized
attorney–in–fact.

     (s) No transfer of any Note shall be made unless such transfer is exempt from the registration
requirements of the Securities Act and any applicable state securities laws or is made in
accordance with said Act and laws. No transfer of any Note shall be made if such transfer would
require the Issuer to register as an “investment company” under the Investment Company Act. In the
event of any such transfer, unless such transfer is made in reliance upon Rule 144A under the
Securities Act or Regulation S under the Securities Act or is a transfer of the Class F Note to an
Affiliate of the Originator, (i) the Indenture Trustee may require a written Opinion of Counsel
acceptable to and in form and substance reasonably satisfactory to the Indenture Trustee that such
transfer may be made pursuant to an exemption, describing the applicable exemption and the basis
therefor, from said Act and laws or is being made pursuant to said Act and laws, which Opinion of
Counsel shall not be an expense of the Indenture Trustee, the Issuer, or the Servicer and (ii) the
Indenture Trustee shall require the transferee to execute a Transferee Letter or the transfer is to
execute the applicable certification in the event of a transfer pursuant to Regulation S certifying
to the Issuer and the Indenture Trustee the facts surrounding such transfer, which Transferee
Letter or certification shall not be an expense of the Indenture Trustee, the Issuer or the
Servicer. The holder of a Note desiring to effect such transfer shall, and by accepting a Note and
the benefits of this Indenture does hereby agree to, indemnify the Indenture Trustee, the Issuer,
the Servicer and the Initial Purchasers against any liability that may result if the transfer is
not so exempt or is not made in accordance with such federal and state laws. None of the Issuer, the Indenture Trustee, the
Trust Depositor or the Initial Purchasers intends or is obligated to register or qualify any Note
under the Securities Act or any state securities laws.

     (t) No Class E Note or Class F Note may be acquired or owned by any Person that is classified
for U.S. federal income tax purposes as a partnership, subchapter S corporation or grantor trust
unless (A) none of the direct or indirect beneficial owners of any interest in such Person have or
ever will have more than 50% of the value of its interest in such Person attributable to the
interest of such Person in any Class E Notes, Class F Notes or other interest (direct or indirect)
in the Issuer, and (B) it is not and will not be a principal purpose of the arrangement involving
the investment of such Person in any Class E Notes or Class F Notes to permit any partnership to
satisfy the 100 partner limitation of Treas. Reg. § 1.7704-1(h)(1)(ii);

     (u) No Class E Note or Class F Note (or interest therein) may be acquired, and no Holder of a
Class E Note or Class F Note may sell, transfer, assign, participate, pledge or otherwise dispose
of any Class E Note or Class F Note (or interest therein) or cause any Class E Note or Class F Note
(or interest therein) to be marketed, on or through (i) an “established securities market” within
the meaning of Section 7704(b) of the Code, including, without limitation, an interdealer quotation
system that regularly disseminates firm buy or sell quotations or (ii) a “secondary market (or the
substantial equivalent thereof)” within the meaning of Section 7704(b)(2) of the Code, including a
market wherein any Class E Note or Class F Note (or interest therein) is regularly quoted by any
person making a market in such interests and a market

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wherein any person regularly makes available bid or offer quotes with respect to any Class E Note
or Class F Note (or interest therein) and stands ready to effect buy or sell transactions at the
quoted prices for itself or on behalf of others.

     (v) No Holder of a Class E Note or Class F Note may transfer its interest in any Class E Note
or Class F Note in an amount less than the minimum denomination of such Class E Note or Class F
Note, as the case may be.

     (w) Notwithstanding any other provision of this Agreement to the contrary, on the Closing
Date, the Indenture Trustee shall authenticate in the name of, and deliver to, the Trust Depositor,
the Class F Note in the form of a single Individual Note in an aggregate principal amount equal to
the Initial Class F Principal Balance. The Holder of the Class F Note shall initially be the Trust
Depositor. No transfer, sale, pledge or other disposition of one or more Class F Notes (a “Transfer”) shall be made unless simultaneously with the Transfer (1) a proportionate amount of Trust
Certificates are Transferred so that the ratio of the Percentage Interest of the Trust Certificates
so Transferred to all Trust Certificates and the ratio of the Percentage Interest of the Class F
Notes so Transferred to all Class F Notes are equal, (2) the Transfers of the Trust Certificates
and Class F Notes referred to herein are made to the same Person, and (3) the Percentage Interest
of the Trust Certificates and Class F Notes, respectively, so transferred is no less than ten (10%)
percent.

     (x) The Class E Notes and the Class F Note may only be owned by United States Persons (as
defined in Section 7701(a)(30) of the Code).

     (y) No Class A Note, Class B Note, Class C Note or Class D Note may be acquired directly or
indirectly, by, for, on behalf of or with any assets of an employee
benefit plan as defined in Section 3(3) of ERISA that is subject to Title I of ERISA, any plan
described in and subject to Section 4975 of the Code (collectively, a “Plan”) or any other plan or
arrangement subject to any federal, state, local, non-U.S. or other law substantively similar to
the foregoing provisions of ERISA or the Code (“Similar Law”) unless it represents or is deemed to
represent that its acquisition and holding of the Class A Note, Class B Note, Class C Note or Class
D Note will not constitute or result in a non-exempt prohibited transaction under Title I of ERISA
or Section 4975 of the Code or a violation of Similar Law. No Class E Note or Class F Note may be
acquired directly or indirectly, by, for, on behalf of or with any assets of any Plan. Further, no
Class E Note or Class F Note may be acquired directly or indirectly, by, for, on behalf of or with
any assets of any plan that is not subject to Title I of ERISA or Section 4975 of the Code unless
it represents or is deemed to represent that its acquisition and holding of the Class E Note or
Class F Note will not constitute or result in a violation of Similar Law. In the case of an
Individual Note, such representation shall be made in a certification from the transferee to the
Indenture Trustee; in the case of a Note other than an Individual Note, the transferee shall be
deemed to have made such representation.

     Section 4.03.
Mutilated, Destroyed, Lost or Stolen Notes.

     Subject to UCC § 8–405, if (i) any mutilated Note is surrendered to the Indenture Trustee, or
the Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of
any Note, and (ii) there is delivered to the Indenture Trustee such security or indemnity as may be
required by it to hold the Issuer and the Indenture Trustee harmless, then, in the

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absence of notice to the Issuer, the Note Registrar or the Indenture Trustee that such Note has
been acquired by a protected purchaser, the Issuer shall execute, and upon its request the
Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note; provided, however, that if any such destroyed,
lost or stolen Note, but not a mutilated Note, shall have become or within seven days shall be due
and payable, or shall have been called for repurchase, instead of issuing a replacement Note, the
Issuer may pay such destroyed, lost or stolen Note when so due or payable or upon the Repurchase
Date without surrender thereof. If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note pursuant to the proviso to the preceding sentence, a protected
purchaser of the original Note in lieu of which such replacement Note was issued presents for
payment such original Note, the Issuer and the Indenture Trustee shall be entitled to recover such
replacement Note (or such payment) from the Person to whom it was delivered or any Person taking
such replacement Note from such Person to whom such replacement Note was delivered or any assignee
of such Person, except a protected purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the
Issuer or the Indenture Trustee in connection therewith.

     Upon the issuance of any replacement Note under this Section 4.03, the Issuer may require the
payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other reasonable expenses (including the
fees and expenses of the Indenture Trustee) connected therewith.

     Every replacement Note issued pursuant to this Section 4.03 in replacement of any mutilated,
destroyed, lost or stolen Note shall constitute an original additional contractual obligation of
the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

     The provisions of this Section 4.03 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Notes.

     Section 4.04. Payment of Principal and Interest; Defaulted Interest.

     (a) The Notes shall accrue interest during each Interest Accrual Period on the basis of the
actual number of days elapsed during such Interest Accrual Period and a year assumed to consist of
360 days. Any installment of interest or principal, if any, payable on any Note which is punctually
paid or duly provided for by the Issuer on the applicable Payment Date shall be paid to the Person
in whose name such Note is registered on the Record Date, by check mailed first–class, postage
prepaid, to such Person’s address as it appears on the Note Register on such Record Date, except
that, unless Global Notes have been issued pursuant to Section 4.02, with respect to Notes
registered on the Record Date in the name of the nominee of the Depository (initially, such nominee
to be Cede & Co.), payment will be made by wire transfer in immediately available funds to the
account designated by such Person and except for the final installment of principal payable with
respect to such Note on a Payment Date or on the applicable Expected Maturity Date and except for
the Repurchase Price for any Note called for repurchase pursuant to Section 10.01(a) which shall be
payable as provided below. The funds

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represented by any such checks returned undelivered shall be held in accordance with Section 3.03.

     (b) The principal of each Note shall be payable in installments on each Payment Date as
provided in the Sale and Servicing Agreement. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable, if not previously paid, on the date on
which an Event of Default shall have occurred and be continuing, if the Indenture Trustee with the
consent of the Majority Noteholders have declared the Notes to be immediately due and payable in
the manner provided in Section 5.02. All principal payments among the Classes of Notes shall be
made in the order and priorities set forth herein and in the Sale and Servicing Agreement, and all
principal payments on the Notes of the same Class shall be made pro rata to the Noteholders of such
Class. The Indenture Trustee shall notify the Person in whose name a Note is registered at the
close of business on the Record Date preceding the Payment Date on which the Issuer expects that
the final installment of principal of and interest on such Note will be paid. Such notice shall be
mailed or transmitted by facsimile prior to such final Payment Date and shall specify that such
final installment will be payable only upon presentation and surrender of such Note and shall
specify the place where such Note may be presented and surrendered for payment of such installment.
Notices in connection with repurchase of Notes shall be mailed to Noteholders as provided in
Section 10.02.

     (c) For so long as the Notes of any Class are listed on the Irish Stock Exchange and the rules
of such exchange shall so require, the Issuer will have a paying
agent and transfer agent for such securities in Ireland, and payments on and transfers or
exchanges of interests in such Notes (including partial interests therein) may be effected through
such paying and transfer agent (or any other paying and transfer agent); provided, that, all
transfers and exchanges must be effected in accordance with this Indenture. In addition, for so
long as the Notes of any Class are listed on the Irish Stock Exchange and the rules of such
exchange shall so require, in the case of a transfer or exchange of a physical instrument
representing such security, a holder thereof may obtain a new physical instrument from the paying
agent and transfer agent in Ireland in accordance with this Indenture.

     Section 4.05. Tax Treatment.

     The Issuer has entered into this Indenture, and the Notes will be issued, with the intention
that, for federal, state and local income, business and franchise tax purposes, (i) the Notes
(other than the Class F Note) will qualify as indebtedness secured by the Indenture Collateral and
(ii) the Issuer shall not be treated as an association, taxable mortgage pool or publicly traded
partnership taxable as a corporation. The Issuer, by entering into this Indenture, and each
Noteholder (other than the Class F Noteholder), by the acceptance of any such Note (and each
beneficial owner of a Note, by its acceptance of an interest in the applicable Note), agree to
treat such Notes for federal, state and local income and franchise tax purposes as indebtedness of
the Issuer. Each Holder of such Note (other than the Class F Noteholder) agrees that it will cause
any beneficial owner of such Note acquiring an interest in a Note through it to comply with this
Indenture as to treatment of indebtedness under applicable tax law, as described in this Section
4.05. The parties hereto agree that they shall not cause or permit the making, as applicable, of
any election under Treasury
Regulation Section 301.7701–3 whereby the Issuer or any portion thereof
would be treated as a corporation for federal income tax purposes and, except as required by the
terms of this Indenture, shall not file tax returns or obtain any federal employer

40

 

identification number for the Issuer, but shall treat the Issuer as a security device or
disregarded entity for federal income tax purposes. The provisions of this Indenture shall be
construed in furtherance of the foregoing intended tax treatment.

     It is the intent of the Trust Depositor, the Servicer, the Class F Noteholder and the
Certificateholder that, (i) in the event that the Trust Certificate and the Class F Note are owned
by a single Holder, for federal income tax purposes, the Trust will be treated as a division of
such Holder, and such Holder, by acceptance of the Trust Certificate and the Class F Note, agrees
to take no action inconsistent with such treatment and (ii) in the event that the Trust
Certificates and/or the Class F Notes are owned by more than one Holder, for federal income tax
purposes, the Trust will be treated as a partnership, the partners of which are the
Certificateholders and the Class F Noteholders, and each Certificateholder and Class F Noteholder,
by acceptance of a Trust Certificate and a Class F Note, respectively, agree to treat the Trust
Certificate and the Class F Note as equity and to take no action inconsistent with such treatment.

     Section 4.06.
Satisfaction and Discharge of Indenture.

     This Indenture shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated, destroyed, lost or
stolen Notes, (iii) rights of Noteholders to receive payments of
principal thereof and interest thereon,
(iv) Sections 3.03, 3.04, 3.06,
3.10, 3.19, 3.21,
3.22, 4.05, 6.07, 11.15 and the second
sentence of 11.16, (v) the rights, obligations and
immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee under
Section 6.07 and the obligations of the Indenture Trustee
under Section 4.07) and (vi) the rights
of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture
Trustee payable to all or any of them, and the Indenture Trustee, on written demand of and at the
expense of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture with respect to the Notes, when:

     (A) either

(1) all Notes of such Series theretofore authenticated and delivered (other than
(i) Notes that have been destroyed, lost or stolen and that have been replaced or
paid as provided in Section 4.03 and (ii) Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the Issuer
and thereafter repaid to the Issuer or discharged from such trust, as provided in
Section 3.03) have been delivered to the Indenture Trustee for cancellation; or

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

(i) have become due and payable, or

  (ii) are to be called for repurchase within one year under arrangements satisfactory
to the Indenture Trustee for the giving of notice of repurchase by the Indenture Trustee in
the name, and at the expense, of the Issuer,

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and the Issuer, in the case of (2)(i) or (ii) above, has irrevocably deposited or
caused to be irrevocably deposited with the Indenture Trustee cash or direct
obligations of or obligations guaranteed by the United States of America (which
will mature prior to the date such amounts are payable), in trust for such purpose,
in an amount sufficient to pay and discharge the entire indebtedness on such Notes
not theretofore delivered to the Indenture Trustee for cancellation when due to the
Final Maturity Date therefor or Repurchase Date (if Notes shall have been called
for repurchase pursuant to Section 10.01), as the case may be; and

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

     This Indenture shall cease to be of further effect with respect to each Hedge Agreement when
such Hedge Agreement has been terminated and the Hedge Counterparty has received all amounts it is
entitled to receive upon such termination.

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     Section 4.07.
Application of Trust Money.

     All
moneys deposited with the Indenture Trustee pursuant to
Section 4.06 hereof shall be held
in trust and applied by it, in accordance with the provisions of the Notes and
this Indenture, to the payment, either directly or through any Paying Agent, as the Indenture
Trustee may determine, to the Holders of Notes for the payment or repurchase of which such moneys
have been deposited with the Indenture Trustee, of all sums due and to become due thereon for
principal and interest; but such moneys need not be segregated from other funds except to the
extent required herein or in the Sale and Servicing Agreement or required by law.

     Section 4.08.
Repayment of Moneys Held by Paying Agent.

     In connection with the satisfaction and discharge of this Indenture with respect to the Notes,
all moneys then held by any Paying Agent other than the Indenture Trustee under the provisions of
this Indenture with respect to such Notes shall, upon demand of the Issuer, be paid to the
Indenture Trustee to be held and applied according to
Section 3.05 and thereupon such Paying Agent
shall be released from all further liability with respect to such moneys.

ARTICLE V

REMEDIES

     Section 5.01.
Events of Default.

     Any one of the following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any administrative or governmental
body) shall constitute an Event of Default:

     (i) a default in the payment of any interest on any Note when the same becomes due and
payable and such default shall continue for a period of two Business Days;

     (ii) failure to reduce the Outstanding Principal Balance of the Class A Notes, the
Class B Notes, the Class C Notes, the Class D Notes and the Class E Notes to zero by the
Final Maturity Date;

     (iii) failure to pay the Repurchase Price to the Noteholders and the Hedge
Counterparties on the Repurchase Date in the event of an optional repurchase pursuant to
Section 10.01 of this Indenture;

     (iv) failure on the part of the Originator to make any payment or deposit required
under the Sale and Servicing Agreement within two Business Days after the date the payment
or deposit is required to be made;

     (v) there occurs a default in the observance or performance in any material respect of
any covenant or agreement of the Originator, the Trust Depositor or the Issuer made in the
Sale and Servicing Agreement or this Indenture, or any representation or

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warranty of the Originator, the Trust Depositor or the Issuer made in the Sale and
Servicing Agreement or this Indenture proving to have been incorrect in any material
respect as of the time when the same shall have been made and such default or incorrect
representation or warranty has a material adverse effect on the rights of the Noteholders
and the Hedge Counterparties, and such default shall continue or not be cured, or the
circumstance or condition in respect of which such representation or warranty was incorrect
shall not have been eliminated or otherwise cured, for a period of 30 days (if such failure
can be remedied) after the first to occur of (i) actual knowledge thereof by a Responsible
Officer of the Trust
Depositor or (ii) there shall have been given to the Issuer by the Indenture Trustee or to
the Issuer and the Indenture Trustee, by any Noteholder, a written notice specifying such
default or incorrect representation or warranty and requiring it to be remedied and stating
that such notice is a notice of default hereunder;

     (vi) there occurs the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of the Trust Depositor, the Issuer or any
substantial part of the Indenture Collateral in an involuntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Trust Depositor, the Issuer or for any substantial part of either Indenture
Collateral, or ordering the winding–up or liquidation of the Trust Depositor’s or the
Issuer’s affairs, and such decree or order shall remain unstayed and in effect for a period
of 30 consecutive days;

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

     (viii) the Indenture Trustee, on behalf of the Noteholders and the Hedge
Counterparties, shall fail to have a valid and perfected first priority security interest
in the Indenture Collateral, and such failure to have a perfected first priority security
interest shall have a material adverse effect on the Noteholders and the Hedge
Counterparties; or

     (ix) either the Issuer or the Loan Pool is required to be registered as an “investment
company” under the 1940 Act.

     The Issuer shall deliver to the Indenture Trustee, each Hedge Counterparty and the Rating
Agencies, within two Business Days after the occurrence of an Event of Default, written notice in
the form of an Officer’s Certificate of any event which with the giving of notice and the lapse of
time would become an Event of Default under clause (v) of the definition of “Event of Default,” its
status and what action the Issuer is taking or proposes to take with respect thereto.

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     Section 5.02. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default should occur and be continuing, (other than an Event of Default
specified in Section 5.01(vi) or 5.01(vii)), then and in every such case the Indenture Trustee or
the Majority Noteholders may declare the Notes to be immediately due and payable, by a notice in
writing to the Issuer and the Rating Agencies (and to the Indenture Trustee if given by
Noteholders), and upon any such declaration the unpaid principal amount of such Notes, together
with accrued and unpaid interest thereon
through the date of acceleration, shall become immediately due and payable. If an Event of
Default specified in Section 5.01(vi) or Section 5.01(vii) occurs, the unpaid principal amount of
the Notes, together with accrued and unpaid interest thereon through the date of acceleration,
shall become immediately due and payable.

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

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

     (i) all payments of principal of and interest on the Notes, all
scheduled payments then due and payable under each Hedge Agreement and all
other amounts that would then be due hereunder, upon the Notes and each
Hedge Agreement if the Event of Default giving rise to such acceleration
had not occurred; and

     (ii) all sums paid or advanced by the Indenture Trustee hereunder and
the reasonable compensation, expenses, disbursements and advances of the
Indenture Trustee and its agents and counsel; and

     (B) all Events of Default, other than the nonpayment of the principal of the
Notes that has become due solely by such acceleration, have been cured or waived as
provided in Section 5.12.

     No such rescission or annulment shall affect any subsequent default or impair any right
consequent thereto. No such rescission or annulment shall affect a Hedge Agreement or any Hedge
Transaction that has been terminated in accordance with the terms thereof. Any Hedge Agreement in
effect at the time of any declaration of acceleration of maturity shall remain in effect until such
time as such declaration of acceleration of maturity can no longer be rescinded or annulled under
the terms of this Indenture.

     Section 5.03. Collection of Indebtedness and Suits for Enforcement by Indenture Trustee.

     (a) The Issuer covenants that if (i) default is made in the payment of any interest on any
Note when the same becomes due and payable, and such default continues for a period of five
Business Days, or (ii) default is made in the payment of the principal of or any installment

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of the principal of any Note when the same becomes due and payable, and such default continues for
a period of two Business Days, the Issuer will, upon demand of the Indenture Trustee, pay to it,
for the benefit of the Noteholders, the whole amount then due and payable on the Notes for
principal and interest, with interest upon the overdue principal, and in addition thereto such
further amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its
agents and counsel.

     (b) In case the Issuer shall fail forthwith to pay such amounts upon such demand, the
Indenture Trustee, in its own name and as trustee of an express trust, with the consent of the
Majority Noteholders and subject to the provisions of Section 11.17 hereof may institute a
Proceeding for the collection of the sums so due and unpaid, and may prosecute such Proceeding to
judgment or final decree, and may enforce the same against the Issuer or other obligor upon the
Notes and collect in the manner provided by law out of the Indenture Collateral, wherever situated,
the moneys adjudged or decreed to be payable.

     (c) If an Event of Default occurs and is continuing, the Indenture Trustee subject to the
provisions of Section 11.17 hereof may, as more particularly
provided in Section 5.04, in its
discretion, proceed to protect and enforce its rights and the rights of the Noteholders and the
Hedge Counterparties and by such appropriate Proceedings as the Indenture Trustee shall deem most
effective to protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or
to enforce any other proper remedy or legal or equitable right vested in the Indenture Trustee by
this Indenture or by law.

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

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

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

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

     (iv) to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee or the Noteholders allowed
in any judicial proceedings relative to the Issuer, its creditors and its property; and

     (v) to participate as a member, voting or otherwise, of any official committee of
creditors appointed in such matter;

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

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

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

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

     (h) Notwithstanding anything to the contrary contained in this Indenture (including, without
limitation, Sections 5.4(a), 5.10 and 5.11), if the Issuer fails to perform its obligations

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under
Section 10.01 when and as due, the Indenture Trustee shall, at the direction of the
Noteholders evidencing 66 2/3% of the aggregate Outstanding Principal Balance of each Class of
Offered Notes (each acting as a separate Class), proceed to protect and enforce its rights and the
rights of the Noteholders by such appropriate proceedings as the Indenture Trustee shall deem most
effective to protect and enforce any such rights, whether for specific performance of any covenant
or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy or legal or equitable right vested in the Indenture Trustee by this
Indenture or by law.

     Section 5.04.
Remedies; Priorities.

     (a) If an Event of Default shall have occurred and be continuing, subject to the provisions of
Section 11.17 hereof, the Indenture Trustee may do one or
more of the following (subject to Section 5.05 and
Section 5.15):

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

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

     (iii) exercise any remedies of a secured party under the UCC and take any other
appropriate action to protect and enforce the rights and remedies of the Indenture Trustee,
the Holders of the Notes and the Hedge Counterparties; and

     (iv) sell the Indenture Collateral or any portion thereof or rights or interest
therein;

provided, however, that the Indenture Trustee may not sell or otherwise liquidate the Indenture
Collateral following an Event of Default, other than a default in the payment of any principal or
interest on the Notes for 30 days or more, unless (A) (i) prior to the payment in full of each
Class of Offered Notes, the Noteholders evidencing 100% of the aggregate Outstanding Principal
Balance of all Classes of Offered Notes, and unless it shall be paid in full all amounts payable to
each Hedge Counterparty upon a termination of its Hedge Agreement, each Hedge Counterparty,
consents thereto, (ii) from and after the payment in full of each Class of Offered Notes, and
amounts due under the Hedge Agreements, the Class F Noteholders evidencing 100% of the aggregate
Outstanding Principal Balance of the Class F Note consents thereto, (B) the proceeds of such sale
or liquidation distributable to the Noteholders are sufficient to discharge in full all amounts
then due and unpaid upon the Notes for principal and interest and all amounts payable to each Hedge
Counterparty upon termination of the Hedge Agreements, or (C) the Indenture Trustee determines that
the Loans will not continue to provide sufficient funds for the payment of principal of and
interest on the Notes, in accordance with their respective terms as they would have become due if
the Notes had not been declared due and payable, and the Indenture Trustee obtains the consent of
(i) prior to the payment in full of each Class of Offered Notes, the Noteholders evidencing 66 2/3%
of the aggregate Outstanding Principal Balance of each Class of

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Offered Notes (each acting as a separate Class) and, unless it shall be paid in full all amounts
payable to each Hedge Counterparty upon a termination of its Hedge Agreement, each Hedge
Counterparty, and (ii) from and after the payment in full of each Class of Offered Notes and
amounts due under the Hedge Agreements, the Class F Noteholders evidencing 66 2/3% of the aggregate
Outstanding Principal Balance of the Class F Note. In determining such sufficiency or insufficiency
with respect to clauses (B) and (C), the Indenture Trustee may, but need not, obtain and rely upon
an opinion of an Independent investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Indenture Collateral for such
purpose. Notwithstanding the foregoing, so long as a Servicer Default has not
occurred, any Sale of the Indenture Collateral shall be made subject to the continued servicing of
the Loans by the Servicer as provided in the Sale and Servicing Agreement.

     (b) If the Indenture Trustee collects any money or property pursuant to this Article V, it
shall pay out the money or property as set forth in Section 7.05 of the Sale and Servicing
Agreement.

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

     Section 5.05.
Optional Preservation of the Indenture Collateral.

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

     Section 5.06.
Limitation of Suits.

     No Holder of any Note shall have any right to institute any Proceeding, judicial or otherwise,
with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless and subject to the provisions of
Section 11.17 hereof:

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

     (ii) (A) prior to the payment in full of each Class of Offered Notes, the Noteholders
evidencing 25% of the aggregate Outstanding Principal Balance of each Class of Offered
Notes (each acting as a separate Class) have made written request to the Indenture Trustee
to institute such Proceeding in respect of such Event of Default in its

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own name as Indenture Trustee hereunder and (B) from and after the payment in full of each
Class of Offered Notes, the Class F Noteholders evidencing 25% of the aggregate Outstanding
Principal Balance of the Class F Notes have made written request to the Indenture Trustee
to institute such proceeding in respect of such Event of Default in its own name as
Indenture Trustee hereunder;

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

     (iv) the Indenture Trustee for 60 days after its receipt of such notice, request and
offer of indemnity has failed to institute such Proceedings; and

     (v) (A) prior to the payment in full of each Class of Offered Notes, no direction
inconsistent with such written request has been given to the Indenture Trustee during such
60 day period by the Holders of a majority of the Outstanding Principal Balance of the
Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E
Notes and (B) from and after payment in full of each Class of Offered Notes, no direction
inconsistent with such written request has been given to the Indenture Trustee during such
60 day period by the Holders of a majority of the Outstanding Principal Balance of the
Class F Notes.

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

     In the event the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Notes, each representing less than a majority of
the Aggregate Outstanding Principal Balance, the Indenture Trustee in its sole discretion may
determine what action, if any, shall be taken, notwithstanding any other provisions of this
Indenture.

     Section 5.07.
Unconditional Rights of Noteholders To Receive Principal and
Interest.

     Notwithstanding any other provisions in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment of the principal of and interest, if
any, on such Note on or after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of repurchase, on or after the Repurchase Date) and such right shall not
be impaired without the consent of such Holder.

     Section 5.08.
Restoration of Rights and Remedies.

     If the Indenture Trustee or any Noteholder has instituted any Proceeding to enforce any right
or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any
reason or has been determined adversely to the Indenture Trustee or to such Noteholder,

50

 

then and in every such case the Issuer, the Indenture Trustee and the Noteholders shall,
subject to any determination in such Proceeding, be restored severally and respectively to their
former positions hereunder, and thereafter all rights and remedies of the Indenture Trustee and the
Noteholders shall continue as though no such Proceeding had been instituted.

     Section 5.09. Rights and Remedies Cumulative.

     No right or remedy herein conferred upon or reserved to the Indenture Trustee or to the
Noteholders is intended to be exclusive of any other right or remedy, and every right and remedy
shall, to the extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

     Section 5.10. Delay or Omission Not a Waiver.

     No delay or omission of the Indenture Trustee or any Holder of any Note to exercise any right
or remedy accruing upon any Default or Event of Default shall impair any such right or remedy or
constitute a waiver of any such Default or Event of Default or an acquiescence therein. Every right
and remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders
may be exercised from time to time, and as often as may be deemed expedient, by the Indenture
Trustee or by the Noteholders, as the case may be.

     Section 5.11. Control by Noteholders.

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

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

     (ii) subject to the express terms of Section 5.04, any direction to the Indenture
Trustee to sell or liquidate the Indenture Collateral shall be by Holders of the Notes representing
(A) prior to the payment in full of each Class of Offered Notes, 100% of the aggregate Outstanding
Principal Balance of all Classes of Offered Notes, and, unless it shall be paid in full all amounts
payable to each Hedge Counterparty upon a termination of its Hedge Agreement, each Hedge
Counterparty and (B) from and after the payment in full of each Class of Offered Notes and amounts
due under the Hedge Agreements, 100% of the aggregate Outstanding Principal Balance of the Class F
Notes;

     (iii) if the conditions set forth in Section 5.05 have been satisfied and the
Indenture Trustee elects to retain the Indenture Collateral pursuant to such Section, then any
direction to the Indenture Trustee to sell or liquidate the Indenture Collateral shall be of no
force and effect unless (A) prior to the payment in full of each Class of Offered Notes, the
Noteholders evidencing 100% of the aggregate Outstanding Principal Balance of each Class of Offered
Notes and, unless it shall be paid in full all amounts payable to each Hedge Counterparty upon a
termination of its Hedge Agreement, each Hedge

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Counterparty consent thereto and (B) from and after the payment in full of each Class of Offered
Notes and amounts due under the Hedge Agreements, the Class F Noteholders evidencing 100% of the
aggregate Outstanding Principal Balance of the Class F Notes consents thereto; and

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

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

     Section 5.12. Waiver of Past Defaults.

     Prior to the declaration of the acceleration of the maturity of the Notes as provided in
Section 5.02, the Majority Noteholders may waive any past Event of Default and its
consequences except an Event of Default with respect to payment of principal of or interest on any
of the Notes or in respect of a covenant or provision hereof which cannot be modified or amended
without the consent of the Holder of each Note. In the case of any such waiver, the Issuer, the
Indenture Trustee and the Noteholders shall be restored to their former positions and rights
hereunder, respectively; but no such waiver shall extend to any subsequent or other Event of
Default or impair any right consequent thereto.

     Upon any such waiver, any Event of Default arising therefrom shall be deemed to have been
cured and not to have occurred, for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Event of Default or impair any right consequent thereto. No such
waiver shall affect a Hedge Agreement or any Hedge Transaction that has been terminated in
accordance with its terms.

     Section 5.13. Undertaking for Costs.

     All parties to this Indenture agree, and each Holder of any Note by such Holder’s acceptance
thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit against the
Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing
by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such
court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against
any party litigant in such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this Section 5.13 shall not
apply to (a) any suit instituted by the Indenture Trustee, (b) any suit instituted by any
Noteholder, or group of Noteholders, in each case holding in the aggregate more than 25% of the
Aggregate Outstanding Principal Balance or (c) any suit instituted by any Noteholder for the
enforcement of the payment of principal of or interest on any Note on or after the respective due
dates expressed in such Note and in this Indenture.

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     Section 5.14. Waiver of Stay or Extension Laws.

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

     Section 5.15. Sale of Indenture Collateral.

     (a) The power to effect any sale or other disposition (a “Sale”) of any portion of a
Indenture Collateral pursuant to Section 5.04 is expressly subject to the provisions of
Section 5.05 and this Section 5.15. The power to effect any such Sale shall not be
exhausted by any one or more Sales as to any portion of the Indenture Collateral remaining unsold,
but shall continue unimpaired until the entire Indenture Collateral shall have been sold or all
amounts payable on the Notes and under this Indenture shall have been paid. The Indenture Trustee
hereby expressly waives its right to any amount fixed by law as compensation for any Sale.

     (b) The Indenture Trustee shall not in any private Sale sell the Indenture Collateral, or any
portion thereof, unless the Holders of 100% of the aggregate Outstanding Principal Balance of each
Class of Offered Notes, and each Hedge Counterparty consent to or direct the Indenture Trustee to
make such Sale and:

     (i) the proceeds of such Sale would be not less than the entire amount which would be payable
to the Noteholders under the Notes and the Hedge Counterparties under the Hedge Agreements, in full
payment thereof (including all Hedge Breakage Costs and other amounts payable in connection with
the termination of the Hedge Agreements) on the Payment Date next succeeding the date of such Sale,
or

     (ii) the Indenture Trustee determines, in its sole discretion, that the conditions for
retention of the Indenture Collateral set forth in Section 5.05 cannot be satisfied (in
making any such determination, the Indenture Trustee may rely upon an opinion of an Independent
investment banking or accounting firm obtained and delivered as provided in Section 5.05, and the
Majority Noteholders consent to such Sale, which consent will not be unreasonably withheld).

     (c) In connection with a Sale of all or any portion of the Indenture Collateral:

     (i) any Holder or Holders of Notes may bid for and purchase the property offered for Sale, and
upon compliance with the terms of Sale may hold, retain and possess and dispose of such property,
without further accountability, and may, in paying the purchase money therefor, deliver any Notes
or claims for interest thereon in lieu of cash up to the amount which shall, upon distribution of
the net proceeds of such Sale, be payable thereon, and such Notes, in case the amounts so payable
thereon shall be less

53

 

than the amount due thereon, shall be returned to the Holders thereof after being appropriately
stamped to show such partial payment;

     (ii) the Indenture Trustee may bid for and acquire the property offered for Sale in connection
with any Sale thereof, and, subject to any requirements of, and to the extent permitted by,
Requirements of Law in connection therewith, may purchase all or any portion of the Indenture
Collateral in a private sale, and, in lieu of paying cash therefor, may make settlement for the
purchase price by crediting the gross Sale price against the sum of (A) the amount which would be
distributable to the Holders of the Notes and Hedge Counterparties as a result of such Sale in
accordance with Section 5.04(b) on the Payment Date next succeeding the date of such Sale
and (B) the expenses of the Sale and of any Proceedings in connection therewith which are
reimbursable to it, without being required to produce the Notes in order to complete any such Sale
or in order for the net Sale price to be credited against such Notes, and any property so acquired
by the Indenture Trustee shall be held and dealt with by it in accordance with the provisions of
this Indenture;

     (iii) the Indenture Trustee shall execute and deliver an appropriate instrument of conveyance
transferring its interest in any portion of the Indenture Collateral in connection with a Sale
thereof;

     (iv) the Indenture Trustee is hereby irrevocably appointed the agent and attorney–in–fact of
the Issuer to transfer and convey its interest in any portion of the Indenture Collateral in
connection with a Sale thereof, and to take all action necessary to effect such Sale; and

     (v) no purchaser or transferee at such a Sale shall be bound to ascertain the Indenture
Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the
application of any moneys.

     Section 5.16. Action on Notes.

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

     Section 5.17. Performance and Enforcement of Certain Obligations.

     (a) Promptly following a request from the Indenture Trustee to do so, the Issuer shall take
all such lawful action as the Indenture Trustee may request to compel or secure the performance and
observance by the Trust Depositor and the Servicer, as applicable, of each of their obligations to
the Issuer under or in connection with the Transaction Documents, and to exercise any and all
rights, remedies, powers and privileges lawfully available to the Issuer under

54

 

or in connection with the Transaction Documents to the extent and in the manner directed by the
Indenture Trustee, including the transmission of notices of default on the part of the Trust
Depositor or the Servicer thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Trust Depositor or the Servicer of each of their
obligations under the Transaction Documents.

     (b) If a Servicer Default has occurred and is continuing, the Indenture Trustee, at the
direction (which direction shall be in writing or by telephone (confirmed in writing promptly
thereafter)) of (i) prior to the payment in full of each Class of Offered Notes, the Noteholders
evidencing 66 2/3% of the aggregate Outstanding Principal Balance of each Class of Offered Notes
(each acting as a separate Class) consents thereto and (ii) from and after the payment in full of
each Class of Offered Notes, the Class F Noteholders evidencing 66 2/3% of the aggregate
Outstanding Principal Balance of the Class F Note consents thereto, shall exercise all rights,
remedies, powers, privileges and claims of the Issuer against the Servicer under or in connection
with the Sale and Servicing Agreement, including the right or power to take any action to compel or
secure performance or observance by the Servicer, of its obligations to the Issuer thereunder and
to give any consent, request, notice, direction, approval, extension or waiver under the Sale and
Servicing Agreement, and any right of the Issuer to take such action shall not be suspended.

ARTICLE VI

THE INDENTURE TRUSTEE

     Section 6.01. Duties of Indenture Trustee.

     (a) If an Event of Default has occurred and is continuing, the Indenture Trustee shall
exercise the rights and powers vested in it by this Indenture and use the same degree of care and
skill in their exercise as a prudent person would exercise or use under the circumstances in the
conduct of such person’s own affairs with respect to the Indenture Collateral.

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

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

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

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

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

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

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

     (d) Every provision of this Indenture that in any way relates to the Indenture Trustee is
subject to paragraphs (a), (b), (c), (d) and (g) of this Section 6.01.

     (e) The Indenture Trustee shall not be liable for interest on any money received by it except
as the Indenture Trustee may agree in writing with the Issuer.

     (f) Money held in trust by the Indenture Trustee need not be segregated from other funds
except to the extent required by law or the terms of this Indenture or the Sale and Servicing
Agreement.

     (g) The Indenture Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture, to expend or risk its own funds or otherwise incur financial
liability or to honor the request or direction of any of the Noteholders pursuant to this
Indenture, unless the Noteholders shall have offered to the Indenture Trustee reasonable security
or indemnity against the costs, expenses, and liabilities that might be incurred by it in
compliance with the request or direction.

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

     (i) The Indenture Trustee shall not be deemed to have notice of any Event of Default unless a
Responsible Officer assigned to and working in the Indenture Trustee’s Corporate Trust Office has
actual knowledge thereof.

     Section 6.02. Rights of Indenture Trustee.

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

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

     (c) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys or a custodian or nominee,
and the Indenture Trustee shall not be responsible for any misconduct or negligence

56

 

on the part of, or for the supervision of, any such agent, attorney, custodian or nominee appointed
with due care by it hereunder.

     (d) The Indenture Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers; provided, however, that
the Indenture Trustee’s conduct does not constitute willful misconduct, negligence or bad faith.

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

     (f) The Indenture Trustee shall not be bound to make any investigation into the performance of
the Issuer or the Servicer under this Indenture or any other Transaction Document or into the
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note or other document, but the Indenture Trustee, in its
discretion, may make any further inquiry or investigation into those matters that it deems
appropriate, and if the Indenture Trustee determines to inquire further, it shall be entitled to
examine the books, records and premises of the Issuer and the Servicer, personally or by agent or
attorney.

     (g) If the Indenture Trustee is also acting as Paying Agent or as Note Registrar, the rights
and protections afforded to the Indenture Trustee pursuant to the Article shall also be afforded to
it in such additional capacities.

     Section 6.03. Individual Rights of Indenture Trustee.

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

     Section 6.04. Indenture Trustee’s Disclaimer.

     The Indenture Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture, the Sale and Servicing Agreement, the Trust Agreement or
any other Transaction Document, the validity or sufficiency of any security interest intended to be
created or the characterization of the Notes for tax purposes or the Notes, it shall not be
accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be responsible
for any statement of the Issuer in the Indenture or in any document issued in connection with the
sale of the Notes or in the Notes other than the Indenture Trustee’s certificate of authentication.

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     Section 6.05. Notice of Event of Default.

     The Indenture Trustee shall mail to each Noteholder, each Hedge Counterparty and the Owner
Trustee notice of an Event of Default within 30 days after the Indenture Trustee has actual
knowledge thereof in accordance with Section 6.01. Except in the case of an Event of
Default in payment of principal of or interest on any Note, the Indenture Trustee may withhold the
notice if and so long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of Noteholders and the Hedge Counterparties.

     Section 6.06. Reports by Indenture Trustee to Holders and S&P.

     The Indenture Trustee shall deliver to each Noteholder such information as may be required to
enable such holder to prepare its federal and state income tax returns. In addition, upon the
Issuer’s or a Noteholder’s written request, the Indenture Trustee shall promptly furnish
information reasonably requested by the Issuer or such Noteholder that is reasonably available to
the Indenture Trustee to enable the Issuer or such Noteholder to perform its federal and state
income tax reporting obligations.

     The Indenture Trustee shall not be responsible for any tax reporting, disclosure, record
keeping or list maintenance requirements of the Issuer under Internal Revenue Code sections
6011(a), 6111(d) or 6112, including, but not limited to, the preparation of IRS Form 8886 pursuant
to Treasury Regulations Section 1.6011-4(d) or any successor provision and any required list
maintenance under Treasury Regulations Section 301.6112-1 or any successor provision.

     Upon the written request of S&P, the Indenture Trustee shall promptly furnish such information
as is in the Indenture Trustee’s possession or that is reasonably available to the Indenture
Trustee as S&P shall reasonably request and copies of any reports or notices that the Indenture
Trustee may receive in the course of carrying out its duties hereunder.

     Section 6.07. Compensation and Indemnity.

     The Issuer shall or shall cause the Trust Depositor to pay to the Indenture Trustee on each
Payment Date such reasonable compensation for its services pursuant to a separate agreement between
the Indenture Trustee and the Trust Depositor. The Indenture Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer shall or shall
cause the Trust Depositor to reimburse the Indenture Trustee for all reasonable out–of–pocket
expenses incurred or made by it, including costs of collection, in addition to the compensation for
its services. Such expenses shall include the reasonable compensation and expenses, disbursements
and advances of the Indenture Trustee’s agents, counsel, accountants and experts. The Issuer
shall or shall cause the Trust Depositor to indemnify the Indenture Trustee against any and all
loss, liability or expense (including attorneys’ fees) incurred by it in connection with the
administration of this trust and the performance of its duties hereunder. The Indenture Trustee
shall notify the Issuer and the Trust Depositor promptly of any claim for which it may seek
indemnity. Failure by the Indenture Trustee to so notify the Issuer and the Trust Depositor shall
not relieve the Issuer or the Trust Depositor of its obligations hereunder or under the Trust
Agreement. Neither the Issuer nor the Trust Depositor need reimburse any expense or

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indemnify against any loss, liability or expense incurred by the Indenture Trustee through the
Indenture Trustee’s own willful misconduct, negligence or bad faith.

     The Indenture Trustee hereby agrees not to cause the filing of a petition in bankruptcy,
insolvency, reorganization, moratorium, receivership, conservatorship or other similar laws now or
hereafter in effect against the Issuer for the non-payment to the Indenture Trustee of any amounts
provided by this Section 6.07 until at least one year and one day, or, if longer, the
applicable preference period then in effect, after the payment in full of all Notes issued under
this Indenture.

     The amounts payable to the Indenture Trustee pursuant to this Section 6.07 shall not,
except as provided by Section 7.05 of the Sale and Servicing Agreement, exceed on any Distribution
Date the limitation on the amount thereof described in such Section 7.05 for such Distribution
Date; provided, that (i) the Indenture Trustee shall not institute any proceeding for payment of
any amount payable hereunder except in connection with an action pursuant to Section 5.03 or 5.04 for the enforcement of the lien of this Indenture for the benefit of the Secured Parties
and (ii) the Indenture Trustee may only seek to enforce payment of such amounts in conjunction with
the enforcement of the rights of the Secured Parties in the manner set forth in Section
5.04.

     The Indenture Trustee shall receive amounts pursuant to this Section 6.07 and Section
7.05 of the Sale and Servicing Agreement in accordance with the Priority of Payments, and only to
the extent that the payment thereof would not result in an Event of Default and the failure to pay
such amounts to the Indenture Trustee will not, by itself, constitute an Event of Default. Subject
to Section 6.08, the Indenture Trustee shall continue to serve as Indenture Trustee under
this Indenture notwithstanding the fact that the Indenture Trustee shall not have received amounts
due it hereunder and hereby agrees not to cause the filing of a petition in bankruptcy, insolvency,
reorganization, moratorium, receivership, conservatorship or other similar laws now or hereafter in
effect against the Issuer for the nonpayment to the Indenture Trustee of any amounts provided by
this Section 6.07 until at least one year and one day, or, if longer, the applicable
preference period then in effect, after the payment in full of all Notes issued under this
Indenture.

     The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section
6.07 shall survive the discharge of this Indenture. When the Indenture Trustee incurs expenses
after the occurrence of an Event of Default specified in clauses (iv) or (v) of the
definition of “Event of Default” with respect to the Issuer, the expenses are intended to
constitute expenses of administration under Title 11 of the United States Code or any other
applicable federal or state bankruptcy, insolvency or similar law.

     Section 6.08. Replacement of Indenture Trustee.

     No resignation or removal of the Indenture Trustee and no appointment of a successor Indenture
Trustee shall become effective until the acceptance of appointment by the successor Indenture
Trustee pursuant to this Section 6.08. The Indenture Trustee may resign at any time by so
notifying the Issuer. The Majority Noteholders or the Issuer, with the written consent of the
Majority Noteholders, may remove the Indenture Trustee by so notifying the Indenture Trustee

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and the Rating Agencies in writing and may appoint a successor Indenture Trustee. The Issuer shall
remove the Indenture Trustee if:

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

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

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

     (iv) the Indenture Trustee otherwise becomes incapable of acting; or

     (v) the Indenture Trustee defaults in any of its obligations under the Transaction
Documents and such default is not cured within 30 days after a Responsible Officer of the
Indenture Trustee receives written notice of such default.

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

     A successor Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuer. Thereupon the resignation or removal of the retiring
Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the Indenture Trustee under this Indenture. No successor Indenture
Trustee shall accept appointment as provided in this Section 6.08 unless at the time of
such acceptance such Person shall be eligible under the provisions of Section 6.11. The
successor Indenture Trustee shall mail a notice of its succession to Noteholders and the Hedge
Counterparties. The retiring Indenture Trustee shall promptly transfer all property (including all
Indenture Collateral) held by it as Indenture Trustee to the successor Indenture Trustee and shall
execute and deliver such instruments and such other documents as may reasonably be required to more
fully and certainly vest and confirm in the successor Indenture Trustee all such rights, powers,
duties and obligations.

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

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

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

     Upon acceptance of appointment by a successor Indenture Trustee as provided in this
Section 6.08, the Servicer shall mail notice of such succession hereunder to all Holders of
Notes

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at their addresses as shown in the Note Register and the Hedge Counterparties at their addresses as
shown on the register kept by the Issuer, as provided to the Indenture Trustee. If the Servicer
fails to mail such notice within 10 days after acceptance of appointment by the successor Indenture
Trustee, the successor Indenture Trustee shall cause such notice to be mailed at the expense of the
Servicer.

     Section 6.09. Successor Indenture Trustee by Merger.

     If the Indenture Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any further act shall be
the successor Indenture Trustee; provided, that, such corporation or banking association shall be
otherwise qualified and eligible under Section 6.11. The Indenture Trustee shall provide
the Rating Agencies and the Hedge Counterparties prior written notice of any such transaction.

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

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

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

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

     (i) all rights, powers, duties and obligations conferred or imposed upon the
Indenture Trustee shall be conferred or imposed upon and exercised or performed by the

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

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

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

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

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

     Section 6.11. Eligibility; Disqualification.

     The Indenture Trustee hereunder shall at all times be (i) a national banking association or
banking corporation or trust company organized and doing business under the laws of any state or
the United States, (ii) authorized under such laws to exercise corporate trust powers, (iii) having
a combined capital and surplus of at least $200,000,000, (iv) having unsecured and unguaranteed
long–term debt obligations rated at least Baa3 by Moody’s, BBB by Fitch and BBB– by S&P, and (v) is
subject to supervision or examination by federal or state authority. If such banking association
publishes reports of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this Section 6.11
its combined capital and surplus shall be deemed to be as set forth in its most recent report of
condition so published. In case at any time the Indenture Trustee shall cease to be eligible in
accordance with the provisions of this Section 6.11, the Indenture Trustee shall

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(a) give prompt notice to the Issuer, the Trust Depositor, the Servicer, the Noteholders and the
Hedge Counterparties that it has so ceased to be eligible to be the Indenture Trustee and (b)
resign, upon the request of the Majority Noteholders in the manner and with the effect specified in
Section 6.08.

     Section 6.12. Representations, Warranties and Covenants of Indenture Trustee.

     The Indenture Trustee hereby makes the following representations, warranties and covenants on
which the Issuer, the Trust Depositor, the Servicer, the Noteholders and the Hedge Counterparties
shall rely:

     (a) the Indenture Trustee is a national banking association and trust company duly organized,
validly existing and in good standing under the laws of the United States.

     (b) it satisfies the criteria specified in Section 6.11.

     (c) The Indenture Trustee has full power, authority and legal right to execute, deliver and
perform this Indenture and the other Transaction Documents to which it is a party and shall have
taken all necessary action to authorize the execution, deliver and performance by it of this
Indenture and the other Transaction Documents to which it is a party.

     (d) The execution, delivery and performance by the Indenture Trustee of this Indenture and the
other Transaction Documents to which it is a party shall not (i) violate any provision of any law
or any order, writ, judgment or decree of any court, arbitrator or governmental authority
applicable to the Indenture Trustee or any of its assets, (ii) violate any provision of the
corporate charter or by–laws of the Indenture Trustee or (iii) violate any provision of, or
constitute, with or without notice or lapse of time, a default under, or result in the creation or
imposition of any lien on any properties included in the Indenture Collateral pursuant to the
provisions of, any mortgage, indenture, contract, agreement or other undertaking to which it is a
party, which violation, default or lien could reasonably be expected to materially and adversely
affect the Indenture Trustee’s performance or ability to perform its duties under this Indenture
and the other Transaction Documents to which it is a party or the transactions contemplated in this
Indenture and the other Transaction Documents to which it is a party.

     (e) The execution, delivery and performance by the Indenture Trustee of this Indenture and the
other Transaction Documents to which it is a party shall not require the authorization, consent or
approval of, the giving of notice to, the filing or registration with or the taking of any other
action in respect of any governmental authority or agency regulating the banking and corporate
trust activities of the Indenture Trustee.

     (f) This Indenture and the other Transaction Documents to which it is a party has been duly
executed and delivered by the Indenture Trustee and constitute the legal, valid and binding
agreements of the Indenture Trustee, enforceable in accordance with their respective terms, subject
to the effect of bankruptcy, insolvency, reorganization, moratorium and other similar laws relating
to or affecting creditors’ rights generally or the application of equitable principles in any
proceeding, whether at law or in equity. The Indenture Trustee hereby agrees and covenants that it
will not at any time in the future, deny that this Indenture and the other

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Transaction Documents to which it is a party constitute the legal, valid and binding agreement of
the Indenture Trustee.

     (g) The Indenture Trustee shall not take any action, or fail to take any action, if such
action or failure to take action will materially interfere with the enforcement of any rights of
the Noteholders or the Hedge Counterparties under this Indenture or the other Transaction
Documents.

     Section 6.13. Directions to Indenture Trustee.

     The Indenture Trustee is hereby directed:

     (i) to accept a collateral assignment of the Loans and hold the assets of the Indenture
Collateral as security for the Noteholders and Hedge Counterparties;

     (ii) to authenticate and deliver the Notes substantially in the form prescribed by
Exhibit A in accordance with the terms of this Indenture;

     (iii) to execute and deliver the Transaction Documents to which it is a party; and

     (iv) to take all other actions as shall be required to be taken by the terms of this
Indenture.

     Section 6.14. Conflicts.

     If a Default occurs and is continuing and the Indenture Trustee is deemed to have a
“conflicting interest” (as defined in the TIA) as a result of acting as trustee for the Offered
Notes on the one hand and the Class F Note on the other hand, the Issuer shall appoint a successor
Indenture Trustee for the Offered Notes and a successor for the Class F Note so that there will be
separate Indenture Trustees for the Offered Notes on the one hand, and for the Class F Note on the
other hand. No such event shall alter the voting rights of the Noteholders under this Indenture or
under any of the other Transaction Documents.

ARTICLE VII

NOTEHOLDERS’ LISTS AND REPORTS

     Section 7.01. Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.

     The Issuer will furnish or cause to be furnished to the Indenture Trustee (a) within one day
after each Record Date, a list, in such form as the Indenture Trustee may reasonably require, of
the names and addresses of the Holders of Notes as of such Record Date and (b) at such other times
as the Indenture Trustee may reasonably request in writing, within 30 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not more than ten days
prior to the time such list is furnished; provided, however, that so long as the Indenture Trustee
is the Note Registrar, no such list shall be required to be furnished.

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     Section 7.02. Preservation of Information; Communications to Noteholders.

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

     (b) Noteholders may communicate pursuant to TIA § 312(b) with other Noteholders with respect
to their rights under this Indenture or under the Notes.

     (c) The Issuer, the Indenture Trustee and the Note Registrar shall have the protection of TIA
§ 312(c).

     (d) The Indenture Trustee shall furnish to the Noteholders and the Hedge Counterparties
promptly upon receipt of a written request therefor, duplicates or copies of all reports, notices,
requests, demands, certificates, financial statements and any other instruments furnished to the
Indenture Trustee under the Transaction Documents.

     Section 7.03. Fiscal Year.

     Unless the Issuer otherwise determines, the fiscal year of the Issuer shall end on December 31
of each year.

     Section 7.04. Reports to Irish Stock Exchange, Etc.

     In the event of a change in the Indenture Trustee, any paying agent or any transfer agent in
Ireland, the Issuer will cause notification thereof to be published in the Irish Stock Exchange’s
Daily Official List or as otherwise required by the rules of the Irish Stock Exchange.

ARTICLE VIII

TRUST ACCOUNTS, DISBURSEMENTS AND RELEASES

     Section 8.01. Collection of Money.

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

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     Section 8.02. Trust Accounts.

     (a) On or prior to the Closing Date, the Servicer shall establish and maintain, in the name of
the Indenture Trustee, for the benefit of the Noteholders, the Hedge Counterparties, and the
Certificateholder, the Trust Accounts (other than the Principal and Interest Accounts which shall
be in the name of the Servicer) as provided in Section 7.01 of the Sale and Servicing Agreement.

     (b) All funds required to be deposited in the Principal and Interest Account with respect to
the preceding Due Period will be deposited in the Principal and Interest Account as provided in
Section 7.01 of the Sale and Servicing Agreement. On or before each Determination Date, the
Collections with respect to the preceding Due Period will be transferred from the Principal and
Interest Account to the Note Distribution Account as provided in Section 7.05 of the Sale and
Servicing Agreement.

     (c) On each Payment Date, the Indenture Trustee shall distribute all amounts on deposit in the
Note Distribution Account to Noteholders in respect of each Class of Notes, to the Hedge
Counterparties in respect of the Hedge Agreements, and to the Paying Agent under the Trust
Agreement, for distribution to the Holders of the Trust Certificates in accordance with the
provisions of Section 7.05 of the Sale and Servicing Agreement.

     (d) All moneys deposited from time to time in the Note Distribution Account pursuant to the
Sale and Servicing Agreement and all deposits therein pursuant to this Indenture are for the
benefit of the Noteholders and the Hedge Counterparties and all investments made with such moneys
including all income or other gain from such investments are for the benefit of the Noteholders and
the Hedge Counterparties as provided by the Sale and Servicing Agreement.

     (e) The proceeds of any purchase or sale of the assets of the Issuer described in Section
10.01 hereof shall be deposited in the Note Distribution Account.

     The Indenture Trustee shall invest any funds in the Note Distribution Account as provided in
the Sale and Servicing Agreement.

     Section 8.03. Opinion of Counsel.

     Except for releases or conveyances required or permitted by the Sale and Servicing Agreement
and the other Transaction Documents, the Indenture Trustee shall receive at least two Business
Days’ notice when requested by the Issuer to take any action pursuant to Section 8.05(a),
accompanied by copies of any instruments to be executed, and the Indenture Trustee shall also
require, as a condition to such action, an Opinion of Counsel, in form and substance satisfactory
to the Indenture Trustee, stating the legal effect of any such action, outlining the steps required
to complete the same, and concluding that all conditions precedent to the taking of such action
have been complied with and such action will not materially and adversely impair the security for
the Notes or the Hedge Agreements or the rights of the Noteholders and the Hedge Counterparties in
contravention of the provisions of this Indenture; provided, however, that such Opinion of Counsel
shall not be required to express an opinion as to the fair value of the Indenture Collateral.
Counsel rendering any such opinion may rely as to factual matters,

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without independent investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such action.

     Section 8.04. Termination Upon Distribution to Noteholders.

     Subject to Section 4.06, this Indenture and the respective obligations and
responsibilities of the Issuer and the Indenture Trustee created hereby shall terminate upon the
distribution to the Noteholders, the Hedge Counterparties and the Indenture Trustee of all amounts
required to be distributed pursuant to Article III and the Sale and Servicing Agreement.

     Section 8.05. Release of Indenture Collateral.

     (a) Subject to the payment of its fees and reasonable expenses, the Indenture Trustee may, and
when required by the provisions of this Indenture shall, execute instruments to release property
from the lien of this Indenture, or convey the Indenture Trustee’s interest in the same, in a
manner and under circumstances that are not inconsistent with the provisions of this Indenture,
Section 5.08 of the Sale and Servicing Agreement and the other Transaction Documents. No party
relying upon an instrument executed by the Indenture Trustee as provided in Article IV hereunder
shall be bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any
conditions precedent, or see to the application of any moneys.

     (b) The Indenture Trustee shall, at such time as (i) there are no Notes Outstanding, (ii) all
outstanding Hedge Transactions under all Hedge Agreements then in effect have been terminated and
all payments payable to the Hedge Counterparties in connection with such termination have been paid
in full, and (iii) all sums due the Indenture Trustee pursuant to this Indenture have been paid,
release any remaining portion of the Indenture Collateral that secured the Notes from the lien of
this Indenture. The Indenture Trustee shall release property from the lien of this Indenture
pursuant to this Section 8.05(b) only upon receipt of a request from the Issuer accompanied
by an Officer’s Certificate and an Opinion of Counsel stating that all conditions precedent to such
release have been satisfied.

     Section 8.06. Surrender of Notes Upon Final Payment.

     By acceptance of any Note, the Holder thereof agrees to surrender such Note to the Indenture
Trustee promptly, prior to such Noteholder’s receipt of the final payment thereon.

ARTICLE IX

SUPPLEMENTAL INDENTURES

     Section 9.01. Supplemental Indentures Without Consent of Noteholders.

     (a) Without the consent of the Holders of any Notes but with the prior notice to the Rating
Agencies, the Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any time and
from time to time, may enter into one or more indentures supplemental, in form satisfactory to the
Indenture Trustee, for any of the following purposes; provided, however, that the Issuer shall only
enter into an indenture supplemental hereunder in compliance with Section 4.01(d) of the Trust
Agreement:

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

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

     (iii) to add to the covenants of the Issuer, for the benefit of the Holders of the Notes and
the Hedge Counterparties, or to surrender any right or power herein conferred upon the Issuer;

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

     (v) to cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture that may be inconsistent with any other provision herein or in any
supplemental indenture or to make any other provisions with respect to matters or questions arising
under this Indenture or in any supplemental indenture; provided, that, such action shall not as
evidenced by an Opinion of Counsel delivered to the Indenture Trustee, adversely affect the
interests of the Noteholders or the Hedge Counterparties in any material respect;

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

     (vii) to add to the conditions, limitations and restrictions on the authorized amount, terms
and purposes of the issuance, authentication and delivery of any Class of Notes, as herein set
forth, additional conditions, limitations and restrictions thereafter to be observed;

     (viii) to modify the restrictions on and procedures for resales and other transfers of the
Notes to reflect any changes in Applicable Law or regulations (or the interpretation thereof) or to
enable the Issuer or the Indenture Trustee to rely upon the exemption from registration under the
Securities Act or the 1940 Act or to remove restrictions on resale or transfer to the extent
required hereunder;

     (ix) to make such amendments to this Indenture or the Notes (other than an amendment of the
type described in Section 9.02(i)-(viii)) as the Issuer and the Indenture Trustee, in their
reasonable discretion, may deem necessary or advisable in order for the Listed Notes to qualify for
or maintain their listing on the Irish Stock Exchange; and

     (x) to evidence or implement any change to this Indenture required by regulations or
guidelines enacted to support the USA PATRIOT Act.

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

     (b) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also
without the consent of any of the Holders of the Notes but with prior notice to the Rating
Agencies, enter into an indenture or indentures supplemental hereto for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or
of modifying in any manner the rights of the Holders of the Notes or any Hedge Counterparty under
this Indenture; provided, however, that such action shall not, as evidenced by an Opinion of
Counsel, (i) adversely affect in any material respect the interest of any Noteholder or any Hedge
Counterparty or (ii) cause the Issuer to be subject to an entity level tax or be classified as a
taxable mortgage pool within the meaning of Section 7701(i) of the Code.

     (c) Notwithstanding any provision contained herein to the contrary, prior to entering into any
supplemental indenture pursuant to Section 9.01, the Issuer and Indenture Trustee shall
obtain written confirmation from each of Moody’s and S&P that entry by the Issuer and Indenture
Trustee into such supplemental indenture satisfies the Moody’s Rating Condition and S&P Rating
Condition, respectively.

     Section 9.02. Supplemental Indentures With Consent of Noteholders.

     The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may, with prior
notice to the Rating Agencies and with the consent of the Majority Noteholders by act of such
Holders and the Hedge Counterparties, enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the Holders of the Notes
under this Indenture; provided, however, that (x) that the Issuer shall only enter into an
indenture supplemental hereunder in compliance with Section 4.01(c) of the Trust Agreement, and (y)
no such supplemental indenture shall, without the consent of the Holder of each Note affected
thereby:

     (i) change the date of payment of any installment of principal of or interest on any Note, or
reduce the principal amount thereof, the interest rate thereon or the Repurchase Price with respect
thereto, change the provisions of this Indenture relating to the application of collections on, or
the proceeds of the sale of the Indenture Collateral to payment of principal of or interest on the
Notes, or change any place of payment where, or the coin or currency in which, any Note or the
interest thereon is payable, or impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available therefor, as provided in
Article V, to the payment of any such amount due on the Notes on or after the respective
due dates thereof;

     (ii) reduce the percentage of the Aggregate Outstanding Principal Balance, the consent of the
Holders of which is required for any such supplemental indenture, or the consent of the Holders of
which is required for any waiver of compliance with any provision of this Indenture or defaults
hereunder and their consequences provided for in this Indenture;

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     (iii) modify or alter the provisions of the proviso to the definition of the term
“Outstanding” or modify or alter the exception in the definition of the term “Holder”;

     (iv) reduce the percentage of the Aggregate Outstanding Principal Balance required to direct
the Indenture Trustee to direct the Issuer to sell or liquidate the Indenture Collateral pursuant
to Section 5.04;

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

     (vi) permit the creation of any lien ranking prior to or on a parity with the lien of this
Indenture with respect to any part of the Indenture Collateral or, except as otherwise permitted or
contemplated herein, terminate the lien of this Indenture on any property at any time subject
hereto or deprive any Noteholder or any Hedge Counterparty of the security provided by the lien of
this Indenture; and provided, further, that such action shall not, as evidenced by an Opinion of
Counsel, cause the Issuer to be subject to an entity level tax or be classified as a publicly
traded partnership within the meaning of Section 7704(b) of the Code or a taxable mortgage pool
within the meaning of Section 7701(i) of the Code; or

     (vii) change the definition of Eligible Loan.

     Notwithstanding any provision contained herein to the contrary, in no event may Section
3.32 of the Indenture be amended or modified in any respect without the prior written consent
of each Hedge Counterparty.

     The Indenture Trustee may in its discretion determine whether or not any Notes would be
affected by any supplemental indenture and any such determination shall be conclusive upon the
Holders of all Notes, whether theretofore or thereafter authenticated and delivered hereunder. The
Indenture Trustee shall not be liable for any such determination made in good faith.

     It shall not be necessary for any Act of Noteholders or Hedge Counterparties under this
Section 9.02 to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.

     Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental
indenture pursuant to this Section 9.02, the Indenture Trustee shall mail to the Holders of
the Notes and the Hedge Counterparties to which such amendment or supplemental indenture relates a
copy of such supplemental Indenture or a notice setting forth in general terms the substance of
such supplemental indenture. Any failure of the Indenture Trustee to mail such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of any such
supplemental indenture.

     Notwithstanding any provision contained herein to the contrary, prior to entering into any
supplemental indenture pursuant to Section 9.02, the Issuer and Indenture Trustee shall
obtain written confirmation from each of Moody’s and S&P that entry by the Issuer and Indenture

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Trustee into such supplemental indenture satisfies the Moody’s Rating Condition and the S&P Rating
Condition, respectively.

     Section 9.03. Execution of Supplemental Indentures.

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

     Section 9.04. Effect of Supplemental Indenture.

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

     Section 9.05. Reference in Notes to Supplemental Indentures.

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

ARTICLE X

OPTIONAL REPURCHASE OF NOTES

     Section 10.01. Optional Repurchase.

     At any time during the Call Period, the Issuer may repurchase the Notes in whole, but not in
part, at the direction of the Holder of the Class F Note pursuant to Section 10.01 of the Sale and
Servicing Agreement, on any Payment Date on which the Holder of the Class F Note provides notice to
the Issuer and the Indenture Trustee of its election to cause the Issuer to repurchase the Notes.
The Holder of the Class F Note may exercise its option to cause the Issuer to repurchase Notes
pursuant to said Section 10.01 by directing the Issuer to deposit in full in the Note Distribution
Account an amount equal to the Repurchase Price. If the Notes are to be

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repurchased pursuant to this Section 10.01, the Issuer shall furnish the Indenture Trustee
and the Rating Agencies notice of such repurchase no later than ten days prior to the proposed
Repurchase Date and the Issuer shall deposit with the Indenture Trustee in the Note Distribution
Account the Repurchase Price of the Notes to be repurchased and all Hedge Transactions then
outstanding under any Hedge Agreements then in effect shall be terminated and all amounts payable
to the Hedge Counterparties, including Hedge Breakage Costs, shall be paid in full on the
Repurchase Date, and all such Notes shall be due and payable on the Repurchase Date upon the
furnishing of a notice complying with Section 10.02 to each Holder of Notes.

     Section 10.02. Form of Repurchase Notice.

     Notice of repurchase under Section 10.01 shall be given by the Indenture Trustee by
facsimile, overnight courier or by first-class mail, postage prepaid, transmitted or mailed prior
to the applicable Repurchase Date to each Holder of Notes and to each Hedge Counterparty, as of the
close of business on the Record Date preceding the applicable Repurchase Date, at such Holder’s
address appearing in the Note Register.

     All notices of repurchase shall state:

     (i) the Repurchase Date;

     (ii) the Repurchase Price;

     (iii) that the Record Date otherwise applicable to such Repurchase Date is not
applicable and that payments shall be made only upon presentation and surrender of such
Notes and the place where such Notes are to be surrendered for payment of the Repurchase
Price (which shall be the office or agency of the Issuer to be maintained as provided in
Section 3.02); and

     (iv) that interest on the Notes shall cease to accrue on the Repurchase Date.

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

     Section 10.03. Notes Payable on Repurchase Date.

     The Notes to be repurchased shall, following notice of repurchase as required by Section
10.02, on the Repurchase Date become due and payable at the Repurchase Price and no interest
shall accrue on the Repurchase Price for any period after the date to which accrued interest is
calculated for purposes of calculating the Repurchase Price. Following the repurchase in whole of
the Offered Notes, the Class F Note will be repurchased in whole whether or not any amounts are
available to the Issuer for distribution to the Holder of the Class F Note in connection with such
repurchase.

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ARTICLE XI

MISCELLANEOUS

     Section 11.01. Compliance Certificates and Opinions, etc.

     (a) Upon any application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee an
Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with, and, if required, an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that, in the case of any such application or request as to which the
furnishing of such documents is specifically required by any provision of this Indenture, no
additional certificate or opinion need be furnished.

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

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

     (ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (iii) a statement that, in the opinion of each such signatory, such signatory has made
such examination or investigation as is necessary to enable such signatory to express an
informed opinion as to whether or not such covenant or condition has been complied with;

     (iv) a statement as to whether, in the opinion of each such signatory, such condition
or covenant has been complied with; and

     (v) if the signer of such Trust Certificate or Opinion is required to be Independent,
the Statement required by the definition of the term “Independent ”.

     (b) (i) Prior to the deposit of any Indenture Collateral or other property or securities with
the Indenture Trustee that is to be made the basis for the release of any property or securities
subject to the lien of this Indenture, the Issuer shall, in addition to any obligation imposed in
Section 11.01(a) or elsewhere in this Indenture, furnish to the Indenture Trustee an
Officer’s Certificate certifying or stating the opinion of each person signing such certificate as
to the estimated fair value (within 90 days of such deposit) to the Issuer of the Indenture
Collateral or other property or securities to be so deposited.

     (ii) Subject to clause (iii), whenever any property or securities are to be released
from the lien of this Indenture, the Issuer shall also furnish to the Indenture Trustee an
Officer’s Certificate certifying or stating the opinion of each person signing such certificate as
to the estimated fair value (within 90 days of such release) of the

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property or securities proposed to be released and stating that in the opinion of such person the
proposed release will not impair the security under this Indenture in contravention of the
provisions hereof.

     (iii) Notwithstanding any provision of this Indenture, the Issuer may, without compliance
with the requirements of the other provisions of this Section 11.01, (A) collect, sell or
otherwise dispose of Loans and Indenture Collateral as and to the extent permitted or required by
the Transaction Documents, or (B) make cash payments out of the Trust Accounts.

     Section 11.02. Form of Documents Delivered to Indenture Trustee.

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

     Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless
such officer knows that the certificate or opinion or representations with respect to the matters
upon which the certificate or opinion is based are erroneous. Any such certificate of an
Authorized Officer or Opinion of Counsel may be based, insofar as it relates to factual matters,
upon a certificate or opinion of, or representations by, an officer or officers of the Servicer,
the Issuer, the Trust Depositor, or other appropriate Person, stating that the information with
respect to such factual matters is in the possession of the Servicer, the Issuer, the Trust
Depositor or such other Person, unless such counsel knows that the certificate or opinion or
representations with respect to such matters are erroneous.

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

     Whenever in this Indenture, in connection with any application or certificate or report to the
Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the
granting of such application, or as evidence of the Issuer’s compliance with any term hereof, it is
intended that the truth and accuracy in all material respects, at the time of the granting of such
application or at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions precedent to the right
of the Issuer to have such application granted or to the sufficiency of such certificate or report.
The foregoing shall not, however, be construed to affect the Indenture Trustee’s right to rely
upon the truth and accuracy of any statement or opinion contained in any such document as provided
in Article VI.

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     Section 11.03. Acts of Noteholders.

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

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

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

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

     Section 11.04. Notices, etc., to Indenture Trustee and Others.

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

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

     (ii) the Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for every
purpose hereunder if in writing and mailed first–class, postage prepaid to the Issuer addressed to:
CapitalSource Commercial Loan Trust 2006-1, c/o Wilmington Trust Company, 1100 North Market Street,
Wilmington, Delaware 19801, Attention: Corporate Trust Administration, with a copy to CapitalSource
Finance LLC at 4445 Willard Avenue, 12th Floor, Chevy Chase, Maryland 20815, Attention: Controller,
or at any other address previously furnished in writing to the Indenture Trustee by the Issuer,
CapitalSource or the Trust Depositor. The Issuer shall promptly transmit any notice received by it
from the Noteholders to the Indenture Trustee.

     Notices required to be given to the Rating Agencies by the Issuer, the Indenture Trustee or
the Owner Trustee shall be in writing, personally delivered or mailed by certified mail, return

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receipt requested, to (i) in the case of S&P, at the following address: Standard and Poor’s Rating
Service, 55 Water Street, 41st Floor, New York, New York 10007, Attention: Surveillance:
Asset–Backed Services, and via electronic mail to CDO_Surveillance@sandp.com (ii) in the case of
Fitch, at the following address: 55 East Monroe Street, Suite 3500, Chicago, Illinois 60603,
Attention: CDO Surveillance, and (iii) in the case of Moody’s, at the following address: Moody’s
Investors Service, ABS Monitoring Department, 99 Church Street, New York, New York 10007,
cdomonitoring@moodys.com; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties; provided, however, that no notice shall be
required to be given to the Rating Agencies until a Class of Notes has been rated by such Rating
Agency.

     Notices required to be given to any Hedge Counterparty by the Issuer, the Indenture Trustee or
the Owner Trustee shall be in writing, personally delivered or mailed by certified mail, return
receipt requested, to the notice address shown in the register kept by the Issuer, as provided to
the Indenture Trustee.

     Section 11.05. Notices to Noteholders; Waiver.

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

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

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

     Where this Indenture provides for notice to the Rating Agencies, failure to give such notice
shall not affect any other rights or obligations created hereunder, and shall not under any
circumstance constitute an Event of Default.

     In addition, for so long as any Class of Notes is listed on the Irish Stock Exchange and the
rules thereof so require, notices to Holders of such Notes will also be given by publication in the
Irish Stock Exchange’s Daily Official List or as otherwise required by the rules of the Irish
Stock Exchange.

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     Section 11.06. Alternate Payment and Notice Provisions.

     Notwithstanding any provision of this Indenture or any of the Notes to the contrary, the
Issuer may enter into any agreement with any Holder of a Note providing for a method of payment, or
notice by the Indenture Trustee or any Paying Agent to such Holder, that is different from the
methods provided for in this Indenture for such payments or notices. The Issuer will furnish to the
Indenture Trustee a copy of each such agreement and the Indenture Trustee will cause payments to be
made and notices to be given in accordance with such agreements.

     Section 11.07. Effect of Headings.

     The Article and Section headings herein are for convenience only and shall not affect the
construction hereof.

     Section 11.08. Successors and Assigns.

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

     Section 11.09. Severability.

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

     Section 11.10. Benefits of Indenture.

     Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder, and the Noteholders, and any other party
secured hereunder (including the Hedge Counterparties), and any other Person with an ownership
interest in any part of the Indenture Collateral, any benefit or any legal or equitable right,
remedy or claim under this Indenture.

     Section 11.11.
Legal Holidays.

     In any case where the date on which any payment is due shall not be a Business Day, then
(notwithstanding any other provision of the Notes or this Indenture) payment need not be made on
such date, but may be made on the next succeeding Business Day with the same force and effect as if
made on the date on which nominally due, and no interest shall accrue for the period from and after
any such nominal date.

     Section 11.12. GOVERNING LAW.

     (a) THIS INDENTURE, EACH SUPPLEMENT AND THE NOTES SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

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     (b) EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS INDENTURE. Each party hereto (i) certifies that no
representative, agent or attorney of any other party has represented, expressly or otherwise, that
such other party would not, in the event of litigation, seek to enforce the foregoing waiver and
(ii) acknowledges that it and the other parties hereto have been induced to enter into this
Indenture by, among other things, the mutual waivers and certifications in this Section
11.12(b).

     Section 11.13. Counterparts.

     This Indenture may be executed in any number of counterparts (including by facsimile), each of
which so executed shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

     Section 11.14. Issuer Obligation.

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

     Section 11.15. No Petition, Limited Recourse.

     (a) The Indenture Trustee, by entering into this Indenture, and each Noteholder, by accepting
a Note, hereby covenant and agree that they will not prior to the date which is one year and one
day or, if longer, the preference period then in effect after payment in full of each Class of
Notes rated by any Rating Agency, institute against the Trust Depositor or the Issuer, or join in
any institution against the Trust Depositor or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations relating to the
Notes, this Indenture or any of the Transaction Documents.

     (b) Notwithstanding any other provisions of the Notes, this Indenture or any other Transaction
Document, the obligations of the Issuer under the Notes and this Indenture and any other
Transaction Document are limited recourse obligations of the Issuer payable solely from the
Indenture Collateral in accordance with the Priority of Payments and, following realization of

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the Indenture Collateral and distribution in accordance with the Priority of Payments, any claims
of the Noteholders and the other Secured Parties, and any other parties to any Transaction Document
shall be extinguished. No recourse shall be had against any officer, administrator, member,
director, employee, security holder or incorporator of the Issuer or their respective successors or
assigns for the payment of any amounts payable under the Notes, this Indenture or any other
Transaction Document. It is understood that the foregoing provisions of this Section
11.15(b) shall not (i) prevent recourse to the Loan Assets for the sums due or to become due
under any security, instrument or agreement which is part of the Loan Assets or (ii) constitute a
waiver, release or discharge of any indebtedness or obligation evidenced by the Notes or secured by
this Indenture or payable under any other Transaction Document until such Loan Assets have been
realized and distributed in accordance with the Priority of Payments, whereupon any such
outstanding indebtedness or obligation shall be extinguished.

     Section 11.16. Inspection; Confidentiality.

     The Issuer agrees that, on reasonable prior notice, it will permit any representative of the
Indenture Trustee, during the Issuer’s normal business hours, and in a manner that does not
unreasonably interfere with the Issuer’s normal operations, to examine all the books of account,
records, reports and other papers of the Issuer, to make copies and extracts therefrom, to cause
such books to be audited by Independent certified public accountants, and to discuss the Issuer’s
affairs, finances and accounts with the Issuer’s officers, employees, and Independent certified
public accountants, all at such reasonable times, in such reasonable manner, and as often as may be
reasonably requested. The Indenture Trustee shall and shall cause its representatives, its legal
counsel and its auditors to hold in confidence all such information except to the extent disclosure
may be required by law (and all reasonable applications for confidential treatment are unavailing)
and except to the extent that the Indenture Trustee may reasonably determine that such disclosure
is consistent with its obligations hereunder and under applicable law. Notwithstanding anything to
the contrary contained herein, all parties to which this Indenture relates may disclose to any and
all persons, without limitation of any kind, the tax treatment and tax structure of the transaction
and all materials of any kind (including opinions or other tax analyses) that are provided to such
investors relating to such tax treatment and tax structure. For purposes of this paragraph, the
terms “tax treatment,” “tax structure,” and “tax analyses” have the meaning given to such terms
under Treasury Regulation section 1.6011-4(c).

     Section 11.17. Limitation of Liability.

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

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failure of any obligation, representation, warranty or covenant made or undertaking by the Issuer
under this Indenture or any related documents.

     Section 11.18. Disclaimer and Subordination.

     Each Noteholder by accepting a Note and each Hedge Counterparty by accepting the benefits of
this Indenture acknowledges and agrees that this Indenture and the Notes represent a debt
obligation of the Issuer only and do not represent an interest in any assets (other than the
Indenture Collateral) of the Trust Depositor (including by virtue of any deficiency claim in
respect of obligations not paid or otherwise satisfied from the Trust Estate and proceeds thereof).
In furtherance of and not in derogation of the foregoing, each Noteholder by accepting a Note and
each Hedge Counterparty by accepting the benefits of this Indenture acknowledges and agrees that it
shall have no right, title or interest in or to any assets (or interests therein) (other than the
Indenture Collateral) conveyed or purported to be conveyed by the Trust Depositor to another
securitization trust (i.e., other than the Issuer) or other Person or Persons in connection
therewith (whether by way of a sale, capital contribution or by virtue of the granting of a Lien)
(“Other Assets”). To the extent that, notwithstanding the agreements and provisions
contained in the preceding sentences of this Section 11.18, any Noteholder or Hedge
Counterparty either (i) asserts an interest in or claim to, or benefit from, Other Assets, whether
asserted against or through the Trust Depositor or any other Person owned by the Trust Depositor,
or (ii) is deemed to have any such interest, claim or benefit in or from Other Assets, whether by
operation of law, legal process, pursuant to applicable provisions of any applicable insolvency
laws or otherwise (including without limitation by virtue of Section 111l(b) of the federal
Bankruptcy Code or any successor provision having similar effect under the Bankruptcy Code or any
successor provision having similar effect under the Bankruptcy Code), and whether deemed asserted
against or through the Trust Depositor or any other Person owned by the Trust Depositor, then each
Noteholder by accepting a Note and each Hedge Counterparty by accepting the benefits of this
Indenture further acknowledges and agrees that any such interest, claim or benefit in or from Other
Assets is and shall be expressly subordinated to the indefeasible payment in full of all
obligations and liabilities of the Trust Depositor which, under the terms of the relevant documents
relating to the securitization of such Other Assets, are entitled to be paid from, entitled to the
benefits of, or otherwise secured by such Other Assets (whether or not any such entitlement or
security interest is legally perfected or otherwise entitled to a priority of distribution or
application under applicable law, including any applicable insolvency laws, and whether asserted
against the Trust Depositor or any other Person owned by the Trust Depositor), including, without
limitation, the payment of post–petition interest on such other obligations and liabilities. This
subordination agreement shall be deemed a subordination agreement within the meaning of Section
510(a) of the Bankruptcy Code. Each Noteholder and each Hedge Counterparty further acknowledges
and agrees that no adequate remedy at law exists for a breach of this Section 11.18 and
that the terms and provisions of this Section 11.18 may be enforced by an action for
specific performance. Nothing in this Section 11.18 shall in any way affect the rights of
any Hedge Counterparty against any guaranty by CapitalSource Finance LLC of the Issuer’s
obligations under any Hedge Agreement.

[Remainder of Page Intentionally Left Blank]

80

 

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

	 	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN	 	 
	 	 	TRUST 2006-1	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its individual
capacity, but solely as Owner Trustee on behalf
of the Trust	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Emmett R. Harmon
 

	 	 
	 	 	Name: Emmett R. Harmon	 	 
	 	 	Title:   Vice President	 	 

	 	 	 	 	 
	STATE OF Delaware

	 	)	 
	 

	 	) ss.:

	COUNTY OF NEW CASTLE

	 	)	 

     On
this 5 day of April, 2006 before me personally appeared
Emmett R. Harmon, to me known, who being by me duly sworn, did depose and say, that
(s)he resides at Wilmington, Delaware, that (s)he is the Vice President of the Owner Trustee,
one of the corporations described in and which
executed the above instrument; and that (s)he signed his/her name thereto by like order.

	 	 	 	 	 
	 

	 	/s/ Bethany J. Taylor
 

Notary Public
	 	 
	 
	 	 	 	 
	 

	 	             Bethany J. Taylor	 	 
	My commission expires:                                         

	 	Notary Public — State of Delaware	 	 
	 

	 	My Comm. Expires Oct. 20, 2007	 	 

			
	 	 	 
	 
	 	CapitalSource Commercial Loan Trust 2006-1
	 
	 	Indenture

 

 

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

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL	 	 
	 	 	ASSOCIATION, not in its individual capacity but	 	 
	 	 	solely as the Indenture Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joe Nardi
 

	 	 
	 	 	Name: Joe Nardi	 	 
	 	 	Title:   Vice President	 	 

	 	 	 	 	 
	STATE OF Minnesota

	 	)	 
	 

	 	) ss.:

	COUNTY OF Hennepin

	 	)	 

     On
this ___ day of April, 2006 before me personally appeared                     ,
to me known, who being by me duly sworn, did depose and say, that
(s)he resides at                     ,                     , that (s)he is the
                     of the Indenture Trustee, one of the corporations described in and which
executed the above instrument; and that (s)he signed his/her name thereto by like order.

	 	 	 	 	 
	

	 	/s/ Karleen R. Bratland
 

Notary Public
	 	 

My
commission expires:                                         

			
	 	 	 
	 
	 	CapitalSource Commercial Loan Trust 2006-1
	 
	 	Indenture

 

 

EXHIBIT A–1

[FORM OF CLASS A NOTE]

CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAW OF ANY STATE. THE HOLDER
HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS AND
ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE
HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A
“QIB”) WHO IS A QUALIFIED PURCHASER FOR PURPOSES OF SECTION 3(c)(7) UNDER THE INVESTMENT COMPANY
ACT OF 1940 (A “QUALIFIED PURCHASER”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB WHO IS A
QUALIFIED PURCHASER PURCHASING FOR THE ACCOUNT OF A QIB WHO IS A QUALIFIED PURCHASER, WHOM THE
HOLDER HAS INFORMED THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (2) IN CERTIFICATED FORM TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING
OF RULE 501 (a)(1)–(3) OR (7) UNDER THE SECURITIES ACT) THAT IS ALSO A QUALIFIED PURCHASER,
PURCHASING FOR INVESTMENT AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, IN EACH
CASE, SUBJECT TO (A) THE RECEIPT BY THE INDENTURE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM
PROVIDED IN THE INDENTURE AND (B) THE RECEIPT BY THE INDENTURE TRUSTEE OF SUCH OTHER EVIDENCE
ACCEPTABLE TO THE INDENTURE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE
WITH THE SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL
APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF ANY STATE OF
THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION, (3) IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (4) PURSUANT TO
ANOTHER EXEMPTION AVAILABLE UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE
SECURITIES LAWS, OR (5) PURSUANT TO A VALID REGISTRATION STATEMENT. THE PURCHASE OF THIS NOTE WILL
BE DEEMED A REPRESENTATION BY THE ACQUIRER THAT EITHER: (I) IT IS NOT, AND IS NOT ACQUIRING OR
HOLDING THIS NOTE, DIRECTLY OR INDIRECTLY, ON BEHALF OF OR WITH ANY ASSETS OF, AN “EMPLOYEE BENEFIT
PLAN” AS DEFINED IN SECTION 3(3) OF ERISA THAT IS SUBJECT TO TITLE I OF ERISA, A “PLAN” DESCRIBED
IN AND SUBJECT TO SECTION 4975 OF THE CODE (COLLECTIVELY, A “PLAN”), OR OTHER PLAN OR
ARRANGEMENT SUBJECT TO ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO
THE FOREGOING PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAW”); OR (II) ITS ACQUISITION

A-1-1

 

AND HOLDING OF THIS NOTE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR OTHER PLAN OR A VIOLATION OF SIMILAR LAW.

[IF HELD BY DTC] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC ”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

[IF
REGULATION S GLOBAL NOTE] [THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT AND PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE
OFFERING AND THE ORIGINAL ISSUE DATE OF THE NOTES, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

A-1-2

 

			
	 	 	 
	REGISTERED
	 	$                            
	No. A–
	 	April 11, 2006

SEE REVERSE FOR CERTAIN DEFINITIONS

[144A CUSIP NO. _____________ ]

[Reg S ISIN NO. ______________ ]

[Reg S CUSIP No. _____________ ]

[Common Code No. ____________ ]

     CapitalSource Commercial Loan Trust 2006-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby
promises to pay to                                          , or registered assigns, the principal sum of
                                                             DOLLARS payable on each Payment Date in an amount equal to the result
obtained by multiplying (i) a fraction, the numerator of which is the initial principal balance of
this Class A Note and the denominator of which is the Initial Class A Principal Balance by (ii) the
aggregate amount, if any, payable from the Note Distribution Account in respect of principal on the
Class A Notes.

     The principal of and interest on this Class A Note are payable in such coin or currency of the
United States as at the time of payment is legal tender for payment of public and private debts.
All payments made by the Issuer with respect to this Class A Note shall be applied first to
interest due and payable on this Class A Note as provided above and then to the unpaid principal of
this Class A Note.

     Reference is made to the further provisions of this Class A Note set forth on the reverse
hereof, which shall have the same effect as though fully set forth on the face of this Class A
Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Class A Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

A-1-3

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Responsible Officer as of the date set forth above.

	 	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN	 	 
	 	 	TRUST 2006-1	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST COMPANY, not	 	 
	 

	 	 	 	in its individual capacity but solely as	 	 
	 

	 	 	 	Owner Trustee under the Trust Agreement	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A Notes of CapitalSource Commercial Loan Trust 2006-1 designated above and
referred to in the within–mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL	 	 
	 	 	ASSOCIATION, not in its individual capacity but	 	 
	 	 	solely as Indenture Trustee,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

A-1-4

 

[REVERSE OF NOTE]

     This Class A Note is one of a duly authorized issue of Class A Notes of the Issuer, designated
as its CapitalSource Commercial Loan Trust 2006-1 Class A Notes (herein called the “Class A
Notes”), all issued under an Indenture, dated as of April 11, 2006 (such indenture, as
supplemented or amended, is herein called the “Indenture”), between the Issuer and Wells
Fargo Bank, National Association, as indenture trustee (the “Indenture Trustee”, which term
includes any successor Indenture Trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the respective rights
and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Class A
Notes. The Class A Notes are subject to all terms of the Indenture. All terms used in this Class A
Note that are defined in the Indenture, as supplemented or amended, shall have the meanings
assigned to them in or pursuant to the Indenture, as so supplemented or amended.

     Notwithstanding the foregoing, the entire unpaid principal amount of the Class A Notes shall
be due and payable on the date on which an Event of Default shall have occurred and be continuing
and the Indenture Trustee, or the Majority Noteholders have declared the Class A Notes to be
immediately due and payable in the manner provided in Section 5.02 of the Indenture. All
principal payments on the Class A Notes shall be made pro rata to the Class A Noteholders entitled
thereto.

     Each Class A Noteholder or Class A Note Owner, by acceptance of a Class A Note or, in the case
of a Class A Note Owner, a beneficial interest in a Class A Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer under
the Indenture on the Class A Notes or under any certificate or other writing delivered in
connection therewith, against the Trust Depositor, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity.

     On each Payment Date, commencing April 20, 2006, the Indenture Trustee or Paying Agent shall
distribute to the Person in whose name this Class A Note is registered at the close of business on
the Record Date an amount equal to the product of the Percentage Interest of the Class A Notes
evidenced by this Class A Note and the amount required to be distributed to Holders of Class A
Notes on such Payment Date pursuant to Section 3.05 of the Indenture.

     During each Interest Accrual Period, this Class A Note will bear interest at the Class A Note
Interest Rate.

     Distributions on this Class A Note will be made by the Indenture Trustee or Paying Agent by
check mailed to the address of the Person entitled thereto as such name and address shall appear on
the Note Register or, upon written request to the Indenture Trustee, by wire transfer of
immediately available funds to the account of the Person entitled thereto as shall appear on the
Note Register without the presentation or surrender of this Note or the making of any notation
thereon, at a bank or other entity having appropriate facilities therefor, and, in the case of wire
transfers, at the expense of such Person unless such Person shall own of record Class A Notes which
have Initial Class A Principal Balances aggregating at least $500,000.

A-1-5

 

     Notwithstanding the above, the final distribution on this Class A Note will be made after due
notice by the Indenture Trustee of the pendency of such distribution and only upon presentation and
surrender of this Class A Note at the office or agency maintained for that purpose by the Note
Registrar in Minneapolis, Minnesota.

     As provided in the Indenture and the Sale and Servicing Agreement, deposits and withdrawals
from the Note Distribution Account, the Principal and Interest Account and the Reserve Fund may be
made by the Indenture Trustee from time to time for purposes other than distributions to Class A
Noteholders, such purposes including reimbursement to the Servicer of advances made, or certain
expenses incurred, by it, and investment in Permitted Investments.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Class A Note is registrable in the Note Register upon surrender of this Class A
Note for registration of transfer at the offices or agencies maintained by the Note Registrar in
Minneapolis, Minnesota, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to, the Indenture Trustee, duly executed by the holder hereof or such holder’s
attorney duly authorized in writing, and thereupon one or more new Class A Notes in authorized
denominations evidencing the same aggregate undivided Percentage Interest will be issued to the
designated transferee or transferees.

     The Class A Note is issuable only as a registered Class A Note. As provided in the Indenture
and subject to certain limitations therein set forth, the Class A Note is exchangeable for a new
Class A Note evidencing the same undivided ownership interest, as requested by the holder
surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the Note
Registrar may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Servicer, the Trust Depositor, the Indenture Trustee and the Note Registrar, and any agent
of any of the foregoing, may treat the person in whose name this Class A Note is registered as the
owner hereof for all purposes, and none of the foregoing shall be affected by notice to the
contrary.

     The obligations and responsibilities created by the Indenture shall terminate upon the payment
to Class A Noteholders of all amounts required to be paid to them pursuant to the Indenture and the
Sale and Servicing Agreement and the disposition of all property held as part of the Indenture
Collateral.

A-1-6

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE1

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for an Individual Note, or exchanges of a part of another Global Note or Individual Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	 	Amount of	 	 	Principal Amount	 	 	 	 
	 	 	decrease in	 	 	increase in	 	 	of this Global	 	 	Signature of	 
	 	 	Principal Amount	 	 	Principal Amount	 	 	Note following	 	 	Responsible	 
	Date of	 	of this Global	 	 	of this Global	 	 	such decrease (or	 	 	Officer of Note	 
	Exchange	 	Note	 	 	Note	 	 	increase)	 	 	Registrar	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	1	 	This should be included only if the Note is issued in global form.

A-1-7

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

 

 

 

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                    , attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 
	 	 	 	2
	 

	 	 
	 	 	 	 

Signature Guaranteed:

 

			
	2	 	NOTE: The signature to this assignment must correspond with the name of the registered
owner as it appears on the face of the within Note in every particular, without alteration,
enlargement or any change whatsoever.

A-1-8

 

EXHIBIT A–2

[FORM OF CLASS B NOTE]

CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1

     THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAW OF ANY STATE. THE
HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS AND
ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE
HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A
“QIB”) WHO IS A QUALIFIED PURCHASER FOR PURPOSES OF SECTION 3(c)(7) UNDER THE INVESTMENT COMPANY
ACT OF 1940 (A “QUALIFIED PURCHASER”) PURCHASING FOR ITS OWN ACCOUNT OR A QIB WHO IS A
QUALIFIED PURCHASER PURCHASING FOR THE ACCOUNT OF A QIB WHO IS A QUALIFIED PURCHASER, WHOM THE
HOLDER HAS INFORMED THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (2) IN CERTIFICATED FORM TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING
OF RULE 501 (a)(1)–(3) OR (7) UNDER THE SECURITIES ACT) THAT IS ALSO A QUALIFIED PURCHASER,
PURCHASING FOR INVESTMENT AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, IN EACH
CASE, SUBJECT TO (A) THE RECEIPT BY THE INDENTURE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM
PROVIDED IN THE INDENTURE AND (B) THE RECEIPT BY THE INDENTURE TRUSTEE OF SUCH OTHER EVIDENCE
ACCEPTABLE TO THE INDENTURE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE
WITH THE SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL
APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF ANY STATE OF
THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION, (3) IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATIONS UNDER THE SECURITIES ACT, (4) PURSUANT TO
ANOTHER EXEMPTION AVAILABLE UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE
SECURITIES LAWS, OR (5) PURSUANT TO A VALID REGISTRATION STATEMENT. THE PURCHASE OF THIS NOTE WILL
BE DEEMED A REPRESENTATION BY THE ACQUIRER THAT EITHER: (I) IT IS NOT, AND IS NOT ACQUIRING OR
HOLDING THIS NOTE, DIRECTLY OR INDIRECTLY, ON BEHALF OF OR WITH ANY ASSETS OF, AN “EMPLOYEE BENEFIT
PLAN” AS DEFINED IN SECTION 3(3) OF ERISA THAT IS SUBJECT TO TITLE I OF ERISA, A “PLAN” DESCRIBED
IN AND SUBJECT TO SECTION 4975 OF THE CODE (COLLECTIVELY, A “PLAN”), OR OTHER PLAN OR
ARRANGEMENT SUBJECT TO ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO
THE FOREGOING PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAW”); OR (II) ITS ACQUISITION

A-2-1

 

AND HOLDING OF THIS NOTE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR OTHER PLAN OR A VIOLATION OF SIMILAR LAW.

     [IF
HELD BY DTC] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

     [IF
REGULATION S GLOBAL NOTE] [THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT AND PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE
OFFERING AND THE ORIGINAL ISSUE DATE OF THE NOTES, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]

     THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

     THE RIGHTS OF THE HOLDER OF THIS CLASS B NOTE TO RECEIVE INTEREST ARE SUBORDINATED TO THE
RIGHTS OF THE HOLDERS OF THE CLASS A NOTES TO RECEIVE INTEREST AND THE RIGHTS OF THE HOLDERS OF
THIS CLASS B NOTE TO RECEIVE PRINCIPAL ARE SUBORDINATED TO THE RIGHTS OF THE HOLDERS OF THE CLASS A
NOTES TO RECEIVE PRINCIPAL AND INTEREST TO THE EXTENT SET FORTH IN THE SALE AND SERVICING
AGREEMENT.

A-2-2

 

			
	 	 	 
	REGISTERED
	 	$                            
	No. B–
	 	April 11, 2006

SEE REVERSE FOR CERTAIN DEFINITIONS

[144A CUSIP NO. _____________ ]

[Reg S ISIN NO._______________ ]

[Reg S CUSIP No. _____________ ]

[Common Code No. ____________ ]

     CapitalSource Commercial Loan Trust 2006-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value received,
hereby promises to pay to                                         , or registered assigns, the principal sum of
                                                             DOLLARS payable on each Payment Date in an amount equal to the
result obtained by multiplying (i) a fraction, the numerator of which is the initial principal
balance of this Class B Note and the denominator of which is the Initial Class B Principal Balance
by (ii) the aggregate amount, if any, payable from the Note Distribution Account in respect of
principal on the Class B Notes pursuant to Section 3.05 of the Indenture.

     The principal of and interest on this Class B Note are payable in such coin or currency of the
United States as at the time of payment is legal tender for payment of public and private debts.
All payments made by the Issuer with respect to this Class B Note shall be applied first to
interest due and payable on this Class B Note as provided above and then to the unpaid principal of
this Class B Note.

     Reference is made to the further provisions of this Class B Note set forth on the reverse
hereof, which shall have the same effect as though fully set forth on the face of this Class B
Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Class B Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

A-2-3

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Responsible Officer as of the date set forth above.

	 	 	 	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN	 	 
	 	 	TRUST 2006-1	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	WILMINGTON TRUST COMPANY, not	 	 
	 	 	 	 	in its individual capacity but solely as	 	 
	 	 	 	 	Owner Trustee under the Trust Agreement	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

Authorized Signatory
	 	 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Class B Notes of CapitalSource Commercial Loan Trust 2006-1 designated
above and referred to in the within–mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL	 	 
	 	 	ASSOCIATION, not in its individual capacity but	 	 
	 	 	solely as Indenture Trustee,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

A-2-4

 

[REVERSE OF NOTE]

     This Class B Note is one of a duly authorized issue of Class B Notes of the Issuer, designated
as its CapitalSource Commercial Loan Trust 2006-1 Class B Notes (herein called the “Class B Notes”), all issued under an Indenture, dated as of April 11, 2006 (such indenture, as supplemented
or amended, is herein called the “Indenture”), between the Issuer and Wells Fargo Bank, National
Association, as indenture trustee (the “Indenture Trustee”, which term includes any successor
Indenture Trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Class B Notes. The Class B Notes are subject
to all terms of the Indenture. All terms used in this Class B Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them in or pursuant to
the Indenture, as so supplemented or amended.

     Notwithstanding the foregoing, the entire unpaid principal amount of the Class B Notes shall
be due and payable on the date on which an Event of Default shall have occurred and be continuing
and the Indenture Trustee, or the Majority Noteholders have declared the Class B Notes to be
immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal
payments on the Class B Notes shall be made pro rata to the Class B Noteholders entitled thereto.

     Each Class B Noteholder or Class B Note Owner, by acceptance of a Class B Note or, in the case
of a Class B Note Owner, a beneficial interest in a Class B Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer under
the Indenture on the Class B Notes or under any certificate or other writing delivered in
connection therewith, against the Trust Depositor, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity or any of their Affiliates.

     On each Payment Date, commencing April 20, 2006, the Indenture Trustee or Paying Agent shall
distribute to the Person in whose name this Class B Note is registered at the close of business on
the Record Date an amount equal to the product of the Percentage Interest of the Class B Notes
evidenced by this Class B Note and the amount required to be distributed to Holders of Class B
Notes on such Payment Date pursuant to Section 3.05 of the Indenture.

     During each Interest Accrual Period, this Class B Note will bear interest at the Class B Note
Interest Rate.

     Distributions on this Class B Note will be made by the Indenture Trustee or Paying Agent by
check mailed to the address of the Person entitled thereto as such name and address shall appear on
the Note Register or, upon written request to the Indenture Trustee, by wire transfer of
immediately available funds to the account of the Person entitled thereto as shall appear on the
Note Register without the presentation or surrender of this Note or the making of any notation
thereon, at a bank or other entity having appropriate facilities therefor, and, in the case of wire
transfers, at the expense of such Person unless such Person shall own of record Class B Notes which
have Initial Class B Principal Balances aggregating at least $500,000.

A-2-5

 

 

     Notwithstanding the above, the final distribution on this Class B Note will be made after due
notice by the Indenture Trustee of the pendency of such distribution and only upon presentation and
surrender of this Class B Note at the office or agency maintained for that purpose by the Note
Registrar in Minneapolis, Minnesota.

     As provided in the Indenture and the Sale and Servicing Agreement, deposits and withdrawals
from the Note Distribution Account, the Principal and Interest Account and the Reverse Fund may be
made by the Indenture Trustee from time to time for purposes other than distributions to Class B
Noteholders, such purposes including reimbursement to the Servicer of advances made, or certain
expenses incurred, by it, and investment in Permitted Investments.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Class B Note is registrable in the Note Register upon surrender of this Class B
Note for registration of transfer at the offices or agencies maintained by the Note Registrar in
Minneapolis, Minnesota, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to, the Indenture Trustee, duly executed by the holder hereof or such holder’s
attorney duly authorized in writing, and thereupon one or more new Class B Notes in authorized
denominations evidencing the same aggregate undivided Percentage Interest will be issued to the
designated transferee or transferees.

     The Class B Note is issuable only as a registered Class B Note. As provided in the Indenture
and subject to certain limitations therein set forth, the Class B Note is exchangeable for a new
Class B Note evidencing the same undivided ownership interest, as requested by the holder
surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the Note
Registrar may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Servicer, the Trust Depositor, the Indenture Trustee and the Note Registrar, and any agent
of any of the foregoing, may treat the person in whose name this Class B Note is registered as the
owner hereof for all purposes, and none of the foregoing shall be affected by notice to the
contrary.

     The obligations and responsibilities created by the Indenture shall terminate upon the payment
to Class B Noteholders of all amounts required to be paid to them pursuant to the Indenture and the
Sale and Servicing Agreement and the disposition of all property held as part of the Indenture
Collateral.

A-2-6

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE1

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for an Individual Note, or exchanges of a part of another Global Note or Individual Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 

	 	Amount of
	 	Amount of
	 	Principal Amount	 	 
	 

	 	decrease in
	 	increase in
	 	of this Global
	 	Signature of
	 

	 	Principal Amount
	 	Principal Amount
	 	Note following
	 	Responsible
	Date of

	 	of this Global
	 	of this Global
	 	such decrease (or
	 	Officer of Note
	Exchange

	 	Note
	 	Note
	 	increase)
	 	Registrar
	 

	 	 
	 	 
	 	 
	 	 

 

			
	1	 	This should be included only if the Note is issued in global form.

A-2-7

 

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                                        , attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

			
	 	 	 
	 	 	 
	Dated:                                         
	 	                                                      1

Signature Guaranteed:

 

			
	1	 	NOTE: The signature to this assignment must correspond with the name of the registered owner
as it appears on the face of the within Note in every particular, without alteration, enlargement
or any change whatsoever.

A-2-8

 

 

EXHIBIT A-3

[FORM OF CLASS C NOTE]

CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAW OF ANY STATE. THE HOLDER HEREOF,
BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”) WHO IS A
QUALIFIED PURCHASER FOR PURPOSES OF SECTION 3(c)(7) UNDER THE INVESTMENT COMPANY ACT OF 1940 (A
“QUALIFIED PURCHASER”) PURCHASING FOR ITS OWN ACCOUNT OR A QIB WHO IS A QUALIFIED PURCHASER
PURCHASING FOR THE ACCOUNT OF A QIB WHO IS A QUALIFIED PURCHASER, WHOM THE HOLDER HAS INFORMED THAT
THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) IN
CERTIFICATED FORM TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING OF RULE 501
(a)(1)–(3) OR (7) UNDER THE SECURITIES ACT) THAT IS ALSO A QUALIFIED PURCHASER, PURCHASING FOR
INVESTMENT AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, IN EACH CASE, SUBJECT TO
(A) THE RECEIPT BY THE INDENTURE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE
INDENTURE AND (B) THE RECEIPT BY THE INDENTURE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE
INDENTURE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF ANY STATE OF THE UNITED
STATES AND ANY OTHER APPLICABLE JURISDICTION, (3) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (4) PURSUANT TO ANOTHER EXEMPTION
AVAILABLE UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR
(5) PURSUANT TO A VALID REGISTRATION STATEMENT. THE PURCHASE OF THIS NOTE WILL BE DEEMED A
REPRESENTATION BY THE ACQUIRER THAT EITHER: (I) IT IS NOT, AND IS NOT ACQUIRING OR HOLDING THIS
NOTE, DIRECTLY OR INDIRECTLY, ON BEHALF OF OR WITH ANY ASSETS OF, AN “EMPLOYEE BENEFIT PLAN” AS
DEFINED IN SECTION 3(3) OF ERISA THAT IS SUBJECT TO TITLE I OF ERISA, A “PLAN” DESCRIBED IN AND
SUBJECT TO SECTION 4975 OF THE CODE (COLLECTIVELY, A “PLAN ”), OR OTHER PLAN OR ARRANGEMENT SUBJECT
TO ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING
PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAW”); OR (II) ITS ACQUISITION

A-3-1

 

 

AND HOLDING OF THIS NOTE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR OTHER PLAN OR A VIOLATION OF SIMILAR LAW.

     [IF HELD BY DTC] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC ”), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

     [IF REGULATION S GLOBAL NOTE] [THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT AND PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE
OFFERING AND THE ORIGINAL ISSUE DATE OF THE NOTES, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]

     THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

     THE RIGHTS OF THE HOLDER OF THIS CLASS C NOTE TO RECEIVE INTEREST ARE SUBORDINATED TO THE
RIGHTS OF THE HOLDERS OF THE CLASS A NOTES AND THE CLASS B NOTES TO RECEIVE INTEREST AND THE RIGHTS
OF THE HOLDERS OF THIS CLASS C NOTE TO RECEIVE PRINCIPAL ARE SUBORDINATED TO THE RIGHTS OF THE
HOLDERS OF THE CLASS A NOTES AND THE CLASS B NOTES TO RECEIVE PRINCIPAL AND INTEREST TO THE EXTENT
SET FORTH IN THE SALE AND SERVICING AGREEMENT.

A-3-2

 

 

			
	REGISTERED

No. C –
	 	$                                        

April 11, 2006

SEE REVERSE FOR CERTAIN DEFINITIONS

[144A
CUSIP NO.
                           ]

[Reg
S ISIN NO.                               ]

[Reg
S CUSIP No. 
                          ]

         [Common
Code No.                          ]

     CapitalSource Commercial Loan Trust 2006-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the
“Issuer”), for value received, hereby
promises to pay to ______, or registered assigns, the principal sum of
______ DOLLARS payable on each Payment Date in an amount equal to the
result obtained by multiplying (i) a fraction, the numerator of which is the initial principal
balance of this Class C Note and the denominator of which is the Initial Class C Principal Balance
by (ii) the aggregate amount, if any, payable from the Note Distribution Account in respect of
principal on the Class C Notes pursuant to Section 3.05 of the Indenture.

     The principal of and interest on this Class C Note are payable in such coin or currency of the
United States as at the time of payment is legal tender for payment of public and private debts.
All payments made by the Issuer with respect to this Class C Note shall be applied first to
interest due and payable on this Class C Note as provided above and then to the unpaid principal of
this Class C Note.

     Reference is made to the further provisions of this Class C Note set forth on the reverse
hereof, which shall have the same effect as though fully set forth on the face of this Class C
Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Class C Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

A-3-3

 

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Responsible Officer as of the date set forth below.

	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1
	 
	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its

individual capacity but solely as Owner Trustee

under the Trust Agreement
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Class C Notes of CapitalSource Commercial Loan Trust 2006-1 designated
above and referred to in the within–mentioned Indenture.

	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL

ASSOCIATION, not in its individual capacity but

solely as Indenture Trustee,
	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

A-3-4

 

 

[REVERSE OF NOTE]

     This Class C Note is one of a duly authorized issue of Class C Notes of the Issuer, designated
as its CapitalSource Commercial Loan Trust 2006-1 Class C Notes (herein called the “Class C
Notes”), all issued under an Indenture, dated as of April 11, 2006 (such indenture, as supplemented
or amended, is herein called the “Indenture”), between the Issuer and Wells Fargo Bank, National
Association, as indenture trustee (the “Indenture Trustee”, which term includes any successor
Indenture Trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Class C Notes. The Class C Notes are subject
to all terms of the Indenture. All terms used in this Class C Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them in or pursuant to
the Indenture, as so supplemented or amended.

     Notwithstanding the foregoing, the entire unpaid principal amount of the Class C Notes shall
be due and payable on the date on which an Event of Default shall have occurred and be continuing
and the Indenture Trustee, or the Majority Noteholders have declared the Class C Notes to be
immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal
payments on the Class C Notes shall be made pro rata to the Class C Noteholders entitled thereto.

     Each Class C Noteholder or Class C Note Owner, by acceptance of a Class C Note or, in the case
of a Class C Note Owner, a beneficial interest in a Class C Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer under
the Indenture on the Class C Notes or under any certificate or other writing delivered in
connection therewith, against the Trust Depositor, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity or any of their Affiliates.

     On each Payment Date, commencing April 20, 2006, the Indenture Trustee or Paying Agent shall
distribute to the Person in whose name this Class C Note is registered at the close of business on
the Record Date an amount equal to the product of the Percentage Interest of the Class C Notes
evidenced by this Class C Note and the amount required to be distributed to Holders of Class C
Notes on such Payment Date pursuant to Section 3.05 of the Indenture.

     During each Interest Accrual Period, this Class C Note will bear interest at the Class C Note
Interest Rate.

     Distributions on this Class C Note will be made by the Indenture Trustee or Paying Agent by
check mailed to the address of the Person entitled thereto as such name and address shall appear on
the Note Register or, upon written request to the Indenture Trustee, by wire transfer of
immediately available funds to the account of the Person entitled thereto as shall appear on the
Note Register without the presentation or surrender of this Note or the making of any notation
thereon, at a bank or other entity having appropriate facilities therefor, and, in the case of wire
transfers, at the expense of such Person unless such Person shall own of record Class C Notes which
have Initial Class C Principal Balances aggregating at least $500,000.

A-3-5

 

 

     Notwithstanding the above, the final distribution on this Class C Note will be made after due
notice by the Indenture Trustee of the pendency of such distribution and only upon presentation and
surrender of this Class C Note at the office or agency maintained for that purpose by the Note
Registrar in Minneapolis, Minnesota.

     As provided in the Indenture and the Sale and Servicing Agreement, deposits and withdrawals
from the Note Distribution Account, the Principal and Interest Account and the Reserve Fund may be
made by the Indenture Trustee from time to time for purposes other than distributions to Class C
Noteholders, such purposes including reimbursement to the Servicer of advances made, or certain
expenses incurred, by it, and investment in Permitted Investments.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Class C Note is registrable in the Note Register upon surrender of this Class C
Note for registration of transfer at the offices or agencies maintained by the Note Registrar in
Minneapolis, Minnesota, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to, the Indenture Trustee, duly executed by the holder hereof or such holder’s
attorney duly authorized in writing, and thereupon one or more new Class C Notes in authorized
denominations evidencing the same aggregate undivided Percentage Interest will be issued to the
designated transferee or transferees.

     The Class C Note is issuable only as a registered Class C Note. As provided in the Indenture
and subject to certain limitations therein set forth, the Class C Note is exchangeable for a new
Class C Note evidencing the same undivided ownership interest, as requested by the holder
surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the Note
Registrar may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Servicer, the Trust Depositor, the Indenture Trustee and the Note Registrar, and any agent
of any of the foregoing, may treat the person in whose name this Class C Note is registered as the
owner hereof for all purposes, and none of the foregoing shall be affected by notice to the
contrary.

     The obligations and responsibilities created by the Indenture with respect to this Class C
Note shall terminate upon the payment to Class C Noteholders of all amounts required to be paid to
them pursuant to the Indenture and the Sale and Servicing Agreement and the disposition of all
property held as part of the Indenture Collateral with respect to this Class C Note.

A-3-6

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE 1

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for an Individual Note, or exchanges of a part of another Global Note or Individual Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 

	 	Amount of
	 	Amount of
	 	Principal Amount	 	 
	 

	 	decrease in
	 	increase in
	 	of this Global
	 	Signature of
	 

	 	Principal Amount
	 	Principal Amount
	 	Note following
	 	Responsible
	Date of

	 	of this Global
	 	of this Global
	 	such decrease
	 	Officer of Note
	Exchange

	 	Note
	 	Note
	 	(or increase)
	 	Registrar
	 

	 	 
	 	 
	 	 
	 	 

 

			
	1	 	This should be included only if the Note is issued in global form.

A-3-7

 

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

 

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
___, attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

			
	 	 	 
	Dated:                                         
	 	                                    
     1

Signature Guaranteed:

 

			
	1	 	NOTE: The signature to this assignment must correspond with the name of the registered owner
as it appears on the face of the within Note in every particular, without alteration, enlargement
or any change whatsoever.

A-3-8

 

 

EXHIBIT A-4

[FORM OF CLASS D NOTE]

CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAW OF ANY STATE. THE HOLDER HEREOF,
BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”) WHO IS A
QUALIFIED PURCHASER FOR PURPOSES OF SECTION 3(c)(7) UNDER THE INVESTMENT COMPANY ACT OF 1940 (A
“QUALIFIED PURCHASER”) PURCHASING FOR ITS OWN ACCOUNT OR A QIB WHO IS A QUALIFIED PURCHASER
PURCHASING FOR THE ACCOUNT OF A QIB WHO IS A QUALIFIED PURCHASER, WHOM THE HOLDER HAS INFORMED THAT
THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) IN
CERTIFICATED FORM TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING OF RULE 501
(a)(1)–(3) OR (7) UNDER THE SECURITIES ACT) THAT IS ALSO A QUALIFIED PURCHASER, PURCHASING FOR
INVESTMENT AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, IN EACH CASE, SUBJECT TO
(A) THE RECEIPT BY THE INDENTURE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE
INDENTURE AND (B) THE RECEIPT BY THE INDENTURE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE
INDENTURE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF ANY STATE OF THE UNITED
STATES AND ANY OTHER APPLICABLE JURISDICTION, (3) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (4) PURSUANT TO ANOTHER EXEMPTION
AVAILABLE UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR
(5) PURSUANT TO A VALID REGISTRATION STATEMENT. THE PURCHASE OF THIS NOTE WILL BE DEEMED A
REPRESENTATION BY THE ACQUIRER THAT EITHER: (I) IT IS NOT, AND IS NOT ACQUIRING OR HOLDING THIS
NOTE, DIRECTLY OR INDIRECTLY, ON BEHALF OF OR WITH ANY ASSETS OF, AN “EMPLOYEE BENEFIT PLAN” AS
DEFINED IN SECTION 3(3) OF ERISA THAT IS SUBJECT TO TITLE I OF ERISA, A “PLAN” DESCRIBED IN AND
SUBJECT TO SECTION 4975 OF THE CODE (COLLECTIVELY, A “PLAN“), OR OTHER PLAN OR ARRANGEMENT SUBJECT
TO ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING

A-4-1

 

 

PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAW”); OR (II) ITS ACQUISITION AND HOLDING OF THIS NOTE
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE OR OTHER PLAN OR A VIOLATION OF SIMILAR LAW.

[IF HELD BY DTC] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC“), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

[IF REGULATION S GLOBAL NOTE] [THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT AND PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE
OFFERING AND THE ORIGINAL ISSUE DATE OF THE NOTES, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

THE RIGHTS OF THE HOLDER OF THIS CLASS D NOTE TO RECEIVE INTEREST ARE SUBORDINATED TO THE RIGHTS OF
THE HOLDERS OF THE CLASS A NOTES, THE CLASS B NOTES AND THE CLASS C NOTES TO RECEIVE INTEREST AND
THE RIGHTS OF THE HOLDERS OF THIS CLASS D NOTE TO RECEIVE PRINCIPAL ARE SUBORDINATED TO THE RIGHTS
OF THE HOLDERS OF THE CLASS A NOTES, THE CLASS B NOTES AND THE CLASS C NOTES TO RECEIVE PRINCIPAL
AND INTEREST TO THE EXTENT SET FORTH IN THE SALE AND SERVICING AGREEMENT.

A-4-2

 

 

			
	REGISTERED

No. D–
	 	$                               

April 11, 2006

SEE REVERSE FOR CERTAIN DEFINITIONS

[144A
CUSIP NO.                        ]

[Reg S ISIN NO.                           ]

[Reg S CUSIP No.                        ]

[Common Code No.                     ]

     CapitalSource Commercial Loan Trust 2006-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby
promises to pay to ______, or registered assigns, the principal sum of
______ DOLLARS payable on each Payment Date in an amount equal to the
result obtained by multiplying (i) a fraction, the numerator of which is the initial principal
balance of this Class D Note and the denominator of which is the Initial Class D Principal Balance
by (ii) the aggregate amount, if any, payable from the Note Distribution Account in respect of
principal on the Class D Notes pursuant to Section 3.05 of the Indenture.

     The principal of and interest on this Class D Note are payable in such coin or currency of the
United States as at the time of payment is legal tender for payment of public and private debts.
All payments made by the Issuer with respect to this Class D Note shall be applied first to
interest due and payable on this Class D Note as provided above and then to the unpaid principal of
this Class D Note.

     Reference is made to the further provisions of this Class D Note set forth on the reverse
hereof, which shall have the same effect as though fully set forth on the face of this Class D
Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Class D Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

A-4-3

 

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Responsible Officer as of the date set forth below.

	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1
	 
	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its

individual capacity but solely as Owner Trustee

under the Trust Agreement
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Class D Notes of CapitalSource Commercial Loan Trust 2006-1 designated
above and referred to in the within-mentioned Indenture.

	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL
ASSOCIATION,
 not in its individual capacity but
solely as Indenture Trustee,
	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

A-4-4

 

 

[REVERSE OF NOTE]

     This Class D Note is one of a duly authorized issue of Class D Notes of the Issuer, designated
as its CapitalSource Commercial Loan Trust 2006-1 Class D Notes (herein called the “Class D
Notes”), all issued under an Indenture, dated as of April 11, 2006 (such indenture, as supplemented
or amended, is herein called the “Indenture”), between the Issuer and Wells Fargo Bank, National
Association, as indenture trustee (the “Indenture Trustee”, which term includes any successor
Indenture Trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Class D Notes. The Class D Notes are subject
to all terms of the Indenture. All terms used in this Class D Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them in or pursuant to
the Indenture, as so supplemented or amended.

     Notwithstanding the foregoing, the entire unpaid principal amount of the Class D Notes shall
be due and payable on the date on which an Event of Default shall have occurred and be continuing
and the Indenture Trustee, or the Majority Noteholders have declared the Class D Notes to be
immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal
payments on the Class D Notes shall be made pro rata to the Class D Noteholders entitled thereto.

     Each Class D Noteholder or Class D Note Owner, by acceptance of a Class D Note or, in the case
of a Class D Note Owner, a beneficial interest in a Class D Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer under
the Indenture on the Class D Notes or under any certificate or other writing delivered in
connection therewith, against the Trust Depositor, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity or any of their Affiliates.

     On each Payment Date, commencing April 20, 2006, the Indenture Trustee or Paying Agent shall
distribute to the Person in whose name this Class D Note is registered at the close of business on
the Record Date an amount equal to the product of the Percentage Interest of the Class D Notes
evidenced by this Class D Note and the amount required to be distributed to Holders of Class D
Notes on such Payment Date pursuant to Section 3.05 of the Indenture.

     During each Interest Accrual Period, this Class D Note will bear interest at the Class D Note
Interest Rate.

     Distributions on this Class D Note will be made by the Indenture Trustee or Paying Agent by
check mailed to the address of the Person entitled thereto as such name and address shall appear on
the Note Register or, upon written request to the Indenture Trustee, by wire transfer of
immediately available funds to the account of the Person entitled thereto as shall appear on the
Note Register without the presentation or surrender of this Note or the making of any notation
thereon, at a bank or other entity having appropriate facilities therefor, and, in the case of wire
transfers, at the expense of such Person unless such Person shall own of record Class D Notes which
have Initial Class D Principal Balances aggregating at least $500,000.

A-4-5

 

 

     Notwithstanding the above, the final distribution on this Class D Note will be made after due
notice by the Indenture Trustee of the pendency of such distribution and only upon presentation and
surrender of this Class D Note at the office or agency maintained for that purpose by the Note
Registrar in Minneapolis, Minnesota.

     As provided in the Indenture and the Sale and Servicing Agreement, deposits and withdrawals
from the Note Distribution Account, the Principal and Interest Account and the Reserve Fund may be
made by the Indenture Trustee from time to time for purposes other than distributions to Class D
Noteholders, such purposes including reimbursement to the Servicer of advances made, or certain
expenses incurred, by it, and investment in Permitted Investments.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Class D Note is registrable in the Note Register upon surrender of this Class D
Note for registration of transfer at the offices or agencies maintained by the Note Registrar in
Minneapolis, Minnesota, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to, the Indenture Trustee, duly executed by the holder hereof or such holder’s
attorney duly authorized in writing, and thereupon one or more new Class D Notes in authorized
denominations evidencing the same aggregate undivided Percentage Interest will be issued to the
designated transferee or transferees.

     The Class D Note is issuable only as a registered Class D Note. As provided in the Indenture
and subject to certain limitations therein set forth, the Class D Note is exchangeable for a new
Class D Note evidencing the same undivided ownership interest, as requested by the holder
surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the Note
Registrar may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Servicer, the Trust Depositor, the Indenture Trustee and the Note Registrar, and any agent
of any of the foregoing, may treat the person in whose name this Class D Note is registered as the
owner hereof for all purposes, and none of the foregoing shall be affected by notice to the
contrary.

     The obligations and responsibilities created by the Indenture with respect to this Class D
Note shall terminate upon the payment to Class D Noteholders of all amounts required to be paid to
them pursuant to the Indenture and the Sale and Servicing Agreement and the disposition of all
property held as part of the Indenture Collateral with respect to this Class D Note.

A-4-6

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE1

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for an Individual Note, or exchanges of a part of another Global Note or Individual Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 

	 	Amount of
	 	Amount of
	 	Principal Amount	 	 
	 

	 	decrease in
	 	increase in
	 	of this Global
	 	Signature of
	 

	 	Principal Amount
	 	Principal Amount
	 	Note following
	 	Responsible
	Date of

	 	of this Global
	 	of this Global
	 	such decrease (or
	 	Officer of Note
	Exchange

	 	Note
	 	Note
	 	increase)
	 	Registrar
	 

	 	 
	 	 
	 	 
	 	 

 

			
	1	 	This should be included only if the Note is issued in global form.

A-4-7

 

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

 

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
______, attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

			
	 	 	 
	Dated:                                         
	 	                                         1

Signature Guaranteed:

 

			
	1	 	NOTE: The signature to this assignment must correspond with the name of the registered owner
as it appears on the face of the within Note in every particular, without alteration, enlargement
or any change whatsoever.

A-4-8

 

 

EXHIBIT A-5

[FORM OF CLASS E NOTE]

CAPITALSOURCE COMMERCIAL LOAN TRUST 2005-1

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAW OF ANY STATE. THE HOLDER HEREOF,
BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), WHO IS A
QUALIFIED PURCHASER FOR PURPOSES OF SECTION 3(c)(7) UNDER THE INVESTMENT COMPANY ACT OF 1940 (A
“QUALIFIED PURCHASER”) PURCHASING FOR ITS OWN ACCOUNT OR A QIB WHO IS A QUALIFIED PURCHASER
PURCHASING FOR THE ACCOUNT OF A QIB WHO IS A QUALIFIED PURCHASER, WHOM THE HOLDER HAS INFORMED THAT
THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) IN
CERTIFICATED FORM TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING OF RULE 501
(a)(1)–(3) OR (7) UNDER THE SECURITIES ACT) THAT IS ALSO A QUALIFIED PURCHASER, PURCHASING FOR
INVESTMENT AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, IN EACH CASE, SUBJECT TO
(A) THE RECEIPT BY THE INDENTURE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE
INDENTURE AND (B) THE RECEIPT BY THE INDENTURE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE
INDENTURE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF ANY STATE OF THE UNITED
STATES AND ANY OTHER APPLICABLE JURISDICTION, (3) PURSUANT TO ANOTHER EXEMPTION AVAILABLE UNDER THE
SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR (4) PURSUANT TO A
VALID REGISTRATION STATEMENT. THE PURCHASE OF THIS NOTE WILL BE DEEMED A REPRESENTATION BY THE
ACQUIRER THAT (I) IT IS NOT, AND IS NOT ACQUIRING OR HOLDING THIS NOTE, DIRECTLY OR INDIRECTLY, ON
BEHALF OF OR WITH ANY ASSETS OF, AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF ERISA
THAT IS SUBJECT TO TITLE I OF ERISA, OR A “PLAN” DESCRIBED IN AND SUBJECT TO SECTION 4975 OF THE
CODE (COLLECTIVELY, A “PLAN”), AND (II) IF IT IS A PLAN THAT IS NOT SUBJECT TO TITLE I OF ERISA OR
SECTION 4975 OF THE CODE, ITS ACQUISITION AND HOLDING OF THIS NOTE WILL NOT CONSTITUTE OR RESULT IN
A VIOLATION OF ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE
FOREGOING PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAW”).

A-5-1

 

 

[IF HELD BY DTC] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC“), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

     THIS CLASS E NOTE MAY NOT BE ACQUIRED OR OWNED BY ANY PERSON THAT IS CLASSIFIED FOR U.S.
FEDERAL INCOME TAX PURPOSES AS A PARTNERSHIP, SUBCHAPTERS CORPORATION OR GRANTOR TRUST UNLESS (A)
NONE OF THE DIRECT OR INDIRECT BENEFICIAL OWNERS OF ANY INTEREST IN SUCH PERSON HAVE OR EVER WILL
HAVE MORE THAN 50% OF THE VALUE OF ITS INTEREST IN SUCH PERSON ATTRIBUTABLE TO THE INTEREST OF SUCH
PERSON IN ANY CLASS E NOTES, CLASS F NOTES OR OTHER INTEREST (DIRECT OR INDIRECT) IN
CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1, AND (B) IT IS NOT AND WILL NOT BE A PRINCIPAL PURPOSE
OF THE ARRANGEMENT INVOLVING THE INVESTMENT OF SUCH PERSON IN THIS CLASS E NOTE TO PERMIT ANY
PARTNERSHIP TO SATISFY THE 100 PARTNER LIMITATION OF TREAS. REG. § 1.7704-1(H)(1)(II).

     THIS CLASS E NOTE (AND ANY INTEREST HEREIN) MAY NOT BE ACQUIRED, SOLD, TRANSFERRED, ASSIGNED,
PARTICIPATED, PLEDGED OR OTHER WISE DISPOSED OF OR CAUSED TO BE MARKETED, ON OR THROUGH (I) AN
“ESTABLISHED SECURITIES MARKET” WITHIN THE MEANING OF SECTION 7704(B) OF THE CODE, INCLUDING,
WITHOUT LIMITATION, AN INTERDEALER QUOTATION SYSTEM THAT REGULARLY DISSEMINATES FIRM BUY OR SELL
QUOTATIONS OR (II) A “SECONDARY MARKET (OR THE SUBSTANTIAL EQUIVALENT THEREOF)” WITHIN THE MEANING
OF SECTION 7704(B)(2) OF THE CODE, INCLUDING A MARKET WHEREIN ANY CLASS E NOTE (OR INTEREST
THEREIN) IS REGULARLY QUOTED BY ANY PERSON MAKING A MARKET IN SUCH INTERESTS AND A MARKET WHEREIN
ANY PERSON REGULARLY MAKES AVAILABLE BID OR OFFER QUOTES WITH RESPECT TO ANY CLASS E NOTE (OR
INTEREST THEREIN) AND STANDS READY TO EFFECT BUY OR SELL TRANSACTIONS AT THE QUOTED PRICES FOR
ITSELF OR ON BEHALF OF OTHERS.

     THIS CLASS E NOTE (AND ANY INTEREST HEREIN) MAY NOT BE TRANSFERRED IN AN AMOUNT LESS THAN THE
MINIMUM DENOMINATION OF SUCH CLASS E NOTE.

A-5-2

 

 

     THIS CLASS E NOTE MAY NOT BE TRANSFERRED DIRECTLY OR INDIRECTLY TO (1) EMPLOYEE BENEFIT PLANS,
RETIREMENT ARRANGEMENTS, INDIVIDUAL RETIREMENT ACCOUNTS OR KEOGH PLANS SUBJECT TO EITHER TITLE I OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED, OR (2) ENTITIES (INCLUDING INSURANCE COMPANY GENERAL ACCOUNTS)
WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF ANY SUCH PLAN’S ARRANGEMENTS OR ACCOUNT’S
INVESTMENT IN SUCH ENTITIES. FURTHER, THIS CLASS E NOTE MAY BE TRANSFERRED ONLY TO A UNITED STATES
PERSON WITHIN THE MEANING OF SECTION 7701(a)(30) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.

     THE RIGHTS OF THE HOLDER OF THIS CLASS E NOTE TO RECEIVE INTEREST ARE SUBORDINATED TO THE RIGHTS OF
THE HOLDERS OF THE CLASS A NOTES THE CLASS B NOTES, THE CLASS C NOTES AND THE CLASS D NOTES TO
RECEIVE INTEREST AND THE RIGHTS OF THE HOLDERS OF THIS CLASS E NOTE TO RECEIVE PRINCIPAL ARE
SUBORDINATED TO THE RIGHTS OF THE HOLDERS OF THE CLASS A NOTES, THE CLASS B NOTES, THE CLASS C
NOTES AND THE CLASS D NOTES TO RECEIVE PRINCIPAL AND INTEREST TO THE EXTENT SET FORTH IN THE SALE
AND SERVICING AGREEMENT.

A-5-3

 

 

			
	REGISTERED

No. E–
	 	$                                 

April 11, 2006

SEE REVERSE FOR CERTAIN DEFINITIONS

[144A
CUSIP No.                                            ]

[Common Code No.                                         ]

     CapitalSource Commercial Loan Trust 2006-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby
promises to pay to ______, or registered assigns, the principal sum of
______ DOLLARS payable on each Payment Date in an amount
equal to the result obtained by multiplying (i) a fraction, the numerator of which is the initial
principal balance of this Class E Note and the denominator of which is the Initial Class E
Principal Balance by (ii) the aggregate amount, if any, payable from the Note Distribution Account
in respect of principal on the Class E Notes pursuant to Section 3.05 of the Indenture.

     The principal of and interest on this Class E Note are payable in such coin or currency of the
United States as at the time of payment is legal tender for payment of public and private debts.
All payments made by the Issuer with respect to this Class E Note shall be applied first to
interest due and payable on this Class E Note as provided above and then to the unpaid principal of
this Class E Note.

     Reference is made to the further provisions of this Class E Note set forth on the reverse
hereof, which shall have the same effect as though fully set forth on the face of this Class E
Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Class E Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

A-5-4

 

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Responsible Officer as of the date set forth below.

	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1
	 
	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its
individual capacity but solely as Owner Trustee
under the Trust Agreement
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Class E Notes of CapitalSource Commercial Loan Trust 2006-1 designated
above and referred to in the within-mentioned Indenture.

	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL
ASSOCIATION, 
not in its individual capacity but
solely as Indenture Trustee,
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

A-5-5

 

 

[REVERSE OF NOTE]

     This Class E Note is one of a duly authorized issue of Class E Notes of the Issuer, designated
as its CapitalSource Commercial Loan Trust 2006-1 Class E Notes (herein called the “Class E
Notes”), all issued under an Indenture, dated as of April 11, 2006 (such indenture, as supplemented
or amended, is herein called the “Indenture”), between the Issuer and Wells Fargo Bank, National
Association, as indenture trustee (the “Indenture Trustee”, which term includes any successor
Indenture Trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Class E Notes. The Class E Notes are subject
to all terms of the Indenture. All terms used in this Class E Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them in or pursuant to
the Indenture, as so supplemented or amended.

     Notwithstanding the foregoing, the entire unpaid principal amount of the Class E Notes shall
be due and payable on the date on which an Event of Default shall have occurred and be continuing
and the Indenture Trustee, or the Majority Noteholders have declared the Class E Notes to be
immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal
payments on the Class E Notes shall be made pro rata to the Class E Noteholders entitled thereto.

     Each Class E Noteholder or Class E Note Owner, by acceptance of a Class E Note or, in the case
of a Class E Note Owner, a beneficial interest in a Class E Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer under
the Indenture on the Class E Notes or under any certificate or other writing delivered in
connection therewith, against the Trust Depositor, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity or any of their Affiliates.

     On each Payment Date, commencing April 20, 2006, the Indenture Trustee or Paying Agent shall
distribute to the Person in whose name this Class E Note is registered at the close of business on
the Record Date an amount equal to the product of the Percentage Interest of the Class E Notes
evidenced by this Class E Note and the amount
required to be distributed to Holders of Class E Notes on such Payment Date pursuant to
Section 3.05 of the Indenture.

     During each Interest Accrual Period, this Class E Note will bear interest at the Class E Note
Interest Rate.

     Distributions on this Class E Note will be made by the Indenture Trustee or Paying Agent by
check mailed to the address of the Person entitled thereto as such name and address shall appear on
the Note Register or, upon written request to the Indenture Trustee, by wire transfer of
immediately available funds to the account of the Person entitled thereto as shall appear on the
Note Register without the presentation or surrender of this Note or the making of any notation
thereon, at a bank or other entity having appropriate facilities therefor, and, in the case of wire
transfers, at the expense of such Person unless such Person shall own of record Class E Notes which
have Initial Class E Principal Balances aggregating at least $500,000.

A-5-6

 

 

     Notwithstanding the above, the final distribution on this Class E Note will be made after due
notice by the Indenture Trustee of the pendency of such distribution and only upon presentation and
surrender of this Class E Note at the office or agency maintained for that purpose by the Note
Registrar in Minneapolis, Minnesota.

     As provided in the Indenture and the Sale and Servicing Agreement, deposits and withdrawals
from the Note Distribution Account, the Principal and Interest Account and the Reserve Fund may be
made by the Indenture Trustee from time to time for purposes other than distributions to Class E
Noteholders, such purposes including reimbursement to the Servicer of advances made, or certain
expenses incurred, by it, and investment in Permitted Investments.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Class E Note is registrable in the Note Register upon surrender of this Class E
Note for registration of transfer at the offices or agencies maintained by the Note Registrar in
Minneapolis, Minnesota, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to, the Indenture Trustee, duly executed by the holder hereof or such holder’s
attorney duly authorized in writing, and thereupon one or more new Class E Notes in authorized
denominations evidencing the same aggregate undivided Percentage Interest will be issued to the
designated transferee or transferees.

     The Class E Note is issuable only as a registered Class E Note. As provided in the Indenture
and subject to certain limitations therein set forth, the Class E Note is exchangeable for a new
Class E Note evidencing the same undivided ownership interest, as requested by the holder
surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the Note
Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

     The Servicer, the Trust Depositor, the Indenture Trustee and the Note Registrar, and any agent
of any of the foregoing, may treat the person in whose name this Class E Note is registered as the
owner hereof for all purposes, and none of the foregoing shall be affected by notice to the
contrary.

     The obligations and responsibilities created by the Indenture with respect to this Class E
Note shall terminate upon the payment to Class E Noteholders of all amounts required to be paid to
them pursuant to the Indenture and the Sale and Servicing Agreement and the disposition of all
property held as part of the Indenture Collateral with respect to this Class E Note.

A-5-7

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE1

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for an Individual Note, or exchanges of a part of another Global Note or Individual Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 

	 	Amount of
	 	Amount of
	 	Principal Amount	 	 
	 

	 	decrease in
	 	increase in
	 	of this Global
	 	Signature of
	 

	 	Principal Amount
	 	Principal Amount
	 	Note following
	 	Responsible
	Date of

	 	of this Global
	 	of this Global
	 	such decrease (or
	 	Officer of Note
	Exchange

	 	Note
	 	Note
	 	increase)
	 	Registrar
	 

	 	 
	 	 
	 	 
	 	 

 

			
	1	 	This should be included only if the Note is issued in global form.

A-5-8

 

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

 

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                    , attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	2
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Signature Guaranteed:

 

			
	2	 	NOTE: The signature to this assignment must correspond with the name of the registered owner
as it appears on the face of the within Note in every particular, without alteration, enlargement
or any change whatsoever.

A-5-9

 

 

EXHIBIT A-6

[FORM OF CLASS F NOTE]

CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAW OF ANY STATE. THE HOLDER HEREOF,
BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE 144A (A “QIB”) WHO IS A
QUALIFIED PURCHASER FOR PURPOSES OF SECTION 3(c)(7) UNDER THE INVESTMENT COMPANY ACT OF 1940 (A
“QUALIFIED PURCHASER”) PURCHASING FOR ITS OWN ACCOUNT OR A QIB WHO IS A QUALIFIED PURCHASER
PURCHASING FOR THE ACCOUNT OF A QIB WHO IS A QUALIFIED PURCHASER, WHOM THE HOLDER HAS INFORMED THAT
THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) IN
CERTIFICATED FORM TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING OF RULE 501
(a)(1)–(3) OR (7) UNDER THE SECURITIES ACT) THAT IS ALSO A QUALIFIED PURCHASER, PURCHASING FOR
INVESTMENT AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, IN EACH CASE, SUBJECT TO
(A) THE RECEIPT BY THE INDENTURE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE
INDENTURE AND (B) THE RECEIPT BY THE INDENTURE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE
INDENTURE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER REQUIREMENTS OF LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF ANY STATE OF THE UNITED
STATES AND ANY OTHER
APPLICABLE JURISDICTION, (3) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT, (4) PURSUANT TO ANOTHER EXEMPTION AVAILABLE UNDER THE
SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR (5) PURSUANT TO A
VALID REGISTRATION STATEMENT. THE PURCHASE OF THIS NOTE WILL BE DEEMED A REPRESENTATION BY THE
ACQUIRER THAT IT IS NOT, AND IS NOT ACQUIRING OR HOLDING THIS NOTE, DIRECTLY OR INDIRECTLY, ON
BEHALF OF OR WITH ANY ASSETS OF, AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF ERISA,
THAT IS SUBJECT TO TITLE I OF ERISA, OR A “PLAN” DESCRIBED IN AND SUBJECT TO SECTION 4975 OF THE
CODE.

     THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF

A-6-1

 

 

THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

     THIS CLASS F NOTE IS A PRINCIPAL ONLY NOTE AND DOES NOT BEAR ANY INTEREST.

     THIS CLASS F NOTE MAY NOT BE TRANSFERRED DIRECTLY OR INDIRECTLY TO ANY PERSON THAT IS, OR IS
ACTING DIRECTLY OR INDIRECTLY FOR, ON BEHALF OF OR WITH ANY ASSETS OF, AN “EMPLOYEE BENEFIT PLAN”
AS DEFINED IN SECTION 3(3) OF ERISA THAT IS SUBJECT TO TITLE I OF ERISA, OR A “PLAN” DESCRIBED IN
AND SUBJECT TO SECTION 4975 OF THE CODE (COLLECTIVELY,
“PLAN”). THIS CLASS F NOTE MAY NOT BE
TRANSFERRED TO A PLAN THAT IS NOT SUBJECT TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE UNLESS
ITS ACQUISITION AND HOLDING OF THIS NOTE WILL NOT CONSTITUTE OR RESULT IN A VIOLATION OF ANY
FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF
ERISA OR THE CODE (“SIMILAR LAW”). FURTHER, THIS NOTE MAY BE TRANSFERRED ONLY TO A UNITED STATES
PERSON WITHIN THE MEANING OF SECTION 7701(a)(30) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.

     THIS CLASS F NOTE MAY NOT BE ACQUIRED OR OWNED BY ANY PERSON THAT IS CLASSIFIED FOR U.S.
FEDERAL INCOME TAX PURPOSES AS A PARTNERSHIP, SUBCHAPTER S CORPORATION OR GRANTOR TRUST UNLESS (A)
NONE OF THE DIRECT OR INDIRECT BENEFICIAL OWNERS OF ANY INTEREST IN SUCH PERSON HAVE OR EVER WILL
HAVE MORE THAN 50% OF THE VALUE OF ITS INTEREST IN SUCH PERSON ATTRIBUTABLE TO
THE INTEREST OF SUCH PERSON IN ANY CLASS E NOTES, CLASS F NOTES OR OTHER INTEREST (DIRECT OR
INDIRECT) IN CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1, AND (B) IT IS NOT AND WILL NOT BE A
PRINCIPAL PURPOSE OF THE ARRANGEMENT INVOLVING THE INVESTMENT OF SUCH PERSON IN THIS CLASS F NOTE
TO PERMIT ANY PARTNERSHIP TO SATISFY THE 100 PARTNER LIMITATION OF TREAS. REG. §
1.7704-1(H)(1)(II).

     THIS CLASS F NOTE (AND ANY INTEREST HEREIN) MAY NOT BE ACQUIRED, SOLD, TRANSFERRED, ASSIGNED,
PARTICIPATED, PLEDGED OR OTHERWISE DISPOSED OF OR CAUSED TO BE MARKETED, ON OR THROUGH (I) AN
“ESTABLISHED SECURITIES MARKET” WITHIN THE MEANING OF SECTION 7704(B) OF THE CODE, INCLUDING,
WITHOUT LIMITATION, AN INTERDEALER QUOTATION SYSTEM THAT REGULARLY DISSEMINATES FIRM BUY OR SELL
QUOTATIONS OR (II) A “SECONDARY MARKET (OR THE SUBSTANTIAL EQUIVALENT THEREOF)” WITHIN THE MEANING
OF SECTION 7704(B)(2) OF THE CODE, INCLUDING A MARKET WHEREIN ANY CLASS F NOTE (OR INTEREST
THEREIN) IS REGULARLY QUOTED BY ANY PERSON MAKING A MARKET IN SUCH INTERESTS AND A MARKET WHEREIN
ANY PERSON REGULARLY MAKES AVAILABLE BID OR OFFER QUOTES WITH RESPECT TO ANY CLASS F NOTE (OR
INTEREST THEREIN) AND STANDS READY TO EFFECT BUY OR SELL TRANSACTIONS AT THE QUOTED PRICES FOR
ITSELF OR ON BEHALF OF OTHERS.

A-6-2

 

 

     THIS CLASS F NOTE (AND ANY INTEREST HEREIN) MAY NOT BE TRANSFERRED IN AN AMOUNT LESS THAN THE
MINIMUM DENOMINATION OF SUCH CLASS E NOTE.

     NO
TRANSFER, SALE, PLEDGE OR OTHER DISPOSITION OF ONE OR MORE CLASS F
NOTES (A “TRANSFER”)
SHALL BE MADE UNLESS SIMULTANEOUSLY WITH THE TRANSFER (1) A PROPORTIONATE AMOUNT OF TRUST
CERTIFICATES ARE TRANSFERRED SO THAT THE RATIO OF THE PERCENTAGE INTEREST OF THE TRUST CERTIFICATES
SO TRANSFERRED TO ALL TRUST CERTIFICATES AND THE RATIO OF THE PERCENTAGE INTEREST OF THE CLASS F
NOTES SO TRANSFERRED TO THE PERCENTAGE INTEREST OF ALL CLASS F NOTES ARE EQUAL, (2) THE TRANSFERS
OF THE TRUST CERTIFICATES AND CLASS F NOTES REFERRED TO HEREIN ARE MADE TO THE SAME PERSON, AND (3)
THE PERCENTAGE INTEREST OF THE TRUST CERTIFICATES AND CLASS F NOTES, RESPECTIVELY, SO TRANSFERRED
IS NO LESS THAN TEN (10%) PERCENT.

     THE RIGHTS OF THE HOLDERS OF THIS CLASS F NOTE TO RECEIVE PRINCIPAL ARE SUBORDINATED TO THE
RIGHTS OF THE HOLDERS OF THE CLASS A NOTES, THE CLASS B NOTES, THE CLASS C NOTES, THE CLASS D
NOTES AND THE CLASS E NOTES TO RECEIVE PRINCIPAL AND INTEREST TO THE EXTENT SET FORTH IN THE
SALE AND SERVICING AGREEMENT.

A-6-3

 

 

			
	REGISTERED
	 	$                    
	 	 	 
	No. F –
	 	April 11, 2006

SEE REVERSE FOR CERTAIN DEFINITIONS

     CapitalSource Commercial Loan Trust 2006-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the
“Issuer”), for value received, hereby
promises to pay to                                         , or registered assigns, the principal sum of
                                                             DOLLARS payable on each Payment Date in an amount equal to
the result obtained by multiplying (i) a fraction the numerator of which is the initial principal
balance of this Class F Note and the denominator of which is the Initial Class F Principal Balance
by (ii) the aggregate amount, if any, payable from the Note Distribution Account in respect of
principal on the Class F Notes pursuant to
Section 3.05 of the Indenture.

     Distributions on this Class F Note are payable in such coin or currency of the United States
as at the time of payment is legal tender for payment of public and private debts.

     Reference is made to the further provisions of this Class F Note set forth on the reverse
hereof, which shall have the same effect as though fully set forth on the face of this Class F
Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Class F Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

A-6-4

 

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Responsible Officer as of the date set forth below.

	 	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	WILMINGTON TRUST COMPANY, not in its
individual capacity but solely as Owner Trustee
under the Trust Agreement
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 	 	Authorized Signatory

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class F Notes of CapitalSource Commercial Loan Trust 2006-1 designated above and
referred to in the within–mentioned Indenture.

	 	 	 	 	 
	 	 	WELLS FARGO BANK,
	 	 	NATIONAL ASSOCIATION, not in its individual
capacity but solely as Indenture Trustee,
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

A-6-5

 

 

[REVERSE OF NOTE]

     This Class F Note is one of a duly authorized issue of Class F Notes of the Issuer, designated
as its CapitalSource Commercial Loan Trust 2006-1 Class F Notes (herein called the “Class F
Notes”), all issued under an Indenture dated as of April 11, 2006 (such indenture, as supplemented
or amended, is herein called the “Indenture”), between the Issuer and Wells Fargo Bank, National
Association, as indenture trustee (the “Indenture Trustee”, which term includes any successor
Indenture Trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Class F Notes. The Class F Notes are subject
to all terms of the Indenture. All terms used in this Class F Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them in or pursuant to
the Indenture, as so supplemented or amended.

     Notwithstanding the foregoing, the entire unpaid principal amount of the Class F Notes shall
be due and payable on the date on which an Event of Default shall have occurred and be continuing
and the Indenture Trustee, or the Majority Noteholders have declared the Class F Notes to be
immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal
payments on the Class F Notes shall be made pro rata to the Class F Noteholders entitled thereto.

     Each Class F Noteholder or Class F Note Owner, by acceptance of a Class F Note or, in the case
of a Class F Note Owner, a beneficial interest in a Class F Note covenants
and agrees that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer under the Indenture on the Class F Notes or under any certificate or
other writing delivered in connection therewith, against the Trust Depositor, the Servicer, the
Indenture Trustee or the Owner Trustee in its individual capacity or any of their Affiliates.

     On each Payment Date, commencing April 20, 2006, the Indenture Trustee or Paying Agent shall
distribute to the Person in whose name this Class F Note is registered on the close of business on
the Record Date an amount equal to the product of the Percentage Interest of the Class F Notes
evidenced by this Class F Note and the amount required to be distributed to Holders of Class F
Notes on such Payment Date pursuant to Section 3.05 of the Indenture.

     Distributions on this Class F Note will be made by the Indenture Trustee or Paying Agent by
check mailed to the address of the Person entitled thereto as such name and address shall appear on
the Note Register or, upon written request to the Indenture Trustee, by wire transfer of
immediately available funds to the account of the Person entitled thereto as shall appear on the
Note Register without the presentation or surrender of this Note or the making of any notation
thereon, at a bank or other entity having appropriate facilities therefor, and, in the case of wire
transfers, at the expense of such Person unless such Person shall own of record Class F Notes which
have Initial Class F Principal Balances aggregating at least $500,000.

     Notwithstanding the above, the final distribution on this Class F Note will be made after due
notice by the Indenture Trustee of the pendency of such distribution and only upon

A-6-6

 

 

presentation and surrender of this Class F Note at the office or agency maintained for that purpose
by the Note Registrar in Minneapolis, Minnesota.

     As provided in the Indenture and the Sale and Servicing Agreement, deposits and withdrawals
from the Note Distribution Account, the Principal and Interest Account and the Reserve Fund may be
made by the Indenture Trustee from time to time for purposes other than distributions to Class F
Noteholders, such purposes including reimbursement to the Servicer of advances made, or certain
expenses incurred, by it, and investment in Permitted Investments.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Class F Note is registrable in the Note Register upon surrender of this Class F
Note for registration of transfer at the offices or agencies maintained by the Note Registrar in
Minneapolis, Minnesota, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to, the Indenture Trustee, duly executed by the holder hereof or such holder’s
attorney duly authorized in writing, and thereupon one or more new Class F Notes in authorized
denominations evidencing the same aggregate
undivided Percentage Interest will be issued to the designated transferee or transferees.

     The
Class F Note is issuable only as a registered Class F Note. As provided in the Indenture
and subject to certain limitations therein set forth, the Class F Note is exchangeable for a new
Class F Note evidencing the same undivided ownership interest, as requested by the holder
surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the Note
Registrar may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Servicer, the Trust Depositor, the Indenture Trustee and the Note Registrar, and any agent
of any of the foregoing, may treat the person in whose name this Class F Note is registered as the
owner hereof for all purposes, and none of the foregoing shall be affected by notice to the
contrary.

     The obligations and responsibilities created by the Indenture shall terminate upon the payment
to Class F Noteholders of all amounts required to be paid to them pursuant to the Indenture and the
Sale and Servicing Agreement and the disposition of all property held as part of the Indenture
Collateral.

A-6-7

 

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

 

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                    , attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 1
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Signature Guaranteed:

 

			
	1	 	NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every particular, without
alteration, enlargement or any change whatsoever.

A-6-8

 

 

EXHIBIT B

LIST OF LOANS

See Exhibit G of the Sale and Servicing Agreement.

B-1

 

 

EXHIBIT C

WIRING INSTRUCTIONS FORM

                    , 2006

[Paying Agent]

[Trustee]

 

 

 

			
	Re:	 	CapitalSource Commercial Loan Trust 2006- 1, [Class A] [Class B] [Class C] [Class D] [Class E] [Class F] Notes

Dear Sir:

In connection with the sale of the above–captioned Note by                                          to
                                                            ,
(“Transferee”) you, as Paying Agent, are instructed to make all
remittances to Transferee as Noteholder as of
                    , ___ by wire transfer. For such wire
transfer, the wiring instructions are as follows:

 

 

 

	 	 	 	 	 
	 

	 	 

Transferee
	 	 

Noteholder’s mailing address:

Name:

Address:

C-1

 

 

EXHIBIT D–1

FORM OF TRANSFEREE LETTER

CapitalSource Finance LLC,

as the Servicer

4445 Willard Avenue, 12th Floor

Chevy Chase, Maryland 20815

Attention: Controller

Wells Fargo Bank, National Association,

as the Indenture Trustee

Sixth and Marquette Avenue, MAC N9311–161

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services/Asset Backed Administration

_____,
20 ___

	 	 	 
	Re:

	 	CapitalSource Commercial Loan Trust 2006-1
	 

	 	Class A, Class B, Class C, Class D, Class E and Class F Notes

Ladies and Gentlemen:

       In connection with our acquisition of the above–captioned Notes, we certify that (a) we
understand that the Notes are not being registered under the Securities Act of 1933, as amended
(the “Act”), or any state securities laws and are being transferred to us in a transaction that is
exempt from the registration requirements of the Act and any such laws, (b) we are an Institutional
Accredited Investor who is a Qualified Purchaser, as defined in the Indenture pursuant to which the
Notes were issued (the “Indenture”), and have such knowledge and experience in financial and
business matters that we are capable of evaluating the merits and risks of investments in the
Notes, (c) we have had the opportunity to ask questions of and receive answers from the Originator
and the Servicer concerning the purchase of the Notes and all matters relating thereto or any
additional information deemed necessary to our decision to purchase the Notes, (d) we are acquiring
the Notes for investment for our own account and not with a view to any distribution of such Notes
(but without prejudice to our right at all times to sell or otherwise dispose of the Notes in
accordance with clause (f) below), (e) we have not offered or sold any Notes to, or solicited
offers to buy any Notes from, any person, or otherwise approached or negotiated with any person
with respect thereto, or taken any other action which would result in a violation of Section 5 of
the Act, (f) we will not sell, transfer or otherwise dispose of any Notes unless (1) such sale,
transfer or other disposition is made pursuant to an effective registration statement under the Act
or is exempt from such registration requirements, and if requested, we will at our expense provide
an opinion of counsel satisfactory to the addressees of this certificate that such sale, transfer
or other disposition may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Note has executed and delivered to you a certificate to substantially the same
effect as this certificate if required by the Indenture,
and (3) the purchaser or transferee has otherwise complied with any conditions for transfer
set forth in the Indenture, (g) the purchaser is not, and is not acquiring or holding a Class

D-1-1

 

 

A Note, Class B Note, Class C Note or Class D Note, directly or indirectly on behalf of or with any
assets of an employee benefit plan as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), that is subject to Title I of ERISA, a “plan” described
in and subject to Section 4975 of the Internal Revenue Code of
1986, as amended (the “Code”)
(collectively, a “Plan”) or other plan or arrangement subject to any federal, state, local,
non-U.S. or other law substantively similar to the foregoing provisions of ERISA or the Code
(“Similar Law”); or (A) in the case of a Class A Note, Class B Note, Class C Note or Class D Note,
its acquisition and holding of the Class A Note, Class B Note, Class C Note or Class D Note will
not constitute or result in a non-exempt prohibited transaction under Title I of ERISA or Section
4975 of the Code or a violation of Similar Law, and (B) in the case of a Class E Note or Class F
Note, it is a plan that is not subject to Title I of ERISA or Section 4975 of the Code and its
acquisition and holding of the Class E Note or Class F Note will not constitute or result in a
violation of Similar Law, (h) the purchaser is not, and is not acquiring or holding a Class E Note
or Class F Note, directly or indirectly on behalf of or with any asset of, an employee benefit plan
as defined in Section 3(3) of ERISA that is subject to Title I of ERISA or a “plan” described in
and subject to Section 4975 of the Code (i) if the purchaser is acquiring a Class E Note or Class F
Note, the purchaser is a U.S. Person, as such term is defined in Section 7701(a)(30) of the
Internal Revenue Code of 1986, as amended, and (j) if the purchaser is acquiring a Class F Note,
the purchaser also is acquiring Trust Certificates such that the ratio and the Percentage Interest
of the Trust Certificates being acquired to all Trust Certificates and the ratio and the Percentage
Interest of the Class F Notes being acquired to all Class F Notes are equal.

     If the Purchaser is acquiring a Class E Note or Class F Note:

     (a) the Purchaser either:

          (1) is not and will not become for U.S. federal income tax purposes a
partnership, subchapter S corporation, grantor trust or other pass-through entity or

          (2)
if it is or will become such an entity for U.S. federal income tax
purposes, then:

     (A) none
of the direct or indirect beneficial owners of any interest in
the Purchaser have or ever will have more than 50% of the value of its interest in the
Purchaser attributable to the interest of the Purchaser in any Class E Notes Class F Notes
or other interest (direct or indirect) in the Issuer; and

     (B) it is not and will not be a principal purpose of the arrangement involving the
investment of the Purchaser in any Class E Notes or Class F Note to permit any partnership
to satisfy the 100 partner limitation of Treas. Reg. § 1.7704-1(h)(1)(ii);

     (b) The Purchaser is not acquiring and will not sell, transfer, assign, participate, pledge or
otherwise dispose of any Class E Notes or Class F Note (or interest therein) or cause any Class E
Notes or Class F Note (or interest therein) to be marketed on or through an “established securities
market” within the meaning of Section 7704(b) of the Code, including,

D-1-2

 

 

without limitation, an interdealer quotation system that regularly disseminates firm buy or sell
quotations.

     (c) The Purchaser is (i) a citizen or resident of the United States, (ii) a corporation or
partnership organized in or under the laws of the United States or any state (or the District of
Columbia), (iii) an estate the income of which is subject to United States federal income tax,
regardless of source or (iv) a trust if a court within the United States is able to exercise
primary supervision over the administration of such trust or one or more persons described in this
paragraph have the authority to control all substantial decisions of the trust (each of the
foregoing being a “U.S. Person”).

     (d) The Purchaser understands and agrees not to transfer its interest in any Class E Note or
Class F Note in an amount less than the minimum denomination of such Note.

     (e) The purchaser is not acquiring any Class E Note directly or indirectly, by, for, on behalf
of or with any assets of an employee benefit plan as defined in Section 3(3) of ERISA that is
subject to Title I of ERISA or a “plan” described in and subject to Section 4975 of the Code, and
if it is acquiring a Class E Note by, for, on behalf of or with assets of a plan that is not a
Plan, its acquisition and holding of the Class E Note will not constitute or result in a violation
of Similar Law.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	 
	 	 	Print Name of Transferee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Responsible Officer

D-1-3

 

 

EXHIBIT D-2

FORM OF RULE 144A CERTIFICATION

CapitalSource Finance LLC,

as the Servicer

4445 Willard Avenue, 12th Floor

Chevy Chase, Maryland 20815

Attention: Controller

Wells Fargo Bank, National Association,

as the Indenture Trustee

Sixth and Marquette Avenue, MAC N9311–161

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services/Asset Backed Administration

                    ,
20 __

			
	Re:	 	CapitalSource Commercial Loan Trust 2006-1

 Class A, Class B, Class C, Class D, Class E and Class F Notes

Ladies and Gentlemen:

     In connection with our acquisition any of the above Notes we certify that (a) we understand
that the Notes are not being registered under the Securities Act of 1933, as amended (the “Act”),
or any state securities laws and are being transferred to us in a transaction that is exempt from
the registration requirements of the Act and any such laws, (b) we have had the opportunity to ask
questions of and receive answers from Originator and the Servicer concerning the purchase of the
Notes and all matters relating thereto or any additional information deemed necessary to our
decision to purchase the Notes, (c) we have not, nor has anyone acting on our behalf offered,
transferred, pledged, sold or otherwise disposed of the Notes, any interest in the Notes or any
other similar security to, or solicited any offer to buy or accept a transfer, pledge or other
disposition of the Notes, any interest in the Notes or any other similar security from, or
otherwise approached or negotiated with respect to the Notes, any interest in the Notes or any
other similar security with, any person in any manner, or made any general solicitation by means of
general advertising or in any other manner, or taken any other action, that would constitute a
distribution of the Notes under the Act or that would render the disposition of the Notes a
violation of Section 5 of the Act or require registration pursuant thereto, nor will act, nor has
authorized or will authorize any person to act, in such manner with respect to the Notes, (d) we
are a “Qualified Institutional Buyer” as that term is defined in Rule 144A under the Act who is a
“Qualified Purchaser” as that term is defined in Section 2(a)(51) of the 1940 Act and have
completed the form of certification to that effect attached hereto as Annex 1, (e) we are not, and
are not acquiring or holding a Class A Note, Class B Note, Class C Note or Class D Note,
directly or indirectly on behalf of or with any assets of an employee benefit plan as defined
in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that
is subject to Title I of ERISA a “plan” described in and subject to Section 4975 of the

D-2-1

 

 

Internal Revenue Code of 1986, as amended (the “Code”) (collectively, a “Plan”) or other plan or
arrangement subject to any federal, state, local, non-U.S. or other law substantively similar to
the foregoing provisions of ERISA or the Code (“Similar Law”); or (A) in the case of a Class A
Note, Class B Note, Class C Note or Class D Note, its acquisition and holding of the Class A Note,
Class B Note, Class C Note or Class D Note will not constitute or result in a non-exempt prohibited
transaction under Title I of ERISA or Section 4975 of the Code or a violation of Similar Law, and
(B) in the case of a Class E Note or Class F Note, it is a plan that is not subject to Title I of
ERISA or Section 4975 of the Code and its acquisition and holding of the Class E Note or Class F
Note will not constitute or result in a violation of Similar Law; (f) we are not, and are not
acquiring or holding a Class E Note or Class F Note, directly or indirectly on behalf of or with
any assets of, an employee benefit plan as defined in Section 3(3) of ERISA that is subject to
Title I of ERISA a “plan” described in and subject to Section 4975 of the Code, and if we are a
plan that is not subject to Title I of ERISA or Section 4975 of the Code, our acquisition and
holding of such Note will not constitute or result in a violation of Similar Law, (g) if we are
acquiring a Class E Note or Class F Note, we are a U.S. Person, as such term is defined in Section
7701(a)(30) of the Internal Revenue Code of 1986, as amended, and (h) if the purchaser is acquiring
a Class F Note, we also are acquiring Trust Certificates such that the ratio and the Percentage
Interest of the Trust Certificates being acquired to all Trust Certificates and the ratio and the
Percentage Interest of the Class F Notes being acquired to all Class F Notes are equal. We are
aware that the sale to us is being made in reliance on Rule 144A. We are acquiring the Notes for
our own account or for resale pursuant to Rule 144A and further, understand that such Notes may be
resold, pledged or transferred only (i) to a person reasonably believed to be a Qualified
Institutional Buyer who is a Qualified Purchaser that purchases for its own account or for the
account of a Qualified Institutional Buyer who is a Qualified Purchaser to whom notice is given
that the resale, pledge or transfer is being made in reliance on Rule 144A, or (ii) pursuant to
another exemption from registration under the Act.

     If the Purchaser is acquiring a Class E Note or Class F Note:

     (a) the Purchaser either:

          (1) is not and will not become for U.S. federal income tax purposes a
partnership, subchapter S corporation, grantor trust or other pass-through entity or

          (2) if
it is or will become such an entity for U.S. federal income tax
purposes, then:

     (A) none of the direct or indirect beneficial owners of any interest in
the Purchaser have or ever will have more than 50% of the value of its interest in the
Purchaser attributable to the interest of the Purchaser in any Class E Notes or Class F
Notes or other interest (direct or indirect) in the Issuer; and

     (B) it is not and will not be a principal purpose of the arrangement involving the
investment of the Purchaser in any Class E Notes or Class F Notes to permit any
partnership to satisfy the 100 partner limitation of Treas. Reg. § 1.7704-1(h)(1)(ii)
necessary for such partnership not to be classified as a publicly traded partnership under
the Code;

D-2-2

 

 

     (b) The Purchaser is not acquiring and will not sell, transfer, assign, participate,
pledge or otherwise dispose of any Class E Notes or Class F Notes (or interest therein) or cause
any Class E Notes or Class F Notes (or interest therein) to be marketed on or through an
“established securities market” within the meaning of Section 7704(b) of the Code, including,
without limitation, an interdealer quotation system that regularly disseminates firm buy or sell
quotations.

     (c) The Purchaser is (i) a citizen or resident of the United States, (ii) a corporation or
partnership organized in or under the laws of the United States or any state (or the District of
Columbia), (iii) an estate the income of which is subject to United States federal income tax,
regardless of source or (iv) a trust if a court within the United States is able to exercise primary
supervision over the administration of such trust or one or more persons described in this
paragraph have the authority to control all substantial decisions of the trust (each of the
foregoing being a “U.S. Person”).

     (d) The Purchaser understands and agrees not to transfer its interest in any Class E Note or
Class F Note in an amount less than the minimum denomination of such Note.

     (e) The purchaser is not acquiring any Class E Note directly or indirectly, by, for, on behalf
of or with any assets of an employee benefit plan as defined in Section 3(3) of ERISA that is
subject to Title I of ERISA or a “plan” described in and subject to Section 4975 of the Code, and
if it is acquiring a Class E Note by, for, on behalf of or with assets of a plan that is not a
Plan, its acquisition and holding of the Class E Note will not constitute or result in a violation
of Similar Law.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	Print Name of Transferee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Responsible Officer

D-2-3

 

 

ANNEX 1 TO EXHIBIT D–2

[FORM OF CERTIFICATION]

[Date]

CapitalSource Finance LLC,

as the Servicer

4445 Willard Avenue, 12th Floor

Chevy Chase, Maryland 20815

Attention: Controller

Wells Fargo Bank, National Association,

as the Indenture Trustee

Sixth and Marquette Avenue, MAC N9311–161

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services/Asset Backed Administration

	 	 	 
	Re:

	 	CapitalSource Commercial Loan Trust
	 

	 	Class A, Class B, Class C, Class D, Class E and Class F Notes

Ladies and Gentlemen:

In connection with our purchase of the Notes, the undersigned certifies to each of the parties to
whom this letter is addressed that it is a qualified institutional buyer (as defined in Rule 144A
under the Securities Act of 1933, as amended (the “Act”)) who is a qualified purchaser (as defined
in Section 2(a)(51) of the Investment Company Act of 1940 (the
“1940 Act”)) as follows:

	1.	 	It owns and/or invests on a discretionary basis eligible securities (excluding
affiliate’s securities, bank deposit notes and CD’s, loan participations, repurchase
agreements, securities owned but subject to a repurchase agreement and currency, interest
rate and commodity swaps), as described below:
	 
	 	 	Amount: $___; and
	 
	2.	 	The dollar amount set forth above is:

	 	a.	 	greater than $100 million and the undersigned is one of the following entities:

	 	(1)	o	an insurance company as defined in Section 2(13) of the Act*; or

 

			
	*	 	A purchase by an insurance company for one or more of its separate accounts, as defined
by section 2(a)(37) of the Investment Company Act of 1940, which are neither registered
nor required to be registered thereunder, shall be deemed to be a purchase for the account
of such insurance company.

D-2-1

 

 

	 	(2)	o	 an investment company registered under the Investment Company Act or
any business development company as defined in Section 2(a)(48) of the
1940 Act or as defined in Section 202(a)(22) of the Investment Advisers
Act of 1940; or
	 
	 	(3)	o	 a Small Business Investment Company licensed by the U.S. Small
Business Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958; or
	 
	 	(4)	o	 a plan (i) established and maintained by a state, its political subdivisions,
or any agency or instrumentality of a state or its political subdivisions, the
laws of which permit the purchase of securities of this type, for the benefit
of its employees and (ii) the governing investment guidelines of which
permit the purchase of securities of this type, in any case acting for its own
account within the meaning of Rule 2(a)(51) of the 1940 Act; or
	 
	 	(5)	o	 a corporation (other than a U.S. bank, savings and loan association or
equivalent foreign institution), partnership, Massachusetts or similar
statutory or business trust, or an organization described in Section
501(c)(3) of the Internal Revenue Code; or
	 
	 	(6)	o	a U.S. bank, savings and loan association or equivalent foreign institution,
which has an audited net worth of at least $25 million as demonstrated in
its latest annual financial statements as of a date not more than 16 months
preceding the date of sale in the case of a U.S. institution or 18 months in
the case of a foreign institution; or
	 
	 	(7)	o	an investment adviser registered under the Investment Advisers Act; or

	 	b.	o	 greater than $10 million, and the undersigned is a broker–dealer registered
with the SEC; or
	 
	 	c.	o	 less than $10 million, and the undersigned is a broker–dealer registered with
the SEC and will only purchase Rule 144A securities in riskless principal
transactions (as defined in Rule 144A); or
	 
	 	d.	o	 less than $100 million, and the undersigned is an investment company
registered under the 1940 Act, which, together with one or more registered
investment companies having the same or an affiliated investment adviser,
owns at least $100 million of eligible securities; or

	 
	 	e.	o	less than $100 million, and the undersigned is an entity, all the equity owners
of which are qualified institutional buyers.

     The undersigned further certifies that it is purchasing Notes for its own account or for the
account of others that independently qualify as “Qualified Institutional Buyers” as defined in Rule
144A who are “Qualified Purchasers” as defined in the 1940 Act. It is aware that the sale of the
Notes is being made in reliance on its continued compliance with Rule 144A. It is aware

D-2-2

 

 

that the transferor may rely on the exemption from the provisions of Section 5 of the Act provided
by Rule 144A. The undersigned understands that the Notes may be resold, pledged or transferred
pursuant to Rule 144A only to a person reasonably believed to be a Qualified Institutional Buyer
who is a Qualified Purchaser that purchases for its own account or for the account of a Qualified
Institutional Buyer who is a Qualified Purchaser to whom notice is given that the resale, pledge or
transfer is being made in reliance in Rule 144A.

     The undersigned agrees that if at some time before the expiration of the holding period
described in Rule 144 it wishes to dispose of or exchange any of the Notes, it will not transfer or
exchange any of the Notes to a Qualified Institutional Buyer without first obtaining a letter in
the form hereof from the transferee and delivering such certificate to the addressees hereof.

     IN WITNESS WHEREOF, this document has been executed by the undersigned who is duly authorized
to do so on behalf of the undersigned Qualified Institutional Buyer who is a Qualified Purchaser on
the ___ day of                     , ___.

Name of Institution

Signature

Name

Title**

D-2-3

 

 

EXHIBIT E

FORM OF TRANSFER CERTIFICATE FOR RULE 144A GLOBAL NOTE TO

REGULATION S GLOBAL NOTE DURING DISTRIBUTION COMPLIANCE PERIOD

(Pursuant to Section 4.02(l)(i) of the Indenture)

Wells Fargo Bank, National Association,

as the Indenture Trustee

Sixth and Marquette Avenue, MAC N9311–161

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services/Asset Backed Administration

Re:   CapitalSource Commercial Loan Trust 2006-1

        Class [A], [B], [C] and [D] Notes 

Ladies and Gentlemen:

     Reference is hereby made to the Indenture, dated as of April 11, 2006 (as amended, modified,
waived, supplemented or restated from time to time, the “Agreement”), between CapitalSource
Commercial Loan Trust 2006-1, as the issuer (together with its successors and assigns in such
capacity, the “Issuer”), and Wells Fargo Bank, National Association, as the indenture
trustee (together with its successors and assigns in such capacity, the “Trustee”).
Capitalized terms used but not defined herein shall have the meanings given to them in the
Agreement.

     This
letter relates to US $[                    ] aggregate current principal amount of Class ___ Notes (the
“Notes”) which are held in the form of the Rule 144A Global Note (CUSIP No.                     ) with
the Depository in the name of [insert name of transferor] (the “Transferor”). The
Transferor has requested a transfer of such beneficial interest in the Notes for an interest in the
Regulation S Global Note (CUSIP No.                     ) to be held with [Euroclear] [Clearstream] (Common
Code No.                    ) through the Depository.

     In connection with such request and in respect of such Notes, the Transferor does hereby
certify that such transfer has been effected in accordance with the transfer restrictions set forth
in the Agreement and pursuant to and in accordance with Regulation S under the Securities Act of
1933, as amended (the “Securities Act”), and accordingly the Transferor does hereby certify
that:

	 	(1)	 	the offer of the Notes was not made to a person in the United States,
	 
	 	(2)	 	[at the time the buy order was originated, the transferee was outside the
United States or the Transferor and any person acting on its behalf reasonably
believed that the transferee was outside the United States] [the transaction was
executed in, on or through the facilities of a designated
offshore securities market and neither the Transferor nor any person acting on its
behalf knows that the transaction was pre–arranged with a buyer in the United
States],

E-1

 

	 	(3)	 	the transferee is not a U.S. Person within the meaning of Rule 902(o) of
Regulation S nor a Person acting for the account or benefit of a U.S. Person,
	 
	 	(4)	 	no directed selling efforts have been made in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable,
	 
	 	(5)	 	the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act, and
	 
	 	(6)	 	upon completion of the transaction, the beneficial interest being transferred
as described above will be held with the Depository through [Euroclear] [Clearstream].

This certificate and the statements contained herein are made for your benefit and the benefit of
the Trustee, the Issuer and the Placement Agents of the offering of the Notes.

	 	 	 	 	 
	 	 	[Insert Name of Transferor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 

E-2

 

EXHIBIT F

FORM OF TRANSFER CERTIFICATE FOR RULE 144A GLOBAL NOTE TO

REGULATION S GLOBAL NOTE AFTER DISTRIBUTION COMPLIANCE PERIOD

(Pursuant to Section 4.02(l)(ii) of the Indenture)

Wells Fargo Bank, National Association,

as the Indenture Trustee

Sixth and Marquette Avenue, MAC N9311–161

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services/Asset Backed Administration

Re:   CapitalSource Commercial Loan Trust 2006-1

        Class [A], [B], [C] and [D] Notes 

Ladies and Gentlemen:

Reference is hereby made to the Indenture, dated as of April 11, 2006 (as amended, modified,
waived, supplemented or restated from time to time, the “Agreement”), between CapitalSource
Commercial Loan Trust 2006-1, as the issuer (together with its successors and assigns in such
capacity, the “Issuer”), and Wells Fargo Bank, National Association, as the indenture
trustee (the “Trustee”). Capitalized terms used but not defined herein shall have the
meanings given to them in the Agreement.

This
letter relates to US $[                    ] aggregate current principal amount of Class ___ Notes (the
“Notes”) which are held in the form of the Rule 144A Global Note (CUSIP No.                     ) with
the Depository in the name of [insert name of transferor] (the “Transferor”). The
Transferor has requested a transfer of such beneficial interest in the Notes for an interest in the
Regulation S Global Note (Common Code No.                     ).

In connection with such request, and in respect of such Notes, the Transferor does hereby certify
that such transfer has been effected in accordance with the transfer restrictions set forth in the
Agreement and, (i) with respect to transfers made in reliance on Regulation S under the Securities
Act of 1933, as amended (the “Securities Act”), the Transferor does hereby certify that:

	 	(1)	 	the offer of the Notes was not made to a person in the United States;
	 
	 	(2)	 	[at the time the buy order was originated, the transferee was outside the United States
or the Transferor and any person acting on its behalf reasonably believed that the
transferee was outside the United States] [the transaction was executed in, on or through
the facilities of a designated offshore securities market and neither the Transferor nor
any person acting on its behalf knows that the transaction was pre–arranged with a buyer in
the United States];

F-1

 

	 	(3)	 	no directed selling efforts have been made in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable; and
	 
	 	(4)	 	the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act,

or (ii) with respect to transfers made in reliance on Rule 144 under the Securities Act, the
Transferor does hereby certify that the Notes that are being transferred are not “restricted
securities” as defined in Rule 144 under the Securities Act.

This certificate and the statements contained herein are made for your benefit and the benefit of
the Trustee, the Issuer and the Placement Agents of the offering of the Notes.

	 	 	 	 	 
	 	 	[Insert Name of Transferor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 

F-2

 

EXHIBIT G

FORM OF TRANSFER CERTIFICATE REGULATION S GLOBAL NOTE

TO RULE 144A GLOBAL NOTE DURING DISTRIBUTION COMPLIANCE PERIOD

(Pursuant to Section 4.02(l)(iii)(3)(i) of the Indenture)

Wells Fargo Bank, National Association,

as the Indenture Trustee

Sixth and Marquette Avenue, MAC N9311–161

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services/Asset Backed Administration

Re:   CapitalSource Commercial Loan Trust 2006-1

        Class [A], [B], [C] and [D] Notes 

Ladies and Gentlemen:

Reference is hereby made to the Indenture, dated as of April 11, 2006 (as amended, modified,
waived, supplemented or restated from time to time, the “Agreement ”), between
CapitalSource Commercial Loan Trust 2006-1, as the issuer (together with its successors and assigns
in such capacity, the “Issuer”), and Wells Fargo Bank, National Association, as the
indenture trustee (together with its successors and assigns in such capacity, the
“Trustee”). Capitalized terms used but not defined herein shall have the meanings given to
them in the Agreement.

This
letter relates to US $[                    ] aggregate current principal amount of Class ___ Notes (the
“Notes”) which are held in the form of the Regulation S Global Note (CUSIP No.                     )
with [Euroclear] [Clearstream] (Common Code
No.                    ) through the Depository in the name of [insert name
of transferor] (the “Transferor”). The Transferor has requested a transfer of such
beneficial interest in the Notes for an interest in the Regulation 144A Global Note (CUSIP No.                    ).

In connection with such request, and in respect of such Notes, the Transferor does hereby certify
that such Notes are being transferred in accordance with (i) the transfer restrictions set forth in
the Agreement and (ii) Rule 144A under the Securities Act to a transferee that the Transferor
reasonably believes is purchasing the Notes for its own account with respect to which the
transferee exercises sole investment discretion and the transferee and any such account is a
“Qualified Institutional Buyer” within the meaning of Rule 144A who is a “Qualified Purchaser”
under the 1940 Act, in each case in a transaction meeting the requirements of Rule 144A and in
accordance with any applicable securities laws of any state of the United States or any
jurisdiction.

G-1

 

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Trustee, the Issuer and the Placement Agents of the offering of the Notes.

	 	 	 	 	 
	 	 	[Insert Name of Transferor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 

G-2

 

EXHIBIT H

FORM OF TRANSFER CERTIFICATE FOR REGULATION S

GLOBAL NOTE DURING DISTRIBUTION COMPLIANCE PERIOD

(Pursuant to Section 4.02(l)(iv)(3) of the Indenture)

Wells Fargo Bank, National Association,

as the Indenture Trustee

Sixth and Marquette Avenue, MAC N9311–161

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services/Asset Backed Administration

Re:   CapitalSource Commercial Loan Trust 2006-1

        Class [A], [B], [C] and [D] Notes 

Ladies and Gentlemen:

This
certificate is delivered pursuant to Section 4.02 of the Indenture, dated as of April 11, 2006
(as amended, modified, waived, supplemented or restated from time to time, the
“Agreement”), between CapitalSource Commercial Loan Trust 2006-1, as the issuer (together
with its successors and assigns in such capacity, the “Issuer”), and Wells Fargo Bank,
National Association, as the indenture trustee (together with its successors and assigns in such
capacity, the “Trustee”), in connection with the transfer by the undersigned (the
“Transferor”) to                                          (the “Transferee”) of $                                        
current principal amount of Class ___ Notes, in fully registered form (each, an “Individual
Note”), or a beneficial interest of such aggregate current principal amount in the Regulation S
Global Note (the “Global Note”) maintained by The Depository Trust Company or its successor
as Depository under the Agreement (such transferred interest, in either form, being the
“Transferred Interest”).

     In connection with such transfer, the Transferor does hereby certify that such transfer has
been effected in accordance with the transfer restrictions set forth in the Agreement and the Notes
and (i) with respect to transfers made in accordance with
Regulation S (“Regulation S”) promulgated
under the Securities Act of 1933, as amended (the “Securities
Act”), the Transferor does hereby
certify that:

	 	(1)	 	the offer of the Transferred Interest was not made to a person in the United
States;
	 
	 	(2)	 	[at the time the buy order was originated, the Transferee was outside the United States
or the Transferor and any person acting on its behalf reasonably believed that the
Transferee was outside the United States] [the transaction was executed in, on or through
the facilities of a designated offshore securities market and neither the undersigned nor
any person acting on its behalf knows that the transaction was pre–arranged with a buyer in
the United States];

H-1

 

	 	(3)	 	the transferee is not a U.S. Person within the meaning of Rule 902(o) of
Regulation S nor a person acting for the account or benefit of a U.S. Person, and upon
completion of the transaction, the Transferred Interest will be held with the
Depository through [Euroclear] [Clearstream];
	 
	 	(4)	 	no directed selling efforts have been made in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable; and
	 
	 	(5)	 	the transaction is not part of a plan or scheme to evade the registration requirements
of the Securities Act.

or (ii) with respect to transfers made in reliance on Rule 144 under the Securities Act, the
Transferor does hereby certify that such Notes that are being transferred are not “restricted
securities” as defined in Rule 144 under the Securities Act.

This certificate and the statements contained herein are made for your benefit and the benefit of
the Trustee, the Issuer and the Placement Agents of the offering of the Notes.

	 	 	 	 	 
	 	 	[Insert Name of Transferor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 

H-2exv10w55

 

Exhibit 10.55

EXECUTION COPY

 

SALE AND SERVICING AGREEMENT

by and among

CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1,

as the Issuer,

CAPITALSOURCE COMMERCIAL LOAN LLC, 2006-1,

as the Trust Depositor,

CAPITALSOURCE FINANCE LLC,

as the Originator and as the Servicer,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as the Indenture Trustee and as the Backup Servicer.

Dated as of April 11, 2006

 

CapitalSource Commercial Loan Trust 2006-1 Asset Backed Notes

Class A, Class B, Class C, Class D, Class E and Class F Notes

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE 1.	 	DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 1.01.
	 	Definitions
	 	 	2	 
	 

	 	Section 1.02.
	 	Usage of Terms
	 	 	52	 
	 

	 	Section 1.03.
	 	Section References
	 	 	52	 
	 

	 	Section 1.04.
	 	Calculations
	 	 	52	 
	 

	 	Section 1.05.
	 	Accounting Terms
	 	 	52	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 2.	 	ESTABLISHMENT OF ISSUER; TRANSFER OF LOAN
ASSETS	 	 	52	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 2.01.
	 	Creation and Funding of Issuer; Transfer of Initial Loan Assets
	 	 	52	 
	 

	 	Section 2.02.
	 	Conditions to Transfer of Initial Loan Assets to Issuer
	 	 	55	 
	 

	 	Section 2.03.
	 	Acceptance by Owner Trustee
	 	 	56	 
	 

	 	Section 2.04.
	 	Conveyance of Substitute Loans
	 	 	56	 
	 

	 	Section 2.05.
	 	[Reserved]
	 	 	60	 
	 

	 	Section 2.06.
	 	Release of Released Amounts
	 	 	60	 
	 

	 	Section 2.07.
	 	Delivery of Documents in the Loan File; Recording of
Assignments of Mortgage
	 	 	60	 
	 

	 	Section 2.08.
	 	Optional Purchase by the Servicer of Certain Loans;
Limitations on Substitution and Repurchase
	 	 	61	 
	 

	 	Section 2.09.
	 	Certification by Indenture Trustee; Possession of Loan Files
	 	 	61	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 3.	 	REPRESENTATIONS AND WARRANTIES	 	 	63	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.01.
	 	Representations and Warranties Regarding the Trust Depositor
	 	 	63	 
	 

	 	Section 3.02.
	 	Representations and Warranties Regarding Each Loan and as to
Certain Loans in the Aggregate
	 	 	67	 
	 

	 	Section 3.03.
	 	Representations and Warranties Regarding the Initial Loans in
the Aggregate
	 	 	68	 
	 

	 	Section 3.04.
	 	Representations and Warranties Regarding the Loan Files
	 	 	68	 
	 

	 	Section 3.05.
	 	[Reserved]
	 	 	68	 
	 

	 	Section 3.06.
	 	Representations and Warranties Regarding the Servicer
	 	 	68	 
	 

	 	Section 3.07.
	 	Representations and Warranties of the Backup Servicer
	 	 	69	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 4.	 	PERFECTION OF TRANSFER AND PROTECTION OF
SECURITY INTERESTS	 	 	71	 
	 
	 

	 	Section 4.01.
	 	Custody of Loans
	 	 	71	 
	 

	 	Section 4.02.
	 	Filing
	 	 	71	 
	 

	 	Section 4.03.
	 	Changes in Name, Corporate Structure or Location
	 	 	71	 
	 

	 	Section 4.04.
	 	Costs and Expenses
	 	 	72	 
	 

	 	Section 4.05.
	 	Sale Treatment
	 	 	72	 
	 

	 	Section 4.06.
	 	Separateness from Trust Depositor
	 	 	72	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 5.	 	SERVICING OF LOANS	 	 	72	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 5.01.
	 	Appointment and Acceptance
	 	 	72	 

-i-

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 

	 	Section 5.02.
	 	Duties of the Servicer
	 	 	72	 
	 

	 	Section 5.03.
	 	Liquidation of Loans
	 	 	79	 
	 

	 	Section 5.04.
	 	Fidelity Bond
	 	 	80	 
	 

	 	Section 5.05.
	 	Maintenance of Hazard Insurance
	 	 	80	 
	 

	 	Section 5.06.
	 	Collection of Certain Loan Payments
	 	 	81	 
	 

	 	Section 5.07.
	 	Access to Certain Documentation and Information Regarding
the Loans
	 	 	82	 
	 

	 	Section 5.08.
	 	Satisfaction of Mortgages and Collateral and Release of Loan
Files
	 	 	82	 
	 

	 	Section 5.09.
	 	Scheduled Payment Advances
	 	 	83	 
	 

	 	Section 5.10.
	 	Title, Management and Disposition of Foreclosed Property
	 	 	84	 
	 

	 	Section 5.11.
	 	Servicing Compensation
	 	 	84	 
	 

	 	Section 5.12.
	 	Assignment; Resignation
	 	 	85	 
	 

	 	Section 5.13.
	 	Merger or Consolidation of Servicer
	 	 	85	 
	 

	 	Section 5.14.
	 	Limitation on Liability of the Servicer and Others
	 	 	85	 
	 

	 	Section 5.15.
	 	The Backup Servicer
	 	 	86	 
	 

	 	Section 5.16.
	 	Covenants of the Backup Servicer
	 	 	88	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 6.	 	COVENANTS OF THE TRUST DEPOSITOR	 	 	89	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 6.01.
	 	Legal Existence
	 	 	89	 
	 

	 	Section 6.02.
	 	Loans Not to Be Evidenced by Promissory Notes
	 	 	89	 
	 

	 	Section 6.03.
	 	Security Interests
	 	 	89	 
	 

	 	Section 6.04.
	 	Delivery of Principal Collections and Interest Collections
	 	 	89	 
	 

	 	Section 6.05.
	 	Regulatory Filings
	 	 	90	 
	 

	 	Section 6.06.
	 	Compliance with Law
	 	 	90	 
	 

	 	Section 6.07.
	 	Activities; Transfers of Notes or Certificates by Trust
Depositor
	 	 	90	 
	 

	 	Section 6.08.
	 	Indebtedness
	 	 	90	 
	 

	 	Section 6.09.
	 	Guarantees
	 	 	90	 
	 

	 	Section 6.10.
	 	Investments
	 	 	90	 
	 

	 	Section 6.11.
	 	Merger; Sales
	 	 	91	 
	 

	 	Section 6.12.
	 	Distributions
	 	 	91	 
	 

	 	Section 6.13.
	 	Other Agreements
	 	 	91	 
	 

	 	Section 6.14.
	 	Separate Legal Existence
	 	 	91	 
	 

	 	Section 6.15.
	 	Location; Records
	 	 	92	 
	 

	 	Section 6.16.
	 	Liability of Trust Depositor
	 	 	92	 
	 

	 	Section 6.17.
	 	Bankruptcy Limitations
	 	 	92	 
	 

	 	Section 6.18.
	 	Limitation on Liability of Trust Depositor and Others
	 	 	93	 
	 

	 	Section 6.19.
	 	Insurance Policies
	 	 	93	 
	 

	 	Section 6.20.
	 	Payments from Obligor Lock– Boxes and Obligor Lock– Box
Accounts
	 	 	93	 

-ii-

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE 7.	 	ESTABLISHMENT OF ACCOUNTS; DISTRIBUTIONS;
RESERVE FUND	 	 	94	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.01.
	 	Note Distribution Account, Reserve Fund and Lock– Boxes
	 	 	94	 
	 

	 	Section 7.02.
	 	Reserve Fund Deposit
	 	 	95	 
	 

	 	Section 7.03.
	 	Principal and Interest Account
	 	 	95	 
	 

	 	Section 7.04.
	 	Securityholder Distributions
	 	 	98	 
	 

	 	Section 7.05.
	 	Priority of Payments; Allocations and Distributions
	 	 	98	 
	 

	 	Section 7.06.
	 	Determination of LIBOR
	 	 	104	 
	 

	 	Section 7.07.
	 	Monthly Reconciliation
	 	 	105	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 8.	 	SERVICER DEFAULT; SERVICER TRANSFER	 	 	106	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 8.01.
	 	Servicer Default
	 	 	106	 
	 

	 	Section 8.02.
	 	Servicer Transfer
	 	 	107	 
	 

	 	Section 8.03.
	 	Appointment of Successor Servicer; Reconveyance; Successor
Servicer to Act
	 	 	107	 
	 

	 	Section 8.04.
	 	Notification to Securityholders and Hedge Counterparties
	 	 	109	 
	 

	 	Section 8.05.
	 	Effect of Transfer
	 	 	110	 
	 

	 	Section 8.06.
	 	Database File
	 	 	110	 
	 

	 	Section 8.07.
	 	Waiver of Defaults
	 	 	110	 
	 

	 	Section 8.08.
	 	Responsibilities of the Successor Servicer
	 	 	110	 
	 

	 	Section 8.09.
	 	Rating Agency Condition for Servicer Transfer
	 	 	111	 
	 

	 	Section 8.10.
	 	Appointment of Successor Backup Servicer; Successor Backup
Servicer to Act
	 	 	111	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 9.	 	REPORTS	 	 	112	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 9.01.
	 	Monthly Reports
	 	 	112	 
	 

	 	Section 9.02.
	 	Officer’s Certificate
	 	 	112	 
	 

	 	Section 9.03.
	 	Other Data; Obligor Financial Information
	 	 	112	 
	 

	 	Section 9.04.
	 	Annual Report of Accountants
	 	 	113	 
	 

	 	Section 9.05.
	 	Annual Statement of Compliance from Servicer
	 	 	114	 
	 

	 	Section 9.06.
	 	Reports of Foreclosure and Abandonment of Mortgaged
Property
	 	 	114	 
	 

	 	Section 9.07.
	 	Notices
	 	 	114	 
	 

	 	Section 9.08.
	 	Indenture Trustee’s Right to Examine Servicer Records and
Audit Operations
	 	 	115	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 10.	 	TERMINATION	 	 	115	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 10.01.
	 	Optional Repurchase of Offered Notes
	 	 	115	 
	 

	 	Section 10.02.
	 	Termination
	 	 	116	 

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TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE 11.	 	REMEDIES UPON MISREPRESENTATION;
REPURCHASE OPTION	 	 	116	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 11.01.
	 	Repurchases of, or Substitution for, Loans for Breach of
Representations and Warranties
	 	 	116	 
	 

	 	Section 11.02.
	 	Reassignment of Repurchased or Substituted Loans
	 	 	117	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 12.	 	INDEMNITIES	 	 	117	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 12.01.
	 	Indemnification by Servicer
	 	 	117	 
	 

	 	Section 12.02.
	 	Indemnification by Trust Depositor
	 	 	118	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 13.	 	MISCELLANEOUS	 	 	118	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 13.01.
	 	Amendment
	 	 	118	 
	 

	 	Section 13.02.
	 	Protection of Title to Issuer
	 	 	119	 
	 

	 	Section 13.03.
	 	Governing Law
	 	 	119	 
	 

	 	Section 13.04.
	 	Notices
	 	 	120	 
	 

	 	Section 13.05.
	 	Severability of Provisions
	 	 	122	 
	 

	 	Section 13.06.
	 	Third Party Beneficiaries
	 	 	122	 
	 

	 	Section 13.07.
	 	Counterparts
	 	 	122	 
	 

	 	Section 13.08.
	 	Headings
	 	 	122	 
	 

	 	Section 13.09.
	 	No Bankruptcy Petition; Disclaimer
	 	 	123	 
	 

	 	Section 13.10.
	 	Jurisdiction
	 	 	124	 
	 

	 	Section 13.11.
	 	Tax Characterization
	 	 	124	 
	 

	 	Section 13.12.
	 	Prohibited Transactions with Respect to the Issuer
	 	 	124	 
	 

	 	Section 13.13.
	 	Limitation of Liability of Owner Trustee
	 	 	124	 
	 

	 	Section 13.14.
	 	Allocation of Payments with Respect to Loans
	 	 	125	 
	 

	 	Section 13.15.
	 	No Partnership
	 	 	126	 
	 

	 	Section 13.16.
	 	Successors and Assigns
	 	 	126	 
	 

	 	Section 13.17.
	 	Acts of Holders
	 	 	126	 
	 

	 	Section 13.18.
	 	Duration of Agreement
	 	 	126	 
	 

	 	Section 13.19.
	 	Limited Recourse
	 	 	126	 
	 

	 	Section 13.20.
	 	Confidentiality
	 	 	127	 
	 

	 	Section 13.21.
	 	Non- Confidentiality of Tax Treatment
	 	 	127	 
	 

	 	Section 13.22.
	 	Alternative Exchange Listing
	 	 	127	 

-iv-

 

EXHIBITS, SCHEDULES AND APPENDIX

	 	 	 	 	 
	Exhibit A

	 	Form of Assignment
	 	A–1
	Exhibit B

	 	Form of Closing Certificate of Trust Depositor
	 	B–1
	Exhibit C

	 	Form of Closing Certificate of Servicer/Originator
	 	C –1
	Exhibit D

	 	Form of Liquidation Report
	 	D–1
	Exhibit E

	 	Form of Principal and Interest Account Letter Agreement
	 	E–1
	Exhibit F

	 	Form of Certificate Regarding Repurchased Loans
	 	F –1
	Exhibit G

	 	List of Loans
	 	G–1
	Exhibit H

	 	Form of Monthly Servicer Report
	 	H–1
	Exhibit I

	 	Form of Subsequent Transfer Agreement
	 	I–1
	Exhibit J

	 	Form of Subsequent Purchase Agreement
	 	J–1
	Exhibit K

	 	Credit and Collection Policy
	 	K –1
	Exhibit L–1

	 	Form of Initial Certification
	 	L–1
	Exhibit L–2

	 	Form of Final Certification
	 	L–2
	Exhibit M

	 	Form of Request For Release Of Documents
	 	M–1
	Exhibit N

	 	Form of Addition Notice
	 	N –1
	 
	Schedule I

	 	Lock– Box Banks and Lock–Box Accounts
	 	Schedule–I
	Schedule II

	 	Obligor Lock–Box Banks and Obligor Lock– Box Accounts
	 	Schedule–II

-i-

 

SALE AND SERVICING AGREEMENT 

     THIS
SALE AND SERVICING AGREEMENT, dated as of April 11, 2006, is
by and among:

	 	(1)	 	CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1, a statutory trust created and existing
under the laws of the State of Delaware (together with its successors and assigns, the
“Issuer”);
	 
	 	(2)	 	CAPITALSOURCE COMMERCIAL LOAN LLC, 2006-1, a Delaware limited liability company, as
the trust depositor (together with its successor and assigns, in such capacity, the
“Trust Depositor”);
	 
	 	(3)	 	CAPITALSOURCE FINANCE LLC, a Delaware limited liability company (together with its
successors and assigns, “CapitalSource”), as the servicer (together with its
successor and assigns, in such capacity, the “Servicer”), and as the originator
(together with its successor and assigns, in such capacity, the “Originator”); and
	 
	 	(4)	 	WELLS FARGO BANK, NATIONAL ASSOCIATION (together with its successors and assigns,
“Wells Fargo ”), not in its individual capacity but as the indenture trustee (together
with its successors and assigns, in such capacity, the “Indenture Trustee”), and
not in its individual capacity but as the backup servicer (together with its successors
and assigns, in such capacity, the 
“Backup Servicer”).

R E C I T A L S

     WHEREAS, in the regular course of its business, the Originator originates and/or otherwise
acquires Loans (as defined herein);

     WHEREAS, the Trust Depositor acquired the Initial Loans from the Originator and may acquire
from time to time thereafter certain Substitute Loans (such Initial Loans and Substitute Loans,
together with certain related property as more fully described herein, being the Loan Assets as
defined herein);

     WHEREAS, it was a condition to the Trust Depositor’s acquisition of the Initial Loans from the
Originator that the Originator make certain representations and warranties regarding the Loan
Assets for the benefit of the Trust Depositor as well as the Issuer;

     WHEREAS, on the Closing Date (as defined herein), the Trust Depositor will fund the Issuer by
selling, conveying and assigning all its right, title and interest in the
Initial Loan Assets and certain other assets to the Issuer;

     WHEREAS, the Issuer is willing to purchase and accept assignment of the Loan Assets (as
defined herein) from the Trust Depositor pursuant to the terms hereof; and

 

 

     WHEREAS, the Servicer is willing to service the Loan Assets for the benefit and account of the
Issuer pursuant to the terms hereof.

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

ARTICLE 1.

DEFINITIONS

     Section 1.01. Definitions.

     Whenever used in this Agreement, the following words and phrases, unless the context otherwise
requires, shall have the following meanings:

“1940 Act” means the Investment Company Act of 1940, as amended.

“A/B Exchange ” means an exchange or sale of one security ( the “A Security”) and the subsequent
delivery of or reinvestment in another security (the “B Security”) which shall be issued by the
issuer or issuers of the A Security and shall have substantially identical terms to the A Security,
except that one or more restrictions on the ability of the holder to sell or otherwise dispose of
the A Security are intended to be inapplicable to the B Security and cash or cash equivalents in
settlement of fractional or unauthorized denominations of A Securities tendered for exchange or B
Securities received in exchange.

“Accelerated Amortization Event ” means the occurrence of either of (i) the Aggregate Outstanding
Loan Balance shall be less than the Aggregate Outstanding Principal Balance of the Notes for a
period greater than 60 calendar days or (ii) any of the Offered Notes shall be outstanding on any
Payment Date after August 20, 2013.

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

“Acquired Loan” means a Loan that is originated by a Person other than the Originator or an
Affiliate thereof and acquired by the Originator in a “true sale” transaction pursuant to a
standard loan acquisition agreement.

“Acquisition Funding Transaction” means the Loan Certificate and Servicing Agreement, dated as of
February 28, 2003, by and among CapitalSource Acquisition Funding Inc., the Originator, the
Servicer, Variable Funding Capital Corporation and Wells Fargo Bank, National Association, as
amended, modified, restated, waived or supplemented
from time to time, and all documents executed in connection therewith and all transactions
contemplated thereby.

“Addition Notice” means, with respect to any transfer of Substitute Loans to the Issuer in
accordance with Section 2.04 (and the Trust Depositor’s corresponding prior purchase of such Loans
from the Originator), a notice in the form of Exhibit N, which shall be given at least ten

2

 

Business Days prior to the related Subsequent Transfer Date, identifying the Substitute Loans to be
transferred, the Outstanding Loan Balance of such Substitute Loans and the related Substitution
Event (with respect to an identified Loan or Loans then in the Loan Pool) to which such Substitute
Loan relates, with such notice to be signed both by the Trust Depositor and the Originator.

“Additional Servicing Fee” means an amount, in addition to the Servicing Fee, necessary to induce a
Successor Servicer to serve as Servicer hereunder, which amount shall not exceed $100,000 in the
aggregate per Successor Servicer.

“Affiliate” of any specified Person means any other Person controlling or controlled by, or under
common control with, such specified Person. For the purposes of this definition, “control”
(including the terms “controlling,” “controlled by” and “under common control with”) when used with
respect to any specified Person means the possession, direct or indirect, of the power to vote 20%
or more of the voting securities of such Person or to direct or cause the direction of the
management and policies of such Person whether through the ownership of voting securities, by
contract or otherwise. Each of the Indenture Trustee and the Owner Trustee may conclusively presume
that a Person is not an Affiliate of another Person unless a Responsible Officer of such trustee
has actual knowledge to the contrary.

“Agented Loans ” means, with respect to any Loan, (a) the Loan is originated by the Originator as a
part of a syndicated loan transaction that has been fully consummated prior to such Loan becoming
part of the Loan Pool and (b) the Issuer, as assignee of the Loan, will have all of the rights (but
none of the obligations) of the Originator with respect to such Loan and the Originator’s right,
title and interest in and to the Collateral.

“Aggregate Notional Amount” means, on any date, the aggregate notional amount in respect of the
payment obligations of the relevant Hedge Counterparty that is outstanding on that date under all
Hedge Transactions or any group thereof, as the context requires.

“Aggregate Outstanding Loan Balance” means, as of any date of determination, the sum of the
Outstanding Loan Balance for each Loan owned by the Issuer as of such date.

“Aggregate Outstanding Principal Balance” means, as of any date of determination, the sum of the
Outstanding Principal Balances of each Class outstanding on such date.

“Agreement ” means this Sale and Servicing Agreement, as amended, modified, waived,
supplemented or restated from time to time in accordance with the terms hereof.

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

“Amortizing Loan” means a Loan that, by its terms, provides for (or after a period of time will
provide for) a series of Scheduled Payments calculated to amortize the principal balance of the
Loan over its term so that, at the Loan’s maturity, no more than 25% of the maximum outstanding
loan balance remains unpaid, with the remaining balance due at maturity.

3

 

“Asset Based Revolver” means any Revolving Loan (other than a Loan to an SPE Obligor) secured by
accounts receivable and/or inventory.

“Assigned Loan” means 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 (a) such transaction has been fully consummated prior to such Loan
becoming part of the Loan Pool, (b) the Originator is a party to the underlying loan documents, (c)
the Issuer, as assignee of the Loan, will have all of the rights (but none of the obligations) of
the Originator with respect to such Loan and the Originator’s right, title and interest in and to
the Collateral, and (d) 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.

“Assigned Parties” means the Noteholders and Hedge Counterparties as well as any other holder of a
loan to or debt obligation of such Obligor arising out of the same underlying loan agreement,
including, without limitation, the Originator, CapitalSource Commercial Loan Trust 2002-2,
CapitalSource Commercial Loan Trust 2003-1, CapitalSource Commercial Loan Trust 2003-2,
CapitalSource Commercial Loan Trust 2004-1, CapitalSource Commercial Loan Trust 2004-2,
CapitalSource Commercial Loan Trust 2005-1, CapitalSource Funding Inc., CapitalSource Funding II
Trust, CapitalSource Funding III LLC and CS Funding V Trust.

“Assignment”
means each Assignment, substantially in the form of
Exhibit A, relating to an
assignment, transfer and conveyance of Loans and the related Collateral by the Trust Depositor to
the Issuer.

“Assignment of Mortgage ” means, with respect to each Loan that is to an SPE Obligor that is
secured by real property and improvements thereon, an assignment of the related Mortgage, notice of
transfer or equivalent instrument sufficient under the laws of the jurisdiction wherein the related
Mortgaged Property is located to reflect or record the transfer of the Mortgage of the related Loan
to the Indenture Trustee.

“Available Principal Distributable” means, as of any Payment Date, an amount equal to (i) the
amount of funds remaining after distribution of all amounts payable under clauses
First through Tenth of Section 7.05(a) minus (ii) the Outstanding Loan Balance of each Delinquent
Loan.

 “Average Life ”means, as of any date of determination, the number obtained by dividing (a) the sum
of the products, for each Loan in the Loan Pool, of (i) the number of years (rounded to the nearest
one tenth) from such Measurement Date to the respective dates of each successive Scheduled Payment
of principal of such Loan and (ii) the respective amounts of principal of such Scheduled Payments
by (b) the sum of all future Scheduled Payments of principal on such Loan.

“Backup Servicer” means the Person acting as Backup Servicer hereunder, its successors in interest
and any Successor Backup Servicer hereunder.

“Backup Servicer Termination Notice” shall have the meaning given to such term in Section 8.10(a).

“Backup Servicer Transfer” shall have the meaning given to such term in Section 8.10(b).

4

 

“Backup Servicing Fee” shall have the meaning given to such term in the fee letter, dated as of the
date hereof, among the Originator, the Trust Depositor, the Issuer and the Backup Servicer.

“Balloon Loan” means a Loan that, by its terms, provides for (or after a period of time will
provide for) a series of Scheduled Payment installments calculated to partially amortize the
principal balance of the Loan over its term so that, at the Loan’s maturity, more than 25% (but
less than 100%) of the maximum outstanding loan balance remains unpaid, with such remaining balance
due at maturity.

“Barclays Capital” means Barclays Capital Inc.

“BIF” means the Bank Insurance Fund, or any successor thereto.

“Blended Rate Loan” means an Election Rate Loan or a Loan which by its terms has Loan Rates
determined by reference to more than one Loan Rate Index (but does not permit the related Obligor
to change Loan Rate Indexes).

“Break—Even Default Rate” means, with respect to any class of Notes, the maximum cumulative rate of
defaults with respect to Loans in the Loan Pool that such class of Notes can withstand, while
subjected to the cash flow stresses employed by S&P in rating such class of Notes, and still pay
timely interest and ultimate principal to the Holders of such by the Final Maturity Date.

“Bullet Loan” means a Loan that, by its terms, provides for no Scheduled Payments of principal
prior to the Loan’s maturity, and, at maturity, the entire unpaid principal balance of the Loan is
due.

“Business Day” means any day other than (a) a Saturday or Sunday, or (b) a day on
which banking institutions in the cities of New York, New York and Minneapolis, Minnesota are
authorized or obligated, by law or executive order, to be closed; provided that if any action is
required of the Ireland Paying Agent, then, for purposes of determining when such Ireland Paying
Agent action is required Dublin, Ireland will be considered in determining “Business Day”.

“Call Period” means the period on and after the date on which the Outstanding Principal Balance of
the Class A Notes is less than or equal to 20% of the Outstanding Principal Balance of the Class A
Notes on the Closing Date.

“CapitalSource” shall have the meaning given to such term in the Preamble.

“CapitalSource LIBOR Rate” means the posted rate for one- month, two- month, three- month or
six-month, as applicable, deposits in U.S. dollars appearing on Telerate Page 3750, as and when
determined in accordance with the applicable Required Loan Documents.

“CapitalSource Prime Rate” means the rate designated by CapitalSource from time to time as its
prime rate in the United States, such rate to change as and when such designated rate changes;
provided, however, the CapitalSource Prime Rate is not intended to be the lowest rate of interest
charged by CapitalSource in connection with extensions of credit to debtors.

5

 

“Certificate” means the CapitalSource Commercial Loan Trust 2006-1 Certificates representing a
beneficial equity interest in the Issuer and issued pursuant to the Trust Agreement.

“Certificate Account ” shall have the meaning given to such term in Section 5.01 of the Trust
Agreement.

“Certificate Register” shall have the meaning given to such term in the Trust Agreement.

“Certificateholder” means the registered holder of a Certificate.

“Charged—Off Loan” means a Loan in the Loan Pool with respect to which there has occurred one or
more of the following:

     (a) the occurrence of both (i) any portion of a payment of interest on or principal (excluding
payments of principal consisting of excess cash flow sweeps) of such Loan is not paid when due
(without giving effect to any grace period or any Scheduled Payment Advance made in respect of such
payment of interest or principal) or would be so delinquent but for any amendment or modification
made to such Loan resulting from the Obligor’s inability to pay such Loan in accordance with its
terms and (ii) within 120 days of when such delinquent payment was first due, all delinquencies
have not been cured;

     (b) an Insolvency Event has occurred with respect to the related Obligor;

     (c) the related Obligor has suffered any material adverse change that materially
affects its viability as a going concern;

     (d) the Servicer has determined, in its sole discretion, in accordance with the Credit and
Collection Policy, that all or a portion of such Loan is not collectible;

     (e) any portion of the proceeds used to make payments of principal of or interest on such
Loan have come from a new Loan or a new loan by the Originator or an entity controlled by the
Originator to the Obligor or any of its Affiliates; or

     (f) the related Obligor is rated “D” by-S&P.

“Citigroup ” means Citigroup Global Markets Inc.

“Class” means any of the group of Notes identified herein as, as applicable, the Class A Notes, the
Class B Notes, the Class C Notes, the Class D Notes, the Class E Notes, or the Class F Note.

“Class A Notes” means the CapitalSource Commercial Loan Trust 2006-1 Asset-Backed Notes, Class A
Notes, issued pursuant to the Indenture.

“Class A Interest Amount” means, for each Interest Accrual Period, the product of (i) the Note
Interest Rate applicable to the Class A Notes as of the first day of such Interest Accrual Period,
(ii) the Outstanding Principal Balance of the Class A Notes as of the first day of such Interest
Accrual Period (after giving effect to all distributions made on such day) and (iii) a fraction,
the

6

 

numerator of which is the number of days in such Interest Accrual Period and the denominator of
which is 360.

“Class A Note Interest Rate” means the annual rate of interest payable with respect to the Class A
Notes, which shall be equal to LIBOR plus 0.12% per annum.

“Class A Noteholder” means each Person in whose name a Class A Note is registered in the Note
Register.

“Class B Accrued Payable” means, for any Payment Date with respect to which the Class B Interest
Amount is calculated using clause (ii)(b) of the definition thereof, an amount equal to the excess,
if any, of (a) the amount that would have been calculated as the Class B Interest Amount on such
Payment Date if the calculation was made using clause (ii)(a) of the definition of Class B Interest
Amount and not clause
(ii)(b) of such definition over (b) the amount calculated as the Class B
Interest Amount on such Payment Date, together with the unpaid portion of any such excess from
prior Payment Dates (and interest accrued thereon at the then applicable Class B Note Interest
Rate).

“Class B Interest Amount” means, for each Interest Accrual Period, an amount equal to the product
of (i) the Class B Note Interest Rate as of the first day of such Interest Accrual Period, (ii) the
lesser of (a) the Outstanding Principal Balance of the Class B Notes as of the first day of such
Interest Accrual Period (after giving effect to all distributions made on such day) and (b) the
excess, if any, of (1) the Aggregate Outstanding Loan Balance as of the last day of the Due Period
immediately preceding the start of such Interest Accrual Period over (2) the Outstanding Principal
Balance of the Class A Notes as of the first day of such Interest Accrual Period (after giving
effect to all distributions made on such day) and (iii) a fraction, the numerator of which is the
number of days in such Interest Accrual Period and the denominator of which is 360.

“Class B Note Interest Rate” means the annual rate of interest payable with respect to the Class B
Notes, which shall be equal to LIBOR plus 0.25% per annum.

“Class B Noteholder” means each Person in whose name a Class B Note is registered in the Note
Register.

“Class B
Notes” means CapitalSource Commercial Loan Trust 2006-1 Asset—Backed Notes, Class B Notes,
issued pursuant to the Indenture.

“Class C Accrued Payable” means, for any Payment Date with respect to which the Class C Interest
Amount is calculated using clause (ii)(b) of the definition thereof, an amount equal to the excess,
if any, of (a) the amount that would have been calculated as the Class C Interest Amount on such
Payment Date if the calculation was made using clause (ii)(a) of the definition of Class C Interest
Amount and not clause (ii)(b) of such definition over (b) the amount calculated as the Class C
Interest Amount on such Payment Date, together with the unpaid portion of any such excess from
prior Payment Dates (and interest accrued thereon at the then applicable Class C Note Interest
Rate).

“Class C Interest Amount” means, for each Interest Accrual Period, an amount equal to the product
of (i) the Class C Note Interest Rate as of the first day of such Interest Accrual Period,

7

 

(ii) the lesser of (a) the Outstanding Principal Balance of the Class C Notes as of the first day
of such Interest Accrual Period (after giving effect to all distributions made on such day) and (b)
the excess, if any, of (1) the Aggregate Outstanding Loan Balance as of the last day of the Due
Period immediately preceding the start of such Interest Accrual Period over (2) the Outstanding
Principal Balance of the Class A Notes and the Class B Notes as of the first day of such Interest
Accrual Period (after giving effect to all distributions made on such day) and (iii) a fraction,
the numerator of which is the number of days in such Interest Accrual Period and the denominator of
which is 360.

“Class C Note Interest Rate” means the annual rate of interest payable with respect to the Class C
Notes, which shall be equal to LIBOR plus 0.55% per annum.

“Class C Noteholder” means each Person in whose name a Class C Note is registered in
the Note Register.

“Class C
Notes” means CapitalSource Commercial Loan Trust 2006-1 Asset—Backed Notes, Class C Notes,
issued pursuant to the Indenture.

“Class D Accrued Payable” means, if, for any Payment Date, the Class D Interest Amount is
calculated using clause (ii)(b) of the definition thereof, the excess, if any, of (i) the amount
that would have been calculated as the Class D Interest Amount on such Payment Date if the
calculation was made using clause (ii)(a) of the definition of Class D Interest Amount and not
clause (ii)(b) of such definition over (ii) the amount calculated as the Class D Interest Amount on
such Payment Date, together with the unpaid portion of any such excess from prior Payment Dates
(and interest accrued thereon at the then applicable Class D Note Interest Rate).

“Class D Interest Amount” means, for each Interest Accrual Period, the product of (i) the Class D
Note Interest Rate as of the first day of such Interest Accrual Period, (ii) the lesser of (a) the
Outstanding Principal Balance of the Class D Notes as of the first day of such Interest Accrual
Period (after giving effect to all distributions made on such day) and (b) the excess, if any, of
(1) the Aggregate Outstanding Loan Balance as of the last day of the Due Period immediately
preceding the start of such Interest Accrual Period over (2) the Outstanding Principal Balance of
the Class A Notes, Class B Notes and Class C Notes as of the first day of such Interest Accrual
Period (after giving effect to all distributions made on such day) and (iii) a fraction, the
numerator of which is the number of days in such Interest Accrual Period and the denominator of
which is 360.

“Class D Note Interest Rate” means the annual rate of interest payable with respect to the Class D
Notes, which shall be equal to LIBOR plus 1.30% per annum.

“Class D Noteholder” means each Person in whose name a Class D Note is registered in the Note
Register.

“Class D
Notes” means CapitalSource Commercial Loan Trust 2006-1 Asset—Backed Notes, Class D Notes,
issued pursuant to the Indenture.

“Class E Accrued Payable ” means, if, for any Payment Date, the Class E Interest Amount is
calculated using clause (ii)(b) of the definition thereof, the excess, if any, of (i) the amount
that

8

 

would have been calculated as the Class E Interest Amount on such Payment Date if the calculation
was made using clause (ii)(a) of the definition of Class E Interest Amount and not clause (ii)(b)
of such definition over (ii) the amount calculated as the Class E Interest Amount on such Payment
Date, together with the unpaid portion of any such excess from prior Payment Dates (and interest
accrued thereon at the then applicable Class E Note Interest Rate).

“Class E Interest Amount” means, for each Interest Accrual Period, the product of (i) the
Class E Note Interest Rate as of the first day of such Interest Accrual Period, (ii) the lesser of
(a) the Outstanding Principal Balance of the Class E Notes as of the first day of such Interest
Accrual Period (after giving effect to all distributions made on such day) and (b) the excess, if
any, of (1) the Aggregate Outstanding Loan Balance as of the last day of the Due Period immediately
preceding the start of such Interest Accrual Period over (2) the Outstanding Principal Balance of
the Class A Notes, Class B Notes, Class C Notes and Class D Notes as of the first day of such
Interest Accrual Period (after giving effect to all distributions made on such day) and (iii) a
fraction, the numerator of which is the number of days in such Interest Accrual Period and the
denominator of which is 360.

“Class E Note Interest Rate” means the annual rate of interest payable with respect to the Class E
Notes, which shall be equal to LIBOR plus 2.50% per annum.

“Class E
Notes” means the CapitalSource Commercial Loan Trust 2006-1
Asset—Backed Notes, Class E
Notes, issued pursuant to the Indenture.

“Class E Noteholder” means each Person in whose name a Class E Note is registered in the Note
Register.

“Class F
Note” means the CapitalSource Commercial Loan Trust 2006-1 Asset—Backed Note, Class F
Note, issued pursuant to the Indenture.

“Class F Noteholder” means each Person in whose name a Class F Note is registered in the Note
Register.

“Closing Date” means April 11, 2006.

“Code” means the Internal Revenue Code of 1986, as amended, or any successor legislation thereto.

“Collateral” means the assets of an Obligor or others in which a security interest has been granted
by the Obligor or others to secure such Loan, including, but not limited to, real estate, accounts
receivable, inventory and other tangible and intangible assets of the related Obligor.

“Collections ” means the aggregate of Interest Collections and Principal Collections.

“Commission” means the United States Securities and Exchange Commission.

“Computer Records” means the computer records generated by the Servicer or any subservicer that
provide information relating to the Loans and that were used by the Originator in selecting

9

 

the Loans
conveyed to the Trust Depositor pursuant to Section 2.01 (and any Substitute Loans
conveyed to the Trust Depositor pursuant to Section 2.04).

“Contractual Obligation” means, 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.

“Corporate Trust Office” means, with respect to the Indenture Trustee or Owner Trustee, as
applicable, the office of the Indenture Trustee or Owner Trustee at which at any particular time
its corporate trust business shall be principally administered, which offices at the date of the
execution of this Agreement are located at the addresses set forth in Section 1304(d).

“Credit and Collection Policy” means the written credit and collection policies and procedures
manual of the Originator and the Servicer in effect on the Closing Date and attached hereto as
Exhibit K, as amended or supplemented from time to time in
accordance with
Section 5.02(m) of this
Agreement; and with respect to any Successor Servicer, the written collection policies and
procedures of such Person at the time such Person becomes Successor Servicer.

“Credit Support Provider” means, with respect to any Hedge Counterparty, any Person providing
credit support on behalf of such Hedge Counterparty.

“Curtailment” means, with respect to a Loan, any payment of principal received by the Issuer during
a Due Period as part of a payment allocable to a Loan that is in excess of the principal portion of
the Scheduled Payment due for such Due Period and which is not intended to satisfy the Loan in
full, nor is intended to cure a delinquency.

“Cut—Off
Date” means either or both of (as the context may require) the Initial Cut—Off Date and
any Subsequent Cut—Off Date as applicable to the Loan or Loans in question.

“Dealer” means an alarm system dealer that has sold an Alarm Service Agreement to the SLP Financing
Originator or the Originator pursuant to an MPA.

“Deferred Interest Loan” means a Loan that requires the related Obligor to pay only a portion of
the accrued and unpaid interest on a current basis, with the remaining interest being deferred and
paid later, together with any unpaid interest thereon, in a lump sum, which amount shall be treated
as Interest Collections at the time it is received.

“Delinquent
Loan” means a Loan (that is not a Charged—Off Loan) in the Loan Pool as to which there
has occurred one or more of the following:

     (a) the occurrence of both (i) any portion of a payment of interest on or principal (excluding
payments of principal constituting excess cash flow sweeps) of such Loan is not paid in cash on a
current basis when due (without giving effect to any grace period or any Scheduled Payment Advance
made in respect of such payment of interest or principal) or would be so delinquent but for any
amendment, modification, waiver or variance made to such Loan resulting from the Obligor’s
inability to pay such Loan in accordance with its terms and (ii) all delinquencies have not been
cured (A) with respect to Asset Based Revolvers, within one

10

 

business day of when such delinquent payment was first due and (B) with respect to all other Loans,
within 60 calendar days of when such delinquent payment was first due;

     (b) consistent with the Credit and Collection Policy such Loan would be classified as
delinquent by the Servicer or the Originator; or

     (c) the cash interest rate payable by the Obligor under such Loan has been reduced, and,
either before or immediately after giving effect to such reduction, the Weighted Average LIBOR
Spread Test is not satisfied;

provided, however, if any Loan to an Obligor is a Delinquent Loan, or if any Loan from the
Originator or any entity controlled by the Originator would be a Delinquent Loan if owned by the
Issuer, then all Loans to that Obligor shall be deemed to be Delinquent Loans; provided, further,
that such Loan or Loans shall cease to be deemed delinquent as of the date that each Loan which
caused any other Loan to be deemed delinquent in accordance with the preceding proviso has become a
performing Loan and maintained such status for a period of 12 consecutive months.

“Determination Date” means that day of each month that is the third Business Day prior to a Payment
Date.

“DIP Loan” means a loan to an Obligor that is a “debtor-in-possession” as defined under the
Bankruptcy Code.

“Dollar” and “$” means lawful currency of the United States.

“Downgrade Event” means the reduction or withdrawal of the rating issued by any Rating Agency on
the Closing Date with respect to any outstanding class of Offered Notes.

“Due Period” means, with respect to the first Payment Date, the period from and including the
Initial Cut—Off Date to but excluding the 11th day of the calendar month immediately preceding the
first Payment Date; and thereafter, the period from and including the 11th day of the previous
calendar month to but excluding the 11th day of the month in which such Payment Date occurs.

“Election Rate Loan” means a Loan which by its terms permits the related Obligor to periodically
elect between Loan Rates based on the CapitalSource Prime Rate or the CapitalSource LIBOR Rate.

“Eligible Deposit Account ” means either (a) a segregated account with a Qualified Institution, or
(b) a segregated trust account with the corporate trust department of a depository institution
organized under the laws of the United States or any one of the states thereof, including the
District of Columbia (or any domestic branch of a foreign bank), and acting as a trustee for funds
deposited in such account, so long as any of the securities of such depository institution shall
have a credit rating from in the case of Fitch
of at least “F-1+”, in the case of Moody’s a short–term credit rating of “P-1” and in the case of
S&P a commercial paper short–term debt rating of
“A-1+” and a long—term unsecured debt rating of
“AA-”.

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“Eligible Loan” means, on and as of the related Transfer Date, a Loan as to which each of the
following is true:

     (a) the information with respect to each Loan set forth on the List of Loans delivered to the
Indenture Trustee is true and complete;

     (b) the Loan, together with the Collateral, has been originated or acquired by the Originator,
and immediately prior to the transfer and assignment contemplated by the Loan Sale Agreement, the
Originator held, and immediately prior to the transfer and assignment contemplated by the Sale and
Servicing Agreement, the Trust Depositor held, good and indefeasible title to, and was the sole
owner of, the Loans being transferred to the Trust Depositor and Issuer, respectively, subject to
no Liens except Liens which will be released simultaneously with such transfer and assignment and
Permitted Liens; and immediately upon the transfer and assignment contemplated by this Agreement,
the Issuer will hold good and indefeasible title to, and be the sole owner of, each Loan, subject
to no Liens except Liens in favor of the Indenture Trustee;

     (c) (i) the Loan, together with the Collections and Collateral related thereto, are free and
clear of any Liens except Permitted Liens, and (ii) all filings and other actions required to grant
to (A) the Indenture Trustee a first priority perfected security interest in the Originator’s, the
Trust Depositor’s and the Issuer’s interest in the Loan, the Collections and related Collateral
have been made or taken, and (B) in the case of Agented Loans and Assigned Loans, the collateral
agent, as agent for certain creditors of the related Obligor including the Issuer as owner of the
related Loan, a first priority perfected security interest in the Collateral (except for Permitted
Liens);

     (d) at the time such Loan is included in the Loan Pool, (i) the Loan is not (and since its
origination or, to the knowledge of the Originator or the Trust Depositor (as applicable) in the
case of Acquired Loans, since its acquisition, has never been) a
Charged—Off Loan, (ii) the Loan is
not past due (and since its origination or, to the knowledge of the Originator or the Trust
Depositor (as applicable) in the case of Acquired Loans, since its acquisition, has never been more
than 30 days past due) after giving effect to any grace period set forth in the Credit and
Collection Policy in determining the number of days past due, with respect to payments of principal
or interest; provided that any Loan which would be rendered ineligible by this clause (d) shall
cease to be deemed ineligible by the operation of this clause (d) as of the date such Loan has
become a performing Loan and maintained such status for a period of 12 consecutive months;

     (e) the Loan is an “eligible asset” as defined in Rule 3a–7 under the 1940 Act;

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

     (g) the Loan is to an Eligible Obligor;

     (h) the Loan is denominated and payable only in United States dollars and does not
permit the currency in which or country in which such Loan is payable to be changed;

12

 

     (i) the Loan is evidenced by an Underlying Note or, in the case of a Noteless Loan, the
related Loan Register, security agreement or instrument and related loan documents that have been
duly authorized and properly 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 Loan that have not been satisfied or
validly waived;

     (j) the Loan or any portion thereof does not contravene in any material respect any
Requirements of Law (including, without limitation, Requirements of Law relating to predatory or
abusive lending, usury, truth in lending, fair credit billing, fair credit reporting, equal credit
opportunity, fair debt collection practices, licensing and privacy);

     (k) the Loan, (i) satisfies all applicable requirements of and was originated or acquired,
underwritten, closed and serviced in all material respects 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); (ii) does not contain a confidentiality provision
that restricts or purports to restrict the ability of the Indenture Trustee to exercise its rights
under the Transaction Documents, including, without limitation, its rights to review the Loan, the
Required Loan Documents and Loan File; (iii) was generated in the ordinary course of the
Originator’s business; (iv) arises pursuant to loan documentation with respect to which the
Originator has performed all obligations required to be performed by it thereunder; (v) has an
original term to maturity (A) in the case of Senior Loans and Senior B-Note Loans of not greater
than six years, or (B) in the case of Subordinated Loans of not greater than seven years; (vi) is
not subject to a guaranty by the Originator or any Affiliate thereof; and (vii) is not a loan
primarily for personal, family or household use;

     (l) the Loan is eligible to be sold, assigned or transferred to the Trust Depositor and
Issuer, respectively, and neither the sale, transfer or assignment of the Loan under the Transfer
and Servicing Agreements to the Trust Depositor and Issuer, respectively, nor the granting of a
security interest under the Indenture to the Indenture Trustee, violates, conflicts with or
contravenes any Requirements of Law or any contractual or other restriction, limitation or
encumbrance;

     (m) the Loan (other than Loans in which the sole collateral is its accounts
receivable) requires the Obligor thereof to maintain adequate property damage and liability
insurance with respect to the real or personal property constituting the Collateral and the same
has been at all times covered by adequate physical damage and liability insurance policies issued
by generally acceptable carriers;

     (n) the Collateral, if any, (i) is located in the United States (other than with respect to
Collateral securing two loans representing not more than 0.93% of the Initial Aggregate Outstanding
Loan Balance and with respect to Collateral that is in addition to the primary Collateral with
respect to which the Loan is principally underwritten), (ii) has not been

13

 

foreclosed on, or repossessed from the current Obligor, by the Servicer, and (iii) has not suffered
any material loss or damage that has not been repaired or restored;

     (o) (i) the Loan contains a provision substantially to the effect 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 or any assignee, (ii) the Loan contains a clause that
has the effect of unconditionally and irrevocably obligating the Obligor to make periodic payments
(including taxes) notwithstanding any rights the Obligor may have against the assignor and
notwithstanding any damage to, defects in or destruction of the Collateral or any other event,
including obsolescence of any property or improvements, (iii) the Obligor has no right of
deduction, offset, netting, recoupment, counterclaim, defense or reservation of rights, and (iv)
the Issuer has no future funding obligation with respect to such Loan;

     (p) the Loan 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, nor will the operation of any of
the terms of the Required Loan Documents, or the exercise of any right thereunder, render any of
the Required Loan Documents unenforceable in whole or in part (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) ;

     (q) the Loan requires the Obligor to maintain the Collateral in good condition and to bear all
the costs of operating and maintaining same, including taxes and insurance relating thereto;

     (r) the Loan provides (i) for periodic payments of interest and/or principal in cash, which
are due and payable on a monthly, quarterly,
semi-annual or annual basis, and (ii) that the
Servicer (or, with respect to Agented Loans, Assigned Loans and Senior B-Note Loans, an agent
appointed pursuant to the Required Loan Documents or at least a majority of the lenders) may
accelerate all payments on the Loan (or, with respect to any MPA, require the Dealer to repurchase
all related Alarm Service Agreements) if the Obligor is in default under the Loan and any
applicable cure period has expired (in the case of any Subordinated Loan or Senior B-Note Loan,
subject to any applicable
intercreditor or subordination agreement);

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

     (t) the Loan Rate for each Loan adjusts periodically to equal the then applicable Loan Rate
Index plus the margin set forth in the related Underlying Note or the related credit agreement
(other than with respect to two Loans representing approximately 1.90% of the Initial Aggregate
Outstanding Loan Balance which bear interest at a fixed rate);

14

 

     (u) the Loan 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 Loan under the Transfer
and Servicing Agreements would be unlawful, void or voidable;

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

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

     (x) neither the Loan nor any portion of the related Collateral constitutes Margin Stock;

     (y) the Loan is not a DIP Loan;

     (z) the Loan, together with the Required Loan Documents and Loan File related
thereto, is fully assignable and does not require the consent of or notice to the Obligor or
contain any enforceable restriction on the transfer or the assignment of the Loan other than a
consent or waiver of such restriction that has been obtained prior to the date on which the Loan
was sold to the Trust Depositor provided, however, that the Required Loan Documents may restrict
the transfer or assignment of the related Loan so long as such Loan is freely assignable or
transferable to a Qualified Transferee;

     (aa) the Obligor of such Loan is legally responsible for all taxes relating to the Collateral,
and all payments in respect of the Loan 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 Requirements of 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;

     (bb) the Loan and the Collateral have not been sold, transferred, assigned or
pledged by the Originator, the Trust Depositor or the Issuer to any Person other than as
contemplated by the Transaction Documents;

     (cc) other than Participation Loans and Agented Loans, with respect to the Originator’s
obligation to fund and the actual funding of the Loan by the Originator, the Originator has not
assigned or granted participations to, in whole or in part, any Person other than to the Issuer or
to a special purpose entity created in connection with one or more of the Warehouse Facilities, a
Prior Term Transaction and any future or similar credit facility;

     (dd) no selection procedure adverse to the interests of the Noteholders or Hedge
Counterparties was utilized by the Originator or Trust Depositor in the selection of the
Loan for
inclusion in the Loan Pool;

     (ee) the Loan has not been compromised, adjusted, extended, satisfied, rescinded or
set–off by the Trust Depositor, the Originator or the Obligor with respect thereto, and no Loan is
subject to compromise, adjustment, extension, satisfaction, rescission, set–off, counterclaim,
defense, abatement, suspension, deferment, deductible, reduction or termination, whether arising

15

 

out of transactions concerning the Loan, or otherwise, by the Trust Depositor, the Originator or
the Obligor with respect thereto;

     (ff) the particular Loan is not one as to which the Originator or Trust Depositor has
knowledge that the Loan will not be paid in full;

     (gg) except with respect to Subordinated Loans or Senior B-Note Loans, multiple Loans
originated to the same Obligor (excluding any guarantor) contain standard cross–collateralization
and cross–default provisions;

     (hh) the Obligor of such Loan is not the subject of an
Insolvency Event or Insolvency
Proceedings;

     (ii) the Loan does not represent capitalized interest or payment obligations
relating, in
each case, to “put” rights;

     (jj) the Loan is not a Loan or extension of credit by the
Originator or an entity
controlled by the Originator to the Obligor or any of its Affiliates for the purpose of making any
past due principal, interest or other payments due on such Loan;

     (kk) the Loan is secured by a valid, perfected, first priority (other than, solely in the case
of a Senior B-Note Loan, with respect to other lenders on the senior tranche related to such Loan)
security interest in all assets that constitute the Collateral for the Loan, subject to Permitted
Liens;

     (ll) 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 Loan have been duly obtained, effected or given
and are in full force and effect;

     (mm) 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 Indenture Trustee, the Noteholders or the Hedge
Counterparties with respect to the Loan, the Collateral, the Scheduled Payments or any income or
proceeds therefrom;

     (nn) the Loan is a Senior Loan, Senior B-Note Loan, Subordinated Loan or unsecured Loan;

     (oo) no provision of the Required Loan Documents has been waived, modified, or
altered in any respect, except in accordance with the Credit and Collection Policy and by
instruments duly authorized and executed and contained in the Required Loan Documents and recorded,
if necessary, to protect the interests of the Noteholders and the Hedge Counterparties and which
has been delivered to the Indenture Trustee;

     (pp) the first priority Lien in all assets that constitute Collateral related to any Senior
Loan and Senior B-Note Loan is not subordinated to any other loan or financing to the related
Obligor;

16

 

     (qq) other than with respect to Fully Funded Term Loans, any funding obligation under such
Loan is subject to the Retained Interest;

     (rr) the face amount of the Loan is the dollar amount thereof shown on the books and records
of the Originator;

     (ss) with respect to Subordinated Loans, the Originator has entered into an intercreditor
agreement or subordination agreement (or such provisions are contained in the principal loan
documents for such Loan) with, or provisions for the benefit of, the senior lender, which agreement
or provisions are assignable to and have been assigned to the Trust Depositor and Issuer, and which
provide that any standstill of remedies by the Originator or its assignee is limited (A) such that
there shall be no standstill of remedies (x) until after a payment default with respect to the
senior obligation or the Originator’s or assignee’s receipt from the senior lender of a notice of
default or a payment default by the Obligor under the senior debt and (y) unless a covenant default
is also in effect, and (B) provided that the Subordinated Loan has not been accelerated, to no
longer than 180 days in duration in the aggregate in any given year;

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

     (uu) with respect to Agented Loans and Assigned Loans, the related Required Loan Documents (i)
shall include a note purchase agreement or similar agreement containing standard provisions
relating to the appointment and duties of a payment agent and a collateral agent and intercreditor
and (if applicable) subordination provisions, and (ii) are duly authorized, fully and properly
executed and are the valid, binding and unconditional payment obligation of the Obligor thereof;

     (vv) with respect to Agented Loans, the Originator (or a wholly owned subsidiary of the
Originator) has been appointed the collateral agent of the security and the paying agent for all
such notes prior to such Agented Loan or Loan becoming a part of the Loan Pool;

     (ww) with respect to Agented Loans and Assigned Loans, 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 such notes, all appropriate assignments of the collateral agent’s rights in and
to the collateral on behalf of the noteholders have been executed and filed or recorded as
appropriate prior to such Agented Loan or Assigned Loan becoming a part of the Loan Pool;

     (xx) with respect to Agented Loans and Assigned Loans, all required notifications, if any,
have been given to the collateral agent, the paying agent and any other parties required by the
Required Loan Documents of, and all required consents, if any, have been obtained with respect to,
the Originator’s assignment of such Loan and the Originator’s right, title and interest in the
Collateral to the Trust Depositor and the Issuer and the Indenture Trustee’s security interest
therein on behalf of the Noteholders and the Hedge Counterparties;

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

17

 

     (zz) with respect to Agented Loans, Assigned Loans and any Loans which have more than one
holder of the underlying indebtedness, all syndicated underlying indebtedness of the Obligor of the
same priority is cross-defaulted, and all holders of such underlying indebtedness (i) have an
undivided interest in the collateral securing such underlying indebtedness, (ii) share in the
proceeds of the sale or other disposition of such collateral on a pro rata basis and (iii) may
transfer or assign their right, title and interest in the collateral;

     (aaa) no portion of the proceeds used to make payments of principal of or interest on such
Loan have come from a new Loan or a new loan by the Originator or an entity controlled by the
Originator;

     (bbb) all of the original or certified Required Loan Documents required to be
delivered to the Indenture Trustee (including all material documents related thereto) with
respect to such Loan have been or will be delivered to the Indenture Trustee on the Transfer Date
or as otherwise provided in this Agreement;

     (ccc) other than in the case of Noteless Loans, there is one or more originally signed
Underlying Notes in effect for each Loan, which in the aggregate evidence the portion of the Loan
being assigned to the Issuer and which Underlying Notes have been delivered to the Indenture
Trustee; provided, however, if the Originator funds such a Loan in multiple installments, there may
be one originally signed Underlying Note for each installment;

     (ddd) there is no obligation on the part of the Originator or the Trust Depositor, as the case
may be, or any other party (except for any guarantor of a Loan), to make Scheduled Payments in
addition to those made by the Obligor;

     (eee) as of the related Transfer Date, there is no default, breach, violation or event of
acceleration existing under the related loan agreement or, as applicable, the Underlying Notes and
no event which, with the passage of time or with notice and the expiration of any grace or cure
period, would constitute a default, breach, violation or event of acceleration (except for such
defaults, breaches and violations that would not have a material adverse effect on the ability of
the Servicer to collect the entire principal and interest thereunder and would not have a material
adverse effect on the ability of the Servicer to realize the value of the Collateral securing the
related Loan);

     (fff) with respect to each Pooled Obligor Loan, as of the related Transfer Date, (i) the
collateral (including, but not limited to, the notes of the Underlying Debtors and assignments of
mortgage in each case where real property secures the Underlying Debtors’ notes) of the related
Underlying Debtors securing such Loan is held by a custodian under a custodial agreement, (ii) the
custodial agreement for such Loan provides that (A) the related custodian holds the collateral of
the Underlying Debtors pro rata on behalf of the Indenture Trustee, for the benefit of the
Noteholders and the Hedge Counterparties, and any other assignee and (B) the custodian will record
and file the assignments of mortgage in its name on behalf of the Indenture Trustee and any other
assignee upon the request of noteholders of such Obligor or SPE Obligor holding a controlling
interest and (iii) the Originator’s rights under the custodial agreement are fully assignable and
have been assigned to the Indenture Trustee;

18

 

     (ggg) the Loan was not made in connection with (a) the construction or development of
unimproved land or (b) facilitating the trade-in or exchange of the related Mortgaged Property;

     (hhh) with respect to MPAs, the related loan documents require the Dealer to repurchase all
Alarm Service Agreements then subject to such MPA on the earlier of (i) a date certain or (ii) when
so demanded by the purchaser (as defined in such MPA) after a default (as defined in such MPA), as
provided in such MPA, which repurchase is required to be at a repurchase price sufficient to pay
all principal and interest outstanding on such
MPA, and “Default” under such MPA requiring the Dealer to repurchase an Alarm Service
Agreement shall include, without limitation, (w) a failure by the related customer to make a
monthly payment due under such Alarm Service Agreement and such failure shall continue unremedied
for more than 60 days, (x) the related customer shall fail to make a monthly payment when due two
or more times in any 180 day period and (y) a default by the Dealer in any of its obligations,
covenants, agreements, representation or warranties contained in any Alarm Service Agreement or in
such MPA;

     (iii) with respect to MPAs, if such Loan is a Security System Loan, such Loan has an original
term to maturity and full amortization of not more than 84 months; and

     (jjj) with respect to MPAs, the Obligor of such Loan shall have been directed to make all
payments to one of the Lock-Boxes or directly to one of the Lock-Box Accounts.

“Eligible Loan Rating” means, with respect to a designated Loan, a “Loan Rating 1,” a “Loan Rating
2,” or a “Loan Rating 3” in accordance with the Credit and Collection Policy.

“Eligible Obligor” means, on any date of determination, any Obligor that (i) is a business
organization (and not a natural person) that is duly organized and validly existing under the laws
of, and has its chief executive offices in, the United States or any political subdivision thereof,
and has a billing address within the United States, (ii) is a legal operating entity or holding
company (except with respect to a Loan to an SPE Obligor), (iii) is not a Governmental Authority,
(iv) is not an Affiliate (other than with respect to an SPE Obligor and with respect to one Loan
representing approximately 0.70% of the Initial Aggregate Outstanding Loan Balance) of the
Originator, the Servicer, the Trust Depositor or the Issuer (v) is not in the nuclear waste or
natural resources industry (other than Obligors in the business of wholesale purchasing and
reselling of natural gas or electricity, the Loans to which have been appropriately hedged), (vi)
is not engaged in the business of conducting proprietary research on new drug development, (vii) is
not the subject of an Insolvency Proceeding, (viii) as of the applicable Cut-Off Date, is the
Obligor with respect to a Loan having an Eligible Loan Rating (other than in the case of Obligors
of Initial Loans having a Loan Rating of 4, which represent in the aggregate approximately 17.23%
of the Initial Aggregate Outstanding Loan Balance) and (ix) is not an Obligor of a Charged-Off Loan
or Delinquent Loan; provided, that, an Obligor with respect to a Charged-Off Loan or a Delinquent
Loan shall cease to be disqualified under this clause (ix) as of the date that each Loan which
caused such Obligor to be so disqualified has become a performing Loan and maintained such status
for a period of 12 consecutive months.

“Eligible Repurchase Obligations ” means repurchase obligations with respect to any security that
is a direct obligation of, or fully guaranteed by, the United States or any agency or

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instrumentality thereof the obligations of which are backed by the full faith and credit of
the United States, in either case entered into with a depository institution or trust company
(acting as principal) described in clauses (c)(ii) and
(c)(iv) of the definition of Permitted
Investments.

“Event
of Default” shall have the meaning specified in Section 5.01 of the Indenture.

“Exchange Act” means the Securities Exchange Act of 1934, as amended or supplemented from time to
time.

“FDIC ” shall mean the Federal Deposit Insurance Corporation and any successor thereto.

“Fidelity
Bond ” shall have the meaning given to such term in
Section 5.04.

“Final
Maturity Date ” means August 22, 2016.

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

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

“Fitch Rating” means, for any Loan, the rating assigned to such Loan by Fitch, as updated from time
to time by Fitch.

“Fixed Rate Loan” means a Loan, other than a Floating Rate Loan, where the Loan Rate payable by the
Obligor thereunder is expressed as a fixed rate of interest.

“Fixed Rate Permitted Excess Amount ” means $250,000 in the aggregate.

“Floating LIBOR Rate Loan” means an Eligible Loan where the Loan Rate payable by the Obligor
thereof is based on the CapitalSource LIBOR Rate plus some specified percentage in addition
thereto, and the Loan provides that such Loan Rate will reset immediately upon any change in the
related CapitalSource LIBOR Rate; provided that Loans with respect to which the Loan Rate payable
thereunder is determined by reference to both the CapitalSource LIBOR Rate and the CapitalSource
Prime Rate shall be deemed to be Floating LIBOR Rate Loans under this Agreement.

“Floating Prime Rate Loan” means a Loan where the Loan Rate payable by the Obligor thereof is based
on the CapitalSource Prime Rate plus some specified percentage in addition thereto, and the Loan
provides that such Loan Rate will reset immediately upon any change in the related CapitalSource
Prime Rate and no Election Rate Loan shall be considered a Floating Prime Rate Loan.

“Floating Prime Rate Permitted Excess Amount ” means $250,000 in the aggregate.

“Floating Rate Loan” means a Floating Prime Rate Loan or a Floating LIBOR Rate Loan.

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“Foreclosed Property” means Collateral acquired by the Issuer for the benefit of the
Securityholders and the Hedge Counterparties in foreclosure or by deed in lieu of foreclosure or by
other legal process.

“Foreclosed Property Disposition” means the final sale of a Foreclosed Property or of Repossessed
Collateral. The proceeds of any “Foreclosed Property Disposition” constitute part of the definition
of Liquidation Proceeds.

“Fully Funded Term Loan” means a Term Loan that is fully funded as of the Cut–Off Date.

“Funding I Transaction” means the transactions contemplated by the Fourth Amended and Restated Loan
Certificate and Servicing Agreement, dated as of May 28, 2004, among CapitalSource Funding LLC, as
the seller, the Originator, as the originator and the servicer, Variable Funding Capital
Corporation, Harris Nesbitt Corp., as administrative agent, each of the purchasers and purchaser
agents from time to time party thereto, and Wells Fargo Bank, National Association, as amended,
modified, restated, waived or supplemented from time to time, and all documents executed in
connection therewith and all transactions contemplated thereby.

“Funding II Transaction” means the Note Purchase Agreement, dated as of September 17, 2003, among
CapitalSource Funding II Trust, CS Funding II Depositor LLC, the Originator and Citigroup Global
Markets Realty Corp., as amended, modified, restated, waived or supplemented from time to time, and
all documents executed in connection therewith and all transactions contemplated thereby.

“Funding III Transaction” means the Sale and Servicing Agreement, dated as of April 20, 2004, by
and among CapitalSource Funding III LLC, the Originator, the Servicer, Variable Funding Capital
Corporation, the other Commercial Paper Conduits from time to time party thereto, Wachovia Capital
Markets and Wells Fargo Bank, National Association, as amended, modified, restated, waived or
supplemented from time to time, and all documents executed in connection therewith and all
transactions contemplated thereby.

“Funding IV Transaction” means the loan evidenced that certain Promissory Note, dated as of
December 16, 2004, by CapitalSource Funding IV LLC, as borrower, in favor of Wachovia Bank,
National Association, as lender, as amended, modified, restated, waived or supplemented from time
to time, and all documents executed in connection therewith and all transactions contemplated
thereby.

“Funding V Transaction” means the Credit Agreement, dated as of June 30, 2005, among CapitalSource
Funding V Trust, CS Funding V Depositor Inc., the Originator and JPMorgan Chase Bank, N.A., as
amended, modified, restated, waived or supplemented from time to time, and all documents executed
in connection therewith and all transactions contemplated thereby.

“Funding VI Transaction” means the Note Purchase Agreement, dated as of March 24, 2005, among
CapitalSource Funding Trust VI, CS Funding Depositor VI LLC, the
Originator and Citigroup Global Markets Realty Corp., as amended, modified, restated, waived or
supplemented from time to time, and all documents executed in connection therewith and all
transactions contemplated thereby.

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“Governmental Authority” means, 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 entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government and any court or arbitrator having
jurisdiction over such Person.

“Gross Interest Rate” means, with respect to any Loan, the sum of the Loan Rate with respect to
such Loan plus the rate of interest, if any, that the related Obligor may defer and pay later,
together with interest thereon.

“Harris Nesbitt” means Harris Nesbitt Corp.

“Hedge Agreement” means each agreement between the Issuer and a Hedge Counterparty that governs one
or more Hedge Transactions, which agreement shall consist of a “Master Agreement” in a form
published by the International Swaps and Derivatives Association, Inc., together with a “Schedule”
and “Credit Support Annex”, and each “Confirmation” thereunder confirming the specific terms of
each such Hedge Transaction.

“Hedge Breakage Costs” means, for any Hedge Transaction, any amount (other than Net Trust Hedge
Payments) payable by the Issuer for the early termination of that Hedge Transaction or any portion
thereof.

“Hedge Breakage Receipts” means, for any Hedge Transaction, any amount (other than Net Trust Hedge
Receipts) payable to the Issuer for the early termination of that Hedge Transaction or any portion
thereof.

“Hedge Counterparty” means any Qualified Hedge Counterparty that agrees that in the event that it
or its Credit Support Provider fails to maintain certain ratings as provided in the applicable
Hedge Agreement, then the Hedge Counterparty shall (i) transfer all of its rights and obligations
under the Hedge Agreement to a Substitute Hedge Counterparty as provided in the Hedge Agreement or
(ii) post collateral, as applicable, as provided in the Hedge Agreement.

“Hedge Counterparty Collateral Account ” means the segregated account established by the Trustee at
the direction of the Issuer pursuant to Section 3.32 of the Indenture, in the name of the Indenture
Trustee and for the benefit of the Noteholders.

“Hedge Rate” means the rate of interest used to compute the amounts payable by the Issuer to a
Hedge Counterparty pursuant to a Hedge Transaction.

“Hedge Transaction” means each interest rate swap transaction between the Issuer and a Hedge
Counterparty that is governed by a Hedge Agreement.

“Highest Required Investment Category” means (a) with respect to ratings assigned by Fitch (if such
investment is rated by Fitch), “F-1+” for short-term instruments and “AAA” for long–term
instruments, (b) with respect to ratings assigned by Moody’s, “Aa2” or “P-1” for one-month
instruments, “Aa2” and “P-1” for three-month instruments, “Aa2” and “P-1” for six-month
instruments and “Aaa” and “P-1” for instruments with a term in excess of six-months, and (c)

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with respect to rating assigned by S&P, “A-1+” for short–term instruments and “AAA” for long-term
instruments.

“Holder” means (a) with respect to a Certificate, the Person in whose name such Certificate is
registered in the Certificate Register, and (b) with respect to a Note, the Person in whose name
such Note is registered in the Note Register.

“Indebtedness” means, 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 which is evidenced by a note, bond, debenture or similar instrument, (b) all
obligations of such Person under capital leases, (c) all obligations of such Person in respect of
acceptances issued or created for the account of such Person, and (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.

“Indenture” means the Indenture, dated as of April 11, 2006, between the Issuer and the Indenture
Trustee.

“Indenture Collateral” shall have the meaning given to such term in the “granting clause” of the
Indenture.

“Indenture Trustee” means the Person acting as Indenture Trustee under the Indenture, its
successors in interest and any successor trustee under the Indenture.

“Indenture Trustee Fee” shall have the meaning given to such term in the fee letter, dated as of
the date hereof, among the Originator, the Trust Depositor, the Issuer and the Indenture Trustee.

“Independent ” means, when used with respect to any specified Person, the Person (a) is in fact
independent of the Issuer, any other obligor on the Notes, the Trust Depositor and any Affiliate of
any of the foregoing Persons, (b) does not have any direct financial interest or any material
indirect financial interest in the Issuer, any such other obligor, the Trust Depositor or any
Affiliate of any of the foregoing Persons and (c) is not connected with the Issuer, any such other
obligor, the Trust Depositor or any Affiliate of any of the foregoing Persons as an officer,
employee, trustee, partner, director or person performing similar functions.

“Independent
Accountants” shall have the meaning given to such term in
Section 9.04.

“Individual Notes” shall have the meaning specified in the Indenture.

“Ineligible
Loan” shall have the meaning given to such term in
Section 11.01.

“Initial Aggregate Outstanding Loan Balance” means the Aggregate Outstanding Loan Balance as of the
Initial Cut–Off Date of the Loans transferred to the Issuer on the Closing Date.

“Initial Aggregate Outstanding Principal Balance” means, collectively, the sum of the Initial Class
A Principal Balance, the Initial Class B Principal Balance, the Initial Class C Principal

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Balance, the Initial Class D Principal Balance, the Initial Class E Principal Balance, and the
Initial Class F Principal Balance, i.e., $782,254,764.

“Initial Class A Principal Balance” means $567,134,000.

“Initial Class B Principal Balance” means $27,379,000.

“Initial Class C Principal Balance” means $68,447,000.

“Initial Class D Principal Balance” means $52,803,000.

“Initial Class E Principal Balance” means $31,290,000.

“Initial Class F Principal Balance” means $35,201,764.

“Initial Cut–Off Date” means the close of business on January 31, 2006.

“Initial
Loan Assets” shall have the meaning given to such term in
Section 2.01(b).

“Initial Loans ” means those Loans conveyed to the Issuer on the Closing Date and identified on the
initial List of Loans required to be delivered pursuant to
Section 2.02(d).

“Initial Purchasers” means, collectively, Citigroup, Wachovia Capital Markets, Harris Nesbitt,
JPMorgan, SG CIB, SunTrust and Barclays Capital.

“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 or undismissed and in effect for a period of 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 of the United States 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 other Governmental
Authority relating to any Insolvency Event.

24

 

“Insurance Policy” means, with respect to any Loan, an insurance policy covering physical damage to
or loss of the related Collateral, including, but not limited to, title, hazard, life, accident
and/or flood insurance policies.

“Insurance Proceeds” means, depending on the context, any amounts payable or any payments made
under any Insurance Policy covering a Loan, Collateral, Repossessed Collateral or Foreclosed
Property.

“Interest Accrual Period” means the period commencing on a Payment Date and ending on the day
immediately preceding the next Payment Date (or, with respect to the first Payment Date, the period
commencing on the Closing Date and ending on the day before the first Payment Date).

“Interest Collection Account” means a sub–account of the Principal and Interest Account established
and maintained pursuant to Section 7.03(a).

“Interest Collections ” means the aggregate of:

     (a) amounts deposited into the Principal and Interest Account in respect of:

     (i) all payments received on or after the Closing Date on account of interest
on the Loans (including Finance Charges, fees and the deferred interest component of a Deferred
Interest Loan) and all late payment, default and waiver charges;

     (ii) Net Liquidation Proceeds;

     (iii) Insurance Proceeds (other than amounts to be applied to the restoration or
repair of the related Collateral, or released or to be released to the Obligor or others);

     (iv) Released Mortgaged Property Proceeds and any other proceeds from any other Collateral
securing the Loans (other than amounts released or to be released to the Obligor or others);

     (v) Net Trust Hedge Receipts and Hedge Breakage Receipts; and

     (v) the interest portion of any amounts received (x) in connection with the
purchase or repurchase of any Loan and the amount of any adjustment for substituted Loans and (y)
any Scheduled Payment Advances that the Servicer determines to make; plus

     (b) investment earnings on funds held in the Trust Accounts; minus

     (c) the amount of any losses incurred in connection with investments in Permitted
Investments.

“Interest Shortfall” means, with respect to the Class A Notes, the Class B Notes, the Class C
Notes, the Class D Notes or the Class E Notes, as applicable, if the amount by which the interest
paid to such Class on a Payment Date is less than the amount due to such Class, the amount of
shortfall will be carried forward and paid on the immediately following Payment Date for which

25

 

funds exist, together with accrued interest on such amount at the then applicable Note Interest
Rate for such Class.

“Investment Earnings” means the investment earnings (net of losses and investment expenses) on
amounts on deposit in the Principal and Interest Account, the Note Distribution Account and the
Reserve Fund, to be credited to the Principal and Interest Account on the applicable Payment Date
pursuant to Section 7.01 and Section 7.03.

“Ireland Paying Agent ” means the Person acting as Ireland Paying Agent hereunder and its
successors in interest.

“Irish Stock Exchange” means the Irish Stock Exchange and any successor securities exchange thereto
on which the Listed Notes may be listed for trading.

“Issuer” means the trust created by the Trust Agreement and funded pursuant to this Agreement,
consisting of the Loan Assets.

“JPMorgan” means J.P. Morgan Securities Inc.

“LIBOR” shall have the meaning given to such term in Section 7.06.

“LIBOR Determination Date” shall have the meaning given to such term in Section 7.06.

“LIBOR Spread” means, as of any date of determination:

     (a) in the case of any Floating LIBOR Rate Loan or Blended Rate Loan, the excess, if any, of
the Gross Interest Rate on such Loan over One-Month LIBOR as of such date;

     (b) in the case of any Floating Prime Rate Loan, the excess, if any, of the Gross Interest
Rate on such Loan over the weighted average Hedge Rate under all Hedge Transactions hedging the
Floating Prime Rate Loans as of such date;

     (c) in the case of any Fixed Rate Loan, the excess, if any, of the Gross Interest Rate on such
Loan over the weighted average Hedge Rate under all Hedge Transactions hedging the Fixed Rate Loans
as of such date;

provided that for purposes of determining the LIBOR Spread with respect to any Loan, (1) no
contingent payment of interest will be included in such calculation; and (2) any Gross Interest
Rate shall exclude any portion of the interest that is currently being deferred in violation of the
terms of the related loan documents.

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever, including, without limitation, any
conditional sale or other title retention agreement, and any financing lease having substantially
the same economic effect as any of the foregoing (including any UCC financing statement or any
similar instrument filed against a Person’s assets or properties).

26

 

“Liquidation Expenses” means, with respect to any Loan, 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
Collateral securing such Loan upon or after the expiration or earlier termination of such Loan and
other out–of–pocket costs related to the liquidation of any such Collateral, including the
attempted collection of any amount owing pursuant to such Loan if it is a Charged–Off Loan, and, if
requested by the Indenture Trustee, the Servicer and Originator must provide to the Indenture
Trustee a breakdown of the Liquidation Expenses for any Loan along with any supporting
documentation therefor; provided, however, to the extent any such “Liquidation Expenses” relate to
any Loan with a Retained Interest, such expenses shall be allocated pro rata to such Loan based on
the Outstanding Loan Balance included in the Loan Pool and the outstanding loan balance of the
Retained Interest.

“Liquidation Proceeds” means, cash, including Insurance Proceeds, proceeds of any Foreclosed
Property Disposition, revenues received by the Servicer or the Issuer with respect to the
conservation and disposition of a Foreclosed Property, and any other amounts received by the
Servicer or Issuer in connection with the liquidation of Charged–Off Loans, whether through
trustee’s sale, foreclosure sale or otherwise.

“Liquidation Report” shall have the meaning given to such term in Section 5.03(c).

“List of Loans” means the list identifying each Loan constituting part of the Loan Assets, which
list shall consist of the initial List of Loans reflecting the Initial Loans transferred to the
Issuer on the Closing Date, together with any Subsequent List of Loans amending the most current
List of Loans reflecting the Substitute Loans transferred to the Issuer on the related Subseque nt
Transfer Date (together with a deletion from such list of the related Loan or Loans identified on
the corresponding Addition Notice with respect to which a Substitution Event has occurred), and
which list in each case (a) identifies by account number each Loan included in the Loan Pool, and
(b) sets forth as to each such Loan (i) the Outstanding Loan Balance as of the related Cut-Off
Date, and (ii) the maturity date, and which list (as in effect on the Closing Date) is attached to
this Agreement as Exhibit G.

“Listed Notes” means the Class A Notes, Class B Notes, Class C Notes and Class D Notes.

“Loan” means, to the extent transferred by the Trust Depositor to the Issuer, an individual loan or
portion thereof made or purchased by the Originator to an Obligor, including, as applicable,
Assigned Loans, Agented Loans, MPAs, Participation Loans and Substitute Loans.

“Loan Assets” means, collectively and as applicable, the Initial Loan Assets and the Substitute
Loan Assets.

“Loan Checklist” means the list delivered by the Trust Depositor to the Indenture Trustee pursuant
Section 2.07 of this Agreement that identifies the items contained in the related Loan File.

27

 

“Loan Files” means, with respect to any Loan and Collateral, each of the Required Loan Documents
and duly executed originals (to the extent required by the Credit and Collection Policy) and copies
of any other Records relating to such Loan and Collateral.

“Loan Pool” means, as of any date of determination, all outstanding Loans (including Initial Loans
and Substitute Loans (if any) ), other than such Loans that (a) have been reconveyed by the Issuer
to the Trust Depositor, and concurrently by the Trust Depositor to the Originator, pursuant to
Section 11.02 hereof or (b) have been paid (or prepaid) in full.

“Loan Rate” means, for each Loan in a Due Period, the current cash pay interest rate for such Loan
in such period, as specified in the related Required Loan Documents.

“Loan Rate Index” means (a) in the case of a Floating Prime Rate Loan, the CapitalSource Prime
Rate, (b) in the case of a Floating LIBOR Rate Loan, the CapitalSource LIBOR Rate and (c) in the
case of a Fixed Rate Loan, a fixed rate of interest.

“Loan Rating” means the “loan rating” determined with respect to a Loan in accordance with the
Credit and Collection Policy under the Originator’s loan risk rating system, which ranks loans
based on the Originator’s analysis of the credit quality of the loan, the structure of the loan or
the underlying collateral.

“Loan Register” means, with respect to each Noteless Loan, the register in which the agent or
collateral agent on such Loan will record, among other things, (i) the amount of such Loan, (ii)
the amount of any principal or interest due and payable or to become due and payable from the
Obligor thereunder, (iii) the amount of any sum in respect of such Loan received from the Obligor
and each lender’s share thereof, (iv) the date of origination of such Loan and (v) the maturity
date of such Loan.

“Loan Sale Agreement ” means the Commercial Loan Sale Agreement, dated as of the date hereof,
between the Originator and the Trust Depositor, as such agreement may be amended, modified, waived,
supplemented or restated from time to time.

“Loan-to-Value” means, with respect to any Loan, as of any date of determination, the percentage
equivalent o f a fraction (i) the numerator of which is equal to the maximum availability (as
provided in the applicable loan documentation) of such Loan as of the date of its origination and
(ii) the denominator of which is equal to the total discounted collateral value of the Collateral
securing such Loan.

“Lock-Box” means the post office box to which Collections are remitted for retrieval by the
Lock–Box Bank and deposited by such Lock–Box Bank into the Lock–Box Account, the details of which
are contained in Schedule I, as such schedule may be amended from time to time.

“Lock-Box Accounts” means the accounts maintained at Bank of America, N.A. in the name of
CapitalSource Funding Inc. for the purpose of receiving Collections, including but not limited to
Collections from the Obligor Lock–Boxes, the details of which are contained in Schedule I, as such
schedule may be amended from time to time.

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“Lock-Box Agreement” means the Fourth Amended and Restated Three Party Agreement Relating to
Lockbox Services and Control (with Activation Upon Notice), dated as of November 25, 2003, among
Wells Fargo, as the indenture trustee, Bank of America, N.A., as the lockbox bank, Wachovia Capital
Markets, LLC, as the administrative agent thereof, CapitalSource Finance, as the originator, as the
original servicer and as the lockbox servicer, and CapitalSource Funding Inc., as the owner of the
account and as the owner of the lockbox, as amended, modified, waived, supplemented or restated
from time to time.

“Lock-Box Bank ” means Bank of America, N.A.

“London Banking Day” means any day on which dealings in deposits in Dollars are transacted in the
London interbank market.

“Majority Noteholders” means (a) prior to the payment in full of the Offered Notes, the Noteholders
evidencing more than 50% of the aggregate Outstanding Principal Balance of each Class of Offered
Notes (with each Class voting separately) and (b) from and after the payment in full of the Offered
Notes, the Class F Noteholder evidencing more than 50% of the aggregate Outstanding Principal
Balance of the Class F Note.

“Margin Stock” means “Margin Stock” as defined under Regulation U issued by the Board of Governors
of the Federal Reserve System.

“Mariner Funding Transaction” means the Loan Agreement, dated as of December 13, 2004, by and among
CapitalSource Finance LLC, as borrower, Harris Nesbitt Financing, as lender and Bank of Montreal,
as agent, as amended, modified, restated, waived or supplemented from time to time, and all
documents executed in connection therewith and all transactions contemplated thereby.

“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
Originator, the Trust Depositor, the Issuer or the Servicer, (b) the validity, enforceability or
collectibility of this Agreement or any other Transaction Document, or the validity, enforceability
or collectibility of the Loans generally or any material portion of the Loans, (c) the rights and
remedies of the Indenture Trustee on behalf of the Securityholders and the Hedge Counterparties,
(d) the ability of the Originator, the Trust Depositor, the Issuer, the Servicer, the Backup
Servicer or the Indenture Trustee to perform in all material respects their respective obligations
under this Agreement or any Transaction Document, or (e) the status, existence, perfection,
priority or enforceability of the Indenture Trustee’s security interest on behalf of the
Securityholders and the Hedge Counterparties.

“Material Modification” means:

     (i) a termination or release (including pursuant to prepayment), or an amendment,
modification or waiver, or equivalent similar undertaking or agreement, by the Servicer
with respect to a Loan which would not otherwise be permitted under the standards and
criteria set forth in Section 5.02(e); or

29

 

     (ii) a termination or release (including pursuant to prepayment), or an amendment,
modification or waiver, or equivalent similar undertaking or agreement, by the Servicer with
respect to a Loan which is entered into for reasons related to the inability of the applicable
Obligor to make payments of principal (excluding payments of principal consisting of excess cash
flow sweeps) or interest under such Loan, as determined in accordance with the Credit and
Collection Policy.

“Monthly Reconciliation Date” means the last day of each Due Period.

“Monthly Report” shall have the meaning given to such term in Section 9.01.

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

“Moody’s Rating Condition” means, with respect to any action or series of related actions or
proposed transaction or series of proposed transactions, that Moody’s shall have notified the Trust
Depositor, the Owner Trustee and the Indenture Trustee in writing that such action or series of
related actions or the consummation of such proposed transaction or series of related transactions
will not result in a reduction or withdrawal of the rating issued by Moody’s on the Closing Date
with respect to any outstanding class of Notes as a result of such action or series of related
actions or the consummation of such proposed transaction or series of related transactions.

“Mortgage ” means the mortgage, deed of trust or other instrument creating a Lien on a Mortgaged
Property.

“Mortgaged Property” means the underlying real property, if any, and any improvements thereon on
which a Lien is granted to secure a Loan.

“MPA” means any master purchase agreement between the SLP Financing Originator or the Originator
and a Dealer, as supplemented and/or modified by one or more purchase statements, pursuant to which
such Dealer has sold Alarm Service Agreements to the SLP Financing Originator or the Originator.
With respect to any MPA:

     (a) references in this Agreement to “payments” due under a Loan shall mean all payments owed
by the related Dealer under such MPA and (without duplication), to the extent not payable to the
Dealer pursuant to such MPA, all payments owed by a customer under any Alarm Service Agreement sold
pursuant to such MPA;

     (b) references in this Agreement to “principal” due on a Loan or “principal” of a Loan shall
mean the aggregate amount of all purchase prices paid to the Dealer under such MPA for Alarm
Service Agreements as reduced by any payments previously received by the “Purchaser” under such
MPA and allocable to principal in accordance with such MPA;

     (c) references in this Agreement to “interest” on a Loan shall mean the portion of payments
due under such MPA allocable to interest in accordance with such MPA;

     (d) references to “loan documents” or “loan documentation” shall include the related master
purchase agreement, initial purchase statements, purchase statement, security agreement and other
documents executed and delivered in connection with such MPA;

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     (e) references in this Agreement to “maturity” or “maturity date” shall mean the date
on which the Dealer is required under the MPA to repurchase all related Alarm Service
Agreements;

     (f) references in this Agreement to “note” or “promissory note” means the related
master purchase agreement and all related purchase statements; and

     (g) references in this Agreement to “Loans” shall include MPAs.

“NAICS Code” means the North American Industry Classification System Codes by at least four digits.

“Net Liquidation Proceeds” means Liquidation Proceeds relating to a Loan net of (a) any Liquidation
Expenses relating to such Loan reimbursed to the Servicer therefrom pursuant to terms of this
Agreement and (b) amounts required to be released to other creditors, including any other costs,
expenses and taxes, or the related Obligor or grantor pursuant to applicable law or the governing
Required Loan Documents.

“Net Trust Hedge Payments” means, with respect to each Payment Date, the excess, if any, of (a) the
monthly payments by the Issuer to the Hedge Counterparties and any interest accrued thereon over
(b) the monthly payments by the Hedge Counterparties to the Issuer and any interest accrued
thereon.

“Net Trust Hedge Receipts” means, with respect to each Payment Date, the excess, if any, of (a) the
monthly payments by the Hedge Counterparties to the Issuer and any interest accrued thereon over
(b) the monthly payments by the Issuer to the Hedge Counterparties and any interest accrued
thereon.

“New York Business Day” means any Business Day in the city of New York, New York.

“Note” means any one of the notes of the Issuer of any Class executed and authenticated in
accordance with the Indenture.

“Note Distribution Account ” means the interest bearing trust account so designated and established
and maintained pursuant to Section 7.01.

“Note Interest Rate” means, as the context requires, any of the Class A Note Interest Rate, the
Class B Note Interest Rate, the Class C Note Interest Rate, the Class D Note Interest Rate or the
Class E Note Interest Rate.

“Note Register” shall have the meaning given to such term in Section 2.04 of the Indenture.

“Noteholders” means each Person in whose name a Note is registered in the Note Register.

“Noteless Loan” means a Loan with respect to which (i) the related loan agreement does not require
the Obligor to execute and deliver an Underlying Note to evidence the indebtedness created under
such Loan and (ii) no Underlying Notes are outstanding with respect to the portion of the Loan
transferred to the Issuer.

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“Obligor” means, with respect to any Loan, any Person or Persons obligated to make
payments pursuant to or with respect to such Loan, including any guarantor thereof, but excluding,
in each case, any such Person that is an obligor or guarantor that is in addition to the primary
obligors or guarantors with respect to the assets, cash flows or credit of which the related Loan
is principally underwritten.

“Obligor Lock–Box” means the post office box to which Collections are remitted with respect
to certain Revolving Loans for retrieval by an Obligor Lock–Box Bank and deposited by such Obligor
Lock–Box Bank into an Obligor Lock–Box Account, the details of which are contained in Schedule II,
as such schedule may be amended from time to time.

“Obligor Lock–Box Accounts” means the accounts maintained for the purpose of receiving
Collections on certain Revolving Loans and transferring such Collections to the Lock–Box, the
details of which are contained in Schedule II, as such schedule may be amended from time to time.

“Obligor Lock–Box Bank” means any of the banks or other financial institutions holding one
or more Obligor Lock–Box Accounts.

“OCC” means the Office of the Comptroller of the Currency.

“Offer” means, with respect to any security, (a) any offer by the issuer of such security
or by any other Person made to all of the holders of such security to purchase or otherwise acquire
such security (other than (i) pursuant to any redemption in accordance with the terms of the
related underlying instruments or (ii) an A/B Exchange) or to convert or exchange such security
into or for cash or for any other security or other property or (b) any solicitation by the issuer
of such security or any other Person to amend, modify or waive any provision of such security or
any related underlying instruments in any manner.

“Offered Notes” means the Class A Notes, the Class B Notes, the Class C Notes, the Class D
Notes and the Class E Notes.

“Offering Memorandum” means the Offering Memorandum, dated March 31, 2006 prepared in
connection with the offer and sale of the Offered Notes.

“Officer’s Certificate” means a certificate delivered to the Indenture Trustee signed by
the Chief Executive Officer, the President, an Executive Vice President, a Senior Vice President,
the Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant Secretaries of the
Trust Depositor, the Servicer, or the Owner Trustee (or another Person) on behalf of the Issuer, as
required by this Agreement or any other Transaction Document.

“One–Month Index Maturity” shall have the meaning given to such term in Section 7.06.

“One–Month LIBOR” means LIBOR for the One-Month Index Maturity.

“Opinion of Counsel” means a written opinion of counsel, who may be outside counsel, or
internal counsel (except with respect to federal securities law, tax law, bankruptcy law or UCC
matters), for the Trust Depositor or the Servicer, from Patton Boggs LLP or other counsel

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reasonably acceptable to the Owner Trustee or the Indenture Trustee, as the case may be; provided,
however, if the opinion of counsel concerns or relates to any Hedge Counterparty, such counsel
shall be (i) outside counsel and (ii) acceptable to each Hedge Counterparty.

“Optional Repurchase” means a repurchase of the Notes pursuant to Section 10.01 of the
Indenture.

“Originator”
shall have the meaning given to such term in the Preamble.

“Outstanding” shall
have the meaning given to such term in the Indenture.

“Outstanding Loan Balance” of a Loan means the excess of (a) the principal amount of such
Loan, or portion thereof transferred to the Issuer, outstanding as of the applicable Cut–Off Date
over (b) all Principal Collections received on such Loan, or portion thereof, transferred to the
Issuer since the applicable Cut–Off Date; provided that for all purposes other than the
determination of the Transfer Deposit Amount: (i) any Loan charged–off pursuant to clauses (a),
(b), (c), (e) and (f) of the definition of Charged–Off Loan will be deemed to have an Outstanding
Loan Balance equal to zero; and (ii) all or the portion of any Loan charged–off pursuant to clause
(d) of the definition of Charged–Off Loan will be deemed to have an Outstanding Loan Balance equal
to zero; and provided, further, that for any Deferred Interest Loan, the Outstanding Loan Balance
of such Deferred Interest Loan shall exclude any Accreted Interest with respect thereto.

“Outstanding Principal Balance” means, as of date of determination and with respect to any
class of Notes, the original principal amount of such class of Notes on the Closing Date, as
reduced by all amounts paid by the Issuer with respect to such principal amount up to such date.

“Overadvance” means an advance of funds by the Originator or any of its Affiliates to an
Obligor under a Loan in excess of the availability under the facility related to such Loan at the
time such advance is made.

“Owner Trustee” means the Person acting, not in its individual capacity, but solely as
Owner Trustee, under the Trust Agreement, its successors in interest and any successor owner
trustee under the Trust Agreement.

“Partially Funded Term Loan” means a Loan that is a closed–end multiple advance Loan that has not
been fully funded as of the Cut–Off Date.

“Participation Loan” means 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 such transaction
has been fully consummated, pursuant to a standard participation agreement.

“Paying Agent” shall have the meaning given to such term in Section 3.03 of the Indenture
and Section 3.09 of the Trust Agreement.

“Payment Date” means the 20th day of each month, commencing April 20, 2006 or, if such 20th
day is not a Business Day, the next succeeding Business Day.

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

     (i) 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);

     (ii) demand deposits, time deposits or certificates of deposit of depository
institutions or trust companies incorporated under the laws of the United States or any
state thereof and subject to supervision and examination by federal or state banking or
depository institution authorities; provided, however, that at the time of the Issuer’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 each Rating Agency in the
Highest Required Investment Category granted by such Rating Agency, which, in the case of
Fitch, shall be “F–1+”;

     (iii) commercial paper, or other short term obligations, having, at the time of the
Issuer’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+”;

     (iv) 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+”;

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

     (vi) investments in taxable money market funds or other regulated investment companies
having, at the time of the Issuer’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) or otherwise subject to satisfaction of the Rating Agency Condition;

     (vii) time deposits (having maturities of not more than 90 days) by an entity the
commercial paper of which has, at the time of the Issuer’s investment or contractual

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commitment to invest therein, a rating of the Highest Required Investment Category granted
by each Rating Agency;

     (viii) 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+”; or

     (ix) any negotiable instruments or securities or other investments subject to
satisfaction of the Rating Agency Condition.

Permitted Investments shall not include any instrument, security or investment (a) which is
purchased at a price (excluding accrued interest) in excess of 100% of par, (b) which is subject to
substantial non-credit risk as determined by the Servicer in its reasonable business judgment, (c)
the S&P rating of which includes a “p”, “pi”, “q”, “r” or “t” subscript, (d) which is subject to
an Offer, or (e) if the income from such obligation or security is or will be subject to deduction
or withholding for or on account of any withholding or similar tax, unless the issuer is required
to make gross up payments equal to the full amount of any such withholding tax, or the acquisition
(including the manner of acquisition), ownership, enforcement or disposition of such obligation or
security will subject the Issuer to net income tax in any jurisdiction other than its jurisdiction
of incorporation. Permitted Investments may not include obligations secured by real property,
including mortgage-backed securities. The Indenture Trustee may purchase or sell to itself or an
Affiliate, as principal or agent, the Permitted Investments described above.

“Permitted Liens ” means

     (a) with respect to Loans in the Loan Pool: (i) Liens in favor of the Trust Depositor created
pursuant to the Loan Sale Agreement and transferred to the Issuer pursuant hereto, (ii) Liens in
favor of the Issuer created pursuant to this Agreement, and (iii) Liens in favor of the Indenture Trustee created pursuant to the Indenture and/or this
Agreement; and

     (b) with respect to the interest of the Originator, the Trust Depositor and the Issuer in the
related Collateral: (i) 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, (ii) purchase money security interests in certain items of equipment,
(iii) Liens for state, municipal and other local taxes if such taxes shall not at the time be due
and payable or if the Trust Depositor shall currently be contesting the validity thereof in good
faith by appropriate proceedings, (iv) Liens in favor of the Trust Depositor created by the
Originator and transferred by the Trust Depositor to the Issuer pursuant to this Agreement, (v)
Liens in favor of the Issuer created pursuant to this Agreement, (vi) Liens in favor of the
Indenture Trustee created pursuant to the Indenture and/or this Agreement, (vii) Liens held by
senior lenders or lenders under Senior B Note Loans with respect to any Subordinated Loans, (viii)
contractually subordinated liens in favor of junior lenders to the same Obligor, and (ix) with
respect to Agented Loans and Assigned Loans, Liens in favor of the collateral agent on behalf of
all noteholders of such Obligor.

“Person” means any individual, corporation, estate, partnership, business or statutory
trust, limited liability company, sole proprietorship, joint venture, association, joint stock
company,

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trust (including any beneficiary thereof), unincorporated organization or government or any agency
or political subdivision thereof or other entity.

“Pooled Obligor Loans” means Loans to Obligors that are in turn collateralized by loans to
multiple Underlying Debtors, including, without limitation, Underlying Debtors that are
individuals, consumers and small businesses.

“Prepaid Loan” means any Loan (other than a Charged–Off Loan) that was terminated or has been
prepaid in full prior to its scheduled expiration date.

“Prepaid Loan Amount” means, with respect to each Substitute Loan being transferred in place of a
Prepaid Loan, an amount equal to the lesser of (i) the amount deposited into the Principal
Collection Account with respect to such Prepaid Loan and (ii) the Outstanding Loan Balance of the
Prepaid Loan immediately prior to the date it was prepaid.

“Prepayments” means any and all (a) full prepayments, including prepayment premiums, on or with
respect to a Loan (including, with respect to any Loan and any Due Period, any Scheduled Payment,
Finance Charge or portion thereof that is due in a subsequent Due Period that the Servicer has
received and 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), (b) Liquidation Proceeds, and
(c) Insurance Proceeds.

“Principal and Interest Account” means the interest bearing trust account so designated and
established and maintained pursuant to Section 7.03.

“Principal Collection Account” means a sub–account of the Principal and Interest Account
established and maintained pursuant to Section 7.03(a).

“Principal Collections ” means amounts deposited into the Principal and Interest Account in
respect of payments received on or after the Cut–Off Date on account of principal on the Loans,
including:

     (a) the principal portion of:

     (i) any Scheduled Payments and Prepayments; and

     (ii) any amounts received (x) in connection with the purchase or repurchase of any
Loan and the amount of any adjustment for substituted Loans and (y) any Scheduled Payment
Advances that the Servicer determines to make;

     (b) Curtailments; and

     (c) amounts previously deposited in accordance with the procedures for the substitution of
Loans that have not been applied to purchase one or more Substitute Loans within 180 days of their
deposit into the Principal Collection Account.

“Principal Distributable Shortfall” means, on each Payment Date, the amount, if any, by
which the Total Principal Distributable exceeds the Available Principal Distributable.

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“Prior Term Transactions” means the Rule 144A/Regulation S private placements of Notes
issued by (i) CapitalSource Commercial Loan Trust 2002-2 on or about October 30, 2002, (ii)
CapitalSource Commercial Loan Trust 2003-1 on or about April 17, 2003, (iii) CapitalSource
Commercial Loan Trust 2003-2 on or about November 25, 2003, (iv) CapitalSource Commercial Loan
Trust 2004-1 on or about June 22, 2004, (v) CapitalSource Commercial Loan Trust 2004-2 on or about
October 28, 2004 and (vi) CapitalSource Commercial Loan Trust 2005-1 on or about April 14, 2005.

“Priority of Payments” means, collectively, the payments made on each Payment Date in
accordance with Section 7.05(a) and Section 7.05(b).

“Public Securities” means the common stock of CapitalSource Inc., a Delaware corporation
and the ultimate parent of the Originator, and any subsequent securities issued by CapitalSource
Inc. in a transaction registered under the Securities Act.

“Purchase Agreement” means the Purchase Agreement, dated March 31, 2006 among the Initial
Purchasers, the Trust Depositor, the Issuer and CapitalSource, as such agreement may be amended,
modified, waived, supplemented or restated from time to time.

“Qualified Hedge Counterparty” means a party that is a recognized dealer in interest rate
swaps and interest rate caps, organized under the laws of the United States or a jurisdiction
located therein (or another jurisdiction reasonably acceptable to the Issuer and each Rating
Agency), that with respect to itself or its Credit Support Provider: (a) at the time it becomes a
Hedge Counterparty has a short–term rating of at least “A-1” or a long-term senior unsecured debt
rating of at least “A+” if such Person does not have a short-term rating by S&P (for so long as any of the Offered Notes are deemed Outstanding hereunder
and are rated by S&P), and at least “F-1” by Fitch (for so long as any of the Offered Notes are
deemed Outstanding hereunder and are rated by Fitch) and either a long–term senior unsecured debt
rating of at least “Aa3” by Moody’s (if such Person does not have at least a “P-1” short–term debt
rating by Moody’s) or a long–term senior unsecured debt rating of at least “A1” by Moody’s and not
subject to the qualification that the party has been placed on credit watch with negative
implications (only if the short–term debt of such Person is rated at least “P-1” by Moody’s and not
subject to the qualification that the party has been placed on credit watch with negative
implications) (for so long as any of the Offered Notes are deemed Outstanding hereunder and are
rated by Moody’s) and thereafter maintains long-term senior unsecured debt rating of at least “BBB-
” from S&P (for so long as any of the Offered Notes are deemed Outstanding hereunder and are rated
by S&P), and a short-term debt rating of at least “F–2” by Fitch (for so long as any of the Offered
Notes are deemed Outstanding hereunder and are rated by Fitch) and either a long-term senior
unsecured debt rating of at least “A1” by Moody’s (if such Person does not have at least a “P-1”
short–term debt rating by Moody’s) or a long–term senior unsecured debt rating of at least “A2” by
Moody’s (only if the short–term debt of such Person is rated at least “P-1” by Moody’s) (for so
long as any of the Offered Notes are deemed Outstanding hereunder and are rated by Moody’s);
provided, that, should a Rating Agency effect an overall downward adjustment of its short-term or
long-term debt ratings, then the rating required of that Rating Agency under this clause (a) for a
party to constitute a Qualified Hedge Counterparty shall be downwardly adjusted accordingly;
provided further, that any adjustment to a rating shall be subject to the prior written consent of
the applicable Rating Agency (b) legally and effectively accepts the rights and

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obligations under the applicable Hedge Agreement, or, as the case may be, alternate credit support
arrangements pursuant to a written agreement reasonably acceptable to the Issuer and (c) in
connection with a Substitute Hedge Counterparty, otherwise satisfies the Rating Agency Condition.

“Qualified Institution” means (a) the corporate trust department of the Indenture Trustee
or the corporate trust department of Citibank N.A., or (b) a depository institution organized under
the laws of the United States 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
acceptable to the Rating Agencies, which, in the case of S&P, shall be “AA-”, in the case of Fitch,
shall be “AAA” and in the case of Moody’s, shall be “Aa3,” or (2) a short–term unsecured debt
rating or certificate of deposit rating acceptable to the Rating Agencies, which, in the case of
S&P, shall be “A-1+”, in the case of Fitch, shall be “F-1+”, and in the case of Moody’s, shall be
“P-1,” (B) the parent corporation, if such parent corporation guarantees the obligations of the
depository institution, of which has either (1) a long–term unsecured debt rating acceptable to the
Rating Agencies, which, in the case of S&P, shall be “AA-”, in the case of Fitch, shall be “AAA”
and in the case of Moody’s, shall be “Aa3” or (2) a short–term unsecured debt rating or certificate
of deposit rating acceptable to the Rating Agencies, which, in the case of S&P, shall be “A-1+”, in
the case of Fitch, shall be “F-1+” and in the case of Moody’s, shall be “A-1,” or (C) otherwise satisfies the Rating Agency Condition, and (ii) whose deposits are
insured by the FDIC and satisfies the Rating Agency Condition.

“Qualified Transferee” means:

     (a) the Trust Depositor, the Trust, the Indenture Trustee and any Affiliate thereof; 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 one of the following:

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

     (B) an investment company, money management firm or a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities Act, or
an “institutional accredited investor” within the meaning of Regulation D who is a
qualified purchaser for purposes of Section 3(c)(7) of the 1940 Act;

     (C) the trustee, collateral agent or administrative agent in connection with
(x) a securitization of the subject Loan through the creation of collateralized
debt or loan obligations or (y) an asset-backed commercial paper funded 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

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transaction funded by a 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

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

“Rating Agency” means each of S&P, Moody’s and Fitch, so long as such Persons maintain a
rating on any of the Offered Notes; and if any of S&P, Moody’s or Fitch no longer maintains a
rating on any of the Offered Notes, such other nationally recognized statistical rating
organization, if any, selected by the Trust Depositor.

“Rating Agency Condition” means, with respect to any action or series of related actions or
proposed transaction or series of related proposed transactions, that each applicable Rating Agency
shall have notified the Trust Depositor, the Owner Trustee and the Indenture Trustee in writing
that such action or series of related actions or the consummation of such proposed transaction or
series of related transactions will not result in a Ratings Effect.

“Ratings Effect” means, with respect to any action or series of related actions or
proposed transaction or series of related proposed transactions, a reduction or withdrawal of any
then-current rating issued by a Rating Agency with respect to any outstanding Class of Notes as a
result of such action or series of related actions or the consummation of such proposed transaction
or series of related transactions.

“Record Date” means, for book–entry Notes, the calendar day immediately preceding the
applicable Payment Date or Repurchase Date, and for the Individual Notes, the last Business Day of
the immediately preceding calendar month.

“Records” means all Loan and other documents, 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 Loans or maintained with respect to the Loans and the related Obligors that the
Originator or the Servicer have generated, in which the Originator, the Trust Depositor, the
Issuer, the Indenture Trustee or the Servicer have acquired an interest pursuant to the Transfer
and Servicing Agreements or in which the Originator, the Trust Depositor, the Issuer, the Indenture
Trustee or the Servicer have otherwise obtained an interest.

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“Reducing Revolving Loans ” means a Loan that is a revolving line of credit with a
commitment that reduces over the life of the Loan.

“Reference Banks” means leading banks selected by the Indenture Trustee and engaged in transactions
in Eurodollar deposits in the international Eurocurrency market.

“Released Amounts” means, with respect to any payment or collection received with respect
to any Loan on any Business Day (whether such payment or collection is received by the Servicer,
the Owner Trustee or the Trust Depositor), an amount equal to that portion of such payment or
collection on any Retained Interest released from the Loan Assets pursuant to Section 2.06.

“Released Mortgage Property Proceeds” means, as to any Loan secured by a Mortgaged
Property, the proceeds received by the Servicer in connection with (a) a taking of an entire
Mortgaged Property by exercise of the power of eminent domain or condemnation or (b) any release of
part of the Mortgaged Property from the Lien of the related Mortgage, whether by partial
condemnation, sale or otherwise, which is not released to the Obligor, the grantor or another
creditor in accordance with the Requirements of Law, the governing documents, the Credit and
Collection Policy and this Agreement.

“Repossessed Collateral” means items of Collateral taken in the name of the Issuer as a
result of legal action enforcing the Lien on the Collateral resulting from a default on the related
Loan.

“Repurchase Date” means in the case of an Optional Repurchase, the Payment Date specified
by the Issuer pursuant to Section 10.01 of the Indenture.

“Repurchase Price” means, in the case of an Optional Repurchase, an amount equal to the
then outstanding principal amount of each class of Notes to be repurchased plus accrued and unpaid
interest thereon to but excluding the Repurchase Date plus all other amounts accrued and unpaid
with respect thereto, together with all amounts then owing to each Hedge Counterparty, including
Hedge Breakage Costs, plus, without duplication, all amounts payable to each Hedge Counterparty
upon termination of all Hedge Transactions in connection with a Repurchase of the Notes, including
Hedge Breakage Costs.

“Representative Amount” means an amount that is representative for a single transaction in
the relevant market at the relevant time.

“Required Loan Documents” means, with respect to:

     (a) all Loans in the aggregate:

     (i) a blanket assignment of all of the Originator’s and Trust Depositor’s right, title
and interest in and to all Collateral securing the Loans at any time transferred to the
Issuer including without limitation, all rights under applicable guarantees and Insurance
Policies, such assignment shall be in the name of “Wells Fargo Bank, National Association,
its successors and assigns, as Indenture Trustee under the Indenture, dated as of April 11,
2006 relating to CapitalSource Commercial Loan Trust 2006-1”;

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     (ii) irrevocable powers of attorney of the Originator, the Trust Depositor and the Issuer to
the Indenture Trustee to execute, deliver, file or record and otherwise deal
with the Collateral for the Loans at any time transferred to the Issuer. The powers of
attorney will be delegable by the Indenture Trustee to the Servicer and any Successor Servicer and
will permit the Indenture Trustee or its delegate to prepare, execute and file or record UCC
financing statements and notices to insurers;

     (iii) blanket UCC–1 financing statements identifying by type all Collateral for the Loans to
be transferred to the Issuer as Collateral under the Indenture and naming the Issuer and the
Indenture Trustee, as assignee of the Issuer, as “Secured Party” and the Trust Depositor as the
“Debtor”;

     (b) for each Loan:

     (i) with the exception of Noteless Loans, the original Underlying Note, endorsed by means of
an allonge in blank or as follows: “Pay to the order of Wells Fargo Bank, National Association, and
its successors and assigns, not in its individual capacity but solely as Indenture Trustee under
that certain Indenture, dated as of April 11, 2006 relating to CapitalSource Commercial Loan Trust
2006-1, without recourse” and signed, by facsimile or manual signature, in the name of the Trust
Depositor by a Responsible Officer, with all prior and intervening endorsements showing a complete
chain of endorsement from the Originator to the Trust Depositor and from the Trust Depositor to the
Issuer;

     (ii) in the case of Noteless Loans, a copy of the Loan Register, certified by a Responsible
Officer of the Originator;

     (iii) a copy of the related loan agreement (which may be included in the Underlying Note if so
indicated in the Loan Checklist) or, with respect to an MPA, the master purchase agreement and
purchase statements, together with a copy of all amendments and modifications thereto;

     (iv) a copy of any related security agreement signed by the primary Obligor;

     (v) a copy of the Loan Checklist;

     (vi) a copy of any related guarantees then executed in connection with such Loan;

     (vii) a copy of any UCC financing statements filed securing any related Collateral naming the
Originator, or, with respect to Assigned Loans, Participation Loans or Agented Loans, the
collateral agent named thereunder, as “Secured Party”;

     (viii) for Assigned Loans, a copy of the assignment agreement;

     (ix) if the Originator is the only lender under the credit facility, if the Originator is the
collateral agent for a syndicate of lenders under the credit facility, or if the Originator has not
previously delivered such stock certificate to Wells Fargo in

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connection with any of the Warehouse Facilities or any Prior Term Transaction, and the Loan
Checklist indicates that the Collateral includes a pledge of stock, the original stock
certificate serving as Collateral for such Loan, along with an executed stock power
executed in blank; and

     (x) if the Originator is the only lender under the credit
facility, if the Originator is the collateral agent for a syndicate of lenders
under the credit facility, or if the Originator has not previously delivered
such items to Wells Fargo in connection with any of the Warehouse Facilities
or such Prior Term Transaction, all other items listed in the related Loan
Checklist that have not previously been delivered, or a certificate from a
Responsible Officer of the Trust Depositor that such delivery has been waived
consistent with the prudent lending practices and the Credit and Collection
Policy of the Originator and such waiver shall not have a material adverse
effect on the Noteholders or Hedge Counterparties.

“Required Reserve Amount” means, with respect to each Payment Date, an amount equal to the
sum of (a) three times the sum of the Class A Interest Amount, the Class B Interest Amount, the
Class C Interest Amount, the Class D Interest Amount and the Class E Interest Amount due on the
next Payment Date plus (b) the Outstanding Loan Balance of each Delinquent Loan.

“Requirements of Law” for any Person means the certificate of incorporation or articles of
association and by–laws or other organizational or governing documents of such Person, and any law,
treaty, rule or regulation, or order or determination of an arbitrator or Governmental Authority,
in each case applicable to or binding upon such Person or to which such Person is subject, whether
Federal, state or local (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).

“Reserve Fund ” means the interest bearing trust account so designated and established and
maintained pursuant to Section 7.01.

“Reserve Fund Initial Balance” means an amount equal to $9,710,067.72 (i.e., the product of
(a) the sum of the Outstanding Principal Balance of the Offered Notes as of the Closing Date, (b)
the weighted average Note Interest Rate applicable to each Class of Offered Notes as of the first
day of the initial Interest Accrual Period (weighted by the Outstanding Principal Balance of each
Class of Offered Notes) and (c) 0.25).

“Responsible Officer” means, when used with respect to the Owner Trustee or the Indenture
Trustee, any officer assigned to the Corporate Trust Office, including any Chief Executive Officer,
President, Executive Vice President, Vice President, Assistant Vice President, Secretary, any
Assistant Secretary, any trust officer or any other officer of the Owner Trustee or the Indenture Trustee customarily performing functions similar to those performed
by any of the above designated officers and also, with respect to a particular matter, any other
officer to whom such matter is referred because of such officer’s knowledge of and familiarity with
the particular subject. When used with respect to the Trust Depositor, the Issuer, the Originator
or the Servicer, any Chief Executive Officer, the President, an Executive Vice President, a Senior
Vice President, the Treasurer, the Secretary or any Assistant Secretary or Assistant Treasurer.

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“Retained Interest” means, for each Loan, the following interests, rights and obligations
in such Loan and under the related loan documents, which are being retained by the Originator: (a)
all of the obligations, if any, to provide additional funding with respect to such Loan, (b) all of
the rights and obligations, if any, of the agent(s) under the documentation evidencing such Loan,
(c) the applicable portion of the interests, rights and obligations under the documentation
evidencing such Loan that relate to such portion(s) of the indebtedness that is owned by another
lender or is being retained by the Originator, (d) any unused commitment fees associated with the
additional funding obligations that are not being transferred in accordance with clause (a) above,
(e) any agency or similar fees associated with the rights and obligations of the agent that are not
being transferred in accordance with clause (b) above, (f) any advisory, consulting, audit,
in–house legal expenses or similar fees and/or expenses due from the Obligor associated with
services provided by the agent that are not being transferred in accordance with clause (b) above,
and (g) any and all warrants and equity instruments issued in the name of the Originator or its
Affiliates in connection with or relating to any Loan.

“Revolving Loan” means a Loan that is a line of credit arising from an extension of credit
by the Originator to an Obligor with a commitment that is fixed pursuant to the terms of the
related Required Loan Documents.

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

“S&P CDO Evaluator” means the dynamic, analytical computer program in the form provided by
S&P to the Servicer as of the Closing Date for the purpose of estimating the default risk of Loans.

“S&P Rating Condition” means, with respect to any action or series of related actions or
proposed transaction or series of proposed transactions, that S&P shall have notified the Trust
Depositor, the Owner Trustee and the Indenture Trustee in writing that such action or series of
related actions or the consummation of such proposed transaction or series of related transactions
will not result in a reduction or withdrawal of the then-current rating issued by S&P with respect
to any outstanding class of Notes as a result of such action or series of related actions or the
consummation of such proposed transaction or series of related transactions.

“SAIF” means the Savings Association Insurance Fund, or any successor thereto.

“Scheduled Payment” means, with respect to any Loan, the payment of principal and/or
interest scheduled to be made by the related Obligor under the terms of such Loan after the related
Cut-Off Date, excluding any payments of principal constituting excess cash flow sweeps, as adjusted
pursuant to the terms of the related Underlying Note or Required Loan Documents, and any such
payment received after the related Cut–Off Date.

“Scheduled Payment Advance” means, with respect to any Payment Date, the amounts, if any,
deposited by the Servicer in the Principal and Interest Account for such Payment Date in respect of
Scheduled Payments (or portions thereof) pursuant to Section 5.09.

“Securities” means the Notes and the Certificate, or any of them.

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

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

“Securityholders” means the Holders of the Notes or the Certificate.

“Senior B-Note Loan” means any multilender Loan that (a) is secured by a first priority
Lien on all the Obligor’s assets constituting Collateral for the Loan, (b) has a Loan-to-Value of
less than or equal to 90%, and (c) that contains provisions which, upon the occurrence of an event
of default under the Underlying Loan Documents or in the case of any liquidation or foreclosure on
the related Collateral, the Issuer’s portion of such Loan would be paid only after the other lender
party to such Loan (whose right to payment is contractually senior to the Issuer) is paid in full.

“Senior Loan” means any Loan that (a) is secured by a first priority Lien on all of the
Obligor’s assets constituting Collateral for the Loan, (b) has a Loan–to–Value of less than or
equal to 90%, and (c) provides that the Payment Obligation of the related Obligor on such Loan is
either senior to, or pari passu with, all other loans or financings to such Obligor.

“Sequential Pay Event” means, with respect to any Payment Date, that one or more of the
following has occurred;

     (a) as of the related Determination Date, the Outstanding Loan Balance of Loans which have
become Charged-Off Loans represent 8.0% or more of the Initial Aggregate Outstanding Loan Balance;

     (b) any of the Class B Interest Amount, the Class C Interest Amount, the Class D Interest
Amount or the Class E Interest Amount is calculated using clause (ii)(b) of the definition thereof;

     (c) an Event of Default;

     (d) a Servicer Default;

     (e) an Accelerated Amortization Event;

     (f) the Aggregate Outstanding Loan Balance is less than 45% of the Initial Aggregate
Outstanding Loan Balance; or

     (g) a Downgrade Event.

“Servicer” means initially CapitalSource, or its successor, until any Servicer Transfer hereunder
or the resignation or permitted assignment by the Servicer and, thereafter, means the Successor
Servicer appointed pursuant to ARTICLE 8 with respect to the duties and obligations required of the
Servicer under this Agreement.

“Servicer Default ” shall have the meaning specified in Section 8.01.

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“Servicer Employees” shall have the meaning specified in Section 5.04.

“Servicer Transfer” shall have the meaning specified in Section 8.02(b).

“Servicing Advances” means, all reasonable and customary “out–of–pocket” costs and expenses
incurred in the performance by the Servicer of its servicing obligations, including, but not
limited to, the cost of (a) the preservation, restoration and protection of the Collateral, (b) any
enforcement or judicial proceedings, including foreclosures, (c) the management and liquidation of
the Foreclosed Property or Repossessed Collateral, (d) compliance with the obligations under this
Agreement, which “Servicing Advances” are reimbursable to the Servicer to the extent provided in
Section 5.10(d) of this Agreement, and (e) in connection with the liquidation of a Loan, for all of
which costs and expenses the Servicer is entitled to reimbursement thereon up to a maximum rate per
annum equal to the related Loan Rate.

“Servicing Fee” shall have the meaning given to such term in Section 5.11.

“Servicing Fee Percentage ” means 1.0%.

“Servicing Officer” means any officer of the Servicer involved in, or responsible for, the
administration and servicing of Loans whose name appears on a list of servicing officers appearing
in an Officer’s Certificate furnished to the Indenture Trustee by the Servicer, as the same may be
amended from time to time.

“SG CIB” means SG Americas Securities, LLC.

“SLP Financing Originator” means Security Leasing Partners, LP, a Delaware limited
partnership.

“Solvent” means, as to any Person at any time, that (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) 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; (c) 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 (d) such Person is
not engaged in business or a transaction, and is not about to engage in a business or a
transaction, for which such Person’s property would constitute unreasonably small capital.

“SPE Obligor” means an Obligor that (a) is organized as a special purpose entity and is not
an operating company and (b) has as its primary assets loans to, and a security interest in the
assets of, Underlying Debtors.

“Specified Amendment” means, with respect to any Loan, any waiver, modification, amendment
or variance of such Loan which does not constitute a Material Modification of the type specified in
clause (ii) of the definition thereof and which effects:

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     (a) any waiver, modification amendment or variance of any term of such Loan in a manner that
would:

     (i) modify the amortization schedule with respect to such Loan to reduce the dollar
amount of any Scheduled Payment by more than 20%, or to postpone by more than two payment
periods or eliminate a Scheduled Payment with respect thereto; provided that any such
modification, postponement or elimination shall not cause the weighted average life of the
applicable Loan to increase by more than 10%; or

     (ii) reduce or increase the cash interest rate payable by the Obligor thereunder by
more than 100 basis points (excluding any increase in an interest rate arising by operation
of a default or penalty interest clause under a Loan); or

     (iii) forgive any of the principal amount thereof; or

     (iv) extend the stated maturity date of such Loan by more than 24 months; provided
that, any such extension shall be deemed not to have been made until the business day
following the original stated maturity date of such Loan, except that the Servicer shall
provide notice and a summary of such extension to the Rating Agencies in accordance with
the second sentence of Section 5.02(e)(ii) as though a Specified Amendment had occurred as
of the date such extension is entered into; or

     (v) release any party from its obligations under such Loan, if such release would have
a material adverse effect on the Loan; or

     (vi) release, or permit the sharing of, the collateral included in the borrowing base
under an Asset Based Revolver such that the advance rate for such Loan would exceed 90%
based upon the remaining collateral; or

     (vii) increase the advance rate under an Asset Based Revolver to more than 90%; or

     (b) the making of an Overadvance not scheduled to be repaid within one year of being made to
the Obligor with respect to an Asset Based Revolver, where such Overadvance results in an advance
rate in excess of 90% for such Loan;

     provided that any waiver or forgiveness by the Servicer of any amount described in Section
5.11(b) shall not constitute a Specified Amendment.

“Statutory Trust Statute” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. §§ 3801 et
seq., as the same may be amended from time to time.

“Subordinated Loan” means any Loan other than a Senior Loan, a Senior B-Note Loan or an unsecured
Loan.

“Subsequent Cut–Off Date” means the date specified as such for Substitute Loans in the
related Subsequent Transfer Agreement.

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“Subsequent List of Loans” means a list, in the form of the initial List of Loans delivered
on the Closing Date, but listing each Substitute Loan transferred to the Issuer pursuant to the
related Subsequent Transfer Agreement.

“Subsequent Purchase Agreement” means, with respect to any Substitute Loans, the agreement
between the Originator and the Trust Depositor pursuant to which the Originator will transfer the
Substitute Loans to the Trust Depositor, the form of which is attached to hereto as Exhibit J.

“Subsequent Transfer Agreement” means the agreement described in Section 2.04(d)(v) hereof,
the form of which is attached hereto as Exhibit I.

“Subsequent Transfer Date” means any date on which Substitute Loans are transferred to the
Issuer.

“Subservicer” means any direct or indirect wholly owned subsidiary of CapitalSource that
CapitalSource has identified as a subservicer or additional collateral agent or any other Person
with whom the Servicer has entered into a Subservicing Agreement and who satisfies the requirements
set forth in Section 5.02(a) of this Agreement in respect of the qualification of a Subservicer.

“Subservicing Agreement” means any agreement between the Servicer and any Subservicer
relating to subservicing and/or administration of certain Loans as provided in this Agreement, a
copy of which shall be delivered, along with any modifications thereto, to the Indenture Trustee.

“Substitute Hedge Counterparty” means any substitute or replacement Hedge Counterparty
under a Hedge Agreement.

“Substitute Loan” means one or more Eligible Loans (a) transferred to the Issuer under and
in accordance with Section 2.04 and identified in the related Addition Notice, and (b) that become
part of the Loan Pool.

“Substitute Loan Assets” shall have the meaning given to such term in Section 2.04(b).

“Substitute Loan Qualification Conditions” means, with respect to any Substitute Loan being
transferred to the Issuer pursuant to Section 2.04, the accuracy of each of the following
statements as of the related Cut-Off Date for such Loan:

     (a) (i) if the Loan Rate of such Substitute Loan is determined by reference to the same Loan
Rate Index as the Loan being replaced, the Loan Rate of such Substitute Loan equals or exceeds the
Loan Rate of the Loan being replaced, or (ii) if the Loan Rate of each Substitute Loan is not
determined by reference to the same Loan Rate Index as the Loan being replaced, the Weighted
Average LIBOR Spread Test is satisfied; provided that if the Weighted Average LIBOR Spread Test is
not satisfied prior to giving effect to the inclusion of any Substitute Loans under the
circumstances described in this clause (ii), the Weighted Average LIBOR Spread Test shall be deemed
satisfied if the Weighted Average LIBOR Spread is maintained or improved by the inclusion of such
Substitute Loan(s);

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     (b) the number of Loans being replaced must be less than or equal to the number of Substitute
Loans added to the Loan Pool;

     (c) the Outstanding Loan Balance of such Substitute Loan, or, if more than one Substitute Loan
will be added in replacement of a Loan, the sum of the Outstanding Loan Balances of the Substitute
Loans, is not less than that of the Loan identified on the related Addition Notice as the Loan to
be reassigned by the Issuer to the Trust Depositor and reconveyed to the Originator in exchange for
such Substitute Loan;

     (d) no selection procedures believed by the Originator or the Trust Depositor to be adverse
shall have been employed in the selection of such Loan being substituted from the Originator’s
portfolio;

     (e) all actions or additional actions (if any) necessary to perfect the security interest and
assignment of such Substitute Loan and related Collateral to the Trust Depositor, the Issuer, and
the Indenture Trustee shall have been taken as of or prior to the Subsequent Transfer Date;

     (f) the Substitute Loan has a maturity date not later than 36 months prior to the Final
Maturity Date;

     (g) either: (i) the Eligible Loan Rating of each Substitute Loan is equal to or better than
the Eligible Loan Rating of the Loan being replaced at the time of its replacement; or (ii) if the
Loan Rating of each Substitute Loan is worse than the Eligible Loan Rating of the Loan being
replaced at the time of its replacement, then after giving effect to such substitution, the
weighted average Eligible Loan Rating of the Loan Pool is equal to or better than the weighted
average Eligible Loan Rating of the Loan Pool as of the Initial Cut-Off Date;

     (h) either: (i) the estimated Moody’s rating and estimated S&P rating of each Substitute Loan
is equal to or better than the estimated Moody’s rating and the estimated S&P rating, as
applicable, of the Loan being replaced at the time of its replacement; (ii) if the estimated S&P
rating of such Substitute Loan is equal to or better than the estimated S&P rating of the Loan
being replaced but the estimated Moody’s rating of any Substitute Loan is worse than the estimated
Moody’s rating of the Loan being replaced, in each case at the time of its replacement, then after
giving effect to such substitution, the weighted average estimated Moody’s rating of the Loans in
the Loan Pool shall be equal to or better than the weighted average estimated Moody’s rating of the
Loans in the Loan Pool as of the Cut-Off Date; (iii) if the estimated Moody’s rating of such
Substitute Loan is equal to or better than the estimated Moody’s rating of the Loan being replaced
but the estimated S&P rating of any Substitute Loan is worse than the estimated S&P rating of the
Loan being replaced, in each case at the time of its replacement, then after giving effect to such
substitution, the Break-Even Default Rate with respect to the Class A Notes and the Class B Notes
determined using the S&P CDO Evaluator shall not be lower than the Break-Even Default Rate with
respect to the Class A Notes and the Class B Notes determined using the S&P CDO Evaluator as of the
Cut-Off Date; or (iv) if the estimated Moody’s rating and estimated S&P rating of any Substitute
Loan is worse than the estimated Moody’s rating and the estimated S&P rating, as applicable, of the
Loan being replaced at the time of its replacement, then after giving effect to such substitution,
the weighted average estimated Moody’s rating of the Loans in the Loan Pool shall be equal to or
better than

48

 

the weighted average estimated Moody’s rating of the Loans in the Loan Pool as of the Cut-Off Date
and the Break-Even Default Rate with respect to the Class A Notes and the Class B Notes determined
using the S&P CDO Evaluator shall not be lower than the Break-Even Default Rate with respect to the
Class A Notes and the Class B Notes determined using the S&P CDO Evaluator as of the Cut-Off Date;

     (i) after giving effect to such substitution, there will be no material adverse change in the
Loan Pool;

     (j) after giving effect to such substitution, the Weighted Average Life Test is satisfied;

     (k) the frequency of payment of each Substitute Loan is at least as frequent as the Loan being
replaced; and

     (l) the type of Collateral securing each Substitute Loan is similar to the type of Collateral
securing the Loan being replaced, and the lien position of such Substitute Loan with respect to the
related Collateral securing each Substitute Loan is not less senior than the lien position of the
Loan being replaced with respect to the Collateral securing such replaced Loan.

“Substitution Event” shall have occurred if a Loan then held by the Issuer and identified
in the related Addition Notice is one of (a) a Prepaid Loan, (b) a Charged–Off Loan, (c) a Loan
that has a covenant default, (d) a Delinquent Loan (other than a Loan which has been deemed to be a
Delinquent Loan in accordance with Section 5.02(e)(iii)), (e) a Loan that becomes subject to a
Material Modification, (f) a Loan that becomes subject to a Specified Amendment or (g) the subject
of a breach of a representation or warranty under this Agreement or other provision, which breach
or other provision, in the absence of a substitution of a Substitute Loan for such Loan pursuant to
Section 2.04, would require the payment of a Transfer Deposit Amount to the Issuer in respect of
such Loan pursuant to Section 11.01; provided that the occurrence of a Substitution Event under
clauses (a)-(d) above or clause (e) above in the event of a Material Modification contemplated by
clause (ii) of the definition of such term shall be subject to the limits set forth in Section
2.08.

“Substitution Period” shall have the meaning given to such term in Section 2.04(a)(ii)(C).

“Successor Backup Servicer” shall have the meaning given to such term in Section 8.10(a).

“Successor Servicer” shall have the meaning given to such term in Section 8.02(b).

“SunTrust” means SunTrust Capital Markets, Inc.

“Tape” shall have the meaning given to such term in Section 5.15(b)(ii).

“Telerate Page 3750” means the display page currently so designated on the Moneyline
Telerate Service or such other page as may be nominated as the information vendor (or such other
page as may replace that page on that service for the purpose of displaying comparable rates or
prices).

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“Term Loan” means a loan that is a closed-end extension of credit by the Originator to an
Obligor which may be fully funded or partially funded at the closing thereof, and which provides
for full amortization of the principal thereof prior to or upon maturity.

“Termination Notice” shall have the meaning given to such term in Section 8.02(a).

“Total Principal Distributable” means, as of any date of determination, the excess, if any,
of the Aggregate Outstanding Principal Balance over the Aggregate Outstanding Loan Balance.

“Traditional Revolving Loans” means a Loan that is a revolving line of credit with a
commitment that does not vary over the life of the Loan.

“Transaction Documents” means this Agreement, the Indenture, the Trust Agreement, the Loan
Sale Agreement, the Purchase Agreement, any Subsequent Transfer Agreement, any Subsequent Purchase
Agreement, any Hedge Agreement, and any documents or agreements executed in connection with the
forgoing, as the forgoing documents and agreements are amended, modified, restated, replaced,
substituted, waived, supplemented or extended from time to time.

“Transfer and Servicing Agreements” means collectively this Agreement and the Loan Sale
Agreement.

“Transfer Date” means each date on which the Trust Depositor transfers Loans, or portions
thereof, to the Issuer.

“Transfer Deposit Amount” means, with respect to each Ineligible Loan or Loan that is to be
purchased pursuant to Section 2.08, on any date of determination, the sum of the Outstanding Loan
Balance of such Loan, together with accrued interest thereon through such date of determination at
the Loan Rate provided for thereunder, and any outstanding Scheduled Payment Advances thereon that
have not been waived by the Servicer entitled thereto.

“Trust Account Property” means the Trust Accounts, all amounts and investments held from
time to time in any Trust Account (whether in the form of deposit accounts, physical property,
book–entry securities, uncertificated securities or otherwise) including, without limitation, the
Reserve Fund Initial Balance, and all proceeds of the foregoing.

“Trust Accounts” means, collectively, the Principal and Interest Account (including the
Principal Collection Account and Interest Collection Account), the Reserve Fund, the Note
Distribution Account and the Certificate Account, the Hedge Counterparty Collateral Account (if
applicable), or any of them.

“Trust Agreement” means the Trust Agreement, dated on or about February 8, 2006, between
the Trust Depositor and the Owner Trustee, as such agreement may be amended, modified, waived,
supplemented or restated from time to time.

“Trust Depositor” shall have the meaning given to such term in the Preamble.

“Trust Estate” shall have the meaning given to such term in the Trust Agreement.

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“Trustees” means the Owner Trustee and the Indenture Trustee, or any of them individually
as the context may require.

“UCC” means the Uniform Commercial Code, as amended from time to time, as in effect in any
specified jurisdiction.

“Underlying Custodial Agreement” means, with respect to each Loan to an SPE Obligor, that
certain custodial agreement entered into among the Originator and a collateral custodian under
which such collateral custodian agrees to hold certain underlying loan documents or other
collateral of the Pooled Debtors with respect to such Loan for the benefit of the Originator and
its assignees.

“Underlying Custodian” means the party acting as collateral custodian under a Custodial
Agreement.

“Underlying Debtors” means each of the underlying obligors who are obligated as debtors on
a Loan from an SPE Obligor.

“Underlying Note” means the one or more promissory notes executed by an Obligor evidencing
a Loan.

“United States” means the United States of America.

“USD–LIBOR–Reference Banks” shall have the meaning given to such term in Section 7.06(a).

“Warehouse Facilities” means Acquisition Funding Transaction, the Funding I Transaction,
the Funding II Transaction, the Funding III Transaction, the Funding IV Transaction, the Funding V
Transaction and the Mariner Funding Transaction.

“Weighted Average LIBOR Spread” means, as of any Determination Date, a fraction (expressed
as a percentage and rounded up to the next 0.001%), (a) the numerator of which is the sum of the
products determined by multiplying the Outstanding Loan Balance of each Loan (excluding Charged-Off
Loans and Delinquent Loans) owned by the Issuer as of such Determination Date by the LIBOR Spread
with respect to such Loan, and (b) the denominator of which is the sum of the Outstanding Loan
Balances of all Loans (excluding Charged-Off Loans and Delinquent Loans) owned by the Issuer as of
such Determination Date.

“Weighted Average LIBOR Spread Test” means a test that will be satisfied if the Weighted
Average LIBOR Spread exceeds 5.15%.

“Weighted Average Life” means, on any Cut-Off Date with respect to any Substitute Loan, the
number obtained by dividing (a) the sum, for each Loan in the Loan Pool, of the products obtained
by multiplying (i) the Average Life at such time of each Loan by (ii) the Outstanding Loan Balance
of such Loan by (b) the Aggregate Outstanding Loan Balance as of such date.

“Weighted Average Life Test” means a test that will be satisfied as of any Cut-Off Date
with respect to any Substitute Loan if the Weighted Average Life as of such date is less than the
value set forth in the cell corresponding to such date in the table attached hereto as Annex A.

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     Section 1.02. Usage of Terms.

     With respect to all terms in this Agreement, the singular includes the plural and the plural
the singular; words importing any gender include the other genders; references to “writing” include
printing, typing, lithography and other means of reproducing words in a visible form; references to
agreements and other contractual instruments include all amendments, modifications and supplements
thereto or any changes therein entered into in accordance with their respective terms and not
prohibited by this Agreement; references to Persons include their permitted successors and assigns;
and the term “including” means “including without limitation.”

     Section 1.03. Section References.

     All Section references (including references to the Preamble), unless otherwise indicated,
shall be to Sections (and the Preamble) in this Agreement.

     Section 1.04. Calculations.

     Except as otherwise provided herein, all interest rate and basis point calculations hereunder
will be made on the basis of a 360 day year and the actual days elapsed in the relevant period and
will be carried out to at least three decimal places.

     Section 1.05. Accounting Terms.

     All accounting terms used but not specifically defined herein shall be construed in accordance
with generally accepted accounting principles in the United States.

ARTICLE 2.

ESTABLISHMENT OF ISSUER; TRANSFER OF LOAN ASSETS

     Section 2.01. Creation and Funding of Issuer; Transfer of Initial Loan Assets.

     (a) The Issuer shall be created pursuant to the terms and conditions of the Trust Agreement,
upon the execution and delivery of the Trust Agreement and the filing by the Owner Trustee of an
appropriately completed Certificate of Trust (as defined in the Trust Agreement) under the
Statutory Trust Statute. The Trust Depositor, as settlor of the Issuer, shall fund and convey
assets to the Issuer pursuant to the terms and provisions hereof. The Issuer shall be administered
pursuant to the provisions of this Agreement and the Trust Agreement for the benefit of the
Securityholders and the Hedge Counterparties. The Owner Trustee is hereby specifically recognized
by the parties hereto as empowered to conduct business dealings on behalf of the Issuer in
accordance with the terms hereof and of the Trust Agreement. The Servicer is hereby specifically
recognized by the parties hereto as empowered to act on behalf of the Issuer and the Owner Trustee
in accordance with Section 5.02(e) and Section 5.02(h).

     (b) Subject to and upon the terms and conditions set forth herein, the Trust Depositor hereby
sells, transfers, assigns, sets over and otherwise conveys to the Issuer, for a purchase price
consisting of $710,418,422 in cash (less placement expenses and certain other expenses associated
with the initial offer and sale of the Offered Notes the proceeds of which represent the

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consideration paid by the Issuer herein), $31,290,000 in aggregate principal amount of the Class E
Notes, $35,201,764 in aggregate principal amount of the Class F Note, and the Certificate, all the
right, title and interest of the Trust Depositor in and to the following, including but not limited
to, all accounts, cash and currency, chattel paper, electronic chattel paper, tangible 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 the following (the Trust Depositor’s interest in items (i)–(vii) below, being
collectively referred to herein as the “Initial Loan Assets” but in each case shall exclude any
Retained Interest):

     (i) the Initial Loans, all payments paid in respect thereof and all monies due, to
become due or paid in respect thereof accruing on and after the Initial Cut–Off Date and
all Liquidation Proceeds and recoveries thereon, in each case as they arise after the
Initial Cut–Off Date, but not including the Retained Interest or Interest Collections
received prior to January 31, 2006;

     (ii) all security interests and Liens and Collateral subject thereto from time to time
purporting to secure payment by Obligors under such Loans;

     (iii) all guaranties, indemnities and warranties, and other agreements or arrangements
of whatever character from time to time supporting or securing payment of such Loans;

     (iv) the Trust Accounts, each Obligor Lock–Box, each Obligor Lock–Box Account, each
Lock–Box, each Lock–Box Account, and together with all cash and investments in each of the
foregoing;

     (v) all collections and records (including computer records) with respect to the
foregoing;

     (vi) all documents relating to the Loan Files; and

     (vii) all income, payments, proceeds and other benefits of any and all of the
foregoing.

To the extent the purchase price paid to the Trust Depositor for any Loan is less than the fair
market value of such Loan, the difference between such fair market value and the purchase price
shall be deemed to be a capital contribution made by the Trust Depositor to the Issuer on the
relevant Transfer Date.

     (c) The Originator and the Trust Depositor acknowledge that the representations and warranties
of the Trust Depositor in Section 3.01(a) through Section 3.01(e) will run to and be for the
benefit of the Issuer, the Trustees and the Hedge Counterparties, and the Issuer and the Trustees
may enforce, directly without joinder of Trust Depositor, the repurchase obligations of the
Originator with respect to breaches of such representations and warranties as set forth herein and
in Section 11.01.

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     (d) The sale, transfer, assignment, set-over and conveyance of the Loan Assets by the Trust
Depositor to the Issuer pursuant to this Agreement does not constitute and is not intended to
result in a creation or an assumption by the Trust Depositor or the Issuer of any obligation of the
Originator in connection with the Loan Assets, or any agreement or instrument relating thereto,
including, without limitation, any obligation to any Obligor, if any, not financed by the
Originator, or (i) any taxes, fees, or other charges imposed by any Governmental Authority and (ii)
any insurance premiums that remain owing with respect to any Loan at the time such Loan is sold
hereunder. The Trust Depositor also hereby assigns to the Issuer all of the Trust Depositor’s
right, title and interest (but none of its obligations) under the Loan Sale Agreement, including
but not limited to the Trust Depositor’s right to exercise the remedies created by the Loan Sale
Agreement.

     (e) The Originator, Trust Depositor and Issuer intend and agree that (i) the transfer of the
Loan Assets to the Trust Depositor and the transfer of the Loan Assets to the Issuer are intended
to be a sale, conveyance and transfer of ownership of the Loan Assets, as the case may be, rather
than the mere granting of a security interest to secure a borrowing and (ii) such Loan Assets shall
not be part of the Originator’s or the Trust Depositor’s estate in the event of a filing of a
bankruptcy petition or other action by or against such Person under any Insolvency Law. In the
event, however, that notwithstanding such intent and agreement, such transfers are deemed to be a
mere granting of a security interest to secure indebtedness, the Originator shall be deemed to have
granted the Trust Depositor and the Trust Depositor shall be deemed to have granted the Issuer, as
the case may be, a perfected first priority security interest in such Loan Assets respectively and
this Agreement shall constitute a security agreement under Requirements of Law, securing the
repayment of the purchase price paid hereunder, the obligations and/or interests represented by the
Notes and the obligations of the Issuer under the Hedge Transactions and the Hedge Agreements, in
the order and priorities, and subject to the other terms and conditions of, this Agreement, the
Indenture, the Trust Agreement and the Hedge Agreements, together with such other obligations or
interests as may arise hereunder and thereunder in favor of the parties hereto and thereto.

     (f) If any such transfer of the Loan Assets is deemed to be the mere granting of a security
interest to secure a borrowing, the Trust Depositor may, to secure the Trust Depositor’s own
borrowing under this Agreement (to the extent that the transfer of the Loan Assets thereunder is
deemed to be a mere granting of a security interest to secure a borrowing) repledge and reassign
(1) all or a portion of the Loan Assets pledged to Trust Depositor by the Originator and with
respect to which the Trust Depositor has not released its security interest at the time of such
pledge and assignment, and (2) all proceeds thereof. Such repledge and reassignment may be made by Trust Depositor with or
without a repledge and reassignment by Trust Depositor of its rights under any agreement with the
Originator, and without further notice to or acknowledgment from the Originator. The Originator
waives, to the extent permitted by applicable law, all claims, causes of action and remedies,
whether legal or equitable (including any right of setoff), against Trust Depositor or any assignee
of Trust Depositor relating to such action by Trust Depositor in connection with the transactions
contemplated by this Agreement.

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     Section 2.02. Conditions to Transfer of Initial Loan Assets to Issuer.

     On or before the Closing Date, the Originator or the Trust Depositor, as applicable, shall
deliver or cause to be delivered to the Owner Trustee and Indenture Trustee each of the documents,
certificates and other items as follows:

     (a) a certificate of an officer of the Originator substantially in the form of Exhibit C
hereto;

     (b) copies of resolutions of the Manager of the Originator, the Servicer and the member of the
Trust Depositor or of the Executive Committee of the Board of Directors of the Originator, the
Servicer and the member of the Trust Depositor approving the execution, delivery and performance of
this Agreement and the transactions contemplated hereunder, certified in each case by the Secretary
or an Assistant Secretary of the Originator, the Servicer and member of the Trust Depositor;

     (c) officially certified evidence dated within 30 days of the Closing Date of due formation
and good standing of the Originator under the laws of the State of Delaware;

     (d) the initial List of Loans, certified by an officer of the Trust Depositor, together with
an Assignment substantially in the form of Exhibit A (along with the delivery of any instruments
and Loan Files as required under Section 2.07);

     (e) a
certificate of an officer of the Trust Depositor substantially in the form of Exhibit B
hereto;

     (f) a letter from Ernst & Young LLP or another nationally recognized accounting firm,
addressed to the Originator and the Trust Depositor (with a copy to Moody’s, Fitch and S&P),
stating that such firm has reviewed a sample of the Initial Loans and performed specific procedures
for such sample with respect to certain loan terms and that identifies those Initial Loans that do
not conform;

     (g) officially certified, evidence dated within 30 days of the Closing Date of due
organization and good standing of the Trust Depositor under the laws of the State of Delaware;

     (h) evidence of proper filing with appropriate offices in the State of Delaware of UCC
financing statements listing the Originator, as debtor, naming the Trust Depositor as secured party
(and the Indenture Trustee as assignee) and identifying the Loan Assets as collateral; and evidence
of proper filing with appropriate officer in the State of Delaware of UCC financing statements
executed by the Trust Depositor, as debtor, naming the Issuer as secured party (and the Indenture
Trustee as assignee) and identifying the Loan Assets as collateral; and evidence of proper filing
with appropriate officers in the State of Delaware of UCC financing statements executed by the
Issuer and naming the Indenture Trustee as secured party and identifying the Indenture Collateral,
as collateral;

     (i) an Officer’s Certificate listing the Servicer’s Servicing Officers;

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     (j) evidence of deposit in the Principal and Interest Account of all funds received with
respect to the Initial Loans on and after the Initial Cut–Off Date to the date two days preceding
the Closing Date, together with an Officer’s Certificate from the Servicer to the effect that such
amount is correct;

     (k) evidence of deposit in the Reserve Fund of the Reserve Fund Initial Balance by the Issuer;
and

     (l) a fully executed copy of the Transaction Documents.

     Section 2.03. Acceptance by Owner Trustee.

     On the Closing Date, if the conditions set forth in Section 2.02 have been satisfied, the
Issuer shall issue to, or upon the order of, the Trust Depositor the Certificate representing
ownership of a beneficial interest in 100% of the Issuer and the Issuer shall issue, and the
Indenture Trustee shall authenticate, to, or upon the order of, the Trust Depositor the Notes
secured by the Indenture Collateral. The Owner Trustee hereby acknowledges its acceptance, on
behalf of the Issuer, of the Loan Assets, and declares that it shall maintain such right, title and
interest in accordance with the terms of this Agreement and the Trust Agreement upon the trust
herein and therein set forth.

     Section 2.04. Conveyance of Substitute Loans.

     (a) (i) Subject to Sections 2.01(d) and (e) and, as applicable, the satisfaction of the
conditions set forth in Section 2.04(c), the Originator may, at its option (but shall not be
obligated to) either:

     (A) contemporaneously convey to the Trust Depositor one or more Loans as
described in Section 2.04(b); or

     (B) deposit to the Principal Collection Account an amount sufficient to
purchase the Loan as to which a Substitution Event has occurred and then, prior to
the expiry of the Substitution Period, convey to the Trust Depositor one or more Loans as described in Section 2.04(b) in
exchange for the funds so deposited or a portion thereof.

    (ii) Any substitution pursuant to this Section 2.04 shall be initiated by delivery of
written notice (a “Notice of Substitution”) to the Indenture Trustee that the Servicer
intends to substitute a Loan pursuant to this Section 2.04 and shall be completed prior to
the earliest of:

     (A) the expiration of 180 days after delivery of such notice;

     (B) delivery of written notice to the Indenture Trustee from the Servicer
stating that it does not intend to use any remaining deposit to purchase Substitute
Loans; or

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     (C) in the case of a Loan which has become subject to a Material Modification,
the effective date set forth in such Material Modification (such period described
in clause (ii)(A), (B) or (C), as applicable, being the “Substitution Period”).

     (iii) Each Notice of Substitution shall specify the Loan to be substituted, the
reasons for such substitution and the amount sufficient to purchase the Loan, which shall
be determined in compliance with Section 2.08. On the last day of any Substitution Period,
any amounts previously deposited in accordance with clause (a)(i)(B) above which relate to
such Substitution Period that have not been applied to purchase one or more Substitute
Loans shall be deemed to constitute Principal Collections and shall be transferred on the
next Payment Date to the Note Distribution Account and distributed to the Securityholders
in accordance with the priority of payments set forth in Section 7.05 (a) or (b), as
applicable and prior to the expiration of the related Substitution Period any such amounts
shall not be deemed to be Principal Collections and shall remain in the Principal
Collection Account.

     (b) With respect to any Substitute Loans to be conveyed to the Trust Depositor by the Issuer
as described in Section 2.04(a), the Originator shall sell, transfer, assign, set over and
otherwise convey to the Trust Depositor (by delivery of an executed Subsequent Purchase Agreement
substantially in the form attached as Exhibit J hereto), without recourse other than as expressly
provided herein and therein (and the Trust Depositor shall be required to purchase through cash
payment or by exchange of one or more related Loans released by the Issuer to the Trust Depositor
on the Subsequent Transfer Date), all the right, title and interest of the Originator in and to the
following, including but not limited to, all accounts, cash and currency, chattel paper, electronic
chattel paper, tangible 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 the following (other than the
Retained Interest) (the Originator’s interest in property in clauses (i)-(vii) below, upon
such transfer, constituting “Substitute Loan Assets”):

     (i) the Substitute Loans listed in the related Addition Notice, all payments paid in
respect thereof and all monies due, to become due or paid in respect thereof accruing on
and after the related Subsequent Cut–Off Dates and all Liquidation Proceeds and recoveries
thereon, in each case as they arise after the related Subsequent Cut–Off Dates, but not
including the Retained Interest or Interest Collections received prior to the Subsequent
Cut–Off Date;

     (ii) all security interests and Liens and Collateral subject thereto from time to time
purporting to secure payment by Obligors under such Loans;

     (iii) all guaranties, indemnities and warranties, and other agreements or arrangements
of whatever character from time to time supporting or securing payment of such Loans;

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     (iv) the Trust Accounts, each Obligor Lock–Box, each Obligor Lock–Box Account, each
Lock–Box, each Lock–Box Account, and together with all cash and investments in each of the
foregoing;

     (v) all collections and records (including computer records) with respect to the
foregoing;

     (vi) all documents relating to the Loan Files; and

     (vii) all income, payments, proceeds and other benefits of any and all of the
foregoing.

To the extent the purchase price paid to the Originator for any Substitute Loan is less than the
fair market value of such Substitute Loan, the difference between such fair market value and the
purchase price shall be deemed to be a capital contribution made by the Originator to the Trust
Depositor on the relevant Transfer Date.

     (c) Subject to Section 2.01(d) and Section 2.01(e) and the conditions set forth in
Section 2.04(d), the Trust Depositor shall sell, transfer, assign, set over and otherwise convey to the
Issuer, without recourse other than as expressly provided herein and therein, (i) all the right,
title and interest of the Trust Depositor in and to the Substitute Loans purchased pursuant to
Sections 2.04(a) and (b), and (ii) all other rights and property interests consisting of Substitute
Loan Assets related to such Substitute Loans.

     (d) The Originator shall transfer to the Trust Depositor and the Trust Depositor shall
transfer to the Issuer the Substitute Loans and the other property and rights related thereto
described in Section 2.04(b) only upon the satisfaction of each of the following conditions on or
prior to the related Subsequent Transfer Date (and the delivery of a related Addition Notice by the
Trust Depositor shall be deemed a representation and warranty by the Trust Depositor and of the Originator that such conditions
have been or will be, as of the related Subsequent Transfer Date, satisfied):

     (i) the Trust Depositor shall have provided the Owner Trustee and the Indenture
Trustee with a timely Addition Notice complying with the definition thereof contained
herein (a copy of which shall be provided to S&P promptly after it is delivered to the
Owner Trustee), which Addition Notice shall in any event be no later than ten Business Days
prior to the date of addition;

     (ii) there shall have occurred, with respect to each such Substitute Loan, a
corresponding Substitution Event with respect to one or more Loans then in the Loan Pool;

     (iii) the Substitute Loan being conveyed to the Issuer satisfy the Substitute Loan
Qualification Conditions (and on the date of such substitution, the Servicer shall deliver
to the Indenture Trustee a certificate stating that such Loan satisfies each of the
Substitute Loan Qualification Conditions); provided, that, notwithstanding that a
Substitute Loan shall otherwise satisfy clause (e) of the definition of Substitute Loan
Qualification Condition, a Substitute Loan which at the time of delivery of the related

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Addition Notice has a Moody’s rating lower than “B3” shall not become part of the Loan Pool
on the proposed Subsequent Transfer Date;

     (iv) the Originator shall have delivered to the Trust Depositor a duly executed
written assignment in substantially the form of Exhibit J hereto (the “Subsequent Purchase
Agreement”), which shall include a Subsequent List of Loans listing the Substitute Loan;

     (v) the Trust Depositor shall have delivered to the Issuer a duly executed written
assignment (including an acceptance by the Owner Trustee) in substantially the form of
Exhibit I hereto (the “Subsequent Transfer Agreement”), which shall include a Subsequent
List of Loans listing the Substitute Loan;

     (vi) the Trust Depositor shall have deposited or caused to be deposited in the
Principal and Interest Account all Collections received with respect to the Substitute Loan
on and after the related Subsequent Cut–Off Date;

     (vii) each of the representations and warranties made by the Trust Depositor pursuant
to Sections 3.02, 3.03(i), (ii) and (v), and 3.04, applicable to the Substitute Loan
(including without limitation that each such Substitute Loan is an Eligible Loan) shall be
true and correct as of the related Subsequent Transfer Date;

     (viii) the Originator shall bear all incidental transactions costs incurred in
connection with a substitution effected pursuant to this Agreement and shall, at its
own expense, on or prior to the Subsequent Transfer Date, indicate in its Computer
Records that ownership of the Substitute Loan identified on the Subsequent List of Loans in
the Subsequent Transfer Agreement has been sold to the Issuer through the Trust Depositor
pursuant to this Agreement; and

     (ix) prior to such substitution the Originator shall provide written notice to each
Rating Agency and shall have received written confirmation from Moody’s and S&P (which
shall respond to the Originator within 15 Business Days after receiving written notice from
the Originator of its intention to substitute a Loan) that the proposed substitution will
not result in a reduction or withdrawal of any rating on any outstanding Class of Notes;
provided, however, that any failure by either of Moody’s and S&P to respond to the
Originator shall be deemed a non–approval by Moody’s and/or S&P, as applicable. In the
case of Fitch, only notice to, not confirmation from, Fitch shall be required in connection
with a proposed substitution, provided that Fitch shall be entitled to receive from the
Originator financial statements, credit committee papers and such other information
relating to such Substitute Loan as is reasonably requested by Fitch in connection with the
proposed substitution of a Loan.

     (e) The Servicer, the Issuer and the Indenture Trustee shall execute and deliver such
instruments, consents or other documents and perform all acts reasonably requested by the Servicer
in order to effect the transfer and release of any of the Issuer’s interests in the Loans that are
being substituted.

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     Section 2.05. [Reserved]

     Section 2.06. Release of Released Amounts.

     (a) The parties hereto acknowledge and agree that the Issuer has no interest in the Retained
Interest and Released Amounts. The Indenture Trustee hereby agrees to release to the Issuer from
the Loan Assets, and the Issuer hereby agrees to release to the Trust Depositor, an amount equal to
the Released Amounts immediately upon identification thereof and upon receipt of an Officer’s
Certificate of the Servicer, which release shall be automatic and shall require no further act by
the Indenture Trustee or the Issuer; provided that the Indenture Trustee and Owner Trustee shall
execute and deliver such instruments of release and assignment or other documents, or otherwise
confirm the foregoing release, as may reasonably be requested by the Trust Depositor in writing.
Such Released Amounts shall not constitute and shall not be included in the Loan Assets.

     (b) Immediately upon the release to the Trust Depositor by the Indenture Trustee of the
Released Amounts, the Trust Depositor hereby irrevocably agrees to release to the Originator such
Released Amounts, which release shall be automatic and shall require no further act by the Trust
Depositor; provided that the Trust Depositor shall execute and deliver such instruments of release
and assignment, or otherwise confirming the foregoing release of any Released Amounts, as may be
reasonably requested by the Originator.

     Section 2.07. Delivery of Documents in the Loan File; Recording of Assignments of Mortgage.

     (a) Subject to the delivery requirements set forth in Section 2.07(b), the Issuer hereby
authorizes and directs the Originator and the Trust Depositor to deliver possession of all the Loan
Files to the Indenture Trustee (with copies to be held by the Servicer) on behalf of and for the
account of the Securityholders and the Hedge Counterparties. The Originator and the Trust Depositor
shall also identify on the List of Loans (including any deemed amendment thereof associated with
any Substitute Loans), whether by attached schedule or marking or other effective identifying
designation, all Loans that are or are evidenced by such instruments.

     (b) With respect to each Loan in the Loan Pool on or before the related Transfer Date, the
Trust Depositor will deliver or cause to be delivered to the Indenture Trustee, to the extent not
previously delivered, each of the documents in the Loan File with respect to such Loan, except
that, as applicable (i) the original recorded Mortgage, in those instances where a copy thereof
certified by a Responsible Officer of the Originator was delivered to the Indenture Trustee, will
be delivered or caused to be delivered within ten Business Days after receipt thereof, and in any
event within one year after the related Transfer Date, and (ii) any intervening Assignments of
Mortgage, in those instances where copies thereof certified by the Originator were delivered to the
Indenture Trustee, will be delivered or caused to be delivered within ten Business Days after the
receipt thereof, and in any event, within one year of the related Transfer Date. Notwithstanding
the foregoing in clauses (i) and (ii) of this Section 2.07(b), in those instances where the public
recording office retains the original Mortgage or the intervening Assignments of the Mortgage after
it has been recorded, the Trust Depositor shall be deemed to have satisfied its obligations
hereunder upon delivery to the Indenture Trustee of a copy of such

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Mortgage or Assignments of Mortgage certified by the public recording office to be a true copy of
the recorded original thereof.

     (c) Prior to the occurrence of an Event of Default or a Servicer Default, the Indenture
Trustee shall not record the Assignments of Mortgage delivered pursuant to Section 2.07(b). Upon
the occurrence of an Event of Default or a Servicer Default, the Indenture Trustee shall cause to
be recorded in the appropriate offices each Assignment of Mortgage delivered to it. Each such
recording shall be at the expense of the Servicer; provided, however, to the extent the Servicer
does not pay such expense then the Indenture Trustee shall be reimbursed pursuant to the provisions
of Section 7.05.

     Section 2.08. Optional Purchase by the Servicer of Certain Loans; Limitations on Substitution and Repurchase.

     (a) Subject to the limitations set forth in Section 2.08(b), the Servicer shall have the
right, but not the obligation, to purchase any (i) Prepaid Loan, (ii) Charged–Off Loan, (iii)
Delinquent Loan, (iv) Loan that has a material covenant default, (v) Loan which has become subject
to a Material Modification of the type specified in clause (ii) of the definition thereof or (vi)
Loan that has become subject to a Specified Amendment. In the event of such a purchase, the
Servicer shall deposit in the Principal and Interest Account, on the next succeeding Determination
Date, an amount equal to the Transfer Deposit Amount for such Loan (or applicable portion thereof)
as of the date of such purchase. The Servicer, the Issuer and the Indenture Trustee shall execute
and deliver such instruments, consents or other documents and perform all acts reasonably requested
by the Servicer in order to effect the transfer and release of any of the Issuer’s interests in the
Loans that are being purchased.

     (b) In no event may the initial aggregate Outstanding Loan Balance of (i) Prepaid Loans, (ii)
Charged–Off Loans, (iii) Delinquent Loans, (iv) Loans that have a material covenant default, and
(v) Loans which have become subject to a Material Modification of the type specified in clause (ii)
of the definition thereof (without regard to whether such Material Modification may otherwise
constitute a Material Modification of a type specified in clause (i) of the definition thereof),
purchased pursuant to Section 2.08(a) or substituted pursuant to Section 2.04, exceed an amount
equal to 20% of the Initial Aggregate Outstanding Loan Balance.

     Section 2.09. Certification by Indenture Trustee; Possession of Loan Files.

     (a) On or prior to the applicable Transfer Date, the Indenture Trustee shall review the
portion of the Loan File required to be delivered pursuant to Section 2.07(b) on the applicable
Transfer Date and shall deliver to the Originator, the Trust Depositor, each Hedge Counterparty and
the Servicer a certification in the form attached hereto as Exhibit L–1 on or prior to such
Transfer Date. Within two Business Days after the Indenture Trustee receives the portion of the
Loan File permitted to be delivered after the applicable Transfer Date pursuant to Section 2.07(b),
the Indenture Trustee shall deliver to the Originator, the Trust Depositor, each Hedge Counterparty
and the Servicer a certification in the form attached hereto as Exhibit L–1. Within 360 days after
each Transfer Date (or, with respect to any Substitute Loan, within 360 days after the assignment
thereof), the Indenture Trustee shall deliver to the Originator, the Servicer, the Trust Depositor,
each Hedge Counterparty and any Noteholder who requests a copy from the

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Indenture Trustee a final certification in the form attached hereto as Exhibit L–2 evidencing the
completeness of the Loan Files with respect to the Loans being transferred on such Transfer Date.

     (b) If the Indenture Trustee during the process of reviewing the Loan Files finds any document
constituting a part of a Loan File which is not properly executed, has not been received, is
unrelated to a Loan identified in the List of Loans, or does not conform in a material respect to
the requirements of the definition of Loan File, or the description thereof as set forth in the List of Loans, the Indenture Trustee shall promptly so
notify the Originator, the Trust Depositor and the Servicer. In performing any such review, the
Indenture Trustee may conclusively rely on the Originator as to the purported genuineness of any
such document and any signature thereon. It is understood that the scope of the Indenture
Trustee’s review of the Loan Files is limited solely to confirming that the documents listed in the
definition of Loan File have been executed and received and relate to the Loans identified in the
List of Loans; provided, however, with respect to the UCC financing statements referenced in clause
(a)(iii) of the definition of Required Loan Documents, the Indenture Trustee’s sole responsibility
will be to confirm that the Loan File contains UCC financing statements and not to make
determinations about the materiality of such UCC financing statements. For the avoidance of doubt,
the scope of the Indenture Trustee review shall not include the verification of the Outstanding
Principal Balance of any Loan. The Originator agrees to use reasonable efforts to remedy a
material defect in a document constituting part of a Loan File of which it is so notified by the
Indenture Trustee. If, however, within 30 days after the Indenture Trustee’s notice to it
respecting such material defect the Originator has not remedied the defect and such defect
materially and adversely affects the value of the related Loan, such Loan will be treated as an
“Ineligible Loan” and the Originator will (i) substitute in lieu of such Loan a Substitute Loan in
the manner and subject to the conditions set forth in Section 11.01 or (ii) repurchase such Loan at
a purchase price equal to the Transfer Deposit Amount, which purchase price shall be deposited in
the Principal and Interest Account within such 30 day period.

     (c) Release of Entire Loan File Upon Substitution or Repurchase. Subject to Section 5.08(a),
upon receipt by the Indenture Trustee of a certification of a Servicing Officer of the Servicer of
such substitution or of such purchase and the deposit of the amounts described in Section 2.08 or
Section 2.09(b) in the Principal and Interest Account (which certification shall be in the form of
Exhibit M hereto), the Indenture Trustee shall release to the Servicer for release to the
Originator the related Loan File and the Indenture Trustee and the Issuer shall execute, without
recourse, and deliver such instruments of transfer necessary to transfer all right, title and
interest in such Loan to the Originator free and clear of any Liens created by the Transaction
Documents. All costs of any such transfer shall be borne by the Originator.

     (d) Partial Release of Loan File and/or Collateral. Subject to Section 5.08(b), if in
connection with taking any action in connection with a Loan (including, without limitation, the
amendment to documents in the Loan File and/or a revision to Collateral) the Servicer requires any
item constituting part of the Loan File, or the release from the Lien of the related Loan of all or
part of any Collateral, the Servicer shall deliver to the Indenture Trustee a certificate to such
effect in the form attached as Exhibit M hereto. Subject to Section 5.08(d), upon receipt of such
certification, the Indenture Trustee shall deliver to the Servicer within two Business Days of such
request (if such request was received by 2:00 p.m., central time), the requested documentation,

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and the Indenture Trustee shall execute, without recourse, and deliver such instruments of
transfer necessary to release all or the requested part of the Collateral from the Lien of the
related Loan and/or the Lien under the Transaction Documents.

     (e) Annual Certification. On the Payment Date in April of each year, commencing April 20,
2007, the Indenture Trustee shall deliver to the Originator, the Trust Depositor, each Hedge
Counterparty and the Servicer a certification detailing all transactions with respect to the Loans
for which the Indenture Trustee holds the Loan Files pursuant to this Agreement during the prior
calendar year. Such certification shall list all Loan Files which were released by or returned to
the Indenture Trustee during the prior calendar year, the date of such release or return and the
reason for such release or return.

 ARTICLE 3.

 REPRESENTATIONS AND WARRANTIES

     The Trust Depositor makes, and upon execution of each Subsequent Purchase Agreement is deemed
to make, the following representations and warranties in Section 3.01 through Section 3.04, on
which the Issuer will rely in purchasing the Initial Loan Assets on the Closing Date (and on any
Subsequent Transfer Date), and on which the Securityholders and the Hedge Counterparties will rely.

     Such representations and warranties are given as of the execution and delivery of this
Agreement and as of the Closing Date (or Subsequent Transfer Date, as applicable), but shall
survive the sale, transfer and assignment of the Loan Assets to the Issuer. The repurchase
obligation or substitution obligation of the Trust Depositor set forth in Section 11.01 constitutes
the sole remedy available for a breach of a representation or warranty of the Trust Depositor set
forth in Section 3.01 through Section 3.04 of this Agreement. Except as otherwise provided in
Section 2.04(d)(vii), the Trust Depositor shall not be deemed to be remaking any of the
representations set forth in Section 3.03 on a Subsequent Transfer Date with respect to the
Substitute Loans, as such representations relate solely to the composition of the Initial Loans
conveyed on the Closing Date.

	 	 	Section 3.01. Representations and Warranties Regarding the Trust Depositor.

     By its execution of this Agreement and each Subsequent Transfer Agreement, the Trust Depositor
represents and warrants to the Issuer, the Indenture Trustee, the Securityholders and the Hedge
Counterparties that:

     (a) Organization and Good Standing. The Trust Depositor is a limited liability company duly
organized, validly existing and in good standing under the laws of Delaware and has the power to
own its assets and to transact the business in which it is currently engaged. The Trust Depositor
is duly qualified to do business as a foreign entity and is in good standing in each jurisdiction
in which the character of the business transacted by it or properties owned or leased by it
requires such qualification and in which the failure so to qualify would have a material adverse
effect on the business, properties, assets, or condition (financial or otherwise) of the Trust
Depositor or the Issuer.

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     (b) Authorization; Valid Sale; Binding Obligations. The Trust Depositor has the power and
authority to make, execute, deliver and perform this Agreement and the other Transaction Documents
to which it is a party and all of the transactions contemplated under this Agreement and the other
Transaction Documents to which it is a party, and to create the Issuer and cause it to make,
execute, deliver and perform its obligations under this Agreement and the other Transaction
Documents to which it is a party and has taken all necessary limited liability company action to
authorize the execution, delivery and performance of this Agreement and the other Transaction
Documents to which it is a party and to cause the Issuer to be created. This Agreement and each
Subsequent Transfer Agreement, if any, shall effect a valid sale, transfer and assignment of or
grant a security interest in the Loan Assets from the Trust Depositor to the Issuer, enforceable
against the Trust Depositor and creditors of and purchasers from the Trust Depositor. This
Agreement and the other Transaction Documents to which the Trust Depositor is a party constitute
the legal, valid and binding obligation of the Trust Depositor enforceable in accordance with their
terms, except as enforcement of such terms may be limited by applicable Insolvency Laws and general
principles of equity, whether considered in a suit at law or in equity.

     (c) No Consent Required. The Trust Depositor is not required to obtain the consent of any
other party (other than those that it has already obtained) or any consent, license, approval or
authorization from, or registration or declaration with, any Governmental Authority (other than
those that it has already obtained) in connection with the execution, delivery, performance,
validity or enforceability of this Agreement or the other Transaction Documents to which it is a
party.

     (d) No Violations. The execution, delivery and performance of this Agreement and the other
Transaction Documents to which it is a party by the Trust Depositor, and the consummation of the
transactions contemplated hereby and thereby, will not violate any Requirement of Law applicable to
the Trust Depositor, or conflict with, result in a default under or constitute a breach of the
Trust Depositor’s organizational documents or Contractual Obligations to which the Trust Depositor
is a party or by which the Trust Depositor or any of the Trust Depositor’s properties may be bound,
or result in the creation or imposition of any Lien of any kind upon any of its properties pursuant
to the terms of any such Contractual Obligations, other than as contemplated by the Transaction
Documents.

     (e) Litigation. No litigation or administrative proceeding of or before any court, tribunal
or governmental body is currently pending, or to the knowledge of the Trust Depositor threatened,
against the Trust Depositor or any of its properties or with respect to this Agreement, the other
Transaction Documents to which it is a party or the Securities (i) that, if adversely determined,
would in the reasonable judgment of the Trust Depositor be expected to have a material adverse
effect on the business, properties, assets or condition (financial or otherwise) of the Trust
Depositor or the Issuer or the transactions contemplated by this Agreement or the other Transaction
Documents to which the Trust Depositor is a party or (ii) seeking to adversely affect the federal
income tax or other federal, state or local tax attributes of the Certificate or Notes.

     (f) Solvency. The Trust Depositor, at the time of and after giving effect to each conveyance
of Loan Assets hereunder, is Solvent on and as of the date thereof.

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     (g) Taxes. The Trust Depositor has filed or caused to be filed all tax returns which, to its
knowledge, are required to be filed and has put all taxes shown to be due and payable on such
returns or on any assessments made against it or any of its property and all other taxes, fees or
other charges imposed on it or any of its property by any Governmental Authority (other than any
amount of tax due, the validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which reserves in accordance with generally accepted accounting
principles have been provided on the books of the Trust Depositor); no tax Lien has been filed and,
to the Trust Depositor’s knowledge, no claim is being asserted, with respect to any such tax, fee
or other charge.

     (h) Place of Business; No Changes. The Trust Depositor’s location (within the meaning of
Article 9 of the UCC) is as set forth in Section 13.04. The Trust Depositor has not changed its
name, whether by amendment of its certificate of formation, by reorganization or otherwise, and has
not changed its location within the 4-months preceding the Closing Date.

     (i) Not an Investment Company. The Trust Depositor is not and, after giving effect to the
transactions contemplated by the Transaction Documents, will not be required to be registered as an
“investment company” under the 1940 Act.

     (j) Sale Treatment. Other than for tax and accounting purposes, the Trust Depositor has
treated the transfer of Loan Assets to the Trust Depositor for all purposes as a sale and purchase
on all of its relevant books and records and other applicable documents.

     (k) Security Interest.

     (i) This Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Loan Assets in favor of the Issuer, 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 Trust Depositor;

     (ii) the Loans, along with the related Loan Files, constitute either a “general
intangible,” an “instrument,” an “account,” “investment property,” or “chattel paper,”
within the meaning of the applicable UCC;

     (iii) the Issuer owns and has good and marketable title to the Loan Assets free and
clear of any Lien (other than Permitted Liens), claim or encumbrance of any Person;

     (iv) the Trust Depositor has received all consents and approvals required by the terms
of the Loan Assets to the sale of the Loan Assets hereunder to the Issuer;

     (v) the Trust Depositor 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 such Loan Assets granted to the Issuer under this
Agreement;

     (vi) other than the security interest granted to the Issuer pursuant to this
Agreement, the Trust Depositor has not pledged, assigned, sold, granted a security interest
in or otherwise conveyed any of such Loan Assets. The Trust Depositor has not

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authorized the filing of and is not aware of any financing statements against the Trust
Depositor that include a description of collateral covering such Loan Assets other than any
financing statement (A) relating to the security interest granted to the Trust Depositor
under the Loan Sale Agreement, or (B) that has been terminated. The Trust Depositor is not
aware of the filing of any judgment or tax Lien filings against the Trust Depositor;

     (vii) all original executed copies of each Underlying Note (if any) that constitute or
evidence the Loan Assets have been delivered to the Indenture Trustee, and in the case of
Noteless Loans, a copy of each related Note Register, certified by a Responsible Officer of
the Originator, has been delivered to the Indenture Trustee;

     (viii) the Trust Depositor has received a written acknowledgment from the Indenture
Trustee that the Indenture Trustee or its bailee is holding any Underlying Notes that
constitute or evidence any Loan Assets solely on behalf of and for the benefit of the
Securityholders and the Hedge Counterparties; and

     (ix) none of the Underlying Notes that constitute or evidence any Loan Assets has any
marks or notations indicating that they have been pledged, assigned or otherwise conveyed
to any Person other than the Issuer.

     (l) Value Given. The cash payments received by the Trust Depositor in respect of the purchase
price of each Loan sold hereunder constitutes the face value of such Loan and the reasonably
equivalent value in consideration for the transfer to the Issuer of such Loan under this Agreement,
such transfer was not made for or on account of an antecedent debt owed by the Originator to the
Trust Depositor, and such transfer was not and is not voidable or subject to avoidance under any
Insolvency Law.

     (m) Investment Company. The Issuer is not and, after giving effect to the transactions
contemplated by the Transaction Documents, will not be required to be registered as an “investment
company” within the meaning of the 1940 Act.

     (n) No Defaults. The Trust Depositor is not in default with respect to any order or decree of
any court or any order, regulation or demand of any federal, state, municipal or governmental
agency, which default might have consequences that would materially and adversely affect the
condition (financial or otherwise) or operations of the Trust Depositor or its respective
properties or might have consequences that would materially and adversely affect its performance
hereunder.

     (o) Bulk Transfer Laws. The transfer, assignment and conveyance of the Loans by the Trust
Depositor pursuant to this Agreement are not subject to the bulk transfer laws or any similar
statutory provisions in effect in any applicable jurisdiction.

     (p) Origination and Collection Practices. The origination and collection practices used with
respect to each Loan have been in all material respects legal, proper and prudent and comply with
the Credit and Collection Policy.

     (q) Adequacy of Consideration. The Trust Depositor will receive fair consideration and
reasonably equivalent value in exchange for the sale of the Loans.

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     (r) Lack of Intent to Hinder, Delay or Defraud. Neither the Trust Depositor nor any of its
Affiliates sold, or will sell, any interest in any Loan with any intent to hinder, delay or defraud
any of their respective creditors.

     (s) Nonconsolidation. The Trust Depositor conducts its affairs such that the Issuer would not
be substantively consolidated in the estate of the Trust Depositor and their respective separate
existences would not be disregarded in the event of the Trust Depositor’s bankruptcy.

     (t) Accuracy of Information. All written factual information heretofore furnished by the Trust
Depositor for purposes of or in connection with this Agreement or the other Transaction Documents
to which Trust Depositor is a party, or any transaction contemplated hereby or thereby is, and all
such written factual information hereafter furnished by the Trust Depositor to any such party will
be, true and accurate in every material respect, on the date such information is stated or
certified.

The representations and warranties set forth in  Section 3.01(k) may not be waived by any Person and
shall survive the termination of this Agreement. The Trust Depositor and Issuer (i) shall not,
without satisfaction of the S&P Rating Condition with respect thereto, waive any breach of the
representations and warranties in Section 3.01(k), and (ii) shall provide S&P with prompt written
notice of any breach of the representations and warranties set out in Section 3.01(k).

	 	 	Section 3.02.  Representations and Warranties Regarding Each Loan and as to
Certain Loans in the Aggregate.

     The Trust Depositor represents and warrants (x) with respect to Section 3.02(a), Section
3.02(b) and Section 3.02(d) as to each Loan as of the execution and delivery of this Agreement and
on the Closing Date, and as of each Subsequent Transfer Date with respect to each Substitute Loan,
and (y) with respect to Section 3.02(c), as to the Loan Pool in the aggregate as of the Initial
Cut–Off Date, and as of each Subsequent Transfer Date with respect to Substitute Loans (after
giving effect to the addition of such Substitute Loans to the Loan Pool), that:

     (a) List of Loans. The information set forth in the List of Loans attached hereto as  Exhibit
G (as the same may be amended or deemed amended in respect of a conveyance of Substitute Loans on a
Subsequent Transfer Date) is true, complete and correct as of the applicable Cut–Off Date.

     (b) Eligible Loan. Such Loan satisfies the criteria for the definition of Eligible Loan set
forth in this Agreement as of the date of its conveyance hereunder.

     (c) Loans Secured by Real Property. Less than 40% of the Aggregate Outstanding Loan Balance
of the Loan Pool as of the Initial Cut–Off Date consists of Loans principally secured by real
property, and the Trust Depositor will not effectuate the transfer of a Substitute Loan if such
transfer would cause more than 40% of the Aggregate Outstanding Loan Balance of the Loan Pool as of
any Subsequent Transfer Date to consist of Loans principally secured by real property.

     (d) Underlying Custodial Agreements. With respect to each Pooled Obligor Loan, the underlying
loan documents and other collateral pledged by the Underlying Debtors is held by

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an Underlying Custodian for the benefit of the Originator and its assignees. The Originator’s
rights under each such Underlying Custodial Agreement are fully assignable and have been assigned
by it to the Trust Depositor, and assigned by the Trust Depositor to the Issuer in connection with
the transfer of the Loan Assets.

	 	 	Section 3.03. Representations and Warranties Regarding the Initial Loans in the
Aggregate.

     The Trust Depositor represents and warrants, on the Closing Date, that as of the Initial
Cut–Off Date, the Initial Loans have the following additional characteristics: (i) no Loan has a
remaining maturity of more than 90 months; (ii) the date of the final Scheduled Payment on the Loan
with the latest maturity is not later than August 20, 2013; (iii) no Loan was originated after the
Initial Cut–Off Date; and (iv) none of the Initial Loans provide for Scheduled Payments of interest
due on a basis other than monthly, quarterly, semi-annually or annually.

	 	 	Section 3.04. Representations and Warranties
Regarding the Loan Files.

     The Trust Depositor represents and warrants on the Closing Date with respect to the Initial
Loans (or as of the Subsequent Transfer Date, with respect to Substitute Loans), that (i) to the
extent any such Loans were pledged under the Funding I Transaction, the Funding II Transaction, the
Funding III Transaction, the Funding IV Transaction, the Funding V Transaction, the Acquisition
Funding Transaction or any Prior Term Transaction, immediately prior to such date (as applicable),
the Originator and/or a collateral custodian under the Funding I Transaction, the Funding II
Transaction, the Funding III Transaction, the Funding IV Transaction, the Funding V Transaction,
the Acquisition Funding Transaction or such Prior Term Transaction had possession of each original
Underlying Note (except in the case of Noteless Loans) and the related complete Loan File, and
there were no other custodial agreements relating to the same in effect and (ii) except as
otherwise provided in Section 2.07, the complete Loan File for each Loan is in the possession of
the Indenture Trustee.

	 	 	Section 3.05. [Reserved].
	 
	 	 	Section 3.06. Representations and Warranties Regarding the Servicer.

     The Servicer represents and warrants to the Owner Trustee, the Indenture Trustee, the
Securityholders and the Hedge Counterparties that:

     (a) Organization and Good Standing. The Servicer is a limited liability company duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
organization and has the limited liability company power to own its assets and to transact the
business in which it is currently engaged. The Servicer is duly qualified to do business as a
foreign limited liability company and is in good standing in each jurisdiction in which the
character of the business transacted by it or properties owned or leased by it requires such
qualification and in which the failure so to qualify would have a material adverse effect on the
business, properties, assets, or condition (financial or otherwise) of the Servicer or the Issuer.
The Servicer is properly licensed in each jurisdiction to the extent required by the laws of such
jurisdiction to service the Loans in accordance with the terms hereof and in which the failure to

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so qualify would have a material adverse effect on the business, properties, assets, or condition
(financial or otherwise) of the Servicer or Issuer.

     (b) Authorization; Binding Obligations. The Servicer has the power and authority to make,
execute, deliver and perform this Agreement and the other Transaction Documents to which the
Servicer is a party and all of the transactions contemplated under this Agreement and the other
Transaction Documents to which the Servicer is a party, and has taken all necessary corporate
action to authorize the execution, delivery and performance of this Agreement and the other
Transaction Documents to which the Servicer is a party. This Agreement and the other Transaction
Documents to which the Servicer is a party constitute the legal, valid and binding obligation of
the Servicer enforceable in accordance with their terms, except as enforcement of such terms may be
limited by Insolvency Laws and general principles of equity, whether considered in a suit at law or
in equity.

     (c) No Consent Required. The Servicer is not required to obtain the consent of any other party
(other than those that it has already obtained) or any consent, license, approval or authorization
from, or registration or declaration with, any Governmental Authority (other than those that it has
already obtained) in connection with the execution, delivery, performance, validity or
enforceability of this Agreement and the other Transaction Documents to which the Servicer is a
party.

     (d) No Violations. The execution, delivery and performance of this Agreement and the other
Transaction Documents to which the Servicer is a party by the Servicer will not violate any
Requirements of Law applicable to the Servicer, or conflict with, result in a default under or
constitute a breach of the Servicer’s organizational documents or any Contractual Obligations to
which the Servicer is a party or by which the Servicer or any of the Servicer’s properties may be
bound, or result in the creation of or imposition of any Lien of any kind upon any of its
properties pursuant to the terms of any such Contractual Obligations, other than as contemplated by
the Transaction Documents.

     (e) Litigation. No litigation or administrative proceeding of or before any court, tribunal
or governmental body is currently pending, or to the knowledge of the Servicer threatened, against
the Servicer or any of its properties or with respect to this Agreement, or any other Transaction
Document to which the Servicer is a party that, if adversely determined, would in the reasonable
judgment of the Servicer be expected to have a material adverse effect on the business, properties,
assets or condition (financial or otherwise) of the Servicer or the Issuer or the transactions
contemplated by this Agreement or any other Transaction Document to which the Servicer is a party.

     (f) Reports. All reports, certificates and other written information furnished by the
Servicer with respect to the Loans are correct in all material respects.

	 	 	Section 3.07. Representations and Warranties of
the Backup Servicer.

     The Backup Servicer hereby represents and warrants to the Owner Trustee, the Indenture
Trustee, the Securityholders and the Hedge Counterparties, as follows:

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

     (b) Good Standing. The Backup Servicer is duly qualified to do business as a national banking
association and is in good standing, and has obtained all necessary licenses and approvals, in all
jurisdictions in which the ownership or lease of its property and the conduct of its business
requires such qualification, licenses or approvals, except where the failure to so qualify or have
such licenses or approvals has not had, and would not be reasonably expected to have, a material
adverse effect on the interests of the Securityholders or the Hedge Counterparties.

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

     (d) No Violations. The consummation of the transactions contemplated by, and the fulfillment
of the terms of, this Agreement by it will not violate any Requirements of Law or conflict with,
result in any breach of any of the terms or provisions of, or constitute a default under, its
organizational documents or any Contractual Obligations by which it or any of its property is bound
or result in the creation or imposition of any Lien upon any of its properties pursuant to the
terms of any Contractual Obligations.

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

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

     (g) Litigation. There are no proceedings or investigations pending or, to the best of its
knowledge, threatened, against it before any Governmental Authority (i) asserting the invalidity of
this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by
this Agreement or (iii) seeking any determination or ruling that might (in its reasonable judgment)
have a material adverse effect on the interests of the Securityholders or the Hedge Counterparties.

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 ARTICLE 4.

 PERFECTION OF TRANSFER AND

PROTECTION OF SECURITY INTERESTS

	 	 	Section 4.01. Custody of Loans.

     The contents of each Loan File shall be held in the custody of the Indenture Trustee under the
Indenture for the benefit of, and as agent for, the Securityholders and the Hedge Counterparties.

	 	 	Section 4.02.  Filing.

     On or prior to the Closing Date, the Originator, Trust Depositor and Servicer shall cause the
UCC financing statement(s) referred to in Section 2.02(h) hereof to be filed, and from time to time
the Servicer, on behalf of the Issuer, shall take and cause to be taken such actions and execute
such documents as are necessary or desirable or as the Owner Trustee or Indenture Trustee (acting
at the direction of the Majority Noteholders or any Hedge Counterparty) may reasonably request to
perfect and protect the Indenture Trustee’s first priority perfected security interest in the Loan
Assets against all other Persons, including, without limitation, the filing of financing
statements, amendments thereto and continuation statements, the execution of transfer instruments
and the making of notations on or taking possession of all records or documents of title.
Notwithstanding the obligations of the Originator, Trust Depositor and Servicer set forth in the
preceding sentence, the Issuer hereby authorizes the Servicer to prepare and file, at the expense
of the Servicer, UCC financing statements (including but not limited to renewal, continuation or in
lieu statements) and amendments or supplements thereto or other instruments as the Servicer may
from time to time deem necessary or appropriate in order to perfect and maintain the security
interest granted hereunder in accordance with the UCC.

	 	 	Section 4.03. Changes in Name, Corporate Structure or Location.

     (a) During the term of this Agreement, none of the Originator, the Servicer, the Trust
Depositor or the Issuer shall change its name, identity, existence, state of formation or location
without first giving at least 30 days’ prior written notice to the Owner Trustee, the Indenture
Trustee, each Hedge Counterparty and S&P.

     (b) If any change in either the Servicer’s, the Originator’s or the Trust Depositor’s name,
identity, structure, existence, state of formation, location or other action would make any
financing or continuation statement or notice of ownership interest or Lien relating to any Loan
Asset seriously misleading within the meaning of applicable provisions of the UCC or any title
statute, the Servicer, no later than five Business Days after the effective date of such change,
shall file such amendments as may be required to preserve and protect the Indenture Trustee’s
security interest in the Loan Assets and the proceeds thereof. Promptly after taking any of the
foregoing actions, the Servicer shall deliver to the Owner Trustee and the Indenture Trustee an
Opinion of Counsel reasonably acceptable to the Owner Trustee and the Indenture Trustee stating
that, in the opinion of such counsel, all financing statements or amendments necessary to

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preserve and protect the Indenture Trustee’s security interest in the Loan Assets have been filed,
and reciting the details of such filing.

	 	 	Section 4.04. Costs and Expenses.

     The Servicer agrees to pay all reasonable costs and disbursements in connection with the
perfection and the maintenance of perfection, as against all third parties, of the Trustees’ and
Issuer’s right, title and interest in and to the Loan Assets (including, without limitation, the
security interest in the Collateral related thereto and the security interests provided for in the
Indenture); provided, however, to the extent permitted by the Required Loan Documents, the Servicer
may seek reimbursement for such costs and disbursements from the related Obligors.

	 	 	Section 4.05. Sale Treatment.

     Other than for tax and accounting purposes, the Trust Depositor shall treat the transfer of
Loan Assets made hereunder for all purposes as a sale and purchase on all of its relevant books and
records.

	 	 	Section 4.06.  Separateness from Trust Depositor.

     The Originator agrees to take or refrain from taking or engaging in with respect to the Trust
Depositor each of the actions or activities specified in the “substantive consolidation” opinion of
Patton Boggs LLP (including any certificates of the Originator attached thereto) delivered on the
Closing Date, upon which the conclusions therein are based.

 ARTICLE 5.

 SERVICING OF LOANS

	 	 	Section 5.01. Appointment and Acceptance.

     CapitalSource is hereby appointed as Servicer pursuant to this Agreement. CapitalSource
accepts the appointment and agrees to act as the Servicer pursuant to this Agreement.

	 	 	Section 5.02.  Duties of the Servicer.

     (a) The Servicer, as an independent contract servicer, shall service and administer the Loans
and shall have full power and authority, acting alone, to do any and all things in connection with
such servicing and administration which the Servicer may deem necessary or desirable and consistent
with the terms of this Agreement and the Credit and Collection Policy. The Servicer may enter into
Subservicing Agreements for any servicing and administration of Loans with any entity provided the
Rating Agency Condition is satisfied. The Servicer shall be entitled to terminate any Subservicing
Agreement in accordance with the terms and conditions of such Subservicing Agreement and to either
directly service the related Loans itself or enter into a Subservicing Agreement with a successor
Subservicer which qualifies hereunder.

     (b) Notwithstanding any Subservicing Agreement, any of the provisions of this Agreement
relating to agreements or arrangements between the Servicer and a Subservicer or

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reference to actions taken through a Subservicer or otherwise, so long as this Agreement shall
remain effective, the Servicer shall remain obligated and primarily liable to the Indenture
Trustee, for itself and on behalf of the Securityholders and the Hedge Counterparties, for the
servicing and administering of the Loans in accordance with the provisions of this Agreement and
the Credit and Collection Policy, without diminution of such obligation or liability by virtue of
such Subservicing Agreements or arrangements or by virtue of indemnification from the Subservicer
and to the same extent and under the same terms and conditions as if the Servicer alone were
servicing and administering the Loans. For purposes of this Agreement, the Servicer shall be deemed
to have received payments on Loans when any Subservicer has received such payments. The Servicer
shall be entitled to enter into any agreement with a Subservicer for indemnification of the
Servicer by such Subservicer, and nothing contained in this Agreement shall be deemed to limit or
modify such indemnification.

     (c) Any Subservicing Agreement that may be entered into and any transactions or services
relating to the Loans involving a Subservicer in its capacity as such and not as an originator
shall be deemed to be between the Subservicer and the Servicer alone, and the Indenture Trustee,
the Securityholders and the Hedge Counterparties shall not be deemed parties thereto and shall have
no claims, rights, obligations, duties or liabilities with respect to the Subservicer except as set
forth in Section 5.02(d). Notwithstanding the foregoing, the Servicer shall (i) at its expense and
without reimbursement, deliver to the Indenture Trustee a copy of each Subservicing Agreement and
(ii) provide notice of the termination of any Subservicer within a reasonable time after such
Subservicer’s termination to the Indenture Trustee.

     (d) In the event the Servicer shall for any reason no longer be the Servicer, the Servicer at
its expense and without right of reimbursement therefor, shall, upon request of the Indenture
Trustee, deliver to the Successor Servicer all documents and records (including computer tapes and
diskettes) relating to each Subservicing Agreement and the Loans then being serviced hereunder and
an accounting of amounts collected and held by it hereunder and otherwise use its best efforts to
effect the orderly and efficient transfer of the Subservicing Agreements to the assuming party.

     (e) Modifications and Waivers Relating to Loans.

     (i) So long as it is consistent with the Credit and Collection Policy, the Servicer
may waive, modify or vary any term of any Loan if in the Servicer’s determination such
waiver, modification or variance will not be materially adverse to the interests of the
Noteholders or the Hedge Counterparties; provided, however, the Servicer may not:

     (A) amend, waive, modify or vary any Loan in any manner that would extend the
stated maturity date of such Loan beyond the date that is 36 months prior to the
Final Maturity Date; or

     (B) enter into any amendment, waiver, modification or variance with respect to
any loan for the purpose or with the intention of causing a Substitution Event to
occur with respect to such Loan solely in order to render such loan

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eligible for repurchase or substitution hereunder or to otherwise make such Loan eligible
for repurchase pursuant to Section 2.08.

If any Loan is amended, modified, waived or varied due to an Obligor’s inability to pay principal
(excluding payments of principal consisting of excess cash flow sweeps) or interest, then the Loan
shall be treated as a Delinquent Loan as of the date that is one day in case of Asset Based
Revolvers or 60 days in the case of all other Loans after such delinquent payment was first due if
all delinquencies have not been cured within that one day or 60 day period, as applicable.

     (ii) Except as expressly set forth in  Section 5.02(e)(i), the Servicer may execute any
amendments, waivers, modifications or variances related to such Loan and any documents related
thereto on behalf of the Issuer. The Servicer will provide each Rating Agency with a written
summary of any such amendment, waiver, modification or variance promptly after its execution and,
promptly upon request by any Rating Agency, a copy of any such waiver, modification or variance.
Such summary shall set forth a brief description of the reasons for, and the effect of, such
waiver, modification or variance, and shall indicate whether such waiver, modification or variance
constitutes a Specified Amendment.

     (iii) With respect to each of the modifications described in clause (a)(i), (a)(ii),
(a)(iv)-(vii) and  clause (b) of the definition of Specified Amendment, the Servicer may elect to
submit the modified (or overadvanced, as applicable) Loan to S&P to be re-rated. If the Servicer
does not elect to have such Loan re-rated by S&P, then such Loan shall be deemed to be a Delinquent
Loan as of the date that is 60 days after the effective date of the relevant Specified Amendment;
provided that such Loan shall cease to be deemed a Delinquent Loan as of such later date as it may
be submitted to S&P for re-rating. Any Loan which is subject to a modification described in clause
(a)(iii) of the definition of Specified Amendment will be deemed to be a Delinquent Loan upon the
effectiveness of such Specified Amendment. If the Servicer elects to have such Loan re-rated by
S&P, then at any time during such process, including up to 90 days after Servicer receives the
revised rating of the Loan, the Servicer may repurchase such Loan. The provisions of this Section
5.02(e)(iii) shall not apply to modifications, amendments or variances that do not constitute
Specified Amendments.

     (iv) No costs incurred by the Servicer or any Subservicer in respect of Servicing Advances
shall for the purposes of distributions to Noteholders or Hedge Counterparties be added to the
amount owing under the related Loan. Any fees and costs imposed in connection therewith may be
retained by the Servicer. Without limiting the generality of the foregoing, so long as it is
consistent with the Credit and Collection Policy, the Servicer shall continue, and is hereby
authorized and empowered to execute and deliver on behalf of the Indenture Trustee, the Owner
Trustee, each Securityholder and each Hedge Counterparty, all instruments of amendment, waiver,
satisfaction or cancellation, or of partial or full release, discharge and all other comparable
instruments, with respect to the Loans and with respect to any Collateral. Such authority shall
include, but not be limited to, the authority to substitute or release items of Collateral
consistent with the Credit and Collection Policy and sell participations or assignments in Loans

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previously transferred to the Issuer. In connection with any such sale, the Servicer shall
deposit in the Principal and Interest Account, pursuant to Section 7.03(b), all proceeds
received upon such sale. If reasonably required by the Servicer, the Indenture Trustee, on
behalf of the Issuer, shall furnish the Servicer, within five Business Days of receipt of
the Servicer’s request, with any powers of attorney and other documents necessary or
appropriate to enable the Servicer to carry out its servicing and administrative duties
under this Agreement. Any such request to the Indenture Trustee, on behalf of the Issuer,
shall be accompanied by a certification in the form of Exhibit L attached hereto signed by
a Servicing Officer. In connection with any substitution of Collateral, the Servicer shall
deliver to the Indenture Trustee the items, and within the time frame, set forth in Section
2.07, assuming that the date of substitution is the relevant “Transfer Date.”

     (f) The Servicer, in servicing and administering the Loans, shall act in good faith, exercise
commercially reasonable judgment and reasonable care, consistent with the Credit and Collection
Policy, employ or cause to be employed procedures (including collection, foreclosure, Foreclosed
Property and Repossessed Collateral management procedures), prudent lending standards and exercise
a degree of skill and attention not less than that which it customarily employs and exercises in
servicing and administering loans for its own account and in a manner consistent with those
policies and procedures as are customarily used by reasonable and prudent servicers of national
repute in connection with servicing of assets of the nature and of the character of the Loans,
giving due consideration to the Noteholders’ and Hedge Counterparties’ reliance on the Servicer.
The Servicer shall not permit an Obligor of a Revolving Loan to receive an Overadvance thereunder
for the purpose of making payments of principal or interest (in whole or in part) due with respect
to a Term Loan, where any portion of such Revolving Loan or Term Loan, as applicable, shall
constitute a part of the Loan Assets hereunder or an asset of any Prior Term Transaction.

     (g) Hedge Covenants.

     (i) So long as any of the Notes are outstanding, if on any date either:

     (A) the then current Aggregate Notional Amount of all Hedge Transactions
hedging the Fixed Rate Loans exceeds the then Outstanding Loan Balance of the Fixed
Rate Loans for the corresponding Due Period by more than the Fixed Rate Permitted
Excess Amount; or

     (B) the Aggregate Notional Amount for any future calculation period of all
Hedge Transactions hedging the Fixed Rate Loans exceeds the projected Outstanding
Loan Balance of the Fixed Rate Loans for the corresponding Due Period by more than
the Fixed Rate Permitted Excess Amount;

then, not later than 1:00 p.m. (New York City time) on the Determination Date preceding the next
Payment Date, the Servicer will notify the Indenture Trustee, the Hedge Counterparties and the
Rating Agencies of such event and, with effect on such next Payment Date, one or more of the Hedge
Transactions hedging the Fixed Rate Loans will be reduced or amended in accordance with the terms
of the applicable Hedge Agreements so that the Aggregate Notional Amount for each calculation
period of the Hedge Transactions hedging the Fixed Rate Loans will not exceed

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the Outstanding Loan Balance of the Fixed Rate Loans at the end of the corresponding Due Period or
as projected to be outstanding at the end of the corresponding Due Period.

     (ii)   So long as any of the Notes are outstanding, if on any date either:

     (A) the then current Aggregate Notional Amount of all Hedge Transactions
hedging the Floating Prime Rate Loans exceeds the then Outstanding Loan Balance of
the Floating Prime Rate Loans for the corresponding Due Period by more than the
Floating Prime Rate Permitted Excess Amount; or

     (B) the Aggregate Notional Amount for any future calculation period of all
Hedge Transactions hedging the Floating Prime Rate Loans exceeds the projected
Outstanding Loan Balance of the Floating Prime Rate Loans for the corresponding Due
Period by more than the Floating Prime Rate Permitted Excess Amount;

then, not later than 1:00 p.m. (New York City time) on the Determination Date preceding the next
Payment Date, the Servicer will notify the Indenture Trustee, the Hedge Counterparties and the
Rating Agencies of such event and, with effect on such next Payment Date, one or more of the Hedge
Transactions hedging the Floating Prime Rate Loans will be reduced or amended in accordance with
the terms of the applicable Hedge Agreements so that the Aggregate Notional Amount of the Hedge
Transactions hedging the Floating Prime Rate Loans will not exceed the Outstanding Loan Balance of
the Floating Prime Rate Loans at the end of the corresponding Due Period or as projected to be
outstanding at the end of the corresponding Due Period.

     (iii) So long as any of the
Notes are outstanding, if on any date either:

     (A) the then current Aggregate Notional Amount of all Hedge Transactions under
all Hedge Agreements then in effect exceeds the then Aggregate Outstanding
Principal Balance; or

     (B) the Aggregate Notional Amount of all Hedge Transactions for any future
calculation period under all Hedge Agreements then in effect exceeds the projected
Aggregate Outstanding Principal Balance for the corresponding Interest Accrual
Period;

then, not later than 1:00 p.m. (New York City time) on the Determination Date preceding the next
Payment Date, the Servicer will notify the Indenture Trustee, the Hedge Counterparties and the
Rating Agencies of such event and, with effect on such next Payment Date, one or more of the Hedge
Transactions will be reduced or amended in accordance with the terms of the applicable Hedge
Agreements so that the Aggregate Notional Amount of the Hedge Transactions for any future
calculation period will not exceed the Aggregate Outstanding Principal Balance of the Notes for the
corresponding Interest Accrual Period.

     (h) In accordance with the power set forth in Section 2.01(a), the Servicer shall perform the
duties of the Issuer and the Owner Trustee under the Transaction Documents. In furtherance of the
foregoing, the Servicer shall consult with the Owner Trustee as the Servicer

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deems appropriate regarding the duties of the Issuer and the Owner Trustee under the Transaction
Documents. The Servicer shall monitor the performance of the Issuer and the Owner Trustee and
shall advise the Owner Trustee when action is necessary to comply with the Issuer’s or the Owner
Trustee’s duties under the Transaction Documents. The Servicer shall prepare for execution by the
Owner Trustee or the Issuer or shall cause the preparation by other appropriate Persons of all such
documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the
Issuer or the Owner Trustee to prepare, file or deliver pursuant to the Transaction Documents.

     (i) In addition to the duties of the Servicer set forth in this Agreement or any of the
Transaction Documents, the Servicer shall perform such calculations and shall prepare for execution
by the Issuer or the Owner Trustee or shall cause the preparation by other appropriate Persons of
all such documents, reports, filings, instruments, certificates and opinions as it shall be the
duty of the Issuer to prepare, file or deliver pursuant to state and federal tax and securities
laws. In accordance with the directions of the Issuer or the Owner Trustee, the Servicer shall
administer, perform or supervise the performance of such other activities in connection with the
Issuer as are not covered by any of the foregoing provisions and as are expressly requested by the
Issuer or the Owner Trustee and are reasonably within the capability of the Servicer.

     (j) Notwithstanding anything in this Agreement or any of the Transaction Documents to the
contrary, the Servicer shall be responsible for promptly (upon knowledge thereof) notifying the
Owner Trustee and the Paying Agent in the event that any withholding tax is imposed on the Issuer’s
payments (or allocations of income) to a Securityholder. Any such notice shall be in writing and
specify the amount of any withholding tax required to be withheld by the Owner Trustee or the
Paying Agent pursuant to such provision.

     (k) All tax returns will be signed by the Servicer on behalf of the Issuer.

     (l) The Servicer shall maintain appropriate books of account and records relating to services
performed under this Agreement, which books of account and records shall be reasonably accessible
for inspection by the Owner Trustee and each Hedge Counterparty at any time during normal business
hours.

     (m) Without the prior written consent of the Majority Noteholders and the Hedge Counterparties
and subject to the satisfaction of the S&P Rating Condition and the Moody’s Rating Condition, the
Servicer shall not agree or consent to, or otherwise permit to occur, any amendment, modification,
change, supplement or rescission of or to the Credit and Collection Policy, in whole or in part, in
any manner that could have a material adverse effect on the Loans.

     (n) For so long as any of the Notes are outstanding and are “restricted securities” within the
meaning of Rule 144(a)(3) of the Securities Act, (i) the Servicer will provide or cause to be
provided to any holder of such Notes and any prospective purchaser thereof designated by such
holder, upon the request of such a holder or prospective purchaser, the information required to be
provided to such holder or prospective purchaser by Rule 144A(d)(4) under the Securities Act; and
(ii) the Servicer shall update such information from time to time in order to prevent such
information from becoming false and misleading and will take such other actions as are necessary to
ensure that the safe harbor exemption from the registration requirements of the

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Securities Act under Rule 144A is and will be available for resales of such Notes conducted in
accordance with Rule 144A.

     (o) The Servicer will keep in full force and effect its existence, rights and franchise as a
Delaware limited liability company, and the Servicer shall obtain and preserve its qualification to
do business as a foreign limited liability company in each jurisdiction in which such qualification
is or shall be necessary to protect the validity and enforceability of this Agreement and of any of
the Loans and to perform its duties under this Agreement.

     (p) The Servicer shall be obligated to make the Servicing Advances (but not Scheduled Payment
Advances) incurred in the performance of its servicing duties hereunder. The Servicer shall be
entitled to reimbursement for such Servicing Advances from the Collections received from the Loan
to which such Servicing Advances relate pursuant to  Section 5.10(d) and Section 7.03(h). Notwithstanding anything contained herein to the contrary, in no event shall the application of Servicing
Advances or Scheduled Payment Advances prevent a Loan from being or becoming a Delinquent Loan or
Charged-Off Loan, as applicable.

     (q) The Servicer shall not be responsible for any taxes on the Issuer or any Servicing Fees to
any Successor Servicer.

     (r) All payments (other than Prepayments) received on Loans will be applied by the Servicer to
amounts due by the Obligor starting with the most recent Scheduled Payment.

     (s) The Servicer shall be responsible for any tax reporting, disclosure, record keeping or
list maintenance requirements of the Issuer under Internal Revenue Code Sections 6011(a), 6111(d)
or 6112, including, but not limited to, the preparation of IRS Form 8886 pursuant to Federal Income
Tax Regulations Section 1.6011-4(d) or any successor provision and any required list maintenance
under Federal Income Tax Regulations Section 301.6112-1 or any successor provision.

     (t) The Servicer shall notify the Backup Servicer of any material modification to its
servicing system.

     (u) The initial Servicer shall provide to S&P and Fitch the most recently available financial
statements for each Obligor of a Loan included in the Loan Pool, (i) in the case of each Initial
Loan, within 13 months after the Closing Date and every 13 months thereafter, and (ii) in the case
of each Substitute Loan, within 13 months after the related Subsequent Cut-Off Date and every 13
months thereafter, until, in all cases, such time as the related Loan has been paid in full or is
no longer part of the Loan Pool. Any failure by the initial Servicer to provide financial
statements with respect to any Obligor at such times shall result in each Loan to the applicable
Obligor being deemed to have an S&P rating of “CCC-.”

     (v) The initial Servicer shall provide to Moody’s annual financial statements for each Obligor
of a Loan included in the Loan Pool as promptly as reasonably practicable after such financial
statements are delivered to the Servicer after the end of each Obligor’s fiscal year, until such
time as the related Loan has been paid in full or is no longer part of the Loan Pool.

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	 	 	Section 5.03. Liquidation of Loans.

     (a) In the event that any payment due under any Loan and not postponed pursuant to  Section
5.02 is not paid when the same becomes due and payable, or in the event the Obligor fails to
perform any other covenant or obligation under the Loan, the Servicer in accordance with the Credit
and Collection Policy shall take such action as shall maximize the amount of recovery thereon and
it shall deem to be in the best interests of the Noteholders and the Hedge Counterparties. The
Servicer, consistent with its Credit and Collection Policy, may accelerate all payments due
thereunder to the extent permitted by the Required Loan Documents and foreclose upon at a public or
private sale or otherwise comparably effect the ownership of Collateral relating to defaulted Loans
for which the related Loan is still outstanding and as to which no satisfactory arrangements can be
made for collection of delinquent payments in accordance with the provisions of  Section 5.10 and
shall act as sales and processing agent for the Collateral that is repossessed. In connection with
such foreclosure or other conversion and any other liquidation action or enforcement of remedies,
the Servicer shall exercise collection and foreclosure procedures with the same degree of care and
skill in its exercise or use as it would exercise with respect to its own affairs, in accordance
with prudent servicing standards, and in accordance with the Credit and Collection Policy. Without
limiting the generality of the foregoing, the Servicer may not sell any such Collateral without
first using commercially reasonable efforts to obtain bids to purchase such Collateral from at
least three Persons (other than the Servicer or any of its Affiliates). The Servicer may sell the
Collateral to the highest bidder (if any bids are received) or the Servicer or an Affiliate may
purchase the Collateral for a price equal to the highest bid, but in no event may the Servicer sell
any Collateral for less than the then fair market value of the Collateral. If no bids are received
and the Servicer has used commercially reasonable efforts to obtain such bids, the Servicer or an
Affiliate may purchase the Collateral for a price equal to the then fair market value of such
Collateral. Any such sale of the Collateral is to be evidenced by a certificate of a Responsible
Officer of the Servicer delivered to the Indenture Trustee setting forth the Loan, the Collateral,
the sale price of the Collateral and certifying that such sale price is the fair market value of
such Collateral. In any case in which any such Collateral has suffered damage, the Servicer will
not expend funds in connection with any repair or toward the repossession of such Collateral unless
it reasonably determines that such repair and/or repossession will increase the Liquidation
Proceeds by an amount greater than the amount of such expenses.

     (b) Prior to undertaking foreclosure of any Loan secured by real property and any improvements
thereon including any Mortgaged Property, the Servicer must investigate environmental conditions,
including, in accordance with the Credit and Collection Policy, the performance of a Phase I and/or
Phase II environmental site assessment, to ascertain the actual or potential presence of any
hazardous material on or under such property. For purposes of this Agreement, the term hazardous
material includes (1) any hazardous substance, as defined by the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Act of 1986, 42 U.S.C. 9601–9675, and (2) petroleum (as that term is defined at 42
U.S.C. §6991) including any derivative, fraction, byproduct, constituent or breakdown product
thereof, or additive thereto. In the event
that the environmental investigation determines the existence of any hazardous material on or
under the real property in excess of minimum action levels established by relevant regulatory
agencies, title to such property shall not be taken without satisfaction of the Rating Agency
Condition.

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     (c) After a Loan has been liquidated, the Servicer shall promptly prepare and forward to the
Indenture Trustee and upon request, any Securityholder or Hedge Counterparty, a report (the
“Liquidation Report”), in the form attached hereto as Exhibit D, detailing the Liquidation Proceeds
received from such Loan, the Liquidation Expenses incurred with respect thereto, and any loss
incurred in connection therewith.

	 	 	Section 5.04.  Fidelity Bond.

     The Servicer shall at all times maintain with a responsible company, and at its own expense, a
blanket fidelity bond (the “Fidelity Bond”) in a minimum aggregate amount equal to $2,000,000, and
a maximum deductible of $50,000, with coverage on all employees acting in any capacity requiring
such persons to handle funds, money, documents or papers relating to the Loans or the Collateral
(“Servicer Employees”). The Fidelity Bond shall provide coverage to the Indenture Trustee, the
Owner Trustee, the Hedge Counterparties and the Securityholders, their respective officers and
employees, against losses resulting from forgery, theft, embezzlement or fraud by such Servicer
Employees. The Fidelity Bond shall not relieve the Servicer from its duties or indemnity
obligations as set forth in this Sale and Servicing Agreement. Upon the request of the Indenture
Trustee, the Owner Trustee, any Securityholder or any Hedge Counterparty, the Servicer shall cause
to be delivered to the Indenture Trustee, the Owner Trustee, such Securityholder or such Hedge
Counterparty a certified true copy of such Fidelity Bond.

	 	 	Section 5.05. Maintenance of Hazard Insurance.

     (a) The Servicer will use its reasonable best efforts to ensure that each Obligor maintains an
Insurance Policy with respect to any tangible, personal property Collateral (other than accounts
receivable) in amounts consistent with the Credit and Collection Policy and as required by clause
(m) of the definition of Eligible Loan and all of the Originator’s right, title and interest
therein will be fully assigned to the Indenture Trustee. Additionally, other than with respect to
unsecured Loans and Loans in which the sole collateral is the related Obligor’s accounts
receivable, the Servicer will require that each Obligor maintain property damage liability
insurance during the term of each Loan in compliance with the Credit and Collection Policy. If an
Obligor fails to maintain property damage insurance, the Servicer may in its discretion purchase
and maintain such insurance on behalf of, and generally at the expense of, the Obligor to the
extent entitled to do so pursuant to the Required Loan Documents. In connection with its
activities as Servicer, the Servicer agrees to present, on behalf of the Indenture Trustee, the
Securityholders and the Hedge Counterparties, 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 Loan. The Servicer’s Insurance Policies with respect to the
Collateral will insure against liability for physical damage relating to such Collateral 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 Collateral, 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

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Insurance Proceeds thereof that it is acting solely in the capacity as agent for the Indenture
Trustee.

     (b) If at origination of a Loan, to the best of the Servicer’s knowledge after reasonable
investigation, the related Mortgaged Property is in an area identified in the Federal Register by
the Flood Emergency Management Agency as having special flood hazards (and such flood insurance has
been made available) consistent with the Credit and Collection Policy, the Servicer will require
the related Obligor or other creditors to purchase a flood insurance policy covering each piece of
property that is material with a generally acceptable insurance carrier, in an amount representing
coverage not less than the least of (i) the full insurable value of the Mortgaged Property that is
material, or (ii) the maximum amount of insurance available under the National Flood Insurance Act
of 1968, as amended. The Servicer shall also maintain, to the extent such insurance is available,
and required by the Credit and Collection Policy, on Foreclosed Property constituting real property
that is material, fire and hazard insurance in the amounts described above and liability insurance.

     (c) Any amounts collected by the Servicer under any such Insurance Policies (other than
amounts to be applied to the restoration or repair of the Collateral, or to be released to the
Obligor or other creditors in accordance with Requirements of Law or the governing documents) shall
be deposited in the Principal and Interest Account, subject to withdrawal pursuant to  Section
7.03(h). It is understood and agreed that no earthquake or other additional insurance need be
required by the Servicer of any Obligor or other creditors or maintained on Foreclosed Property,
other than pursuant to such Requirements of Law and regulations as shall at any time be in force
and as shall require such additional insurance. All policies required hereunder (unless the Seller
is a non-agent cO-lender with respect to such Loan) shall be endorsed with standard mortgagee
clauses with losses payable to the Servicer or its Affiliates.

	 	 	Section 5.06.  Collection of Certain Loan Payments.

     (a) The Servicer shall make reasonable efforts, consistent with the Credit and Collection
Policy, to collect all payments required under the terms and provisions of the Loans. Consistent
with the foregoing and the Credit and Collection Policy, the Servicer may in its discretion waive
or permit to be waived any fee or charge which the Servicer would be entitled to retain hereunder
as servicing compensation and extend the due date for payments due on a Loan as provided in  Section
5.02(e).

     (b) The Servicer agrees not to make, or permit to be made, any change, in the direction of, or
instructions with respect to, any payments to be made by an Obligor Lock-Box Bank from any Obligor
Lock-Box or any Obligor Lock-Box Account in any manner that would diminish, impair, delay or
otherwise adversely effect the timing or receipt of such payments by the Lock-Box Bank without the
prior written consent of the Indenture Trustee and with the consent of the Majority Noteholders and
the Hedge Counterparties. The Servicer further agrees to provide the Indenture Trustee promptly,
but in no case later than one Business Day after the Servicer’s receipt, any notice it receives
that an Obligor is changing the direction of or instructions with respect to any payments from any
Obligor Lock-Box or any Obligor Lock-Box Account.

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	 	 	Section 5.07.  Access to Certain Documentation and Information Regarding the Loans.

     The Servicer shall provide to the Owner Trustee, the Indenture Trustee, the FDIC, the OCC, the
Federal Reserve, the Office of Thrift Supervision and the supervisory agents and examiners of the
foregoing, access to the documentation regarding the Loans required by applicable local, state and
federal regulations, such access being afforded without charge but only upon reasonable request and
during normal business hours at the offices of the Servicer designated by it and in a manner that
does not unreasonably interfere with the Servicer’s normal operations or customer or employee
relations. The Indenture Trustee and the Owner Trustee shall and shall cause their representatives
to hold in confidence all such information except to the extent disclosure may be required by law
(and all reasonable applications for confidential treatment are unavailing) and except to the
extent that the Indenture Trustee and the Owner Trustee may reasonably determine that such
disclosure is consistent with their obligations hereunder.

	 	 	Section 5.08. Satisfaction of Mortgages and Collateral and Release of Loan Files.

     (a) Upon the payment in full of any Loan, the receipt by the Servicer of a notification that
payment in full will be escrowed in a manner customary for such purposes or the deposit into the
Principal and Interest Account of the purchase price of any Loan acquired by the Trust Depositor,
the Servicer or another Person pursuant to this Agreement, or any other Transaction Document, the
Servicer will immediately notify the Indenture Trustee by a certification in the form of Exhibit M
attached hereto (which certification shall include a statement to the effect that all amounts
received or to be received in connection with such payment which are required to be deposited in
the Principal and Interest Account pursuant to Section 7.03(b) have been or will be so deposited)
of a Servicing Officer and shall request delivery to it of the Loan File. Upon receipt of such
certification and request, the Indenture Trustee shall in accordance with Section 2.09(c) release,
within two Business Days (if such request was received by 2:00 p.m. central time), the related Loan
File to the Servicer. Expenses incurred in connection with any instrument of satisfaction or deed
of reconveyance shall be payable by the Servicer and shall not be chargeable to the Principal and
Interest Account or the Note Distribution Account; provided that the Servicer may collect and
retain such expenses from the underlying Obligor.

     (b) From time to time and as appropriate for the servicing or foreclosure of any Loan, the
Indenture Trustee shall, upon request of the Servicer and delivery to the Indenture Trustee of a
certification in the form of Exhibit M attached hereto signed by a Servicing Officer, release the
related Loan File to the Servicer within two Business Days (if such request was received by 2:00
p.m. central time), and the Indenture Trustee shall execute such documents as shall be necessary to
the prosecution of any such proceedings. The Servicer shall return the Loan File to the Indenture
Trustee when the need therefor by the Servicer no longer exists, unless the Loan has been
liquidated and the Net Liquidation Proceeds relating to the Loan have been deposited in the
Principal and Interest Account and remitted to the Indenture Trustee for deposit in the Note
Distribution Account or the Loan File or such document has been delivered to an attorney, or to a
public trustee or other public official as required by law, for purposes of
initiating or pursuing legal action or other proceedings for the foreclosure or repossession
of Collateral either judicially or non-judicially, and the Servicer has delivered to the Indenture
Trustee a certificate of a

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Servicing Officer certifying as to the name and address of the Person to whom such Loan File or
such document was delivered and the purpose or purposes of such delivery. Upon receipt of a
certificate of a Servicing Officer stating that such Loan was liquidated, the servicing receipt
relating to such Loan shall be released by the Indenture Trustee to the Servicer.

     (c) The Indenture Trustee shall execute and deliver to the Servicer any court pleadings,
requests for trustee’s sale or other documents provided to it necessary to the foreclosure or
trustee’s sale in respect of Collateral or to any legal action brought to obtain judgment against
any Obligor on the related loan agreement (including any Underlying Note or other agreement
securing Collateral) or to obtain a deficiency judgment, or to enforce any other remedies or rights
provided by the related loan agreement (including any Underlying Note or other agreement securing
Collateral) or otherwise available at law or in equity. Together with such documents or pleadings,
the Servicer shall deliver to the Indenture Trustee a certificate of a Servicing Officer requesting
that such pleadings or documents be executed by the Indenture Trustee and certifying as to the
reason such documents or pleadings are required and that the execution and delivery thereof by the
Indenture Trustee will not invalidate or otherwise adversely affect the Lien of the agreement
securing Collateral, except for the termination of such a Lien upon completion of the foreclosure
or trustee’s sale. The Indenture Trustee shall, upon receipt of a written request from a Servicing
Officer, execute any document provided to the Indenture Trustee by the Servicer or take any other
action requested in such request, that is, in the opinion of the Servicer as evidenced by such
request, required or appropriate by any state or other jurisdiction to discharge the Lien securing
Collateral upon the satisfaction thereof and the Indenture Trustee will sign and post, but will not
guarantee receipt of, any such documents to the Servicer, or such other party as the Servicer may
direct, within five Business Days of the Indenture Trustee’s receipt of such certificate or
documents. Such certificate or documents shall establish to the Indenture Trustee’s satisfaction
that the related Loan has been paid in full by or on behalf of the Obligor (or subject to a
deficiency claim against such Obligor) and that such payment has been deposited in the Principal
and Interest Account.

     (d) Notwithstanding anything contained in this Section 5.08 to the contrary, in no event may
the Servicer possess in excess of 15 Loan Files (excluding Loan Files for Loans which have been
paid in full or repurchased) at any given time.

	 	 	Section 5.09. Scheduled Payment Advances.

     For each Due Period, if the Servicer determines that any Scheduled Payment (or portion
thereof) that was due and payable pursuant to a Loan in the Loan Pool during such Due Period was
not received prior to the end of such Due Period or has been received in an Obligor Lock–Box
Account but has not yet been transferred to the Lock–Box Account, the Servicer has the right to
elect, but is not obligated, to make a Scheduled Payment Advance in an amount up to the amount of
such delinquent Scheduled Payment (or portion thereof) if the Servicer believes in good faith that
the advance will be reimbursed or subsequently paid by the related Obligor. The Servicer will
deposit any Scheduled Payment Advances into the Principal and Interest Account on or prior to 11:00
a.m. (New York City time) on the related Determination Date, in immediately available funds. The
Servicer will be entitled to be reimbursed for Scheduled Payment Advances pursuant to  Section 7.03,
Section 7.05(a) and Section 7.05(b).

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	 	 	Section 5.10. Title, Management and Disposition of Foreclosed Property.

     (a) In the event that title to Collateral is acquired in foreclosure or by deed in lieu of
foreclosure or by other legal process, the deed or certificate of sale, or the Repossessed
Collateral, shall be taken in the name of the Issuer for the benefit of the Securityholders and the
Hedge Counterparties.

     (b) The Servicer, subject to the provisions of this ARTICLE 5, shall manage, conserve, protect
and operate each Foreclosed Property or other Repossessed Collateral for the Securityholders and
the Hedge Counterparties solely for the purpose of its prudent and prompt disposition and sale.
The Servicer shall, either itself or through an agent selected by the Servicer, manage, conserve,
protect and operate the Foreclosed Property or other Repossessed Collateral in the same manner that
it manages, conserves, protects and operates other foreclosed or repossessed property for its own
account, and in a similar manner to that of similar property in the same locality as the Foreclosed
Property or other Repossessed Collateral is managed. The Servicer shall attempt to sell the same
(and may temporarily rent the same) on such terms and conditions as the Servicer deems to be in the
best interest of the Securityholders and the Hedge Counterparties.

     (c) The Servicer shall cause to be deposited in the Principal and Interest Account, no later
than two Business Days after the receipt thereof, all revenues received with respect to the
conservation and disposition of the related Foreclosed Property or other Repossessed Collateral net
of Servicing Advances.

     (d) The Servicer shall, subject to Section 5.02(p) and Section 7.03, reimburse itself for any
related unreimbursed Servicing Advances and unpaid Servicing Fees, and the Servicer shall deposit
in the Principal and Interest Account the net cash proceeds of the sale of any Foreclosed Property
or other Repossessed Collateral to be distributed to the Securityholders and the Hedge
Counterparties in accordance with Section 7.05 hereof.

	 	 	Section 5.11. Servicing Compensation.

     (a) As compensation for its servicing activities hereunder and reimbursement for its expenses,
the Servicer shall be entitled to receive a servicing fee for each month (or portion thereof)
calculated and payable monthly in arrears on each Payment Date prior to the termination of the
Issuer (with respect to each Due Period, the “Servicing Fee”) equal to the sum of the product of:
(i) the Servicing Fee Percentage, (ii) the Outstanding Loan Balance of the Asset Based Revolvers
and the Outstanding Loan Balance of all other Loans, as applicable, as of the first day of the
applicable Due Period (or, with respect to the first Due Period, as of the Closing Date) and (iii)
a fraction, the numerator of which is equal to the number of days in the applicable Due Period (or,
with respect to the first Due Period, the number of days from the Closing Date to the end of the
first Due Period) and the denominator of which is 360. The Servicing Fee is payable out of
Collections pursuant to Section 7.05(a) and Section 7.05(b). If the Servicer is replaced, the
Originator shall be responsible for the payment of any fee payable to a Successor Servicer in
excess of the Servicing Fee to the extent such fee is not paid pursuant to Section 7.05(a) and
Section 7.05(b).

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     (b) In addition to the Servicing Fee, the Servicer shall be entitled to retain for itself as
additional servicing compensation assumption and other administrative fees paid or payable in
connection with any Loan.

	 	 	Section 5.12. Assignment; Resignation.

     The Servicer shall not assign its rights and duties under this Agreement (other than in
connection with a subservicing arrangement) nor resign from the obligations and duties hereby
imposed on it as Servicer except (a) by mutual consent of the Servicer, the Indenture Trustee, the
Majority Noteholders and the Hedge Counterparties, (b) in connection with a merger, conversion or
consolidation permitted pursuant to Section 5.13 (in which case the Person resulting from the
merger, conversion or consolidation shall be the successor of the Servicer), (c) in connection with
an assignment permitted pursuant to Section 5.13 (in which case the Assignee shall be the successor
of the Servicer), or (d) upon the Servicer’s determination that its duties hereunder are no longer
permissible under Requirements of Law or administrative determination and such incapacity cannot be
cured by the Servicer. Any such determination permitting the resignation of the Servicer shall be
evidenced by a written Opinion of Counsel (who may be counsel for the Servicer) to such effect
delivered to the Indenture Trustee, which Opinion of Counsel shall be in form and substance
reasonably acceptable to the Indenture Trustee. No such resignation shall become effective until a
successor has assumed the Servicer’s responsibilities and obligations hereunder in accordance with
Section 8.03.

	 	 	Section 5.13.  Merger or Consolidation of Servicer.

     (a) Any Person into which the Servicer may be merged or consolidated, or any Person resulting
from such merger, conversion or consolidation to which the Servicer is a party, or any Person
succeeding to substantially all of the business of the Servicer, and who shall be an established
commercial loan servicing institution that on a consolidated basis has a net worth of at least
$50,000,000, shall be the Successor Servicer hereunder without execution or filing of any paper or
any further act on the part of any of the parties hereto, notwithstanding anything herein to the
contrary; provided, however, no such merger, conversion or consolidation of the Servicer or
transfer of all or substantially all or the Servicer assets or business shall be permitted
hereunder unless the Rating Agency Condition is satisfied with respect thereto.

     (b) Upon the occurrence of a change- in-control (including any merger or consolidation of the
Originator or transfer of substantially all of its assets and its business), the Servicer shall (i)
provide the Trust Depositor, the Indenture Trustee, the Hedge Counterparties and the Rating
Agencies with notice of such change- in-control within 30 days after completion of the same, and
(ii) satisfy the Rating Agency Condition after completion of the same.

	 	 	Section 5.14. Limitation on Liability of the Servicer and Others.

     The Servicer and any director, officer, employee or agent of the Servicer may rely on any
document of any kind which it in good faith reasonably believes to be genuine and to have been
adopted or signed by the proper authorities or persons respecting any matters arising hereunder.
Subject to the terms of Section 12.01 herein, the Servicer shall have no obligation to appear with
respect to, prosecute or defend any legal action which is not incidental to the Servicer’s duty to

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	service the Loans in accordance with this Agreement. The Servicer shall not be responsible for the
payment of any taxes imposed on or with respect to the Issuer or for the fees of any Successor
Servicer.

	     Section 5.15.  The Backup Servicer.

     (a) The Issuer, the Indenture Trustee and the Trust Depositor hereby appoint Wells Fargo Bank,
National Association to act as Backup Servicer in accordance with the terms of this Agreement.
Wells Fargo Bank, National Association hereby accepts such appointment and agrees to perform the
duties and responsibilities with respect thereto set forth herein.

     (b) The Backup Servicer shall perform 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 in hard copy
and in an agreed upon electronic format.

     (ii) Not later than 12:00 noon New York time four Business Days after the end of the
related Due Period, the Servicer shall provide to the Backup Servicer and the Backup
Servicer shall accept delivery of tape in an agreed upon electronic format (the “Tape”)
from the Servicer, which shall include but not be limited to the following information:
(A) for each Loan, (1) Loan number, (2) Loan category (i.e., asset based financed,
healthcare secured, senior cash flow, subordinate cash flow or real estate) (3) state of
Obligor’s primary business, (4) NAICS Code, (5) type of Loan (i.e., Partially Funded Term
Loan, Fully Funded Term Loan, Reducing Revolving Loan or Traditional Revolving Loan), (6)
type of security interest (i.e., senior or subordinated), (7) term payment type (i.e.,
Amortizing Loans, Balloon Loans or Bullet Loans), (8) origination date, (9) maturity date,
(10) benchmark for Loan Rate, (11) margin, (12) frequency of Scheduled Payments, (13)
controlling interest (i.e., whether the Loan is syndicated and whether the Issuer holds a
majority of the outstanding indebtedness under such syndicated Loan), (14) the collection
status, (15) the Loan status, and (16) the Outstanding Loan Balance and (B) the Aggregate
Outstanding Loan Balance. With respect to its duties pursuant to this  Section 5.15(b)(ii),
the Backup Servicer shall have no duty to confirm that the Tape contains the foregoing
information.

     (iii) Prior to the 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 Aggregate
Outstanding Loan Balance, (B) the Backup Servicing Fee, (C) the Loans that are more than
one day delinquent in the case of Asset Based Revolvers and more than 60 days delinquent in
the case of all other Loans (other than Charged–Off Loans), (D) the Charged–Off Loans, and
(E) the Priority of Payments. The Backup Servicer shall notify the Indenture Trustee, each
Hedge Counterparty, the Initial Purchasers and the Servicer of any discrepancies with the
Monthly Report based on such review not later than the Business Day preceding such Payment
Date.

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     (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 Indenture Trustee, each Hedge
Counterparty, the Initial Purchasers and the Rating Agencies 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 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 Servicer, Indenture Trustee, each
Hedge Counterparty, the Initial Purchasers and the Rating Agencies of the continued
existence of such discrepancy. Following receipt of such notice by the Indenture Trustee,
each Hedge Counterparty, the Initial Purchasers and the Rating Agencies, the Servicer shall
deliver to the Indenture Trustee, each Hedge Counterparty, the Initial Purchasers, the
Backup Servicer and the Rating Agencies no later than the related Payment Date a
certificate describing the nature and amount of such discrepancies and the actions the
Servicer proposes to take with respect thereto.

     With respect to the foregoing, the Backup Servicer, in the performance of its duties and
obligations hereunder, is entitled to rely conclusively, and shall be fully protected in so
relying, on the contents of each Tape, including, but not limited to, the completeness and accuracy
thereof, provided by the Servicer.

     (c) After the termination or resignation by the Servicer in accordance with this Agreement,
all authority, power, rights and responsibilities of the Servicer, under this Agreement, whether
with respect to the Loans or otherwise, shall pass to and be vested in the Successor Servicer or
the Backup Servicer, as applicable in accordance with Section 8.03 and such applicable party shall
be deemed the Successor Servicer, subject to and in accordance with the provisions of Section 8.03,
as long as such named Successor Servicer is not prohibited by any Requirements of Law from
fulfilling the same, as evidenced by an Opinion of Counsel; provided, however, if Wells Fargo as
Backup Servicer becomes the Successor Servicer, it will not make any Scheduled Payment Advances.

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

     (e) As compensation for its backup servicing activities hereunder, the Backup Servicer shall
be entitled to receive the Backup Servicing Fee from the Servicer. The Backup Servicing Fee shall
be calculated and payable monthly in arrears on each Payment Date. The Backup Servicer’s
entitlement to receive the Backup Servicing Fee (other than due and unpaid Backup Servicing Fees
owed through such date) shall cease on the earliest to occur of: (i) it

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becoming the Successor Servicer, (ii) its removal as Backup Servicer, or (iii) the termination of
this Agreement.

     (f) The Backup Servicer may be removed with or without cause by the Majority Noteholders by
notice given in writing to the Backup Servicer. In the event of any such removal, a replacement
Backup Servicer may be appointed by Majority Noteholders.

     (g) The Backup Servicer undertakes to perform only such duties and obligations as are
specifically set forth in this Agreement, it being expressly understood by all parties hereto that
there are no implied duties or obligations of the Backup Servicer hereunder. Without limiting the
generality of the foregoing, the Backup Servicer, except as expressly set forth herein, shall have
no obligation to supervise, verify, monitor or administer the performance of the Servicer. The
Backup Servicer may act through its agents, attorneys and custodians in performing any of its
duties and obligations under this Agreement, it being understood by the parties hereto that the
Backup Servicer will be responsible for any misconduct or negligence on the part of such agents,
attorneys or custodians acting 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 negligence or willful misconduct of it or them
or the failure to perform materially in accordance with this Agreement.

     (h) Limitation on Liability. 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 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 parties hereto
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 respective duties under this Agreement
if such failure or delay results from the Backup Servicer acting in accordance with information
prepared or supplied by a Person other than the Backup Servicer or the failure of any such other
Person to prepare or provide such information. 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 (other than any agent, attorney or custodian acting on behalf of the
Backup Servicer), (ii) any inaccuracy or omission in a notice or communication received by the
Backup Servicer from any third party (other than any agent, attorney or custodian acting on behalf
of the Backup Servicer), (iii) the invalidity or unenforceability of any Loan under Requirements of
Law, (iv) the breach or inaccuracy of any representation or warranty made with respect to any Loan,
or (v) the acts or omissions of any Successor Backup Servicer.

	 	 	Section 5.16. Covenants of the Backup Servicer.

     The Backup Servicer hereby covenants that:

     (a) The Backup Servicer will comply in all material respects with all Requirements of Law.

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

     (c) The Backup Servicer shall perform in all material respects all of its obligations and
duties under this Agreement.

 ARTICLE 6.

COVENANTS OF THE TRUST DEPOSITOR

	 	 	Section 6.01. Legal Existence.

     During the term of this Agreement, the Trust Depositor will keep in full force and effect its
existence, rights and franchises as a limited liability company under the laws of the jurisdiction
of its organization and will obtain and preserve its qualification to do business in each
jurisdiction in which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the other Transaction Documents and each other instrument or
agreement necessary or appropriate to the proper administration of this Agreement and the
transactions contemplated hereby. In addition, all transactions and dealings between the Trust
Depositor and its Affiliates will be conducted on an arm’s–length basis.

	 	 	Section 6.02. Loans Not to Be Evidenced by Promissory Notes.

     The Trust Depositor will take no action to cause any Loan not originally evidenced by an
Underlying Note to be evidenced by an instrument (as defined in the UCC), except in connection with
the enforcement or collection of such Loan.

	 	 	Section 6.03. Security Interests.

     The Trust Depositor will not sell, pledge, assign or transfer to any other Person, or grant,
create, incur, assume or suffer to exist any Lien on any Loan in the Loan Pool or its interest in
any related Collateral, whether now existing or hereafter transferred to the Issuer, or any
interest therein. The Trust Depositor will immediately notify the Owner Trustee, each Hedge
Counterparty and the Indenture Trustee of the existence of any Lien on any Loan in the Loan Pool or
its interest in any related Collateral; and the Trust Depositor shall defend the right, title and
interest of the Issuer in, to and under the Loans in the Loan Pool and its interest in any related
Collateral, against all claims of third parties; provided, however, that nothing in this Section
6.03 shall prevent or be deemed to prohibit the Trust Depositor from suffering to exist Permitted
Liens upon any of the Loans in the Loan Pool or its interest in any related Collateral.

	 	 	Section 6.04.  Delivery of Principal Collections and Interest Collections.

     The Trust Depositor agrees to pay to the Servicer promptly (but in no event later than two
Business Days after receipt) all Collections received by the Trust Depositor in respect of the
Loans, for application in accordance with Section 7.05 hereof.

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	 	 	Section 6.05. Regulatory Filings.

     The Trust Depositor shall make any filings, reports, notices, applications and registrations
with, and seek any consents or authorizations from, the Commission and any state securities
authority on behalf of the Issuer as may be necessary or that the Trust Depositor deems advisable
to comply with any federal or state securities or reporting requirements laws.

	 	 	Section 6.06. Compliance with Law.

     The Trust Depositor hereby agrees to comply in all material respects with all Requirements of
Law applicable to the Trust Depositor except where the failure to do so would not have a material
adverse effect on the Securityholders or the Hedge Counterparties.

	 	 	Section 6.07. Activities; Transfers of Notes or Certificates by Trust Depositor.

     Except as contemplated by this Agreement or the other Transaction Documents, the Trust
Depositor shall not engage in any business or activity of any kind, or enter into any transaction
or indenture, mortgage, instrument, agreement, contract, lease or other undertaking, which is not
directly related to the transactions contemplated and authorized by this Agreement or the other
Transaction Documents. Notwithstanding anything to the contrary contained herein, the Trust
Depositor may assign, transfer, convey or finance all or any portion of any Class of Notes or
Certificates owned by it provided such assignment, transfer, conveyance or financing is done in
accordance with the terms of Section 4.02 of the Indenture.

	 	 	Section 6.08. Indebtedness.

     The Trust Depositor shall not create, incur, assume or suffer to exist any Indebtedness or
other liability whatsoever, except (a) obligations incurred under this Agreement or the other
Transaction Documents or to the Originator, (b) liabilities incident to the maintenance of its
limited liability company existence in good standing or (c) liabilities necessarily incurred to
facilitate transactions permitted by Section 6.07.

	 	 	Section 6.09. Guarantees.

     The Trust Depositor shall not become or remain liable, directly or contingently, in connection
with any Indebtedness or other liability of any other Person, whether by guarantee, endorsement
(other than endorsements of negotiable instruments for deposit or collection in the ordinary course
of business), agreement to purchase or repurchase, agreement to supply or advance funds, or
otherwise except in connection with the transactions permitted by  Section 6.07.

	 	 	Section 6.10. Investments.

     The Trust Depositor shall not make or suffer to exist any loans or advances to, or extend any
credit to, or make any investments (by way of transfer of property, contributions to capital,
purchase of stock or securities or evidences of indebtedness, acquisition of the business or
assets, or otherwise) in, any Person except for (a) purchases of Loans from the Originator, (b) for
investments in Permitted Investments in accordance with the terms of this Agreement, (c) as may

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be necessary to facilitate transactions permitted by Section 6.07 or (d) the receipt of $66,491,764
in aggregate principal amount of the Class E Note, the Class F Note and the Certificate as
consideration for the transfer of the Loan Assets to the Issuer. Without limiting the generality of
the foregoing, the Trust Depositor shall not (i) provide credit to any Securityholder for the
purpose of enabling such Securityholder to purchase any Securities or (ii) lend any money to the
Issuer.

	 	 	Section 6.11. Merger; Sales.

     The Trust Depositor shall not enter into any transaction of merger or consolidation, or
liquidate or dissolve itself (or suffer any liquidation or dissolution) or acquire or be acquired
by any Person, or convey, sell, lease or otherwise dispose of all or substantially all of its
property or business, except as provided for in this Agreement.

	 	 	Section 6.12.  Distributions.

     The Trust Depositor shall not declare or pay, directly or indirectly, any dividend or make any
other distribution (whether in cash or other property) with respect to the profits, assets or
capital of the Trust Depositor or any Person’s interest therein, or purchase, redeem or otherwise
acquire for value any of its members’ interests now or hereafter outstanding, except that, so long
as no Event of Default has occurred and is continuing and no Event of Default would occur as a
result thereof or after giving effect thereto and the Trust Depositor would continue to be Solvent
as a result thereof and after giving effect thereto, the Trust Depositor may declare and pay
distributions to its members.

	 	 	Section 6.13. Other Agreements.

     Except as provided in this Agreement or the other Transaction Documents, the Trust Depositor
shall not become a party to, or permit any of its properties to be bound by, any indenture,
mortgage, instrument, contract, agreement, lease or other undertaking, except this Agreement and
the other Transaction Documents to which it is a party and any agreement relating to another
transaction permitted by Section 6.07; nor shall it amend or modify the provisions of its
organizational documents or issue any power of attorney except to the Owner Trustee, the Indenture
Trustee or the Servicer in accordance with the Transaction Documents or in connection with another
transaction permitted by Section 6.07.

	 	 	Section 6.14. Separate Legal Existence.

     The Trust Depositor shall:

     (a) Maintain its own deposit account or accounts, separate from those of any Affiliate, with
commercial banking institutions. The funds of the Trust Depositor will not be diverted to any
other Person or for other than authorized uses of the Trust Depositor.

     (b) Ensure that, to the extent that it shares the same officers or other employees as any of
its members or Affiliates, the salaries of and the expenses related to providing benefits to such
officers and other employees shall be fairly allocated among such entities, and each such

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entity shall bear its fair share of the salary and benefit costs associated with all such common
officers and employees.

     (c) Ensure that, to the extent that it jointly contracts with any of its members or Affiliates
to do business with vendors or service providers or to share overhead expenses, the costs incurred
in so doing shall be allocated fairly among such entities, and each such entity shall bear its fair
share of such costs. To the extent that the Trust Depositor contracts or does business with vendors
or service providers when the goods and services provided are partially for the benefit of any
other Person, the costs incurred in so doing shall be fairly allocated to or among such entities
for whose benefit the goods and services are provided, and each such entity shall bear its fair
share of such costs. All material transactions between Trust Depositor and any of its Affiliates
shall be only on an arm’s length basis.

     (d) To the extent that the Trust Depositor and any of its members or Affiliates have offices
in the same location, there shall be a fair and appropriate allocation of overhead costs among
them, and each such entity shall bear its fair share of such expenses.

     (e) Conduct its affairs strictly in accordance with its organizational documents and observe
all necessary, appropriate and customary limited liability company formalities, including, but not
limited to, holding all regular and special board of director meetings appropriate to authorize all
limited liability company action, keeping separate and accurate minutes of its meetings, passing
all resolutions or consents necessary to authorize actions taken or to be taken, and maintaining
accurate and separate books, records and accounts, including, but not limited to, payroll and
intercompany transaction accounts.

     (f) Take or refrain from taking, as applicable, each of the activities specified in the
“substantive consolidation” opinion of Patton Boggs LLP, delivered on the Closing Date, upon which
the conclusions expressed therein are based.

	 	 	Section 6.15. Location; Records.

     The Trust Depositor shall (a) not move its location outside the State of Maryland or its
jurisdiction of formation outside of the State of Delaware without 30 days’ prior written notice to
the Owner Trustee and the Indenture Trustee and (b) will promptly take all actions (if any)
required (including, but not limited to, all filings and other acts necessary or advisable under
the UCC of each relevant jurisdiction) in order to continue the first priority perfected security
interest of the Indenture Trustee in all Loans.

	 	 	Section 6.16. Liability of Trust Depositor.

     The Trust Depositor shall be liable in accordance herewith only to the extent of the
obligations specifically undertaken by the Trust Depositor under this Agreement.

	 	 	Section 6.17. Bankruptcy Limitations.

     The Trust Depositor shall not, without the affirmative vote of a majority of the managers of
the Trust Depositor (which must include the affirmative vote of at least two (2) duly appointed
Independent managers) (a) dissolve or liquidate, in whole or in part, or institute proceedings to

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be adjudicated bankrupt or insolvent, (b) 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, (d) consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the limited
liability company or a substantial part of its property, (e) make a general assignment for the
benefit of creditors, (f) admit in writing its inability to pay its debts generally as they become
due, or (g) take any limited liability company action in furtherance of the actions set forth in
clauses (a) through (f) above; provided, however, that no manager may be required by any member of
the Trust Depositor to consent to the institution of bankruptcy or insolvency proceedings against
the Trust Depositor so long as it is Solvent.

	 	 	Section 6.18.  Limitation on Liability of Trust Depositor and Others.

     The Trust Depositor and any director or officer or employee or agent of the Trust Depositor
may rely in good faith on any document of any kind, prima facie properly executed and submitted by
any Person respecting any matters arising hereunder. The Trust Depositor and any director or
officer or employee or agent of the Trust Depositor shall be reimbursed by the Indenture Trustee
for any liability or expense incurred by reason of the Indenture Trustee’s willful misfeasance, bad
faith or gross negligence (except errors in judgment) in the performance of its duties hereunder,
or by reason of the Indenture Trustee’s material breach of the obligations and duties under this
Agreement or the Transaction Documents. The Trust Depositor shall not be under any obligation to
appear in, prosecute or defend any legal action that shall not be incidental to its obligations
under this Agreement, and that in its opinion may involve it in any expense or liability.

	 	 	Section 6.19. Insurance Policies.

     Upon and after an Event of Default or Servicer Default, at the request of the Indenture
Trustee, the Trust Depositor will cause to be performed any and all acts reasonably required to be
performed to preserve the rights and remedies of the Indenture Trustee and the Owner Trustee in any
insurance policies applicable to the Loans including, without limitation, in each case, any
necessary notifications of insurers, assignments of policies or interests therein, and
establishments of co–insured, joint loss payee and mortgagee rights in favor of the Indenture
Trustee or the Trust Depositor, respectively.

	 	 	Section 6.20.  Payments from Obligor Lock–Boxes and Obligor Lock–Box
Accounts.

     The Trust Depositor agrees not to make, or permit to be made, any change in the direction of,
or instructions with respect to, any payments to be made by an Obligor Lock–Box Bank from any
Obligor Lock–Box or any Obligor Lock–Box Account in any manner that would diminish, impair, delay
or otherwise adversely effect the timing or receipt of such payments by the Lock–Box Bank or to
change the name in which an Obligor Lock–Box or Obligor Lock–Box Account is maintained without the
prior written consent of the Indenture Trustee and with the consent of the Majority Noteholders and
the Hedge Counterparties. The Trust Depositor further agrees to provide the Indenture Trustee
promptly, but in no case later than one Business Day after the Trust Depositor’s receipt, any
notice it receives that an Obligor is changing the direction

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of or
instructions with respect to any payments from any Obligor Lock – Box or any Obligor
Lock – Box Account or the name in which any Obligor Lock –
Box or Obligor Lock – Box Account is
maintained.

ARTICLE 7. 

ESTABLISHMENT OF ACCOUNTS;

DISTRIBUTIONS; RESERVE FUND 

     Section 7.01.
Note Distribution Account, Reserve Fund and Lock – Boxes.

     (a) On or before the Closing Date, the Servicer shall establish the Note Distribution Account
and the Reserve Fund with and in the name of the Indenture Trustee for the benefit of the
Securityholders and the Hedge Counterparties. The Servicer and Indenture Trustee are hereby
required to ensure that each of the Note Distribution Account and Reserve Fund is established and
maintained as an Eligible Deposit Account with a Qualified Institution. If any institution with
which any of the accounts established pursuant to this Section 7.01(a) are established
ceases to be a Qualified Institution, the Servicer, or if the Servicer fails to do so, the
Indenture Trustee (as the case may be) shall within ten Business Days establish a replacement
account at a Qualified Institution after notice of such event. In no event shall the Indenture
Trustee be responsible for monitoring whether such Eligible Institution shall remain a Qualified
Institution. Each Qualified Institution maintaining an Eligible Deposit Account shall agree in
writing to comply with all instructions originated by the Indenture Trustee or, with respect to the
Principal and Interest Account only, the Servicer directing disposition of the funds in the
Eligible Deposit Account without the further consent of the Trust Depositor.

     (b) If the Servicer so directs (or, if the Servicer does not so direct, the Trust Depositor
has the right to direct), in writing, the Indenture Trustee shall accept such directions as
directions of the Issuer and shall invest the amounts in the Note Distribution Account and the
Reserve Fund in Permitted Investments of the type specified in such written direction that mature
or are withdrawable not later than the next succeeding Determination Date, except for investments
in Section (vi) of the definition of Permitted Investments. Once such funds are invested,
the Indenture Trustee shall not change the investment of such funds other than in connection with
the withdrawal or liquidation of such investments and the transfer of such funds as provided herein
on or prior to the next succeeding Determination Date. Funds in the Note Distribution Account and
Reserve Fund not so invested must be insured to the extent and the amount permitted by law by BIF
or SAIF of the FDIC. Subject to the restrictions herein, the Servicer or Indenture Trustee may
purchase a Permitted Investment from itself or an Affiliate with respect to investment of funds in
the Trust Accounts. Subject to the other provisions hereof, the Servicer in the case of the
Principal and Interest Account and the Indenture Trustee in the case of all other Trust Accounts
shall have sole control over each such investment and the income thereon, and any certificate or
other instrument evidencing
any such investment, if any, shall be delivered directly to the Servicer or its agent or the
Indenture Trustee or its agent, as applicable, together with each document of transfer, if any,
necessary to transfer title to such investment to the Servicer or Indenture Trustee, as applicable,
in a manner which complies with this Section 7.01. All Investment Earnings on investments of
funds in the Trust Accounts shall be deposited in the Interest Collection Account pursuant to
Section 7.01 and distributed on the next Payment Date

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pursuant to Section 7.05. The Trust Depositor and the Issuer agree and acknowledge that the
Servicer and Indenture Trustee are to have “control” (within the meaning of the UCC) of collateral
comprised of “Investment Property” (within the meaning of the UCC) for all purposes of this
Agreement. In the absence of timely written direction from the Servicer or the Trust Depositor,
the Indenture Trustee shall invest amounts in the Note Distribution Account and Reserve Fund
Account in Permitted Investments of the type specified in clause (vi) of the definition of
Permitted Investments herein.

     (c) The Servicer and the Originator have established, or caused to be established, and will
maintain, or caused to be maintained, various Obligor Lock – Boxes and Obligor Lock – Box Accounts,
for the deposit of the amounts representing payments sent by Obligors with respect to certain
Revolving Loans. The Servicer and the Originator have established, or caused to be established,
and will maintain, or caused to be maintained, the Lock – Box and the Lock – Box Account, for the
deposit of the amounts representing payments sent by Obligors and Obligor Lock – Box Banks, as
applicable, with respect to Loans pledged to the Indenture Trustee as well as with respect to loans
not pledged to the Indenture Trustee. The Servicer, as agent for the Issuer, and the Originator
will cause each Obligor Lock – Box Bank to deposit within two Business Days of receipt all
Collections that have been sent to such Obligor Lock – Box Bank into the Lock Box Account, and
within two Business Days of the deposit into the Lock – Box or the Lock Box Account, the Servicer
and the Originator will cause the Lock – Box Bank to cause the amounts in the Lock Box Account to
be deposited into the Principal and Interest Account.

     Section 7.02. Reserve Fund Deposit. 

     On the Closing Date, the Owner Trustee, on behalf of the Issuer, shall deposit the Reserve
Fund Initial Balance into the Reserve Fund from the net proceeds of the sale of the Securities.

     Section 7.03. Principal and Interest Account. 

     (a) The Servicer shall cause to be established and maintained one or more Principal and
Interest Accounts (including for each such account two subaccounts, one designated as the Interest
Collection Account and the other designated as the Principal Collection Account), in one or more
Eligible Deposit Accounts, in the form of time deposit or demand
accounts, which may be interest –
bearing or such accounts may be trust accounts wherein the moneys therein are invested in Permitted
Investments, titled “CapitalSource Finance LLC, as Servicer, in trust for the Hedge Counterparties and the
registered holders of CapitalSource Commercial Loan Trust 2006-1 Notes, Class A, Class B, Class C,
Class D, Class E Notes and Class F Notes.” All funds in such Principal and Interest Accounts not so
invested shall be insured to the extent and the amount permitted by the BIF or SAIF of the FDIC to
the maximum extent provided by law. The creation of any Principal and Interest Account shall be
evidenced by a letter agreement in the form of Exhibit E hereto. A copy of such letter
agreement shall be furnished to the Indenture Trustee, the Owner Trustee and, upon request, any
Securityholder or Hedge Counterparty. The Servicer may, upon written notice to the Indenture
Trustee, transfer any Principal and Interest Account to a different Eligible Deposit Account.

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     (b) The Servicer and each Subservicer shall deposit without duplication (within two Business
Days of receipt thereof) in the applicable Principal and Interest Account and retain therein the
following amounts received by the Servicer (and shall segregate and deposit Interest Collections
into the Interest Collections Account and Principal Collections into the Principal Collection
Account):

     (i)
all Principal Collections accruing and received on or after the
applicable Cut – Off Date;

     (ii)
all Interest Collections accruing and received on or after the
applicable Cut – Off Date (net of the Servicing Fee with respect to each Loan and other servicing
compensation payable to the Servicer as permitted herein) and all origination and
commitment fees;

     (iii) all Net Liquidation Proceeds (other than Insurance Proceeds covered under
clause (iv) below);

     (iv) all Insurance Proceeds (other than amounts to be applied to restoration or repair
of any related Collateral or amounts in excess of the Outstanding Loan Balance of the
related Loan to be released to the Obligor in accordance with the Credit and Collection
Policy);

     (v) all Released Mortgaged Property Proceeds and any other proceeds from any other
Collateral securing the Loans (other than amounts released to the Obligor in accordance
with the Credit and Collection Policy);

     (vi) any amounts paid in connection with the purchase or repurchase of any Loan;

     (vii) any amount required to be deposited in the Principal and Interest Account
pursuant to Section 5.10 or Section 7.03; and

     (viii) the amount of any gains and interest incurred in connection with investments in
Permitted Investments.

     (c) The Servicer shall have no obligation to deposit into the Principal and Interest Account
any Retained Interest or Released Amounts.

     (d) Not later than the close of business on each Determination Date immediately preceding a
Payment Date, the Servicer will remit to the Principal and Interest Account any Scheduled Payment
Advance that the Servicer determines to make.

     (e) Notwithstanding Section 7.03(b), if (i) the Servicer makes a deposit into the
Principal and Interest Account in respect of a Collection of a Loan in the Loan Pool 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 Principal and Interest Account to

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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.

     (f) The foregoing requirements for deposit in the Principal and Interest Accounts shall be
exclusive, it being understood and agreed that, without limiting the generality of the foregoing,
Liquidation Expenses may not be deposited by the Servicer in the Principal and Interest Account.

     (g) So long as no Servicer Default shall have occurred and be continuing, and consistent with
any requirements of the Code, the Principal and Interest Accounts shall either be maintained with
an Eligible Deposit Account as an interest – bearing account meeting the requirements set forth in
Section 7.03(a), or the funds held therein may be invested by the Servicer (to the extent
practicable) in Permitted Investments, as directed in writing by the Servicer, and, in each case,
with a stated maturity (giving effect to any applicable grace period) no later than the fourth
Business Day immediately preceding the Payment Date next following the Due Period in which the date
of investment occurs; provided, however, that Permitted Investments shall not include any
interest-only security, any security purchased at a price in excess of 100% of par or any security
whose repayment is subject to substantial non-credit related risk as determined by the Servicer.
All Permitted Investments must be held by or registered in the name of “CapitalSource, as Servicer,
in trust for the Hedge Counterparties and the registered holders of CapitalSource Commercial Loan
Trust 2006-1 Notes.” Any Investment Interest Earnings on funds held in the Principal and Interest
Account shall be deemed part of the Interest Collection Account and shall be deposited therein
pursuant to Section 7.03 and distributed on the next Payment Date pursuant to Section 7.05.
The amount of any losses incurred in connection with the investment of funds in the Principal and
Interest Account in Permitted Investments shall be deposited in the Principal and Interest Account
by the Servicer from its own funds immediately as realized without reimbursement therefor.

     (h) The Servicer may (and, for the purposes of clause (ii) below, shall), at any time
upon one Business Day’s notice to the Indenture Trustee, make withdrawals from the Principal and
Interest Account for the following purposes:

     (i) to remit to the Trust Depositor, in connection with the transfer of a
Substitute Loan to the Issuer in place of a Prepaid Loan, an amount equal to the Prepaid Loan
Amount;

     (ii) to remit to the Indenture Trustee on each Determination Date immediately preceding a
Payment Date, for deposit in the Note Distribution Account, the Interest Collections and Principal
Collections received during the immediately preceding Due Period less any amounts remitted to the
Trust Depositor pursuant to clause (i) above prior to such Determination Date;

     (iii) prior to a Servicer Default, and subject to Section 5.02(p), to reimburse itself
for any unreimbursed Servicing Advances to the extent deposited in the Principal and Interest
Account (and not netted from Scheduled Payments received from the related Loans);

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     (iv) to withdraw any amount received from an Obligor that is recoverable and sought to be
recovered as a voidable preference by a trustee in bankruptcy pursuant to the United States
Bankruptcy Code in accordance with a final, nonappealable order of a court having competent
jurisdiction;

     (v) to make investments in Permitted Investments;

     (vi) to withdraw any funds deposited in the Principal and Interest Account that
were not required or permitted to be deposited therein or were deposited therein in error;

     (vii) prior to a Servicer Default, to pay itself certain additional servicing
compensation as permitted under Section 5.11(b) of the Agreement;

     (viii) prior to (A) a payment default on the related Loan (and in the case of Asset
Based Revolvers, a payment default shall mean any failure to make a payment on the date
such payment is due and such failure continues for more than one calendar day), (B) a
Servicer Default, (C) an Event of Default, or (D) an Accelerated Amortization Event, with
respect to Revolving Loans secured by Collateral only, to advance to an Obligor in a given
Due Period prior to the Monthly Reconciliation Date an amount not to exceed the Principal
Collections received from such Obligor during that Due Period;

     (ix) to purchase Substitute Loans as contemplated by Section 2.04(a) to the extent
funds have been deposited by the Originator for such purpose pursuant to Section 2.04(a)(i)(B); and

     (x) to clear and terminate the Principal and Interest Account upon the termination of
this Agreement.

     Section 7.04. Securityholder Distributions. 

     (a) Each Securityholder as of the related Record Date shall be paid on the next succeeding
Payment Date by check mailed to such Securityholder at the address for such Securityholder
appearing on the Note Register or Certificate Register or by wire transfer if such Securityholder
provides written instructions to the Indenture Trustee, or Owner Trustee, respectively, at least
ten days prior to such Payment Date, which instructions may be in the form of a standing order.

     (b) The Indenture Trustee shall serve as the Paying Agent hereunder and shall make the
payments to the Securityholder required hereunder. The Indenture Trustee hereby agrees that all
amounts held by it for payment hereunder will be held in trust for the benefit of the
Securityholder.

     Section 7.05. Priority of Payments; Allocations and Distributions. 

     (a) On each Determination Date prior to the occurrence of an Event of Default, a Servicer
Default or an Accelerated Amortization Event, (i) the Indenture Trustee shall deposit into the Note
Distribution Account all funds on deposit in the Reserve Fund and (ii) the Servicer shall instruct
the Indenture Trustee in writing to withdraw, and on the related Payment Date the

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Indenture Trustee shall withdraw from the Note Distribution Account (A) the Collections and (B) all
amounts deposited therein from the Reserve Fund to make the following payments. The payments listed
below will be made only to the extent there are sufficient amounts available on the Payment Date.
Payments will be made in the order of priority listed below. With respect to pro rata payments of
principal as described herein, payments shall be made pro rata based on the respective original
principal amounts of the Class of Notes with respect to which such payments are made. If on any
Payment Date the Outstanding Principal Balance of any Class of Notes has been reduced to zero, any
pro rata payments of principal on such date shall be distributed pro rata to the Classes of Notes
which then remain outstanding based on the respective original principal amounts of such classes of
Notes.

     First, pro rata, based on the amounts owed to such Persons under this clause First, to
the Hedge Counterparties, any Net Trust Hedge Payments for the current and any prior Payment Dates
owing to the Hedge Counterparties under Hedge Agreements (other than Hedge Breakage Costs),
together with interest accrued thereon;

     Second, pro rata, based on the amounts owed under this clause Second, any amounts due
and not paid by the Originator in respect of listing the Listed Notes on the Irish Stock Exchange
and any amounts owed to the Indenture Trustee, the Backup Servicer and the Owner Trustee under the
Transaction Documents for fees and expenses, other than for fees, expenses and other amounts
related to indemnification; provided, however, that in no event shall the amounts payable pursuant
to this clause Second:

     (i) to the Indenture Trustee and the Backup Servicer, in the aggregate, exceed $5,000
for any 12-month period (excluding amounts paid as part of the monthly fees to be paid to
the Indenture Trustee and the Backup Servicer);

     (ii) to the Owner Trustee, exceed $5,000 for any 12-month period (excluding amounts
paid as part of its fee);

     (iii) if a Successor Servicer is being appointed, to the Indenture Trustee for costs
and expenses associated with that appointment, exceed $100,000 in the aggregate for any
given servicing transfer; and

     (iv) in payment of amounts due in respect of listing the Listed Notes on the Irish
Stock Exchange, exceed $2,000 for any 12-month period;

     Third, to the Servicer, from Interest Collections received from the specific Loans for
which such Scheduled Payment Advances of interest were made, and from Principal Collections
received from the specific Loans for which such Scheduled Payment Advances of principal were made,
reimbursement for the amount of such Scheduled Payment Advances relating to such Loans;

     Fourth, first, to S&P, an amount equal to any fees due to S&P and second, to the
Servicer, an amount equal to the Servicing Fee minus amounts paid to S&P pursuant to this clause
Fourth;

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     Fifth, to the Holders of the Class A Notes, the Class A Interest Amount for the related
Interest Accrual Period and any related unpaid Class A Interest Shortfall with respect to prior
Payment Dates, together with interest on any Class A Interest Shortfall at the Note Interest Rate
then applicable to the Class A Notes;

     Sixth, to the Holders of the Class B Notes, the Class B Interest Amount for the related
Interest Accrual Period and any related unpaid Class B Interest Shortfall with respect to prior
Payment Dates, together with interest on any Class B Interest Shortfall at the Note Interest Rate
then applicable to the Class B Notes;

     Seventh, to the Holders of the Class C Notes, the Class C Interest Amount for the
related Interest Accrual Period and any related unpaid Class C Interest Shortfall with respect to
prior Payment Dates, together with interest on any Class C Interest Shortfall at the Note Interest
Rate then applicable to the Class C Notes;

     Eighth, to the Holders of the Class D Notes, the Class D Interest Amount for the
related Interest Accrual Period and any related unpaid Class D Interest Shortfall with respect to
prior Payment Dates, together with interest on any Class D Interest Shortfall at the Note Interest
Rate then applicable to the Class D Notes;

     Ninth, to the Holders of the Class E Notes, the Class E Interest Amount for the related
Interest Accrual Period and any related unpaid Class E Interest Shortfall with respect to prior
Payment Dates, together with interest on any Class E Interest Shortfall at the Note Interest Rate
then applicable to the Class E Notes;

     Tenth, to the Reserve Fund, an amount, if any, which when so deposited causes the
balance of the Reserve Fund to equal (i) three times the sum of the Class A
Interest Amount, the Class B Interest Amount, the Class C Interest Amount , the Class D
Interest Amount and the Class E Interest Amount due on the current Payment Date;

     Eleventh, (i) on each Payment Date prior to the occurrence of any Sequential Pay Event,
to the Holders of the Notes as follows:

	 	(a)	 	if on such Payment Date no Principal Distributable Shortfall exists, to the Holders of
the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes, the Class E
Notes and the Class F Note, pro rata, in an amount up to the Total Principal
Distributable; and
	 
	 	(b)	 	if on such Payment Date a Principal Distributable Shortfall exists, first, to the
Holders of the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and
the Class E Notes, pro rata in an amount up to the Total Principal Distributable until
each such class of Offered Notes is paid in full, and second to the Class F Note in an
amount up to the Total Principal Distributable until the Class F Note is paid in full;

     (ii) on each Payment Date on and after the occurrence of a Sequential Pay
Event (other than an Event of Default, a Servicer Default or an Accelerated Amortization Event),
unless, solely in the case of a Sequential Pay Event of the type specified in clause

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(f) of the definition thereof, the Rating Agency Condition shall have been satisfied with respect
to the payment of principal of the Notes being made in accordance with subclause (i)(a) of this
clause Eleventh, sequentially to the holders of Notes as follows:

	 	(a)	 	to the Holders of the Class A Notes until paid in full, in an amount up to the Total
Principal Distributable;
	 
	 	(b)	 	to the Holders of the Class B Notes, the Class B Accrued Payable, if any;
	 
	 	(c)	 	to the Holders of the Class B Notes until paid in full, in an amount up to the
remaining Total Principal Distributable after payments to the Class A Notes under this
clause Eleventh;
	 
	 	(d)	 	to the Holders of the Class C Notes, the Class C Accrued Payable, if any;
	 
	 	(e)	 	to the Holders of the Class C Notes until paid in full, in an amount up to the
remaining Total Principal Distributable after payments to the Class A
Notes and the Class B Notes under this clause Eleventh;
	 
	 	(f)	 	to the Holders of the Class D Notes, the Class D Accrued Payable, if any;
	 
	 	(g)	 	to the Holders of the Class D Notes until paid in full, in an amount up to the
remaining Total Principal Distributable after payments to the Class A Notes, the Class B
Notes and the Class C Notes under this clause Eleventh;
	 
	 	(h)	 	to the Holders of the Class E Notes, the Class E Accrued Payable, if any; and
	 
	 	(i)	 	to the Holders of the Class E Notes until paid in full, in an amount up to the
remaining Total Principal Distributable after payments to the Class A Notes, the
Class B Notes, the Class C Notes and the Class D Notes under this clause
Eleventh;

     Twelfth, to the Reserve Fund, an amount, if any, which when so deposited causes the
balance of the Reserve Fund to equal the Required Reserve Amount, and any amounts on deposit in the
Reserve Fund in excess of the Required Reserve Amount shall be distributed in accordance with the
remaining clauses of the Priority of Payments;

     Thirteenth, to the extent not paid pursuant to clause Second above, any amounts
due in respect of listing the Listed Notes on the Irish Stock Exchange;

     Fourteenth, to the Servicer, to the extent not reimbursed pursuant to clause
Third above, reimbursement for the amount of any Scheduled Payment Advances relating to the
Loans;

     Fifteenth, pro rata, based on the amounts owed to such Persons under this clause
Fifteenth, to the Hedge Counterparties, any unpaid Hedge Breakage Costs, together with interest
accrued thereon;

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     Sixteenth, pro rata, based on the amounts owed to such Persons under this clause
Sixteenth, to the Indenture Trustee, the Backup Servicer and the Owner Trustee, to the extent not
paid pursuant to clause Second due to the limitations set forth therein, and to the Hedge
Counterparties, amounts owed to such parties for fees and expenses and other amounts, including
such amounts related to indemnification, and, to a Successor Servicer, any Additional Servicing Fee
payable to such Successor Servicer;

     Seventeenth, to the Holder of the Class F Note until paid in full, in an amount up to
the remaining Total Principal Distributable after payments to the Offered Notes under clause
Eleventh; and

     Eighteenth, to the Owner Trustee for payment to the Certificateholder, any remaining
amounts.

     (b) On each Determination Date on and after the occurrence of an Event of Default, a Servicer
Default or an Accelerated Amortization Event, the Servicer shall instruct the Indenture Trustee in
writing to withdraw, and on the Payment Date the Indenture Trustee will follow the instructions to
withdraw, the Collections and all other funds available for distributions on deposit in the Note
Distribution Account, to the extent there are sufficient funds, to make the following payments, in
the order of priority listed
below.

     First, pro rata, based on the amounts owed to such Persons under this clause First, to
the Hedge Counterparties, any Net Trust Hedge Payments for the current and any prior Payment Dates
owing to the Hedge Counterparties under Hedge Agreements (other than Hedge Breakage Costs),
together with interest accrued thereon; provided, however, that on each Payment Date on and after
the occurrence of an Event of Default, Hedge Breakage Costs in an aggregate amount not to exceed
$500,000 shall be payable under this clause First;

     Second, pro rata, based on the amounts owed under this clause Second, any amounts due
and not paid by the Originator in respect of listing the Listed Notes on the Irish Stock Exchange
and any amounts owed to the Indenture Trustee, the Backup Servicer and the Owner Trustee under the
Transaction Documents for fees and expenses, other than for fees, expenses and other amounts
related to indemnification; provided, however, that in no event shall the amounts payable pursuant
to this clause Second;

     (i) to the Indenture Trustee and the Backup Servicer, in the aggregate, exceed $5,000
for any 12-month period (excluding amounts paid as part of the monthly fees to be paid to
the Indenture Trustee and the Backup Servicer);

     (ii) to the Owner Trustee, exceed $5,000 for any 12-month period (excluding amounts
paid as part of its fee);

     (iii) if a Successor Servicer is being appointed, to the Indenture Trustee for costs
and expenses associated with that appointment, exceed $100,000 in the aggregate for any
given servicing transfer; and

     (iv) in payment of amounts due in respect of listing the Listed Notes on the Irish
Stock Exchange, exceed $2,000 in any 12-month period;

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     Third, to the Servicer, from Interest Collections received from the specific Loans for
which such Scheduled Payment Advances of interest were made, and from Principal Collections
received from the specific Loans for which such Scheduled Payment Advances of principal were made,
reimbursement for the amount of such Scheduled Payment Advances relating to such Loans;

     Fourth, first, to S&P, an amount equal to any fees due to S&P and second, to the
Servicer, an amount equal to the Servicing Fee minus amounts paid to S&P pursuant to this Clause
Fourth;

     Fifth, to the Holders of the Class A Notes, the Class A Interest Amount for the related
Interest Accrual Period and any related unpaid Class A Interest Shortfall with respect to prior
Payment Dates, together with interest on any Class A Interest Shortfall at the Note Interest Rate
then applicable to the Class A Notes;

     Sixth, to the Holders of the Class B Notes, the Class B Interest Amount for the related
Interest Accrual Period any related unpaid Class B Interest Shortfall with
respect to prior Payment Dates, together with interest on any Class B Interest Shortfall at
the Note Interest Rate then applicable to the Class B Notes;

     Seventh, to the Holders of the Class C Notes, the Class C Interest Amount for the
related Interest Accrual Period and any related unpaid Class C Interest Shortfall with respect to
prior Payment Dates, together with interest on any Class C Interest Shortfall at the Note Interest
Rate then applicable to the Class C Notes;

     Eighth, to the Holders of the Class D Notes, the Class D Interest Amount for the
related Interest Accrual Period and any related unpaid Class D Interest Shortfall with respect to
prior Payment Dates, together with interest on any Class D Interest Shortfall at the Note Interest
Rate then applicable to the Class D Notes;

     Ninth, to the Holders of the Class E Notes, the Class E Interest Amount for the related
Interest Accrual Period and any related unpaid Class E Interest Shortfall with respect to prior
Payment Dates, together with interest on any Class E Interest Shortfall at the Note Interest Rate
then applicable to the Class E Notes;

     Tenth, sequentially to the Holders of the Notes as follows:

	 	(a)	 	to the Holders of the Class A Notes until the Outstanding Principal Balance of the
Class A Notes is reduced to zero;
	 
	 	(b)	 	to the Holders of the Class B Notes, the Class B Accrued Payable, if any;
	 
	 	(c)	 	to the Holders of the Class B Notes until the Outstanding Principal Balance of the
Class B Notes is reduced to zero;
	 
	 	(d)	 	to the Holders of the Class C Notes, the Class C Accrued Payable, if any;

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	 	(e)	 	to the Holders of the Class C Notes until the Outstanding Principal Balance of the
Class C Notes is reduced to zero;
	 
	 	(f)	 	to the Holders of the Class D Notes, the Class D Accrued Payable, if any;
	 
	 	(g)	 	to the Holders of the Class D Notes until the Outstanding Principal Balance of the
Class D Notes is reduced to zero;
	 
	 	(h)	 	to the Holders of the Class E Notes, the Class E Accrued Payable, if any; and
	 
	 	(i)	 	to the Holders of the Class E Notes until the Outstanding Principal Balance of the
Class E Notes is reduced to zero;

     Eleventh,
to the Servicer, to the extent not reimbursed pursuant to clause
Third above,
reimbursement for the amount of any Scheduled Payment Advances relating to the Loans;

     Twelfth, pro rata, based on the amounts owed to such Persons under this
clause Twelfth, to the Hedge Counterparties, to the
extent not paid pursuant to clause First
above, any unpaid Hedge Breakage Costs, together with interest accrued thereon;

     Thirteenth, pro rata, based on the amounts owed to such Persons under this clause
Thirteenth, to the Indenture Trustee, the Backup Servicer and the Owner Trustee, to the extent not
paid pursuant to clause Second due to the limitations set forth therein, and to the Hedge
Counterparties, amounts owed to such parties for fees and expenses and other amounts, including
such amounts related to indemnification, and, to a Successor Servicer for any Additional Servicing
Fee payable to such Successor Servicer;

     Fourteenth,
to the extent not paid previously pursuant to clause Second above, any
amounts due in respect of listing the Listed Notes on the Irish Stock Exchange;

     Fifteenth, to the Holder of the Class F Note until the Outstanding Principal Balance of
the Class F Note is reduced to zero; and

     Sixteenth, to the Owner Trustee for payment to the Certificateholder, any remaining
Collections.

     Prior to the Final Maturity Date, amounts to be applied in reduction of the Outstanding
Principal Balance of any Note will not be due and payable, although the failure of the Trust
Depositor or Servicer to remit any amounts available for payment on the Notes will, after the
applicable grace period, constitute an Event of Default under the Indenture.

     Section 7.06. Determination of LIBOR. 

     (a) The Indenture Trustee will determine the interest rate for each Interest Accrual Period by
determining the London interbank offered rate (“LIBOR”) for deposits in U.S. Dollars for a period
of one month (the “One — Month Index Maturity”) which appears on Telerate Page 3750 as of 11:00
a.m., London time, on the day that is two London Banking Days preceding that

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Interest Accrual Period (“LIBOR Determination Date”). If such rate does not appear on
Telerate Page 3750 on the related LIBOR Determination Date, the rate for that Interest Accrual
Period will be determined as if the parties had specified “USD — LIBOR — Reference Banks” as the
applicable rate. “USD — LIBOR — Reference Banks” means that the interest rate for an Interest
Accrual Period will be determined on the basis of the rates at which deposits in U.S. Dollars are
offered by the Reference Banks at approximately 11:00 a.m., London time, on the related LIBOR
Determination Date to prime banks in the London interbank market for the One — Month Index Maturity
commencing on the beginning of that Interest Accrual Period and in a Representative Amount. The
Indenture Trustee will request the principal London office of each of the Reference Banks to
provide a quotation of its rate. If at least two such quotations are provided, the rate for that
Interest Accrual Period will be the arithmetic mean of the quotations. If fewer than two quotations
are provided as requested, the rate for that Interest Accrual Period will be the arithmetic mean of
the rates quoted by major banks in New York City, selected by the
Indenture Trustee, at 11:00 a.m. New York City time, on the beginning of that Interest Accrual
Period for loans in U.S. Dollars to leading European banks for the One — Month Index Maturity
commencing at the beginning of that Interest Accrual Period and in a Representative Amount.

     (b) The establishment of LIBOR on the applicable London Banking Day by the Indenture Trustee
and the Indenture Trustee’s subsequent calculation of the rates of interest applicable to the Notes
for the related Payment Date shall, in the absence of manifest error, be final and binding. Each
such rate of interest may be obtained by telephoning the Indenture Trustee at (612) 667 — 8058.

     Section 7.07. Monthly Reconciliation. 

     (a) Except as set forth in Section 7.07(b), on each Business Day during each Due Period
that Principal Collections are received in the Principal Collection Account with respect to any
Loan in the Loan Pool, the Servicer will determine the Outstanding Loan Balance and the principal
amount of the portion of such Loan not owned by the Issuer (if any) with respect to such Loan.

     (b) Prior to (i) a payment default on the related Loan (and in the case of Asset Based
Revolvers, a payment default shall mean any failure to make a payment on the date such payment is
due and such failure continues for more than one calendar day), (ii) a Servicer Default, (iii) an
Event of Default or (iv) an Accelerated Amortization Event, on each Monthly Reconciliation Date,
the Servicer will determine the Outstanding Loan Balance and principal amount of the portion of
such Loan owned by the Originator, its Affiliate special purpose entities under the Wareho use
Facilities and any co-lenders under the related facility (if any) with respect to each Revolving
Loan secured by Collateral (but specifically excluding any Revolving Loan that is not secured by
any Collateral) in the Loan Pool, and on and as of such date will determine the net effect of the
Principal Collections received from, and payments from the Principal Collection Account
representing new advances made to, the related Obligor during such Due Period. Notwithstanding the
foregoing, the Servicer will maintain the underlying data of all Principal Collections received and
payments or advances made with respect to any Revolving Loan secured by Collateral from the
Principal Collection Account on each day during each Due Period, and shall make such underlying
data available pursuant to and in accordance with the provisions of Section 9.03.

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ARTICLE 8.

SERVICER DEFAULT; SERVICER TRANSFER

     Section 8.01. Servicer Default. 

“Servicer
Default” means the occurrence of any of the following:

     (a) any failure by the Servicer to remit when due any payment required to be made under the
terms of this Agreement or the other Transaction Documents, it being understood that the Servicer
shall not be responsible for the failure of either the Owner
Trustee or the Indenture Trustee to remit funds that were received by the Owner Trustee or the
Indenture Trustee from the Servicer in accordance with this Agreement or the other Transaction
Documents; or

     (b) failure by the Servicer duly to observe or perform, in any material respect, any other
covenants, obligations or agreements of the Servicer set forth in this Agreement or the other
Transaction Documents, or any representation or warranty of the Servicer made in this Agreement or
the other Transaction Documents or in any certificate or other writing delivered thereto or in
connection therewith proves to have been incorrect when made, which failure or breach has a
material adverse effect on the rights of the Noteholders or the Hedge Counterparties and continues
unremedied for a period of 30 days (if such failure or breach can be cured) after the first to
occur of (i) the date on which written notice of such failure requiring the same to be remedied
shall have been given to a Responsible Officer of the Servicer by the Indenture Trustee, or a
Responsible Officer of the Servicer and the Indenture Trustee by any Securityholder or Hedge
Counterparty, and (ii) the date on which a Responsible Officer of the Servicer receives actual
knowledge of such failure or breach; or

     (c) a decree or order of a court or agency or supervisory authority having jurisdiction for
the appointment of a conservator or receiver or liquidator in any Insolvency Proceedings, or for
the winding — up or liquidation of its affairs, shall have been entered against the Servicer and
such decree or order shall have remained in force, undischarged or unstayed for a period of thirty
(30) days; or

     (d) the Servicer shall consent to the appointment of a conservator or receiver or liquidator
in any Insolvency Proceedings of or relating to the Servicer or of or relating to all or
substantially all of the Servicer’s property; or

     (e) the Servicer shall admit in writing its inability to pay its debts as they become due,
file a petition to take advantage of any applicable Insolvency Laws, make an assignment for the
benefit of its creditors, or voluntarily suspend payment of its obligations; or

     (f) without the consent of the Majority Noteholders or the Hedge Counterparties, the Servicer
agrees or consents to, or otherwise permits to occur, any amendment, modification, change,
supplement or rescission of or to the Servicer or the Credit and Collection Policy, in whole or in
part, in any manner that would have a material adverse effect on the Loans; or

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     (g) failure by the Servicer to observe or perform the Credit and Collection Policy regarding
the servicing of the Loans in any manner that would have a material adverse effect on the Loans.

     Section 8.02. Servicer Transfer. 

     (a) If a Servicer Default has occurred and is continuing, the Majority Noteholders may, by
written notice (a “Termination Notice”) delivered to the parties hereto and each of the
Hedge Counterparties, terminate all (but not less than all)
of the Servicer’s management, administrative, servicing, custodial and collection functions;
provided, however, no Termination Notice shall be required with respect to any Servicer Default
described under Section 8.01(c), Section 8.01(d) and Section 8.01(e).

     (b) Upon delivery of the notice required by Section 8.02(a) (or, if later, on a date
designated therein), and on the date that a Successor Servicer shall have been appointed pursuant
to Section 8.03 (such appointment being herein called a
“Servicer Transfer”), all rights,
benefits, fees, indemnities, authority and power of the Servicer under this Agreement, whether with
respect to the Loans, the Loan Files or otherwise, shall pass to and be vested in such successor
(the “Successor Servicer”) pursuant to and under this Section 8.02; and, without limitation,
the Successor Servicer is authorized and empowered to execute and deliver on behalf of the
Servicer, as attorney — in — fact or otherwise, any and all documents and other instruments, and to
do any and all acts or things necessary or appropriate to effect the purposes of such notice of
termination. The Servicer agrees to cooperate with the Successor Servicer in effecting the
termination of the responsibilities and rights of the Servicer hereunder, including, without
limitation, the transfer to the Successor Servicer for administration by it of all cash amounts
which shall at the time be held by the Servicer for deposit, or have been deposited by the
Servicer, in the Principal and Interest Account, or for its own account in connection with its
services hereafter or thereafter received with respect to the Loans. The Servicer shall transfer to
the Successor Servicer (i) all records held by the Servicer relating to the Loans in such
electronic form as the Successor Servicer may reasonably request and (ii) any Loan Files in the
Servicer’s possession. In addition, the Servicer shall permit access to its premises (including all
computer records and programs) to the Successor Servicer or its designee, and shall pay the
reasonable transition expenses of the Successor Servicer. Upon a Servicer Transfer, the Successor
Servicer shall also be entitled to receive the Servicing Fee for performing the obligations of the
Servicer. Any indemnities provided in this Agreement or the other Transaction Documents in favor of
the Servicer and any fees, costs, expenses, Servicing Advances or Scheduled Payment Advances which
have accrued and/or are unpaid to the Servicer shall survive the resignation or termination of the
Servicer.

     Section 8.03. Appointment of Successor Servicer; Reconveyance; Successor Servicer to Act. 

     (a) Upon delivery of the notice required by Section 8.02(a) (or, if later, on a date
designated therein), the Servicer shall continue to perform all servicing functions under this
Agreement until the date specified in the Termination Notice or, if no such date is specified,
until a date mutually agreed by the Servicer and the Indenture Trustee. The Indenture Trustee shall
as promptly as possible after the giving of or receipt of a Termination Notice, appoint a Successor

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Servicer, which shall be the Backup Servicer, in accordance with Section 5.15(c), and named
Successor Servicer shall accept its appointment by a written
assumption in a form acceptable to the Indenture Trustee and Owner Trustee; provided that no
appointment of a Successor Servicer or acceptance and assumption by a proposed Successor Servicer
shall be effective without the prior satisfaction of the Rating Agency Condition. If within 60 days
of delivery of a Termination Notice a Successor Servicer is not appointed and the Servicer shall
have yet to cure the Servicer Default, then the Indenture Trustee shall offer the Trust Depositor,
and the Trust Depositor shall offer the Originator, the right, without obligation, to accept
retransfer of all the Loan Assets, and such parties may accept retransfer of such Loan Assets in
consideration of the Trust Depositor’s delivery to the Principal and Interest Account on or prior
to the next upcoming Payment Date of a sum equal to the Aggregate Outstanding Principal Balance of
all Securities (other than the Certificates) then outstanding, together with accrued and unpaid
interest thereon through such date of deposit and all other amounts due and owing to any Person
under the Transaction Documents, including amounts owing to each Hedge Counterparty, including
Hedge Breakage Costs, it being a condition precedent to such retransfer that all Hedge Transactions
then outstanding under any Hedge Agreements then in effect shall be terminated and all amounts
payable to the Hedge Counterparties, including Hedge Breakage Costs, upon such termination shall be
paid in full; provided that the Indenture Trustee, if so directed by the Majority Noteholders in
writing, need not accept and effect such reconveyance in the absence of evidence (which may include
valuations of an investment bank or similar entity) reasonably acceptable to such Indenture Trustee
or Majority Noteholders that such retransfer would not constitute a fraudulent conveyance of the
Trust Depositor or the Originator.

     (b) The Backup Servicer may, in its discretion, or shall, if it is unable to so act or if the
Majority Noteholders request in writing to the Backup Servicer, appoint, or petition a court of
competent jurisdiction to appoint, any established servicing institution having a net worth of not
less than $50,000,000 as the Successor Servicer in the assumption of all or any part of the
responsibilities, duties or liabilities of the Servicer.

     (c) As compensation, any Successor Servicer (including, without limitation, the Backup
Servicer) so appointed shall be entitled to receive the Servicing Fee, together with any other
servicing compensation in the form of assumption fees, late payment charges or otherwise as
provided herein that accrued prior thereto; including, without limitation, all reasonable costs
(including reasonable attorneys’ fees) incurred in connection with transferring the servicing
obligations under the Agreement and amending the Agreement to reflect such transfer.

     (d) In the event the Backup Servicer is required to solicit bids, the Backup Servicer shall
solicit, by public announcement, bids from banks and mortgage servicing institutions meeting the
qualifications set forth above. 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 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

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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 the Agreement, as shall be necessary to effectuate any such succession. Neither the Backup
Servicer nor any other Successor Servicer shall be held liable by reason of any failure to make, or
any delay in making, any distribution hereunder or any portion thereof caused by (i) the failure of
the Servicer to deliver, or any delay in delivering, cash, documents or records to it, or (ii)
restrictions imposed by any regulatory authority having jurisdiction over the Servicer hereunder.
No appointment of a successor to the Servicer shall be effective until written notice of such
proposed appointment shall have been provided by the Indenture Trustee to each Securityholder and
each Hedge Counterparty 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.

     (e) On or after a Servicer Transfer, the Successor Servicer shall be the successor in all
respects to the Servicer in its capacity as servicer under this Agreement and the transactions set
forth or provided for herein and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Servicer by the terms and provisions hereof, and the
terminated Servicer shall be relieved of such responsibilities, duties and liabilities arising
after such Servicer Transfer; provided, however, that (i) the Successor Servicer will not assume
any obligations of the Servicer described in Section 8.02 and (ii) the Successor Servicer
shall not be liable for any acts or omissions of the Servicer occurring prior to such Servicer
Transfer or for any breach by the Servicer of any of its representations and warranties contained
herein or in any related document or agreement. Notwithstanding anything else herein to the
contrary, in no event shall the Indenture Trustee or the Backup Servicer 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 to act as Successor Servicer under this Agreement
and the transactions set forth or provided for herein, including any Additional Servicing Fee. The
Owner Trustee, Securityholders and the Indenture Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such succession. To the
extent the terminated Servicer has made Servicing Advances, it shall be entitled to reimbursement
of the same notwithstanding its termination hereunder, to the same extent as if it had continued to
service the Loans hereunder.

     Section 8.04. Notification to Securityholders and Hedge Counterparties. 

     (a) Promptly following the occurrence of any Servicer Default, the Servicer shall give written
notice thereof to the Trustees, the Trust Depositor and each Rating Agency at the addresses
described in Section 13.04 hereof, to the Noteholders
and Certificateholder at their respective addresses appearing on the Note Register and the
Certificate Register, respectively, and to each Hedge Counterparty at the address set forth in the
register kept by the Issuer, as provided under the Indenture.

     (b) Within 10 days following any termination of the Servicer or appointment of a Successor
Servicer pursuant to this ARTICLE 8, the Indenture Trustee shall give written notice thereof
to each Rating Agency and the Trust Depositor at the addresses described in Section

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13.04 hereof, to the Noteholders and Certificateholder at their respective addresses appearing on
the Note Register and the Certificate Register, respectively, and to each Hedge Counterparty at the
address set forth for such party in the register kept by the Issuer, as provided under the
Indenture.

     Section 8.05. Effect of Transfer. 

     (a) After a Servicer Transfer, the terminated Servicer shall have no further obligations with
respect to the management, administration, servicing, custody or collection of the Loans and the
Successor Servicer appointed pursuant to Section 8.03 shall have all of such obligations,
except that the terminated Servicer will transmit or cause to be transmitted directly to the
Successor Servicer for its own account, promptly on receipt and in the same form in which received,
any amounts (properly endorsed where required for the Successor Servicer to collect them) received
as payments upon or otherwise in connection with the Loans.

     (b) A Servicer Transfer shall not affect the rights and duties of the parties hereunder
(including but not limited to the indemnities of the Servicer) other than those relating to the
management, administration, servicing, custody or collection of the Loans.

     Section 8.06. Database File. 

     Upon reasonable request by the Indenture Trustee or the Backup Servicer, the Servicer will
provide the Successor Servicer with a magnetic tape or Microsoft Excel or similar spreadsheet file
containing the database file for each Loan (a) as of the Cut-Off Date, (b) the Subsequent Cut-Off Dates, (c) thereafter, as of the last day of the preceding Due Period on the Determination Date
prior to a Servicer Default and (d) on and as of the Business Day before the actual commencement of
servicing functions by the Successor Servicer following the occurrence of a Servicer Default.

     Section 8.07. Waiver of Defaults. 

     The Majority Noteholders may, on behalf of all the Securityholders, and subject to satisfying
the Rating Agency Condition, waive any events permitting removal of the Servicer pursuant to this
ARTICLE 8; provided, however, that the Majority Noteholders may not waive a default in
making a required distribution to the Hedge Counterparties without the consent of the Hedge
Counterparties or on a Note without the consent of each holder of such Note. Upon any waiver or
cure of a past default, such default shall cease to exist, and any Servicer Default or Event of
Default arising
therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such
waiver or cure shall extend to any subsequent or other default or impair any right consequent
thereto except to the extent expressly so waived. No such waivers shall affect any Hedge
Transaction that has been terminated in accordance with its terms.

     Section 8.08. Responsibilities of the Successor Servicer. 

     (a) The Successor Servicer will not be responsible for delays attributable to the Servicer’s
failure to deliver information, defects in the information supplied by the Servicer or other
circumstances beyond the control of the Successor Servicer.

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     (b) The Successor Servicer will make arrangements with the Servicer for the prompt and safe
transfer of, and the Servicer shall provide to the Successor Servicer, all necessary servicing
files and records, including (as deemed necessary by the Successor Servicer at such time): (i)
microfiche loan documentation, (ii) servicing system tapes, (iii) Loan payment history, (iv)
collections history and (v) the trial balances, as of the close of business on the day immediately
preceding conversion to the Successor Servicer, reflecting all applicable Loan information. The
current Servicer shall be obligated to pay the costs associated with the transfer of the servicing
files and records to the Successor Servicer.

     (c) The Successor Servicer shall have no responsibility and shall not be in default hereunder
nor incur any liability for any failure, error, malfunction or any delay in carrying out any of its
duties under this Agreement if any such failure or delay results from the Successor Servicer acting
in accordance with information prepared or supplied by a Person other than the Successor Servicer
or the failure of any such Person to prepare or provide such information. The Successor Servicer
shall have no responsibility, shall not be in default and shall incur no liability (i) for any act
or failure to act by any third party, including the Servicer, the Trust Depositor or the Trustees
or for any inaccuracy or omission in a notice or communication received by the Successor Servicer
from any third party or (ii) which is due to or results from the invalidity, unenforceability of
any Loan with applicable law or the breach or the inaccuracy of any representation or warranty made
with respect to any Loan.

     (d) If the Indenture Trustee or any other Successor Servicer assumes the role of Successor
Servicer hereunder, such Successor Servicer shall be entitled to the benefits of (and subject to
the provisions of) Section 5.02 concerning delegation of duties to subservicers.

     Section 8.09. Rating Agency Condition for Servicer Transfer. 

     Notwithstanding the foregoing provisions relating to a Servicer Transfer, no Servicer Transfer
shall be effective hereunder unless prior written notice thereof shall have been given to the
Rating Agencies, and the Rating Agency Condition shall have been satisfied with respect thereto.

     Section 8.10. Appointment of Successor Backup Servicer; Successor Backup Servicer to Act. 

     (a) The Backup Servicer may be removed, with or without cause, by the Majority Noteholders or
the Indenture Trustee, by notice given in writing to the Backup Servicer (the “Backup Servicer
Termination Notice”), a copy of which shall be provided to S&P promptly after it is delivered
to the Backup Servicer. The Backup Servicer shall continue to perform all backup servicing
functions under this Agreement until the date specified in the Backup Servicer Termination Notice
or, if no such date is specified, until a date mutually agreed by the Backup Servicer and the
Indenture Trustee. The Indenture Trustee shall as promptly as possible after the giving of a Backup
Servicer Termination Notice, to appoint a Successor Backup Servicer (the “Successor Backup
Servicer”) and such Successor Backup Servicer shall accept its appointment by a written
assumption in a form acceptable to the Indenture Trustee and Owner Trustee.

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     (b) In the event that a Successor Backup Servicer has not been appointed and has not accepted
its appointment at the time when the then Backup Servicer has ceased to act as Backup Servicer, the
Indenture Trustee shall petition a court of competent jurisdiction to appoint any established
financial institution having a net worth of at least $50,000,000 and whose regular business
includes the backup servicing of loans similar to the Loans as the Successor Backup Servicer
hereunder and the Successor Backup Servicer shall be the successor in all respects to the Backup
Servicer in its capacity as Backup Servicer under this Agreement and the transactions set forth or
provided for herein and shall be subject to all the responsibilities, duties and liabilities
relating thereto placed on the Backup Servicer by the terms and provisions hereof, and the
terminated Backup Servicer shall be relieved of such responsibilities, duties and liabilities
arising after such backup servicer transfer (the “Backup Servicer Transfer”); provided,
however, that the Successor Backup Servicer shall not be liable for any acts or omissions of the
Backup Servicer occurring prior to such Backup Servicer Transfer or for any breach by the Backup
Servicer of any of its representations and warranties contained herein or in any related document
or agreement. As compensation therefor, the Successor Backup Servicer shall be entitled to receive
reasonable compensation equal to the monthly Backup Servicing Fee. Notwithstanding anything else
herein to the contrary, in no event shall the Indenture Trustee or the Servicer be liable for any
Backup Servicing Fee or for any differential in the amount of the backup servicing fee paid
hereunder and the amount necessary to induce any Successor Backup Servicer to act as Backup
Servicer under this Agreement and the transactions set forth or provided for herein. The Owner
Trustee, Securityholders and the Indenture Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such succession.

ARTICLE 9. 

REPORTS 

     Section 9.01. Monthly Reports. 

     With respect to each Payment Date and the related Due Period, the Servicer will provide to
each Trustee, the Backup Servicer, each Rating Agency, each Hedge Counterparty and the Initial
Purchasers, on the related Determination Date, a monthly statement (a “Monthly Report”)
substantially in the form of Exhibit H hereto with respect to the preceding Due Period.

     Section 9.02. Officer’s Certificate. 

     Each Monthly Report delivered pursuant to Section 9.01 shall be accompanied by a
certificate of a Responsible Officer of the Servicer certifying the accuracy of the Monthly Report
and that no Servicer Default or event that with notice or lapse of time or both would become a
Servicer Default has occurred, or if such event has occurred and is continuing, specifying the
event and its status.

     Section 9.03. Other Data; Obligor Financial Information. 

     (a) The Servicer shall, upon the request of any Trustees, any Hedge Counterparty, the Backup
Servicer, or any Rating Agency, furnish such Trustee, Hedge Counterparty, Rating

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Agency or the Backup Servicer, as the case may be, such underlying data used to generate a Monthly
Report as may be reasonably requested.

     (b) The Servicer will forward to the Indenture Trustee, the Owner Trustee, each Hedge
Counterparty, each Rating Agency and Citigroup (a) within 60 days after each calendar quarter
(except the fourth calendar quarter), commencing with the quarter beginning April 1, 2006, the
unaudited quarterly financial statements of the Servicer and (b) within 90 days after each fiscal
year of the Servicer, commencing with the fiscal year ending December 31, 2006, the audited annual
financial statements of the Servicer, together with the related report of the independent
accountants to the Servicer. On the Payment Date following the receipt of each such financial
statements and report, the Indenture Trustee will forward to each Noteholder of record a copy of
such financial statements and report.

     (c) The Servicer will forward to Moody’s and S&P within 30 days after receipt by the Servicer,
copies of all financial statements of Obligors then received by the Servicer with respect to the
prior fiscal year of each Obligor.

     (d) The Servicer will forward to Moody’s and S&P promptly upon request any additional
financial information as Moody’s and S&P shall reasonably request with respect to an obligor as to
which any Scheduled Payment is past due for at least 10 days.

     (e) The Servicer will forward to Moody’s and S&P promptly upon any Loan becoming a Delinquent
Loan, and without any request therefor by Moody’s and S&P, updated financial information with
respect to the related Obligor.

     (f) The Servicer will provide to the Rating Agencies such financial
information, documents and other materials as the Rating Agencies shall reasonably request in
connection with any annual review and/or re-grading of the Loans in the Loan Pool and the related
Obligors which the Rating Agencies may undertake.

     Section 9.04. Annual Report of Accountants. 

     The Servicer shall cause a firm of nationally recognized independent certified public
accountants (the “Independent Accountants”), who may also render other services to the
Servicer or its Affiliates, to deliver to the Indenture Trustee, the Owner Trustee, each Hedge
Counterparty, the Backup Servicer and each Rating Agency, on or before March 31 of each year,
beginning on March 31, 2007, a report addressed to the Board of Managers of the Servicer, the
Indenture Trustee and the Owner Trustee indicating that (a) with respect to the 12- months ended
the immediately preceding December 31, to the effect that such Independent Accountants have audited
the financial statements of the Servicer, that as part of that audit, nothing came to the attention
of such Independent Accountants that causes them to believe that the Servicer was not in compliance
with any of the terms, covenants, provisions or conditions of the relevant sections of this
Agreement, insofar as they relate to accounting matters, except for such exceptions as such
Independent Accountants shall believe to be immaterial and such other exceptions as shall be set
forth in such report, (b) in connection with the Independent Accountants’ audit of the Servicer,
there were no exceptions or errors in records related to Loans serviced by the Servicer, except for
such exceptions as such Independent Accountants shall believe to be immaterial and

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such other exceptions as shall be set forth in such report, (c) the payment testing for Asset Based
Revolvers has been reviewed and such testing is in compliance with the terms of the related
Required Loan Documents and (d) the Independent Accountants have performed certain procedures as
agreed by the Servicer, the Indenture Trustee and the Owner Trustee, whereby the Independent
Accountants will obtain the Monthly Report for 4-months with respect to the 12 months ended the
immediately preceding December 31 and, for each Monthly Report, the Independent Accountants will
agree all amounts in the Monthly Report to the Servicer’s computer, accounting and other reports,
which will include in such report any amounts which were not in agreement. In the event such firm
of Independent Accountants requires the Indenture Trustee to agree to the procedures performed by
such firm of Independent Accountants, the Servicer shall direct the Indenture Trustee in writing to
so agree; it being understood and agreed that the Indenture Trustee will deliver such letter of
agreement in conclusive reliance upon the direction of the Servicer, and the Indenture Trustee will
not make any independent inquiry or investigation as to, and shall have no obligation or liability
in respect of, the sufficiency, validity or correctness of such procedures. The Independent
Accountants’ report shall also indicate that the firm is independent of the Servicer within the
meaning of the Code of Professional Ethics of the American Institute of Certified Public
Accountants.

     Section 9.05. Annual Statement of Compliance from Servicer. 

     The Servicer will deliver to the Trustees, S&P and each Hedge Counterparty within 90 days of
the end of each fiscal year commencing with the year ending December
31, 2006, an Officer’s Certificate stating that (a) the Servicer has fully complied in all
material respects with certain provisions of the Agreement relating to servicing of the Loans and
payments on the Notes, (b) a review of the activities of the Servicer during the prior calendar
year and of its performance under this Agreement was made under the supervision of the officer
signing such certificate and (c) to the best of such officer’s knowledge, based on such review, the
Servicer has fully performed or caused to be performed in all material respects all its obligations
under this Agreement for such year, or, if there has been a default in the fulfillment in all
material respects any of its obligations, specifying each such default known to such officer and
the nature and status thereof and the steps being taken or necessary to be taken to remedy such
event. A copy of such certificate may be obtained by any Securityholder by a request in writing to
the Indenture Trustee, with respect to any Noteholder, or the Owner Trustee, with respect to any
Certificateholder.

     Section 9.06. Reports of Foreclosure and Abandonment of Mortgaged Property. 

     Each year the Servicer shall make the reports of foreclosures and abandonment of any Mortgaged
Property as and to the extent required by § 6050J of the Code. Promptly after filing any such
report with the Code, the Servicer shall provide the Indenture Trustee with an Officer’s
Certificate certifying that such report has been filed.

     Section 9.07. Notices. 

     (a) The Servicer shall furnish to the Indenture Trustee, S&P and each Hedge Counterparty (i)
promptly, copies of any material and adverse notices (including, without limitation, notices of
defaults, breaches, potential defaults or potential breaches) given to or

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received from its other lenders and (ii) immediately, notice of the occurrence of any Event of
Default or Servicer Default or of any situation which the Servicer reasonably expects to develop
into an Event of Default or Servicer Default.

     (b) The Servicer also agrees to make available on a reasonable basis to any Noteholder, S&P or
Hedge Counterparty a knowledgeable financial or accounting officer for the purpose of answering
reasonable questions respecting recent developments affecting the Servicer or the financial
statements of the Servicer and to permit any Noteholder or Hedge Counterparty upon reasonable
advance notice and subject to reasonable confidentiality restrictions to inspect the Servicer’s
servicing facilities during normal business hours and in a manner that does not unreasonably
interfere with the Servicer’s normal operations or customer or employee relations for the purpose
of satisfying such Noteholder or Hedge Counterparty that the Servicer has the ability to service
the Loans in accordance with this Agreement.

     Section 9.08. Indenture Trustee’s Right to Examine Servicer Records and Audit
Operations. 

     The Indenture Trustee and each Hedge Counterparty shall have the right upon
reasonable prior notice, during normal business hours, in a manner that does not unreasonably
interfere with the Servicer’s normal operations or customer or employee relations, and as often as
reasonably required, to examine and audit any and all of the books, records or other information of
the Servicer, whether held by the Servicer or by another on behalf of the Servicer, which may be
relevant to the performance or observance by the Servicer of the terms, covenants or conditions of
this Agreement. No amounts payable in respect of the foregoing shall be paid from the Loan Assets.

ARTICLE 10. 

TERMINATION 

     Section 10.01. Optional Repurchase of Offered Notes. 

     (a) At any time during the Call Period, the Issuer shall have the option to repurchase for the
Repurchase Price the Offered Notes then outstanding, in whole but not in part, at the direction of
the Holder of the Class F Note, on any Payment Date after the date on which the Holder of the Class
F Note provides notice of its election to cause the repurchase of the Notes pursuant to the
Indenture and the other Transaction Documents. To exercise such option, the Holder of the Class F
Note or the Issuer shall cause the Issuer to deposit in the Note Distribution Account, on or prior
to the Payment Date upon which such Repurchase is to occur, an amount equal to the Repurchase Price
and such repurchase shall otherwise comply with the requirements of Section 10.01 of the
Indenture.

     (b) Notice of any repurchase pursuant to Section 10.01(a) shall be given by the Holder
of the Class F Note to the Issuer, the Indenture Trustee and the Rating Agencies.

     (c) Following the satisfaction and discharge of the Indenture, the payment in full of the
principal of and interest on the Notes, the termination of all Hedge Transactions then outstanding
under all Hedge Agreements then in effect and the payment in full of all amounts,

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including Hedge Breakage Costs, payable to such Hedge Counterparties upon such terminations, the
Certificateholders will succeed to the rights of the Noteholders hereunder and the Owner Trustee
will succeed to the rights of the Indenture Trustee pursuant to this Agreement.

     Section 10.02. Termination. 

     (a) This Agreement shall terminate upon notice to the Indenture Trustee of the earlier of the
following events: (i) the final payment on or the disposition or other liquidation by the Issuer
of the last Loan (including, without limitation, in connection with a purchase by the Servicer of
all outstanding Loan Assets pursuant to Section 10.01) or the disposition of all property
acquired upon foreclosure or deed in lieu of foreclosure of any Loan and the remittance of all
funds due thereunder, or (ii) mutual written consent of the Servicer, the Trust Depositor,
Indenture Trustee, the Originator, all
Securityholders and all Hedge Counterparties.

     (b) Notice of any termination, specifying the Payment Date upon which the Issuer will
terminate and that the Noteholders shall surrender their Notes to the Indenture Trustee for payment
of the final distribution and cancellation shall be given promptly by the Servicer by letter to all
Noteholders mailed during the month of such final distribution before the Determination Date in
such month, specifying (i) the Payment Date upon which final payment of the Notes (or Repurchase
Price, as applicable) will be made upon presentation and surrender of Notes at the office of the
Indenture Trustee therein designated, (ii) the amount of any such final payment and (iii) that the
Record Date otherwise applicable to such Payment Date is not applicable, payments being made only
upon presentation and surrender of the Notes at the office of the Indenture Trustee therein
specified. The Servicer shall give such notice to the Indenture Trustee and the Hedge
Counterparties at the time such notice is given to Noteholders.

ARTICLE 11. 

REMEDIES UPON MISREPRESENTATION; 

REPURCHASE OPTION 

     Section 11.01. Repurchases of, or Substitution for, Loans for Breach of Representations and Warranties. 

     Upon a discovery by a Responsible Officer of the Servicer or any subservicer, a Responsible
Officer of the Owner Trustee or the Indenture Trustee of a breach of a representation or warranty as
set forth in Section 3.01, Section 3.02, Section 3.03 or Section 3.04 or as
made or deemed made in any Addition Notice or any Subsequent Purchase Agreement relating to
Substitute Loans that materially and adversely affects the value of the Loans or the interests of
the Securityholders or the Hedge Counterparties therein or which materially and adversely affects
the interests of the Securityholders or the Hedge Counterparties in the related Loan in the case of
a representation or warranty relating to a particular Loan (notwithstanding that such
representation or warranty was made to the Originator’s or the Trust Depositor’s best knowledge)
(an “Ineligible Loan”), the party discovering the breach shall give prompt written notice to
the other parties and to each Hedge Counterparty; provided, that, the Indenture Trustee shall have
no duty or obligation to inquire or to investigate the breach of any of such representations or
warranties. Within 30 days of the earlier of its discovery or its receipt of

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notice of any breach of a representation or warranty, the Originator or Trust Depositor shall (a)
promptly cure such breach in all material respects, (b) repurchase each such Ineligible Loan by
depositing in the Principal and Interest Account, within such 30 day period, an amount equal to the
Transfer Deposit Amount, or (c) remove such Loan from the Issuer and effect a substitution for such
affected Loan with a Substitute Loan in accordance with the substitution requirements set forth in
Section 2.04, not later than the date a repurchase of such affected Loan would be required
hereunder; provided,
however, that with respect to a breach of a representation or warranty relating to the Loans in the
aggregate and not to any particular Loan, the Originator may select Loans (without adverse
selection) to repurchase (or substitute for) such that had such Loans not been included as part of
the Loan Assets (and, in the case of a substitution, had such Substitute Loan been included as part
of the Loan Assets instead of the selected Loan) there would have been no breach of such
representation or warranty.

     Section 11.02. Reassignment of Repurchased or Substituted Loans. 

     Upon receipt by the Indenture Trustee for deposit in the Principal and Interest Account of the
amounts described in Section 11.01 (or upon the Subsequent Transfer Date related to a
Substitute Loan described in Section 11.01), and upon receipt of an Officer’s Certificate of the
Servicer in the form attached hereto as Exhibit F, the Indenture Trustee shall assign to the Trust
Depositor and the Trust Depositor shall assign to the Originator all of the Issuer’s (or Trust
Depositor’s, as applicable) right, title and interest in the repurchased or substituted Loan and
related Loan Assets without recourse, representation or warranty. Such reassigned Loan shall no
longer thereafter be included in any calculations of Outstanding Loan Balances required to be made
hereunder or otherwise be deemed a part of the Issuer.

ARTICLE 12. 

INDEMNITIES 

     Section 12.01. Indemnification by Servicer. 

     The Servicer agrees to indemnify, defend and hold the Indenture Trustee (as such and in its
individual capacity), the Owner Trustee (as such and in its individual capacity), the Backup
Servicer, the Hedge Counterparties (as such and in their individual capacities) and each
Securityholder harmless from and against any and all claims, losses, penalties, fines, forfeitures,
reasonable legal fees and related costs, judgments, and any other reasonable costs, fees and
expenses that such Person may sustain as a result of the Servicer’s fraud or the failure of the
Servicer to perform its duties and service the Loans in compliance in all material respects with
the terms of this Agreement, except to the extent arising from the gross negligence, willful
misconduct or fraud by the Person claiming indemnification. The Servicer shall immediately notify
the Indenture Trustee and the Owner Trustee if a claim is made by any party with respect to this
Agreement, and the Servicer shall assume (with the consent of the indemnified party) the defense
and any settlement of any such claim and pay all expenses in connection therewith, including
reasonable counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may
be entered against the indemnified party in respect of such claim.

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     Section 12.02. Indemnification by Trust Depositor. 

     The Trust Depositor agrees to indemnify, defend, and hold the Indenture Trustee (as such and
in its individual capacity), the Owner Trustee (as such and in its individual capacity), the Hedge
Counterparties (as such and in their individual capacities) and each Securityholder harmless from
and against any and all claims, losses, penalties, fines,
forfeitures, reasonable legal fees and related costs, judgments, and any other reasonable
costs, fees and expenses that such Person may sustain as a result of the Trust Depositor’s fraud or
the failure of the Trust Depositor to perform its duties in compliance with the terms of this
Agreement and in the best interests of the Securityholders and Hedge Counterparties, except to the
extent arising from the gross negligence, willful misconduct or fraud by the Person claiming
indemnification. The Trust Depositor shall immediately notify the Indenture Trustee and the Owner
Trustee if a claim is made by a third party with respect to this Agreement, and the Trust Depositor
shall assume (with the consent of the indemnified party) the defense and any settlement of any such
claim and pay all expenses in connection therewith, including reasonable counsel fees, and promptly
pay, discharge and satisfy any judgment or decree which may be entered against the indemnified
party in respect of such claim.

ARTICLE 13. 

MISCELLANEOUS 

     Section 13.01. Amendment. 

     (a) This Agreement may be amended from time to time by the parties hereto by written
agreement, with the prior written consent of the Indenture Trustee but without notice to or consent
of the Securityholders or Hedge Counterparties, to cure any ambiguity, to correct or supplement any
provisions herein, to comply with any changes in the Code, or to make any other provisions with
respect to matters or questions arising under this Agreement which shall not be inconsistent with
the provisions of this Agreement; provided, however, that such action shall not, as evidenced by an
Opinion of Counsel delivered to the Indenture Trustee, adversely affect the interests of any
Securityholders or Hedge Counterparties; further, provided, that, no such amendment shall amend,
modify or vary any provision of Section 5.02(g) or reduce in any manner the amount of, or
delay the timing of, any amounts received on Loans which are required to be distributed to the
Hedge Counterparties without the consent of the Hedge Counterparties or on any Note or Certificate
without the consent of the Holder of such Note or Certificate, or change the rights or obligations
of any other party hereto without the consent of such party.

     (b) This Agreement may be amended from time to time by the parties hereto by written
agreement, with the prior written consent of the Indenture Trustee and with the consent of the
Majority Noteholders and each Hedge Counterparty, for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Holders of the Notes or Certificates; provided, however, that (i) no
such amendment shall reduce in any manner the amount of, or delay the timing of, any amounts which
are required to be distributed on any Note or Certificate without the consent of the Holder of such
Note or Certificate or reduce the percentage of Holders of any Note or Certificate which are
required to consent to any such amendment without the consent of

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the Holders of 100% of the Notes affected thereby, (ii) no amendment affecting only one
Class shall require the approval of the Holders of any other Class and (iii) (A) the consent of
each Hedge Counterparty shall be required for any amendment, modification or variance to
Section 5.02(g)  and (B) as to all other amendments, the consent of each Hedge Counterparty shall be
required unless the Issuer obtains an Opinion of Counsel stating that such amendment does not
adversely affect in any material respect the interests of the Hedge Counterparties.

     (c) Prior to the execution of any such amendment or consent, the Indenture Trustee shall
furnish written notification of the substance of such amendment or consent, together with a copy of
such amendment or consent, to each Rating Agency. Prior to the execution of any amendment pursuant
to Section 13.01, the Issuer shall obtain written confirmation from Moody’s and S&P that
entry into such amendment satisfies the Moody’s Rating Condition and the S&P Rating Condition.

     (d) Promptly after the execution of any such amendment or consent, the Owner Trustee and the
Indenture Trustee, as the case may be, shall furnish written notification of the substance of such
amendment or consent to each Securityholder and each Hedge Counterparty. It shall not be necessary
for the consent of the Securityholders and the Hedge Counterparties pursuant to Section
13.01(b) to approve the particular form of any proposed amendment or consent, but it shall be
sufficient if such consent shall approve the substance thereof. The manner of obtaining such
consents and of evidencing the authorization by the Securityholders and the Hedge Counterparties of
the execution thereof shall be subject to such reasonable requirements as the Owner Trustee or the
Indenture Trustee may prescribe.

     (e) Prior to the execution of any amendment to this Agreement, the Owner Trustee and the
Indenture Trustee shall be entitled to receive and conclusively rely upon an Opinion of Counsel
stating that the execution of such amendment is authorized and permitted by this Agreement. Such
Trustee may, but shall not be obligated to, enter into any such amendment that affects such
Trustee’s own rights, duties, indemnities or immunities under this Agreement or otherwise.

     Section 13.02. Protection of Title to Issuer. 

     The Servicer shall execute and file such financing statements and cause to be executed and
filed such continuation statements, all in such manner and in such places as may be required by law
fully to preserve, maintain and protect the interest of the Issuer, the Securityholders, the Hedge
Counterparties, the Indenture Trustee and the Owner Trustee in the Loans and in the proceeds
thereof. The Servicer shall deliver (or cause to be delivered) to the Owner Trustee and the
Indenture Trustee file – stamped copies of, or filing receipts for, any document filed as provided
above, as soon as available following such filing.

     Section 13.03. Governing Law. 

     (a) THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE
PARTIES UNDER THE AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

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     (b) EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HERETO (I) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(II) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 13.03(b).

     Section 13.04. Notices. 

     All notices, demands, certificates, requests and communications hereunder (“notices”) shall be
in writing and shall be effective (a) upon receipt when sent through the U.S. mails, registered or
certified mail, return receipt requested, postage prepaid, with such receipt to be effective the
date of delivery indicated on the return receipt, or (b) one Business Day after delivery to an
overnight courier, or (c) on the date personally delivered to an Responsible Officer of the party
to which sent, or (d) on the date transmitted by legible telecopier transmission with confirmation
of receipt, in all cases addressed to the recipient as follows:

	 	 	 	 	 
	 

	 	(i)
	 	if to the Servicer or the Originator:
	 
	 

	 	 	 	CapitalSource Finance LLC
	 

	 	 	 	4445 Willard Avenue
	 

	 	 	 	12th Floor 
	 

	 	 	 	Chevy Chase, Maryland 20815
	 

	 	 	 	Attention: Treasurer
	 

	 	 	 	Facsimile No.: (301) 841 – 2375
	 
	 	 	 	 
	 

	 	(ii)
	 	if to the Trust Depositor:
	 
	 

	 	 	 	CapitalSource Commercial Loan LLC, 2006-1
	 

	 	 	 	4445 Willard Avenue
	 

	 	 	 	12th Floor
	 

	 	 	 	Chevy Chase, Maryland 20815
	 

	 	 	 	Attention: Treasurer
	 

	 	 	 	Facsimile No.: (301) 841 – 2375
	 
	 	 	 	 
	 

	 	(iii)
	 	if to the Indenture Trustee:
	 
	 	 	 	 
	 

	 	 	 	Wells Fargo Bank, National Association
	 

	 	 	 	Sixth Street and Marquette Avenue
	 

	 	 	 	MAC N9311 – 161
	 

	 	 	 	Minneapolis, Minnesota 55479
	 

	 	 	 	Attention: Corporate Trust Services/Asset Backed Administration
	 

	 	 	 	Facsimile No.: (612) 667 – 3464

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	 	(iv)
	 	if to the Owner Trustee:
	 
	 	 	 	 
	 

	 	 	 	Wilmington Trust Company
	 

	 	 	 	1100 North Market Street
	 

	 	 	 	Wilmington, Delaware 19801
	 

	 	 	 	Attention: Corporate Trust Administration
	 

	 	 	 	Facsimile No.: (302) 636-4140
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	the Originator and the Servicer as provided in clause (i) above
	 
	 	 	 	 
	 

	 	(v)
	 	if to the Issuer:
	 
	 	 	 	 
	 

	 	 	 	CapitalSource Commercial Loan Trust 2006-1
	 

	 	 	 	c/o Wilmington Trust Company
	 

	 	 	 	1100 North Market Street
	 

	 	 	 	Wilmington, Delaware 19801
	 

	 	 	 	Attention: Corporate Trust Administration
	 

	 	 	 	Facsimile No.: (302) 427 – 4749
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	the Originator and the Servicer as provided in clause (i) above
	 
	 	 	 	 
	 

	 	(vi)
	 	if to S&P:
	 
	 	 	 	 
	 

	 	 	 	Standard and Poor’s Inc.
	 

	 	 	 	55 Water Street
	 

	 	 	 	41st Floor
	 

	 	 	 	New York, New York 10041
	 

	 	 	 	Attention: Surveillance: Asset – Backed Services
	 

	 	 	 	Facsimile No.: (212) 438 – 2662
	 

	 	 	 	Email: cdo_surveillance@sandp.com (all Monthly Reports)
	 
	 	 	 	 
	 

	 	(vii)
	 	if to Moody’s:
	 
	 	 	 	 
	 

	 	 	 	Moody’s Investors Service
	 

	 	 	 	99 Church Street
	 

	 	 	 	New York, New York 10007
	 

	 	 	 	Attention: CDO Monitoring Department
	 

	 	 	 	Facsimile No.: (212) 553 – 0344
	 

	 	 	 	Email: cdomonitoring@moodys.com
	 
	 	 	 	 
	 

	 	(viii)
	 	if to Fitch:
	 
	 	 	 	 
	 

	 	 	 	Fitch, Inc.
	 

	 	 	 	One State Street Plaza

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	 	 	 	New York, New York 10004
	 

	 	 	 	Attention: CDO Surveillance
	 

	 	 	 	Facsimile No.: (212) 514 – 6501
	 
	 	 	 	 
	 

	 	(ix)
	 	if to the Initial Purchasers:
	 
	 	 	 	 
	 

	 	 	 	Citigroup Global Markets Inc.
	 

	 	 	 	390 Greenwich Street
	 

	 	 	 	New York, NY 10013
	 

	 	 	 	Attention: Asset-Backed Finance
	 

	 	 	 	Facsimile No.: (212) 723-8591;
	 
	 	 	 	 
	 

	 	(x)
	 	if to the Hedge Counterparties:

     At the address set forth for such party in the applicable Hedge Agreement.

     Each party hereto may, by notice given in accordance herewith to each of the other parties
hereto, designate any further or different address to which subsequent notices shall be sent.

     Section 13.05. Severability of Provisions. 

     If one or more of the covenants, agreements, provisions or terms of this Agreement shall be
for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall
be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement
and shall in no way affect the validity or enforceability of the other provisions of this
Agreement, the Notes or Certificates or the rights of the Securityholders or the Hedge
Counterparties, and any such prohibition, invalidity or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such covenants, agreements, provisions or terms in any other
jurisdiction.

     Section 13.06. Third Party Beneficiaries. 

     Except as otherwise specifically provided herein, the parties hereto hereby manifest their
intent that no third party (other than the Owner Trustee and the Hedge Counterparties) shall be
deemed a third party beneficiary of this Agreement, and specifically that the Obligors are not
third party beneficiaries of this Agreement.

     Section 13.07. Counterparts. 

     This Agreement may be executed by facsimile signature and in several counterparts, each of
which shall be an original and all of which shall together constitute but one and the same
instrument.

     Section 13.08. Headings. 

     The headings of the various Articles and
Sections herein are for convenience of
reference only and shall not define or limit any of the terms or provisions hereof.

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     Section 13.09. No Bankruptcy Petition; Disclaimer. 

     (a) Each of the Originator, the Indenture Trustee, the Servicer, the Issuer acting through the
Owner Trustee and each Holder (by acceptance of the applicable Securities) covenants and agrees
that, prior to the date that is one year and one day (or, if longer, the then applicable preference
period and one day) after the payment in full of all
amounts owing in respect of all outstanding Classes of Notes rated by any Rating Agency, it
will not institute against the Trust Depositor or the Issuer, or join any other Person in
instituting against the Trust Depositor or the Issuer, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other similar proceedings under the laws of the United
States or any state of the United States; provided, however, that nothing herein shall prohibit the
Indenture Trustee from filing proofs of claim or otherwise participating in any such proceedings
instituted by any other Person. This Section 13.09 will survive the termination of this
Agreement.

     (b) The Issuer acknowledges and agrees that the Certificates represent a beneficial interest
in the Issuer and Loan Assets only and the Securities do not represent an interest in any assets
(other than the Loan Assets) of the Trust Depositor (including by virtue of any deficiency claim in
respect of obligations not paid or otherwise satisfied from the Loan Assets and proceeds thereof).
In furtherance of and not in derogation of the foregoing, to the extent that the Trust Depositor
enters into other transactions as contemplated in Section 6.07, the Issuer acknowledges and
agrees that it shall have no right, title or interest in or to any assets (or interests therein),
other than the Loan Assets, conveyed or purported to be conveyed (whether by way of a sale, capital
contribution or by the granting of a Lien) by the Trust Depositor to any Person other than the
Issuer (the “Other Assets”).

     (c) To the extent that notwithstanding the agreements contained in this Section 13.09,
the Issuer, any Securityholder or any Hedge Counterparty, either (i) asserts an interest in or
claim to, or benefit from any Other Assets, whether asserted against or through the Trust Depositor
or any other Person owned by the Trust Depositor, or (ii) is deemed to have any interest, claim or
benefit in or from any Other Assets, whether by operation of law, legal process, pursuant to
applicable provisions of Insolvency Laws or otherwise (including without limitation pursuant to
Section 1111(b) of the federal Bankruptcy Code, as amended) and whether deemed asserted
against or through the Trust Depositor or any other Person owned by the Trust Depositor, then the
Issuer, each Securityholder by accepting a Note or Certificate and each Hedge Counterparty further
acknowledges and agrees that any such interest, claim or benefit in or from the Other Assets is and
shall be expressly subordinated to the indefeasible payment in full of all obligations and
liabilities of the Trust Depositor that, under the terms of the documents relating to the
securitization of the Other Assets, are entitled to be paid from, entitled to the benefits of, or
otherwise secured by such Other Assets (whether or not any such entitlement or security interest is
legally perfected or otherwise entitled to a priority of distribution under applicable law,
including Insolvency Laws, and whether asserted against the Trust Depositor or any other Person
owned by the Trust Depositor) including, without limitation, the payment of post – petition
interest on such other obligations and liabilities. This subordination agreement shall be deemed a
subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code. Each of
the Issuer, the Hedge Counterparties and the Securityholders is deemed to have acknowledged and
agreed that no adequate remedy at law exists for a breach of this Section 13.09 and that the

123

 

terms and provisions of this Section 13.09 may be enforced by an action for
specific performance.

     (d) The provisions of this Section 13.09 shall be for the third party benefit of those
entitled to rely thereon, including the Securityholders and the Hedge Counterparties, and shall
survive the termination of this Agreement.

     Section 13.10. Jurisdiction. 

     Any legal action or proceeding with respect to this Agreement may be brought in the courts of
the United States for the Southern District of New York, and by execution and delivery of this
Agreement, each party hereto consents, for itself and in respect of
its property, to the 

non - Exclusive jurisdiction of those courts. Each such party irrevocably waives any objection,
including 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 action or proceeding in such jurisdiction
in respect of this Agreement or any document related hereto.

     Section 13.11. Tax Characterization. 

     Notwithstanding
the provisions of Section 2.01 and
Section 2.04 hereof, the Trust
Depositor and Owner Trustee agree that, pursuant to Treasury Regulations Section 301.7701 — 3(b)(1)
and for federal income tax purposes, in the event that the Certificates and the Class F Notes are
owned by more than one Holder, the Issuer will be treated as a partnership the partners of which
are the Certificateholders and the Holders of the Class F Notes, and in the event that the
Certificates and the Class F Notes are owned by a single Holder, the Issuer will be treated as a
division of such Holder.

     Section 13.12. Prohibited Transactions with Respect to the Issuer. 

     The Originator shall not:

     (a) Provide credit to any Noteholder or Certificateholder for the purpose of enabling such
Noteholder or Certificateholder to purchase Notes or Certificates, respectively;

     (b) Purchase any Notes or Certificates in an agency or trustee capacity; or

     (c) Except in its capacity as Servicer as provided in this Agreement, lend any money
to the Issuer.

     Section 13.13. Limitation of Liability of Owner Trustee. 

     Wilmington Trust Company acts on behalf of the Issuer solely as Owner Trustee hereunder and
not in its individual capacity, and all Persons having any claim against the Issuer by reason of
the transactions contemplated by this Agreement or any other Transaction Document shall look only
to the Trust Estate under the Trust Agreement for payment or satisfaction thereof. The Owner
Trustee makes no representations as to the validity or sufficiency of this Agreement, any other
Transaction Document or the Notes,
or of any Loan or related documents. The Owner Trustee shall at no time have any
responsibility or liability for or

124

 

with respect to the legality, validity and enforceability of any Loan, or the perfection and
priority of any security interest created by any Loan in any Collateral or the maintenance of any
such perfection and priority, or for or with respect to the sufficiency of the Trust Estate under
the Trust Agreement or its ability to generate the payments to be distributed to the
Certificateholder under the Trust Agreement or the Noteholders under the Indenture, including,
without limitation, the existence, condition and ownership of any Collateral; the existence and
enforceability of any insurance thereon; the existence and contents of any Loan on any computer or
other record thereof; the validity of the assignment of any Loan to the Issuer or of any
intervening assignment; the completeness of any Loan; the performance or enforcement of any Loan;
the compliance by the Issuer, the Trust Depositor or the Servicer with any covenant, agreement or
other obligation or any warranty or representation made under any Transaction Document or in any
related document or the accuracy of any such warranty or representation; or any action of the
Indenture Trustee or the Servicer or any subservicer taken in the name of the Owner Trustee or the
Issuer.

     Section 13.14. Allocation of Payments with Respect to Loans. 

     (a) With respect to any Partially Funded Term Loans and any Revolving Loans, the Issuer will
own only the principal portion of such Loans outstanding as of the applicable Cut—Off Date.
Principal Collections received by the Servicer on any Revolving Loans (other than Loans to SPE
Obligors) will be allocated first to the portion of such Loan owned by the Originator, its
Affiliate special purpose entities under the Warehouse Facilities and any co-lenders under the
facility, until the principal amount of such portion is reduced to zero, and then to the portion
owned by the Issuer; provided, however, if (i) a payment default occurs with respect to any of the
related Loans (and in the case of Asset Based Revolvers, a payment default shall mean any failure
to make a payment on the date such payment is due and such failure continues for more than one
calendar day), (ii) 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, (iii) an Event of Default occurs, (iv) a Servicer Default occurs, or (v) an
Accelerated Amortization Event occurs, then Principal Collections received on (A) the applicable
Loan (in the case of clause (i) or (ii) above) or (B) all the Revolving Loans (in the case of
clauses (iii), (iv) and (v) above) will be allocated between the portion owned by the Originator,
its Affiliate special purpose entities under the Warehouse Facilities (or any similar facilities
entered into after the date hereof) and any co-lenders under the facility, portions owned by the
Issuer in a Prior Term Transaction (or any similar future transactions entered into after the date
hereof) and the portion owned by the Issuer pro rata based upon the outstanding principal amount of
each such portion. So long as there is no (1) payment default on the related Loans (and in the
case of Asset Based Revolvers, a payment default shall mean any failure to make a payment on the
date such payment is due and such failure continues for more than one calendar day), (2) Servicer
Default, (3) Event of Default, or (4) Accelerated Amortization Event, the Servicer will determine
the Outstanding Loan Balance, the Retained Interest
(if any) and the Principal Collections received with respect to any Revolving Loan secured by
Collateral on each Monthly Reconciliation Date, and all other Loans (including Revolving Loans not
secured by any Collateral) and in all other cases on each Business Day, pursuant to Section
7.07.

     (b) With respect to any Revolving Loan (other than Loans to SPE Obligors), Interest
Collections received by the Servicer on those Loans will be allocated between the portion not

125

 

owned by the Issuer and the portion owned by the Issuer on a pro rata basis according to the
outstanding principal amount of each such portion.

     (c) With respect to any Fully Funded Term Loans, Partially Funded Term Loans and Loans to SPE
Obligors, Collections received by the Servicer will be allocated between the portion not owned by
the Issuer (if any) and the portion owned by the Issuer on a pro rata basis according to the
outstanding principal amount of such portion.

     Section 13.15. No Partnership. 

     Nothing herein contained shall be deemed or construed to create a co—partnership or joint
venture between the parties hereto, and the services of the Servicer shall be rendered as an
independent contractor and not as agent for the Securityholders or the Hedge Counterparties.

     Section 13.16. Successors and Assigns. 

     This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns.

     Section 13.17. Acts of Holders. 

     Except as otherwise specifically provided herein, whenever Holder action, consent or approval
is required under this Agreement, such action, consent or approval shall be deemed to have been
taken or given on behalf of, and shall be binding upon, all Holders if the Majority Noteholders
agree to take such action or give such consent or approval.

     Section 13.18. Duration of Agreement. 

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

     Section 13.19. Limited Recourse. 

     (a) The obligations of the Trust Depositor, the Originator, the Issuer and the Servicer under
this Agreement are solely the obligations of the Trust Depositor, the Originator, the Issuer and
the Servicer. No recourse shall be had for the payment of any amount owing by the Trust Depositor,
the Originator, the Issuer or the Servicer under this Agreement or for the payment by the Trust
Depositor, the Originator, the Issuer or the
Servicer of any fee in respect hereof or any other obligation or claim of or against the Trust
Depositor, the Originator, the Issuer or the Servicer arising out of or based upon this Agreement,
against any employee, officer, director, Affiliate, shareholder, partner or member of the Trust
Depositor, the Originator, the Issuer or the Servicer or against the employee, officer, director,
shareholder, partner or member or any Affiliate of such Person. The provisions of this Section
13.19(a) shall survive termination of this Agreement.

     (b) Notwithstanding any other provisions of this Agreement or any other Transaction Document,
the obligations of the Issuer under this Agreement and any other Transaction Document are limited
recourse obligations of the Issuer payable solely from the Indenture

126

 

Collateral in accordance with the Priority of Payments and, following realization of the Indenture
Collateral and distribution in accordance with the Priority of Payments, any claims of the
Noteholders, and any other parties to any Transaction Document shall be extinguished.

     Section 13.20. Confidentiality. 

     Each of the Issuer, the Trust Depositor, the Servicer (if other than CapitalSource), the
Indenture Trustee and the Backup Servicer shall maintain and shall cause each of its employees,
officers, agents and Affiliates to maintain the confidentiality of material non-public information
concerning CapitalSource Inc. and its Public Securities or about the Obligors (to the extent
CapitalSource Inc. has advised such Person or such Person has actual knowledge that the Loan
Documents prohibit disclosure of such information with respect to the Obligors) obtained by it or
them in connection with the structuring, negotiating, execution and performance of the transactions
contemplated by the Transaction Documents, except that each such party and its employees, officers,
agents and Affiliates may disclose such information to other parties to the Transaction Documents
and to its external accountants, attorneys, any potential subservicers and the agents of such
Persons provided such Persons expressly agree to maintain the confidentiality of such information,
and as required by an applicable law or order of any judicial or administrative proceeding.

     Section 13.21. Non-Confidentiality of Tax Treatment. 

     All parties hereto agree that each of them and each of their employees, representatives, and
other agents may disclose to any and all persons, without limitation of any kind, the tax treatment
and tax structure of the transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to any of them relating to such tax treatment and tax structure. “Tax
treatment” and “tax structure” shall have the same meaning as such terms have for purposes of
Treasury Regulation Section 1.6011-4.

     Section 13.22. Alternative Exchange Listing. 

     In the event that the Issuer is required to prepare financial statements in
accordance with the International Financial Reporting Standards as a condition of the
continued listing of the Offered Notes on the Irish Stock Exchange, the Issuer may terminate the
listing of the Offered Notes on such exchange and, if such listing is so terminated, the Issuer
shall use its best commercially reasonable efforts to obtain the listing of the Offered Notes on an
exchange that is a member of the International Federation of Stock Exchanges and is organized or
incorporated in a state that is a member of the Organization for Economic Cooperation and
Development; provided that the Issuer shall not be required to obtain such a replacement listing if
maintaining such a listing would require the Issuer to restate its accounts or would otherwise be
unduly burdensome or costly to the Issuer.

[Remainder of Page Intentionally Left Blank]

127

 

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

	 	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1, as the Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its individual capacity, but solely as Owner Trustee on
behalf of the Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Emmett R. Harmon
 

	 	 
	 

	 	Name:
	 	Emmett R. Harmon	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN LLC, 2006-1, as the Trust Depositor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	CAPITALSOURCE FINANCE LLC, as the	 	 
	 	 	Originator and as the Servicer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

[Signatures Continued on the Following Page]

CapitalSource Commercial Loan Trust 2006-1

Sale and Servicing Agreement

 

 

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

	 	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1, as the Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its individual capacity, but solely as Owner Trustee on
behalf of the Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN LLC, 2006-1, as the Trust Depositor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas A. Fink
 
	 	 
	 

	 	Name:
	 	Thomas A. Fink	 	 
	 

	 	Title:
	 	Chief Financial Officer & Senior Vice President Finance	 	 
	 
	 	 	 	 	 	 
	 	 	CAPITALSOURCE
FINANCE LLC, as the	 	 
	 	 	Originator and as the
Servicer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas A. Fink
 

	 	 
	 

	 	Name:
	 	Thomas A. Fink	 	 
	 

	 	Title:
	 	Chief Financial Officer &	 	 
	 

	 	 
	 	Senior Vice President Finance	 	 

[Signatures Continued on the Following Page]

CapitalSource Commercial Loan Trust 2006-1

Sale and Servicing Agreement

 

 

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

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity but as the Indenture Trustee
and as the Backup Servicer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joe Nardi
 

	 	 
	 

	 	Name:
	 	Joe Nardi	 	 
	 

	 	Title:
	 	Vice President	 	 

CapitalSource
Commercial Loan Trust 2006-1
Sale and Service Agreement

 

 

ANNEX A

Weighted Average Life Matrix

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Weighted	 	 	 	Weighted	 	 	 	Weighted
	 Date	 	Average Life	 	Date	 	Average Life	 	Date	 	Average Life
	4/20/2006

	 	 	3.00	 	 	8/20/2009
	 	 	1.05	 	 	12/20/2012
	 	 	0.73	 
	5/20/2006

	 	 	2.92	 	 	9/20/2009
	 	 	0.97	 	 	1/20/2013
	 	 	0.64	 
	6/20/2006

	 	 	2.83	 	 	10/20/2009
	 	 	0.98	 	 	2/20/2013
	 	 	0.55	 
	7/20/2006

	 	 	2.76	 	 	11/20/2009
	 	 	0.89	 	 	3/20/2013
	 	 	0.46	 
	8/20/2006

	 	 	2.67	 	 	12/20/2009
	 	 	0.81	 	 	4/20/2013
	 	 	0.37	 
	9/20/2006

	 	 	2.59	 	 	1/20/2010
	 	 	0.79	 	 	5/20/2013
	 	 	0.27	 
	10/20/2006

	 	 	2.52	 	 	2/20/2010
	 	 	0.74	 	 	6/20/2013
	 	 	0.18	 
	11/20/2006

	 	 	2.43	 	 	3/20/2010
	 	 	0.73	 	 	7/20/2013
	 	 	0.09	 
	12/20/2006

	 	 	2.34	 	 	4/20/2010
	 	 	0.72	 	 	8/20/2013
	 	 	0.00	 
	1/20/2007

	 	 	2.39	 	 	5/20/2010
	 	 	0.63	 	 	 	 	 	 	 
	2/20/2007

	 	 	2.30	 	 	6/20/2010
	 	 	0.58	 	 	 	 	 	 	 
	3/20/2007

	 	 	2.22	 	 	7/20/2010
	 	 	0.58	 	 	 	 	 	 	 
	4/20/2007

	 	 	2.15	 	 	8/20/2010
	 	 	0.53	 	 	 	 	 	 	 
	5/20/2007

	 	 	2.08	 	 	9/20/2010
	 	 	0.53	 	 	 	 	 	 	 
	6/20/2007

	 	 	1.99	 	 	10/20/2010
	 	 	0.59	 	 	 	 	 	 	 
	7/20/2007

	 	 	1.96	 	 	11/20/2010
	 	 	0.59	 	 	 	 	 	 	 
	8/20/2007

	 	 	1.88	 	 	12/20/2010
	 	 	0.54	 	 	 	 	 	 	 
	9/20/2007

	 	 	1.79	 	 	1/20/2011
	 	 	0.50	 	 	 	 	 	 	 
	10/20/2007

	 	 	1.72	 	 	2/20/2011
	 	 	0.41	 	 	 	 	 	 	 
	11/20/2007

	 	 	1.70	 	 	3/20/2011
	 	 	0.31	 	 	 	 	 	 	 
	12/20/2007

	 	 	1.71	 	 	4/20/2011
	 	 	0.26	 	 	 	 	 	 	 
	1/20/2008

	 	 	1.65	 	 	5/20/2011
	 	 	0.20	 	 	 	 	 	 	 
	2/20/2008

	 	 	1.59	 	 	6/20/2011
	 	 	0.21	 	 	 	 	 	 	 
	3/20/2008

	 	 	1.51	 	 	7/20/2011
	 	 	0.43	 	 	 	 	 	 	 
	4/20/2008

	 	 	1.47	 	 	8/20/2011
	 	 	0.46	 	 	 	 	 	 	 
	5/20/2008

	 	 	1.43	 	 	9/20/2011
	 	 	0.37	 	 	 	 	 	 	 
	6/20/2008

	 	 	1.34	 	 	10/20/2011
	 	 	1.27	 	 	 	 	 	 	 
	7/20/2008

	 	 	1.39	 	 	11/20/2011
	 	 	1.18	 	 	 	 	 	 	 
	8/20/2008

	 	 	1.33	 	 	12/20/2011
	 	 	1.09	 	 	 	 	 	 	 
	9/20/2008

	 	 	1.34	 	 	1/20/2012
	 	 	0.99	 	 	 	 	 	 	 
	10/20/2008

	 	 	1.29	 	 	2/20/2012
	 	 	0.90	 	 	 	 	 	 	 
	11/20/2008

	 	 	1.32	 	 	3/20/2012
	 	 	0.81	 	 	 	 	 	 	 
	12/20/2008

	 	 	1.39	 	 	4/20/2012
	 	 	0.72	 	 	 	 	 	 	 
	1/20/2009

	 	 	1.40	 	 	5/20/2012
	 	 	0.63	 	 	 	 	 	 	 
	2/20/2009

	 	 	1.34	 	 	6/20/2012
	 	 	0.54	 	 	 	 	 	 	 
	3/20/2009

	 	 	1.29	 	 	7/20/2012
	 	 	0.44	 	 	 	 	 	 	 
	4/20/2009

	 	 	1.26	 	 	8/20/2012
	 	 	1.10	 	 	 	 	 	 	 
	5/20/2009

	 	 	1.23	 	 	9/20/2012
	 	 	1.01	 	 	 	 	 	 	 
	6/20/2009

	 	 	1.18	 	 	10/20/2012
	 	 	0.92	 	 	 	 	 	 	 
	7/20/2009

	 	 	1.13	 	 	11/20/2012
	 	 	0.82	 	 	 	 	 	 	 

CapitalSource Commercial Loan Trust 2006-1

Sale and Servicing Agreement

 

 

EXHIBITS, SCHEDULES AND APPENDIX TO

SALE AND SERVICING AGREEMENT

	 	 	 
	EXHIBIT A

	 	Form of Assignment
	 
	 	 
	EXHIBIT B

	 	Form of Closing Certificate of Trust Depositor
	 
	 	 
	EXHIBIT C

	 	Form of Closing Certificate of Servicer/Originator
	 
	 	 
	EXHIBIT D

	 	Form of Liquidation Report
	 
	 	 
	EXHIBIT E

	 	Principal and Interest Account Letter Agreement
	 
	 	 
	EXHIBIT F

	 	[Reserved]
	 
	 	 
	EXHIBIT G

	 	List of Loans
	 
	 	 
	EXHIBIT H

	 	Form of Monthly Servicer Report
	 
	 	 
	EXHIBIT I

	 	Form of Subsequent Transfer Agreement
	 
	 	 
	EXHIBIT J

	 	Form of Subsequent Purchase Agreement
	 
	 	 
	EXHIBIT K

	 	Credit and Collection Policy
	 
	 	 
	EXHIBIT L — 1

	 	Form of Initial Certification
	 
	 	 
	EXHIBIT L — 2

	 	Form of Final Certification
	 
	 	 
	EXHIBIT M

	 	Form of Request for Release of Documents
	 
	 	 
	EXHIBIT N

	 	Form of Addition Notice
	 
	 	 
	SCHEDULE I

	 	Lock — Box Banks and Lock — Box Accounts
	 
	 	 
	SCHEDULE II

	 	Obligor Lock — Box Banks and Obligor Lock — Box Accounts

 

 

Exhibit A 

to Sale and

Servicing Agreement

FORM OF ASSIGNMENT 

April 11, 2006

Pursuant to and in accordance with the Sale and Servicing Agreement (such agreement as amended,
modified, waived, supplemented or restated from time to time, the
“Agreement”), dated as of April
11, 2006 made by and among CapitalSource Commercial Loan LLC, 

2006 — 1, as the Trust Depositor,
CapitalSource Finance LLC, as the Originator and as the Servicer, Wells Fargo Bank, Natio nal
Association, as the Indenture Trustee and as the Backup Servicer, and CapitalSource Commercial Loan
Trust 2006-1, as the Issuer, the undersigned does hereby sell, transfer, assign, set over and
otherwise convey to the Issuer all of its right, title and interest in and to the following,
including but not limited to, all accounts, cash and currency, chattel paper, electronic chattel
paper, tangible 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 the following:

     (i) the Initial Loans, all payments paid in respect thereof and all monies due, to become due
or paid in respect thereof accruing on and after the Initial Cut — Off Date and all Liquidation
Proceeds and recoveries thereon, in each case as they arise after the Initial Cut — Off Date, but
not including the Retained Interest or Interest Collections
received prior to the Initial Cut-Off Date;

     (ii) all security interests and Liens and Collateral subject thereto from time to time
purporting to secure payment by Obligors under such Loans;

     (iii) all guaranties, indemnities and warranties, and other agreements or arrangements of
whatever character from time to time supporting or securing payment of such Loans;

     (iv) the
Trust Accounts, each Obligor Lock — Box, each Obligor Lock
— Box Account, each Lock — Box, each Lock — Box Account, and together with all cash and investments in each of the foregoing;

     (v) all collections and records (including computer records) with respect to the foregoing;

     (vi) all documents relating to the Loan Files; and

     (vii) all income, payments, proceeds and other benefits of any and all of the foregoing,
but excluding the Retained Interest.

     Capitalized terms used herein have the meaning given such terms in the Agreement.

 

 

     IN WITNESS WHEREOF, the undersigned has caused this assignment to be duly executed as of the
date written above.

	 	 	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN LLC, 2006-1	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

Exhibit B

to Sale and

Servicing Agreement

FORM OF CLOSING CERTIFICATE OF TRUST DEPOSITOR 

April 11, 2006

     The undersigned certifies that he/she is the [___] of CapitalSource Commercial Loan
LLC, 2006-1, a Delaware limited liability company, as the Trust Depositor, and that, in the
capacity as such officer, is duly authorized to execute and deliver this certificate on behalf of
the Trust Depositor in connection with the Sale and Servicing Agreement (such agreement as amended,
modified, waived, supplemented or restated from time to time, the “Agreement”), dated as of
April 11, 2006, by and among CapitalSource Commercial Loan Trust 2006-1, as the Issuer, the Trust
Depositor,
Wells Fargo Bank, National Association, as the Indenture Trustee and as the Backup Servicer, and
CapitalSource Finance LLC, as the Originator and as the Servicer (all capitalized terms used herein
without definition have the respective meanings set forth in the Agreement), and further certifies
in his/her capacity as such officer as follows (it being understood that these certifications are
being relied upon by, among others, the Initial Purchasers and their counsel in connection with the
Initial Purchasers’ undertakings in connection with the subject transactions):

     1. Attached hereto as Annex I is a true and correct copy of the
Certificate of
Formation of the Trust Depositor, together with all amendments thereto as in effect on the date
hereof, which documents were in full force and effect on April 11, 2006, and at all times
subsequent thereto, and no other amendments have been authorized by the members or managers of the
Trust Depositor.

     2. Attached hereto as Annex II is a Certificate of the Secretary of State of the State
of Delaware, dated [___] [___], 2006, stating that the Trust Depositor is duly formed under the
laws of the State of Delaware and is in good standing, and a Certificate of the State of Maryland,
dated [___] [___], 2006 stating that the Trust Depositor is in good standing as a foreign
limited liability company in the State of Maryland.

     3. Attached hereto as Annex III is a true and correct copy of the Limited
Liability
Company Operating Agreement of the Trust Depositor, together with all amendments thereto in effect
on the date hereof, which documents were in full force and effect on April 11, 2006, and at all
times subsequent thereto.

     4. Attached hereto as Annex IV is a true and correct copy of resolutions adopted pursuant to
the unanimous written consent of the sole Member of the Trust Depositor relating to the
authorization, execution, delivery and performance of (among other things) the Agreement and the
other Transaction Documents. Said resolutions have not been amended, modified, annulled or
revoked, and the same were in full force and effect on April 11, 2006, and at all times subsequent
thereto, and said resolutions are the only resolutions relating to these matters which have been
adopted by the Board of Managers.

 

 

     5. Each person named on Annex V attached hereto is a duly elected, qualified and incumbent
officer of the Trust Depositor and the signature set forth opposite his or her name on such Annex V
is that person’s genuine signature.

     6. In connection with the sale of the Offered Notes, the Company has prepared a preliminary
confidential offering memorandum dated March 28, 2006 (including any exhibits thereto and all
information incorporated therein by reference, the “Preliminary Memorandum”), as
supplemented by that preliminary confidential offering memorandum dated March 30, 2006 (including
any exhibits thereto and all
information incorporated therein by reference, the “Preliminary Memorandum Supplement
”), and all information incorporated therein by reference and a final confidential offering
memorandum dated the date hereof (including any exhibits, amendments or supplements thereto and all
information incorporated therein by reference, the “Final Memorandum”, and each of the
Preliminary Memorandum, the Preliminary Memorandum Supplement and the Final Memorandum, a
“Memorandum”) including a description of the terms of the Offered Notes, the terms of the
offering, and a description of the Trust. It is understood and agreed that the opening of business
on March 31, 2006 constitutes the time of the contract of sale for each purchaser of the Notes
offered to the investors for purposes of the Securities and Exchange Commission’s Rule 159 (the
“Time of Sale”) and that (i) the Preliminary Memorandum Supplement, which supplements,
amends and restates the Preliminary Memorandum, and (ii) the term sheet setting forth the pricing
terms relating to each Class of Offered Notes, constitute all of the information conveyed to
investors as of the Time of Sale (the “Time of Sale Information”).

     7. No event with respect to the Trust Depositor has occurred and is continuing that would
constitute an Event of Default or an event that, with notice or the passage of time or both, would
become an Event of Default as defined in the Transaction Documents. To the best of my knowledge
after reasonable investigation, there has been no material adverse change in the condition,
financial or otherwise, or the earnings, business affairs or business prospects, of the Trust
Depositor, whether or not arising in the ordinary course of business, since the respective dates as
of which information is given in the Time of Sale Information and except as set forth therein, or
since the Time of Sale.

     8. All federal, state and local taxes of the Trust Depositor due and owing as of the date
hereof have been paid or adequate provisions for the payment thereof have been made.

     9. All representations and warranties of the Trust Depositor contained in the
Transaction Documents or any other related documents, or in any document, certificate or financial
or other statement delivered in connection therewith, are true and correct in all material respects
as of the date hereof.

     10. There is no action, investigation or proceeding pending or, to our knowledge, threatened
against the Trust Depositor before any court, administrative agency or other tribunal (a) asserting
the invalidity of the Transaction Documents; (b) seeking to prevent the consummation of any of the
transactions contemplated by the Transaction Documents; or (c) which is likely to materially and
adversely affect the Trust Depositor’s performance of its obligations under, or the validity or
enforceability of, the Transaction Documents.

 

 

     11. No consent, approval, authorization or order of, and no notice to or filing with, any
governmental agency or body or state or federal court is required to be obtained
by the Trust Depositor for the Trust Depositor’s consummation of the transactions contemplated
by the Transaction Documents, except such as have been obtained or made and such as may be required
under the blue sky laws of any jurisdiction in connection with the issuance and sale of the
Securities.

     12. The Trust Depositor is not a party to any agreements or instruments evidencing or
governing indebtedness for money borrowed or by which the Trust Depositor or its property is bound
(other than the Transaction Documents).

     13. Neither (a) the Originator’s transfer and assignment of the Loan Assets to the Trust
Depositor; (b) the Trust Depositor’s concurrent transfer and assignment of the Loan Assets to the
Issuer; (c) the Trust Depositor’s execution and delivery of the Transaction Documents; nor (d) the
Trust Depositor’s consummation of any of the transactions contemplated by the Transaction
Documents, will violate or conflict with any agreement or instrument to which the Trust Depositor
is a party or by which it or its property is otherwise bound.

     14. In connection with the transfer of Loans and related Collateral contemplated in the
Transaction Documents, the Trust Depositor (a) has not made such transfer with the actual intent to
hinder, delay or defraud any creditor of the Trust Depositor; (b) has not received less than a
reasonably equivalent value in exchange for such transfer; (c) is not on the date thereof insolvent
(nor will it become insolvent as a result thereof); (d) is not engaged (or about to engage) in a
business or transaction for which it has unreasonably small capital; and (e) does not intend to
incur or believe it will incur debts beyond its ability to pay when matured.

     15. Each of the agreements and conditions of the Trust Depositor to be performed on or before
the Closing Date pursuant to the Transaction Documents have been performed in all material
respects.

     16. CapitalSource Finance LLC has not authorized for filing any UCC financing statements
listing the Loan Assets as collateral other than financing statements (a) relating to the
transactions contemplated in the Agreement or (b) filed in connection with the Funding I
Transaction, the Funding II Transaction, the Funding III Transaction, the Funding IV Transaction,
the Funding V Transaction, the Acquisition Funding Transaction and the Prior Term Transactions,
which financing statements, with respect to the Loan Assets, shall be released on or before the
Closing Date.

     17. Since the respective dates as of which information is given in the Time of Sale
Information, and since the Time of Sale, there has been no material adverse change in the
condition, financial or otherwise, or in the earnings, results of operations, business affairs or
business prospects of the Company, whether or not arising in the ordinary course of business, or in
the ability of the Company to perform its obligations under the Purchase Agreement or under the
Transaction Documents or in the characteristics of the Loans.

     18. Nothing has come to the attention of the Trust Depositor that would lead it to believe
that (i) the Time of Sale Information (when read in its entirety), assuming conveyance of

 

 

the final terms of the offer and sale of the Offered Notes at or prior to the Time of Sale, as of
the Time of Sale, or (ii) the Final Memorandum and any amendments thereof or supplement thereto
and any Additional Offering Documents, and any oral statements made by the Company to any
prospective purchaser of the Offered Notes, each as of their respective dates or date on which such
statement was made and as of the Closing Date, included an untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements in each, in light of the
circumstances under which they were made, not misleading.

* * * *

     IN WITNESS WHEREOF, I have affixed my signature hereto as of the date written above.

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

ANNEX I 

to Closing Certificate of

Trust Depositor

CERTIFICATE OF FORMATION

 

 

ANNEX II 

to Closing Certificate of

Trust Depositor

GOOD STANDING CERTIFICATES 

 

 

ANNEX III

to Closing Certificate of

Trust Depositor

OPERATING AGREEMENT

 

 

ANNEX IV 

to Closing Certificate of

Trust Depositor

RESOLUTIONS

 

 

ANNEX V 

to Closing Certificate of

Trust Depositor

INCUMBENCY OF SIGNING OFFICERS

	 	 	 	 	 
	Name of Officer	 	Title	 	Signature
	 
	 	 	 	 
	1. John K. Delaney

	 	President
	 	 

	 
	 	 	 	 
	2. Thomas A. Fink

	 	Chief Financial Officer/Senior	 	 
	 

	 	Vice President
	 	 

	 
	 	 	 	 
	3. Steven A. Museles

	 	Secretary/Executive Vice President
	 	 

	 
	 	 	 	 
	4. James M. Mozingo

	 	Chief Accounting Officer
	 	 

 

 

Exhibit C 

to Sale and

Servicing Agreement

FORM OF CLOSING CERTIFICATE OF SERVICER/ORIGINATOR 

April 11, 2006

     The
undersigned certifies that he/she is the ___ of CapitalSource Finance LLC, a
Delaware limited liability company (“CapitalSource”), and that, in the capacity as such
officer, he/she is duly authorized to execute and deliver this certificate on behalf of
CapitalSource, as the Originator and as the Servicer, in connection with the Sale and Servicing
Agreement (such agreement as amended, modified, waived, supplemented or restated from time to time,
the “Agreement”), dated as of April 11, 2006, by and among CapitalSource, as the Originator
and the Servicer, CapitalSource Commercial Loan LLC, 2006-1, as the Trust Depositor, Wells Fargo
Bank, National Association, as the Indenture Trustee and as the Backup Servicer, and CapitalSource
Commercial Loan Trust 2006-1, as the Issuer (all capitalized terms used herein without definition
having the respective meanings set forth in the Agreement) and further certifies in his/her
capacity as such officer as follows (it being understood that these certifications are being relied
upon by, among others, the Initial Purchasers and their counsel in connection with the Initial
Purchasers’ undertakings in connection with the subject transactions ):

     1. Attached hereto as Annex I is a true and correct copy of the
Certificate of
Formation of CapitalSource, together with all amendments thereto as in effect on the date hereof,
which documents were in full force and effect on April 11, 2006, and at all times subsequent
thereto, and no other amendments have been authorized by the Board of Managers or members of
CapitalSource.

     2. Attached hereto as Annex II is a Certificate of the Secretary of State of the State
of Delaware, dated [___] [___], 2006, stating that CapitalSource is duly formed under the laws
of the State of Delaware and is in good standing, and a Certificate of the State of Maryland, dated
[___] [___], 2006, stating that CapitalSource is in good standing as a foreign limited liability
company in the State of Maryland.

     3. Attached hereto as Annex III is a true and correct copy of the Limited
Liability
Company Operating Agreement of CapitalSource, together with all amendments thereto, which were in
full force and effect on April 11, 2006, and at all times subsequent thereto.

     4. Attached hereto as Annex IV is a true and correct copy of resolutions adopted
pursuant to the unanimous written consent of the Manager of CapitalSource relating to the
authorization, execution, delivery and performance of (among other things) the Agreement and the
other Transaction Documents. Said resolutions have not been amended, modified, annulled or revoked,
and the same were in full force and effect on April 11, 2006, and at all times subsequent thereto,
and said resolutions are the only resolutions relating to these matters which have been adopted by
the Board of Managers.

 

 

     5. Each person named on Annex V attached hereto is a duly elected, qualified and
incumbent officer of CapitalSource and the signature set forth opposite his or her name on such
Annex V is that person’s genuine signature.

     6. In connection with the sale of the Offered Notes, the Company has prepared a preliminary
confidential offering memorandum dated March 28, 2006 (including any exhibits thereto and all
information incorporated therein by reference, the “Preliminary Memorandum”), as
supplemented by that preliminary confidential offering memorandum dated March 30, 2006 (including
any exhibits thereto and all information incorporated therein by reference, the “Preliminary
Memorandum Supplement”), and all information incorporated therein by reference and a final
confidential offering memorandum dated the date hereof (including any exhibits, amendments or
supplements thereto and all information incorporated therein by
reference, the “Final Memorandum”,
and each of the Preliminary Memorandum, the Preliminary Memorandum Supplement and the Final
Memorandum, a “Memorandum”) including a description of the terms of the Offered Notes, the
terms of the offering, and a description of the Trust. It is understood and agreed that the opening
of business on March 31, 2006 constitutes the time of the contract of sale for each purchaser of
the Notes offered to the investors for purposes of the Securities and Exchange Commission’s Rule
159 (the “Time of Sale”) and that (i) the Preliminary Memorandum Supplement, which
supplements, amends and restates the Preliminary Memorandum, and (ii) the term sheet setting forth
the pricing terms relating to each Class of Offered Notes, constitute all of the information
conveyed to investors as of the Time of Sale (the “Time of Sale Information”).

     7. No event with respect to CapitalSource has occurred and is continuing that would constitute
an Event of Default or Servicer Default or an event that, with notice or the passage time, would
constitute an Event of Default or Servicer Default as defined in the Transaction Documents. To the
best of my knowledge after reasonable investigation, there has been material adverse change in the
condition, financial or otherwise, or the earnings, business affairs or business prospects, of
CapitalSource, whether or not arising in the ordinary course business, since the respective dates
as of which information is given in the Time of Sale Information except as set forth therein, or
since the Time of Sale.

     8. All federal, state and local taxes of CapitalSource due and owing as of the date hereof
have been paid or adequate provisions for the payment thereof have been made.

     9. All representations and warranties of CapitalSource contained in the Transaction Documents
or in any document, certificate or financial or other statement delivered in connection therewith
are true and correct in all material respects as of the date hereof.

     10. There is no action, investigation or proceeding pending or, to my knowledge, threatened
against CapitalSource before any court, administrative agency or other tribunal (a) asserting the
invalidity of any Transaction Document to which CapitalSource is a party; (b) seeking to prevent
the consummation of any of the transactions contemplated by Transaction Documents; or (c) that is
likely to materially and adversely affect CapitalSource’s performance of its obligations under, or
the validity or enforceability of, the Transaction Documents.

 

 

     11. No consent, approval, authorization or order of, and no notice to or filing with, any
governmental agency or body or state or federal court is required to be obtained by CapitalSource
for its consummation of the transactions contemplated by the Transaction Documents, except such as
have been obtained or made and such as may be required under the blue sky laws of any jurisdiction
in connection with the issuance and sale of the Securities.

     12. Neither (a) CapitalSource’s transfer and assignment of the Loan Assets to the Trust
Depositor; (b) CapitalSource’s entering into of the Transaction Documents; nor (c) CapitalSource’s
consummation of any of the transactions contemplated in the Transaction Documents, will violate or
conflict with any agreement or instrument to which CapitalSource is a party or by which it or its
property is otherwise bound.

     13. In connection with the transfers of Loans and related Collateral contemplated in the
Transaction Documents, CapitalSource (a) has not made such transfer with actual intent to hinder,
delay or defraud any creditor of CapitalSource; (b) has not received less than a reasonably
equivalent value in exchange for such transfer; (c) is not on the date hereof insolvent (nor will
CapitalSource become insolvent as a result thereof); (d) is not engaged (or about to engage) in a
business or transaction for which it has unreasonably small capital; and (e) does not intend to
incur or believe it will incur debts beyond its ability to pay when matured.

     14. Each of the agreements and conditions of CapitalSource to be performed or satisfied on or
before the Closing Date under the Transaction Documents has been performed or satisfied in all
material respects.

     15. CapitalSource has not authorized for filing any UCC financing statements listing the Loan
Assets as collateral other than financing statements (a) relating to the transactions contemplated
in the Agreement or (b) filed in connection with the Funding I Transaction, the Funding II
Transaction, the Funding III Transaction, the Funding IV
Transaction, the Funding V Transaction, the Acquisition Funding Transaction and the Prior Term
Transactions, which financing statements, with respect to the Loan Assets, shall be released on or
before the Closing Date.

     16. Since the respective dates as of which information is given in the Time of Sale
Information, and since the Time of Sale, there has been no material adverse change in the
condition, financial or otherwise, or in the earnings, results of operations, business affairs or
business prospects of CapitalSource, whether or not arising in the ordinary course of business, or
in the ability of CapitalSource to perform its obligations under the Purchase Agreement or under
the Transaction Documents or in the characteristics of the Loans.

     17. Nothing has come to the attention of CapitalSource that would lead it to believe that (i)
the Time of Sale Information (when read in its entirety), assuming conveyance of the final terms of
the offer and sale of the Offered Notes at or prior to the Time of Sale, as of the Time of Sale, or
(ii) the Final Memorandum, and any amendments thereof or supplement thereto and any Additional
Offering Documents, and any oral statements made by the Company to any prospective purchaser of the
Offered Notes, each as of their respective dates or date on which such statement was made and as of
the Closing Date, included an untrue statement of a material

 

 

fact or omitted to state a material fact necessary in order to make the statements in each, in
light of the circumstances under which they were made, not misleading.

* * * * * *

     IN WITNESS WHEREOF, I have affixed my signature hereto as of the date written above.

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

ANNEX I 

to Closing Certificate of 

Servicer/Originator 

CERTIFICATE OF FORMATION 

 

 

ANNEX II

to Closing Certificate of

Servicer/Originator 

GOOD STANDING CERTIFICATES 

 

 

ANNEX III

to Closing Certificate of

Servicer/Originator 

OPERATING AGREEMENT 

 

 

ANNEX IV

to Closing Certificate of

Servicer/Originator 

RESOLUTIONS 

 

 

ANNEX V

to Closing Certificate of

Servicer/Originator 

INCUMBENCY OF SIGNING OFFICERS 

	 	 	 	 	 
	Name of Officer	 	Title	 	Signature
	 
	 	 	 	 
	1. John K. Delaney

	 	Chief Executive Officer
	 	 

	 
	 	 	 	 
	2. Thomas A. Fink

	 	Chief Financial Officer/Senior

Vice President
	 	 

	 
	 	 	 	 
	3. Steven A. Museles

	 	Secretary/Executive Vice

President
	 	 

	 
	 	 	 	 
	4. James M. Mozingo

	 	Chief Accounting Officer
	 	 

 

 

Exhibit D

to Sale and

Servicing Agreement 

FORM OF LIQUIDATION REPORT 

Obligor Name:

Account number:

Original Outstanding Loan Balance:

	 	 	 	 	 	 	 
	1.	 	Liquidation Proceeds
	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	Principal Prepayment
	 	 	 	$                    
	 	 	Property Sale Proceeds
	 	 	 	                    
	 	 	Insurance Proceeds
	 	 	 	                    
	 	 	Other (Itemize)
	 	 	 	                    
	 	 	 
	 	 	 	 
	2.	 	Servicing Advances
	 	$                    	 	 
	 	 	 
	 	 	 	 
	3.	 	Net Liquidation Proceeds
	 	$                    	 	 
	 	 	(Line 1 minus Line 2)
	 	 	 	 
	 	 	 
	 	 	 	 
	4.	 	Outstanding Loan Balance of the

	 	$                    	 	 
	 	 	
Loan on date of liquidation
	 	 	 	 
	 	 	 
	 	 	 	 
	5.	 	Realized (Loss) or Gain
	 	$                    	 	 
	 	 	(Line 3 minus Line 4)
	 	 	 	 

 

 

Exhibit E

to Sale and

Servicing Agreement 

PRINCIPAL AND INTEREST ACCOUNT LETTER AGREEMENT 

April 11, 2006

	 	 	 
	To:

	 	Wells Fargo Bank, National Association (the “Depository”)
	 

	 	6th and Marquette
	 

	 	MAC N9311—161
	 

	 	Minneapolis, Minnesota 55479

     As Servicer under the Sale and Servicing Agreement, dated as of April 11, 2006, relating to
CapitalSource Commercial Loan Trust 2006-1 (such agreement as amended, modified, waived,
supplemented or restated from time to time, the
“Agreement”), we hereby authorize and request you
to establish an account, as a Principal and Interest Account pursuant to Section 7.03 of the
Agreement, to be designated as “CapitalSource Finance LLC, as the Servicer, in trust for the Hedge
Counterparties and the registered holders of CapitalSource Commercial Loan Trust 2006-1 Class A,
Class B, Class C, Class D, Class E and Class F Asset Backed Notes.” All deposits in the account
shall be subject to withdrawal therefrom by order signed by the Servicer. You may refuse any
deposit which would result in violation of the requirement that the account be fully insured as
described below. This letter is submitted to you in duplicate. Please execute and return one
original to us.

	 	 	 	 	 	 	 
	 	 	CAPITALSOURCE FINANCE LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

     The undersigned, as Depository, hereby (i) certifies that the above described account has been
established under Account Number [___], at the office of the depository indicated
above, (ii) agrees to honor withdrawals on such account as provided above and (iii) agrees that it
will comply with the instructions of the Servicer directing
disposition of the funds in the above —
described account without the consent of CapitalSource Commercial Loan LLC, 2006-1 or CapitalSource
Commercial Loan Trust 2006-1. The amounts deposited at any time in the account will be insured to
the maximum amount provided by applicable law by the Federal Deposit Insurance Corporation.

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

Exhibit F 

to Sale and

Servicing Agreement

[Reserved]

 

 

Exhibit G

to Sale and

Servicing Agreement

LIST OF LOANS

SEE ATTACHED

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Business	 	 	Entity	 	 	 	 	 	 	 	 	 	 
	Entity	 	 	Loan	 	 	Borrower	 	Unit	 	 	Pledged	 	 	State	 	 	Commitment	 	 	Pool Balance	 
	 	1726	 	 	 	1313	 	 	ABP CORPORATION
	 	CFB	 	CSII	 	MA	 	 	27,000,000.00	 	 	 	1,000,000.00	 
	 	1726	 	 	 	1314	 	 	ABP CORPORATION
	 	CFB	 	CSII	 	MA	 	 	10,000,000.00	 	 	 	5,000,000.00	 
	 	1726	 	 	 	1353	 	 	ABP CORPORATION
	 	CFB	 	FUND	 	MA	 	 	500,000.00	 	 	 	500,000.00	 
	 	1726	 	 	 	1354	 	 	ABP CORPORATION
	 	CFB	 	FUND	 	MA	 	 	235,295.00	 	 	 	235,295.00	 
	 	669	 	 	 	1356	 	 	ADVANCED NUTRACEUTICAL
	 	CFB	 	CSII	 	NY	 	 	3,500,000.00	 	 	 	3,500,000.00	 
	 	1157	 	 	 	789	 	 	AMERICAN PACIFIC ENTERPRISES, LLC
	 	CFB	 	CSII	 	OH	 	 	37,500,000.00	 	 	 	7,064,980.20	 
	 	493	 	 	 	335	 	 	INTERNATIONAL LEGWEAR GROUP, INC.
	 	CFB	 	CSII	 	NC	 	 	23,500,000.00	 	 	 	9,973,686.91	 
	 	1353	 	 	 	969	 	 	SSHS — IDEA SPHERE INC.
	 	HSB	 	CSII	 	NY	 	 	30,000,000.00	 	 	 	7,871,942.89	 
	 	1450	 	 	 	1090	 	 	ALPHA PACKAGING, INC.
	 	CFB	 	CSII	 	MO	 	 	22,500,000.00	 	 	 	7,750,000.00	 
	 	1110	 	 	 	1034	 	 	MATRIX SECURITY GROUP, INC.
	 	HSB	 	CSII	 	NJ	 	 	25,000,000.00	 	 	 	7,481,136.61	 
	 	117	 	 	 	630	 	 	AMERICAN PSYCH SYSTEMS
	 	CFB	 	CSII	 	MD	 	 	12,000,000.00	 	 	 	2,700,000.00	 
	 	1144	 	 	 	778	 	 	THE RENTAL STORE
	 	SFB	 	CSII	 	AZ	 	 	18,000,000.00	 	 	 	6,171,146.62	 
	 	1464	 	 	 	1110	 	 	ANESTHESIA HEALTHCARE PARTNERS, INC.
	 	HSB	 	CSII	 	GA	 	 	4,000,000.00	 	 	 	1,873,210.36	 
	 	1713	 	 	 	1263	 	 	ASPEN EARTHMOVING LLC
	 	HSB	 	CSII	 	CO	 	 	4,000,000.00	 	 	 	1,528,638.38	 
	 	1713	 	 	 	1303	 	 	ASPEN EARTHMOVING LLC
	 	HSB	 	CSII	 	CO	 	 	2,700,000.00	 	 	 	2,700,000.00	 
	 	1713	 	 	 	1304	 	 	ASPEN EARTHMOVING LLC
	 	HSB	 	CSII	 	CO	 	 	1,800,000.02	 	 	 	1,800,000.02	 
	 	1713	 	 	 	1305	 	 	ASPEN EARTHMOVING LLC
	 	HSB	 	CSII	 	CO	 	 	1,470,000.00	 	 	 	315,250.00	 
	 	1591	 	 	 	1169	 	 	AUTOMOTIVE MANAGEMENT SERVICES, INCORPORATED
	 	SFB	 	CSII	 	NC	 	 	5,000,000.00	 	 	 	2,014,661.04	 
	 	1842	 	 	 	1465	 	 	AVAIL MEDICAL PRODUCTS, INC.
	 	HSB	 	CSII	 	TX	 	 	10,000,000.00	 	 	 	10,000,000.00	 
	 	1602	 	 	 	1181	 	 	BENTEK CORPORATION
	 	CFB	 	CSII	 	CA	 	 	5,000,000.00	 	 	 	2,992,062.17	 
	 	1602	 	 	 	1182	 	 	BENTEK CORPORATION
	 	CFB	 	CSII	 	CA	 	 	4,183,333.28	 	 	 	4,183,333.28	 
	 	1602	 	 	 	1183	 	 	BENTEK CORPORATION
	 	CFB	 	CSII	 	CA	 	 	3,000,000.00	 	 	 	3,000,000.00	 
	 	1908	 	 	 	1529	 	 	CONSOLIDATED SERVICES GROUP, INC.
	 	HSB	 	CSII	 	PA	 	 	4,000,000.00	 	 	 	4,000,000.00	 
	 	1714	 	 	 	1265	 	 	BEST PRACTICES, INC.
	 	HSB	 	CSII	 	VA	 	 	10,000,000.00	 	 	 	6,209,560.71	 
	 	1762	 	 	 	1369	 	 	BIO-KINETIC CLINICAL APPLICATIONS, INC.
	 	HSB	 	CSII	 	MO	 	 	7,312,500.00	 	 	 	7,312,500.00	 
	 	1762	 	 	 	1375	 	 	BIO-KINETIC CLINICAL APPLICATIONS, INC.
	 	HSB	 	CSF	 	MO	 	 	3,500,000.00	 	 	 	130,000.00	 
	 	1836	 	 	 	1457	 	 	BURR WOLFF, L..P.
	 	CFB	 	CSII	 	TX	 	 	4,800,000.00	 	 	 	4,800,000.00	 
	 	1613	 	 	 	1199	 	 	C & S FINANCE ORLANDO
	 	SFB	 	CSII	 	FL	 	 	7,000,000.00	 	 	 	5,401,676.88	 
	 	1325	 	 	 	938	 	 	CASE LOGIC, INC
	 	CFB	 	CSII	 	CO	 	 	15,000,000.00	 	 	 	2,523,479.20	 
	 	563	 	 	 	373	 	 	CASH CORP.
	 	SFB	 	CSII	 	GA	 	 	12,000,000.00	 	 	 	9,767,023.59	 
	 	895	 	 	 	565	 	 	CASHCO FINANCIAL SERVICES, INC.
	 	SFB	 	CSII	 	OR	 	 	5,000,000.00	 	 	 	2,869,219.91	 
	 	120	 	 	 	48	 	 	HEALTHSTAR COMMUNICATIONS, INC.
	 	CFB	 	CSII	 	NJ	 	 	63,346,497.70	 	 	 	30,000,000.00	 
	 	1732	 	 	 	1326	 	 	CORNERSTONE HEALTHCARE GROUP HOLDING, INC.
	 	HSB	 	CSII	 	TX	 	 	2,965,677.97	 	 	 	2,965,677.97	 
	 	1580	 	 	 	1160	 	 	CHARTER AMERIFIT ACQUISITION CORPORATION
	 	CFB	 	CSII	 	CT	 	 	24,200,000.00	 	 	 	9,471,803.53	 
	 	1609	 	 	 	1200	 	 	CLINTRAK PHARMACEUTICAL SERVICES
	 	CFB	 	CSII	 	NY	 	 	8,700,000.00	 	 	 	3,262,570.47	 
	 	1607	 	 	 	1192	 	 	CODEL ENTRY SYSTEMS, INC.
	 	CFB	 	CSII	 	WA	 	 	2,603,127.18	 	 	 	2,603,127.18	 

Page 1 of 4

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Business	 	 	Entity	 	 	 	 	 	 	 	 	 	 
	Entity	 	 	Loan	 	 	Borrower	 	Unit	 	 	Pledged	 	 	State	 	 	Commitment	 	 	Pool Balance	 
	 	1607	 	 	 	1193	 	 	CODEL ENTRY SYSTEMS, INC.
	 	CFB	 	CSII	 	WA	 	 	2,000,000.00	 	 	 	2,000,000.00	 
	 	573	 	 	 	379	 	 	CODY CLIFF CO.
	 	SFB	 	CSII	 	TX	 	 	3,000,000.00	 	 	 	2,293,138.19	 
	 	1128	 	 	 	722	 	 	CONSO INTERNATIONAL CORPORATION
	 	CFB	 	CSII	 	NJ	 	 	4,000,000.00	 	 	 	2,113,995.79	 
	 	1324	 	 	 	935	 	 	SECOR INTERNATIONAL INCORPORATED
	 	CFB	 	CSII	 	WA	 	 	13,000,000.00	 	 	 	5,985,296.29	 
	 	1582	 	 	 	1500	 	 	DEVCON SECURITY HOLDINGS, INC.
	 	HSB	 	CSII	 	FL	 	 	70,000,000.00	 	 	 	30,000,000.00	 
	 	1763	 	 	 	1371	 	 	EQUIBRAND HOLDING CORPORATION
	 	CFB	 	CSII	 	TX	 	 	7,594,224.30	 	 	 	7,594,224.30	 
	 	1328	 	 	 	944	 	 	MONDRIAN INVESTMENT PARTNERS
	 	CFB	 	CSII	 	IT	 	 	53,785,000.00	 	 	 	5,378,500.00	 
	 	1112	 	 	 	711	 	 	CORRPRO COMPANIES, INC.
	 	CFB	 	CSII	 	OH	 	 	4,000,000.00	 	 	 	97,089.43	 
	 	1641	 	 	 	1236	 	 	COUNTRY VILLA SERVICE CORPORATION
	 	HSB	 	CSII	 	CA	 	 	10,000,000.00	 	 	 	6,841,285.91	 
	 	1485	 	 	 	1141	 	 	CPC ASSOCIATES, INC.
	 	CFB	 	CSII	 	PA	 	 	6,093,750.00	 	 	 	6,093,750.00	 
	 	1815	 	 	 	1428	 	 	DC SAFETY SALES CO., INC.
	 	CFB	 	CSV	 	NY	 	 	3,000,000.00	 	 	 	500,000.00	 
	 	1815	 	 	 	1429	 	 	DC SAFETY SALES CO., INC.
	 	CFB	 	CSII	 	NY	 	 	7,800,000.00	 	 	 	7,800,000.00	 
	 	1763	 	 	 	1372	 	 	EQUIBRAND HOLDING CORPORATION
	 	CFB	 	CSII	 	TX	 	 	2,319,968.68	 	 	 	2,319,968.68	 
	 	1883	 	 	 	1509	 	 	EASTERN CAROLINA AUTO FINANCE CO., LLC
	 	SFB	 	CSII	 	NC	 	 	10,000,000.00	 	 	 	3,316,868.67	 
	 	1492	 	 	 	1147	 	 	EEC-CEC HOLDING LLC
	 	CFB	 	CSV	 	AL	 	 	13,000,000.00	 	 	 	1,715,303.93	 
	 	1492	 	 	 	1148	 	 	EEC-CEC HOLDING LLC
	 	CFB	 	CSII	 	AL	 	 	6,375,000.00	 	 	 	6,375,000.00	 
	 	1750	 	 	 	1347	 	 	EINSTRUCTION
	 	CFB	 	CSII	 	TX	 	 	10,968,750.00	 	 	 	10,968,750.00	 
	 	437	 	 	 	304	 	 	ENDURACARE, LLC
	 	HSB	 	CSII	 	NV	 	 	15,000,000.00	 	 	 	12,854,205.76	 
	 	437	 	 	 	305	 	 	ENDURACARE, LLC
	 	HSB	 	CSII	 	NV	 	 	3,056,721.98	 	 	 	3,056,721.98	 
	 	971	 	 	 	622	 	 	FIRST BROADCASTING CAPITAL PARTNERS
	 	CFB	 	CSII	 	TX	 	 	27,000,000.00	 	 	 	6,148,745.38	 
	 	1794	 	 	 	1407	 	 	GLADSON , LLC
	 	CFB	 	CSII	 	IL	 	 	12,626,250.00	 	 	 	12,626,250.00	 
	 	1334	 	 	 	948	 	 	FIREARMS TRAINING SYSTEMS, INC.
	 	CFB	 	CSII	 	GA	 	 	12,000,000.00	 	 	 	3,931,534.21	 
	 	1450	 	 	 	1091	 	 	ALPHA PACKAGING, INC.
	 	CFB	 	CSII	 	MO	 	 	17,235,000.00	 	 	 	4,847,343.76	 
	 	1833	 	 	 	1453	 	 	FLIPCHIP INTERNATIONAL, LLC
	 	CFB	 	CSII	 	AZ	 	 	6,000,000.00	 	 	 	6,000,000.00	 
	 	1746	 	 	 	1342	 	 	FPL FOOD LLC
	 	HSB	 	CSII	 	GA	 	 	15,000,000.00	 	 	 	4,299,850.65	 
	 	1723	 	 	 	1321	 	 	GAMEDAY MEDIA, INC,
	 	CFB	 	CSII	 	TN	 	 	4,000,000.00	 	 	 	4,000,000.00	 
	 	1378	 	 	 	987	 	 	GENEZEN HEALTHCARE, INC.
	 	HSB	 	CSII	 	TX	 	 	5,000,000.00	 	 	 	2,725,469.71	 
	 	1063	 	 	 	1266	 	 	INSTALLED BUILDING PRODUCTS
	 	CFB	 	CSII	 	OH	 	 	3,133,928.57	 	 	 	3,133,928.57	 
	 	628	 	 	 	404	 	 	SOUTHERN AUTOMOTIVE FINANCE
	 	SFB	 	CSII	 	FL	 	 	48,000,000.00	 	 	 	4,771,770.66	 
	 	1914	 	 	 	1535	 	 	GREYSTONE BUSINESS CREDIT II , LLC
	 	HSB	 	CSII	 	NY	 	 	50,000,000.00	 	 	 	3,661,563.15	 
	 	1386	 	 	 	995	 	 	CFHS HOLDINGS, INC.
	 	HSB	 	CSII	 	CA	 	 	29,100,000.00	 	 	 	29,100,000.00	 
	 	1478	 	 	 	1132	 	 	GTS HOLDINGS, INC.
	 	CFB	 	CSII	 	NJ	 	 	9,291,666.70	 	 	 	9,291,666.70	 
	 	1478	 	 	 	1133	 	 	GTS HOLDINGS, INC.
	 	CFB	 	CSII	 	NJ	 	 	7,500,000.00	 	 	 	7,500,000.00	 
	 	876	 	 	 	560	 	 	HAVEN HEALTH CENTER — NEW ENGLAND
	 	HSB	 	CSII	 	CT	 	 	5,500,000.00	 	 	 	3,253,497.74	 
	 	946	 	 	 	597	 	 	HAVEN HEALTHCARE CENTER — OMEGA
	 	HSB	 	CSII	 	CT	 	 	8,000,000.00	 	 	 	3,842,419.07	 
	 	1263	 	 	 	889	 	 	HEALTHCARE UNIFORM COMPANY, INC.
	 	CFB	 	CSII	 	MO	 	 	9,000,000.00	 	 	 	894,591.14	 
	 	1263	 	 	 	1010	 	 	HEALTHCARE UNIFORM COMPANY, INC.
	 	CFB	 	CSF	 	MO	 	 	270,000.00	 	 	 	270,000.00	 

Page 2 of 4

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Business	 	 	Entity	 	 	 	 	 	 	 	 	 	 
	Entity	 	 	Loan	 	 	Borrower	 	Unit	 	 	Pledged	 	 	State	 	 	Commitment	 	 	Pool Balance	 
	 	1400	 	 	 	1019	 	 	SAVA SENIOR CARE, INC.
	 	HSB	 	CSII	 	GA	 	 	150,000,000.00	 	 	 	25,000,000.00	 
	 	1123	 	 	 	1383	 	 	INTERFACE SECURITY SYSTEMS
	 	HSB	 	CSII	 	MO	 	 	75,000,000.00	 	 	 	30,000,000.00	 
	 	1826	 	 	 	1444	 	 	ITS ACQUISITION, INC
	 	CFB	 	FUND	 	GA	 	 	10,000,000.00	 	 	 	1,714,500.00	 
	 	1447	 	 	 	1083	 	 	K2 INDUSTRIAL
	 	HSB	 	CSII	 	IN	 	 	15,000,000.00	 	 	 	4,704,625.79	 
	 	1826	 	 	 	1445	 	 	ITS ACQUISITION, INC
	 	CFB	 	FUND	 	GA	 	 	36,075,000.00	 	 	 	3,894,225.00	 
	 	1826	 	 	 	1446	 	 	ITS ACQUISITION, INC
	 	CFB	 	CSII	 	GA	 	 	17,000,000.00	 	 	 	1,500,000.00	 
	 	1838	 	 	 	1460	 	 	LEVTRAN ENTERPRISES DBA DOWNTOWN LOCKER ROOM
	 	CFB	 	FUND	 	MD	 	 	9,500,000.00	 	 	 	4,750,000.00	 
	 	1736	 	 	 	1338	 	 	JONES RADIO HOLDINGS
	 	CFB	 	CSII	 	CO	 	 	7,000,000.00	 	 	 	7,000,000.00	 
	 	239	 	 	 	158	 	 	LIGHTHOUSE FINANCIAL GROUP INC
	 	SFB	 	CSII	 	FL	 	 	10,000,000.00	 	 	 	4,635,784.75	 
	 	1447	 	 	 	1213	 	 	K2 INDUSTRIAL
	 	HSB	 	CSII	 	IN	 	 	3,439,172.64	 	 	 	3,439,172.64	 
	 	1838	 	 	 	1459	 	 	LEVTRAN ENTERPRISES DBA DOWNTOWN LOCKER ROOM
	 	CFB	 	FUND	 	MD	 	 	10,000,000.00	 	 	 	2,909,274.06	 
	 	1838	 	 	 	1461	 	 	LEVTRAN ENTERPRISES DBA DOWNTOWN LOCKER ROOM
	 	CFB	 	CSII	 	MD	 	 	12,000,000.00	 	 	 	6,000,000.00	 
	 	1624	 	 	 	1218	 	 	SONITROL CORPORATION
	 	HSB	 	CSII	 	PA	 	 	3,980,000.00	 	 	 	3,980,000.00	 
	 	470	 	 	 	961	 	 	LIFE GENERATIONS HEALTHCARE, INC.
	 	HSB	 	CSII	 	CA	 	 	3,635,668.97	 	 	 	3,635,668.97	 
	 	1011	 	 	 	649	 	 	AMERICAN HOSPICE MANAGEMENT HOLDINGS, LLC
	 	HSB	 	CSII	 	FL	 	 	20,323,750.00	 	 	 	4,585,490.71	 
	 	1011	 	 	 	651	 	 	AMERICAN HOSPICE MANAGEMENT HOLDINGS, LLC
	 	HSB	 	CSII	 	FL	 	 	10,000,000.00	 	 	 	3,796,844.25	 
	 	1252	 	 	 	881	 	 	MCNEIL TECHNOLOGIES, INC.
	 	CFB	 	CSII	 	VA	 	 	18,000,000.00	 	 	 	2,582,933.10	 
	 	1021	 	 	 	658	 	 	STANTON INTERNATIONAL, INC.
	 	CFB	 	CSII	 	OR	 	 	8,000,000.00	 	 	 	3,768,663.41	 
	 	923	 	 	 	584	 	 	NEW ALBANY SURGICAL HOSPITAL, LLC
	 	HSB	 	CSII	 	TN	 	 	10,500,000.00	 	 	 	3,548,138.81	 
	 	364	 	 	 	1412	 	 	MULTIVEND, LLC
	 	CFB	 	CSII	 	NY	 	 	4,000,000.00	 	 	 	4,000,000.00	 
	 	1146	 	 	 	777	 	 	NATIONSHEALTH
	 	HSB	 	CSIII	 	FL	 	 	10,000,000.00	 	 	 	2,410,763.99	 
	 	1034	 	 	 	669	 	 	NAVIX DIAGNOSTIX, INC
	 	HSB	 	CSII	 	MA	 	 	4,000,000.00	 	 	 	2,283,272.66	 
	 	1034	 	 	 	1388	 	 	NAVIX DIAGNOSTIX, INC
	 	HSB	 	CSII	 	MA	 	 	2,146,666.68	 	 	 	2,146,666.68	 
	 	1128	 	 	 	725	 	 	CONSO INTERNATIONAL CORPORATION
	 	CFB	 	CSII	 	NJ	 	 	13,025,000.00	 	 	 	2,982,558.15	 
	 	1761	 	 	 	1365	 	 	OBLIO TELECOM, INC.
	 	HSB	 	CSF	 	TX	 	 	15,000,000.00	 	 	 	3,846,012.13	 
	 	1761	 	 	 	1366	 	 	OBLIO TELECOM, INC.
	 	HSB	 	CSII	 	TX	 	 	4,166,666.68	 	 	 	4,166,666.68	 
	 	1761	 	 	 	1367	 	 	OBLIO TELECOM, INC.
	 	HSB	 	CSV	 	TX	 	 	5,333,333.32	 	 	 	5,333,333.32	 
	 	867	 	 	 	555	 	 	OVERTON’S, INC
	 	CFB	 	CSII	 	NC	 	 	10,000,000.00	 	 	 	3,983,843.18	 
	 	377	 	 	 	269	 	 	GOLDCAR LENDING, INC.
	 	SFB	 	CSII	 	GA	 	 	5,000,000.00	 	 	 	2,979,236.80	 
	 	1881	 	 	 	1523	 	 	RCR PLUMBING, INC
	 	HSB	 	CSII	 	CA	 	 	4,916,666.67	 	 	 	4,916,666.67	 
	 	1730	 	 	 	1322	 	 	SALUS — HUDSON CROSSING SURGERY CENTER
	 	HSB	 	CSII	 	NJ	 	 	4,000,000.00	 	 	 	2,411,551.90	 
	 	1728	 	 	 	1317	 	 	SALUS — SHORT HILLS SURGERY CENTER
	 	HSB	 	CSII	 	NJ	 	 	7,000,000.00	 	 	 	5,011,968.87	 
	 	1786	 	 	 	1396	 	 	STRATEGIC FINANCIAL SOLUTIONS LLC
	 	CFB	 	CSII	 	NV	 	 	31,000,000.00	 	 	 	30,000,000.00	 
	 	364	 	 	 	261	 	 	MULTIVEND, LLC
	 	CFB	 	CSII	 	NY	 	 	3,733,333.36	 	 	 	2,722,222.15	 
	 	1633	 	 	 	1230	 	 	SELECT MANAGEMENT RESOURCES
	 	SFB	 	CSII	 	GA	 	 	40,000,000.00	 	 	 	10,332,789.49	 
	 	1579	 	 	 	1156	 	 	SETECH, INC.
	 	HSB	 	CSII	 	TN	 	 	95,000,000.00	 	 	 	2,091,013.95	 
	 	1599	 	 	 	1179	 	 	SILVERLEAF RESORTS, INC.
	 	SFB	 	CSII	 	TX	 	 	50,000,000.00	 	 	 	9,545,679.42	 

Page 3 of 4

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Business	 	 	Entity	 	 	 	 	 	 	 	 	 	 
	Entity	 	 	Loan	 	 	Borrower	 	Unit	 	 	Pledged	 	 	State	 	 	Commitment	 	 	Pool Balance	 
	 	1620	 	 	 	1212	 	 	TMP DIRECTIONAL MARKETING, LLC
	 	CFB	 	CSII	 	NY	 	 	14,500,000.00	 	 	 	14,500,000.00	 
	 	1246	 	 	 	1232	 	 	TROVER SOLUTIONS, INC.
	 	HSB	 	CSII	 	KY	 	 	39,200,000.00	 	 	 	24,500,000.00	 
	 	1424	 	 	 	1043	 	 	BERGENSONS PROPERTY SERVICES, INC.
	 	CFB	 	CSII	 	CA	 	 	3,500,000.00	 	 	 	2,694,941.48	 
	 	1178	 	 	 	809	 	 	PREMIER SALONS, INC
	 	CFB	 	FUND	 	IT	 	 	4,000,000.00	 	 	 	1,883,035.52	 
	 	1922	 	 	 	1545	 	 	SSHS — METALDYNE CORPORATION
	 	HSB	 	CSII	 	MI	 	 	10,000,000.00	 	 	 	5,000,000.00	 
	 	1112	 	 	 	710	 	 	CORRPRO COMPANIES, INC.
	 	CFB	 	CSII	 	OH	 	 	15,500,000.00	 	 	 	1,793,248.93	 
	 	1703	 	 	 	1467	 	 	STP — BRIGHTEN (CHATEAU REALTY)
	 	HSB	 	CSII	 	PA	 	 	4,250,000.00	 	 	 	3,366,987.32	 
	 	1478	 	 	 	1131	 	 	GTS HOLDINGS, INC.
	 	CFB	 	CSII	 	NJ	 	 	9,000,000.00	 	 	 	2,628,594.69	 
	 	1465	 	 	 	1111	 	 	SUPPLEMENT SCIENCES, INC.
	 	CFB	 	CSII	 	WA	 	 	5,846,135.00	 	 	 	5,846,135.00	 
	 	1465	 	 	 	1112	 	 	SUPPLEMENT SCIENCES, INC.
	 	CFB	 	CSII	 	WA	 	 	3,714,305.00	 	 	 	3,714,305.00	 
	 	1474	 	 	 	1123	 	 	TECHSKILLS, LLC
	 	HSB	 	CSII	 	TX	 	 	5,000,000.00	 	 	 	1,124,500.94	 
	 	1721	 	 	 	1307	 	 	TELTRONICS, INC.
	 	HSB	 	CSII	 	FL	 	 	8,000,000.00	 	 	 	4,032,865.07	 
	 	1721	 	 	 	1309	 	 	TELTRONICS, INC.
	 	HSB	 	CSII	 	FL	 	 	2,749,999.98	 	 	 	2,749,999.98	 
	 	1767	 	 	 	1378	 	 	TERACO HOLDINGS, INC
	 	CFB	 	CSF	 	TX	 	 	3,000,000.00	 	 	 	1,350,000.00	 
	 	1767	 	 	 	1379	 	 	TERACO HOLDINGS, INC
	 	CFB	 	CSII	 	TX	 	 	7,125,000.00	 	 	 	7,125,000.00	 
	 	1767	 	 	 	1380	 	 	TERACO HOLDINGS, INC
	 	CFB	 	CSII	 	TX	 	 	5,373,000.00	 	 	 	5,373,000.00	 
	 	1138	 	 	 	771	 	 	UNICO HOLDINGS, INC.
	 	CFB	 	CSII	 	FL	 	 	4,000,000.00	 	 	 	1,667,685.00	 
	 	1807	 	 	 	1426	 	 	TIMBUK2 DESIGNS, INC.
	 	CFB	 	CSII	 	CA	 	 	5,000,000.00	 	 	 	5,000,000.00	 
	 	510	 	 	 	345	 	 	WICKS BROADCAST SOLUTIONS, LLC
	 	CFB	 	CSII	 	OR	 	 	10,000,000.00	 	 	 	2,803,389.47	 
	 	804	 	 	 	517	 	 	TOWER CLEANING SYSTEMS, INC. D/B/A U.S. MAINTENANC
	 	CFB	 	CSII	 	PA	 	 	15,000,000.00	 	 	 	2,269,406.77	 
	 	804	 	 	 	1233	 	 	TOWER CLEANING SYSTEMS, INC. D/B/A U.S. MAINTENANC
	 	CFB	 	CSII	 	PA	 	 	20,000,000.00	 	 	 	13,000,000.00	 
	 	1645	 	 	 	1308	 	 	TOWERCO, INC.
	 	CFB	 	CSII	 	NC	 	 	35,000,000.00	 	 	 	14,189,344.81	 
	 	1580	 	 	 	1159	 	 	CHARTER AMERIFIT ACQUISITION CORPORATION
	 	CFB	 	CSII	 	CT	 	 	23,417,500.00	 	 	 	9,165,597.19	 
	 	1877	 	 	 	1503	 	 	UCN, INC.
	 	HSB	 	CSII	 	UT	 	 	10,000,000.00	 	 	 	3,129,713.32	 
	 	742	 	 	 	474	 	 	SSHS — ACCESS WORLDWIDE COMMUNICATIONS, INC.
	 	HSB	 	CSII	 	FL	 	 	10,000,000.00	 	 	 	1,418,002.50	 
	 	1064	 	 	 	703	 	 	UNITED CONSUMER FINANCE, INC.
	 	SFB	 	CSII	 	MA	 	 	7,500,000.00	 	 	 	4,289,430.97	 
	 	1098	 	 	 	1144	 	 	UNITED SYSTEMS
	 	HSB	 	CSII	 	CO	 	 	6,000,000.00	 	 	 	3,920,960.67	 
	 	1874	 	 	 	1498	 	 	US MILLS, INC
	 	HSB	 	CSII	 	MA	 	 	3,000,000.00	 	 	 	1,279,370.38	 
	 	1450	 	 	 	1089	 	 	ALPHA PACKAGING, INC.
	 	CFB	 	CSII	 	MO	 	 	8,000,000.00	 	 	 	1,254,969.31	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,970,417,889.68	 	 	 	782,254,764.44	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	139	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Page 4 of 4

 

 

Exhibit H

to Sale and

Servicing Agreement

FORM OF MONTHLY SERVICER REPORT

[TO BE PROVIDED IN MS EXCEL FORMAT]

 

 

CAPITALSOURCE FINANCE LLC

SERVICER’S CERTIFICATE

CAPITALSOURCE COMMERICAL LOAN TRUST 2004-1

ASSET-BACKED NOTES SERIES 2006-1, CLASS A,

CLASS B, CLASS C, CLASS D , CLASS E, CLASS F NOTES

	 	 	 	 	 	 	 	 	 
	Due Period Ending on:
	 	 	 	 	 	 	 	 
	Record Date:
	 	 	 	 	 	 	 	 
	Determination Date:
	 	 	 	 	 	 	 	 
	Remittance Date:
	 	 	 	 	 	 	 	 
	Days during Interest Accrual Period:
	 	 	 	 	 	 	 	 
	Year Basis
	 	 	 	 	 	 	 	 
	One-Month LIBOR
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	AGGREGATE OUTSTANDING LOAN BALANCE
	 	 	 	 	 	 	 	 
	Aggregate Outstanding Loan Balance,
beginning of Due Period
	 	 	 	 	 	 	 	 
	Less: Scheduled Principal Payments
	 	 	 	 	 	 	 	 
	Less: Curtailments
	 	 	 	 	 	 	 	 
	Less: Payoffs
	 	 	 	 	 	 	 	 
	Less: Aggregate Outstanding Loan Balance of Loans
that became Charged-Off Loans during the current
Due Period
	 	 	 	 	 	 	 	 
	Less: Repurchased or Substituted
	 	 	 	 	 	 	 	 
	Add: Aggregate Outstanding Loan Balance of Substitute
Loan(s)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Aggregate Outstanding Loan Balance, end of Due Period	 	 	0.00	 	OK

	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	AGGREGATE PRINCIPAL BALANCE OF NOTES (post distribution)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	% of O/S Notes

	Class A Principal Amount, end of Interest Accrual Period
	 	 	—	 	 	 	0.00	%
	 
	 	 	 	 	 	 	 
	Class B Principal Amount, end of Interest Accrual Period
	 	 	—	 	 	 	0.00	%
	 
	 	 	 	 	 	 	 
	Class C Principal Amount, end of Interest Accrual Period
	 	 	—	 	 	 	0.00	%
	 
	 	 	 	 	 	 	 
	Class D Principal Amount, end of Interest Accrual Period
	 	 	—	 	 	 	0.00	%
	 
	 	 	 	 	 	 	 
	Class E Principal Amount, end of Interest Accrual Period
	 	 	—	 	 	 	0.00	%
	 
	 	 	 	 	 	 	 
	Class F Principal Amount, end of Interest Accrual Period
	 	 	—	 	 	 	0.00	%
	 
	 	 	 	 	 	 	 
	Aggregate Outstanding Principal Balance
	 	 	—	 	 	 	0.00	%
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	ADDITIONAL PRINCIPAL AMOUNT
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	DELINQUENT LOANS
	 	 	 	 	 	 	 	 
	Asset Based Loans
	 	 	 	 	 	 	 	 
	1 DPD
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	All Other Loans
	 	 	 	 	 	 	 	 
	1-29 DPD
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	30-59 DPD
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	60-89 DPD
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	90-119 DPD
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	120+ DPD
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Loans with reductin in interest rate causing breach WALS test
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	CHARGE -OFF LOANS
	 	 	 	 	 	 	 	 
	Cumulative Aggregate Outstanding Loan Balance of Charged-Off Loans, beginning of Due Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Aggregate Outstanding Loan Balance of Charged-Off Loans that became Charged-Off Loans during the current Due Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Cumulative Aggregate Outstanding Loan Balance of Charged-Off Loans, end of Due Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Loans Rated “D” by S&P
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	RESERVE FUND
	 	 	 	 	 	 	 	 
	Reserve Fund balance, beginning of Due Period
	 	 	—	 	 	 	 	 
	Required Reserve Amount — the sum of
	 	 	 	 	 	 	 	 
	(i) Three times the then current Class A, Class B, Class C, Class D and Class E Interest Amounts
	 	 	—	 	 	 	 	 
	(ii) The Outstanding Loan Balance of each Delinquent Loan.
	 	 	—	 	 	 	 	 
	Total
	 	 	—	 	 	 	 	 
	Deposit from (release to) waterfall
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Reserve Fund balance, end of Due Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Servicing Fee
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Unpaid Servicing Fee from prior Due Periods
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Total Servicing Fee due
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Servicer Principal Advances
	 	 	—	 	 	 	 	 
	Principal Collections
	 	 	—	 	 	 	 	 
	Prepayments
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Total Principal Collections/Advances
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Servicer Interest Advances
	 	 	—	 	 	 	 	 
	Interest Collections
	 	 	—	 	 	 	 	 
	Investment Earnings
	 	 	—	 	 	 	 	 
	Net Trust Hedge receipts
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Total Interest Collections/Advances
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Class A Outstanding Principal Balance, beginning of Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class B Outstanding Principal Balance, beginning of Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class C Outstanding Principal Balance, beginning of Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class D Outstanding Principal Balance, beginning of Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class E Outstanding Principal Balance, beginning of Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class F Outstanding Principal Balance, beginning of Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Aggregate Outstanding Principal Balance, beginning of Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Class A Note Interest Rate
	 	 	0.00000	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class B Note Interest Rate
	 	 	0.00000	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class C Note Interest Rate
	 	 	0.00000	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class D Note Interest Rate
	 	 	0.00000	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class E Note Interest Rate
	 	 	0.00000	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Class A Interest Shortfall from previous Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class B Interest Shortfall from previous Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class C Interest Shortfall from previous Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class D Interest Shortfall from previous Interest Accrual Period
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class E Interest Shortfall from previous Interest Accrual Period
	 	 	—	 	 	 	 	 
	Class A Outstanding Principal Balance as a percent of Aggregate Outstanding Principal Balance
	 	 	0.00	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class B Outstanding Principal Balance as a percent of Aggregate Outstanding Principal Balance
	 	 	0.00	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class C Outstanding Principal Balance as a percent of Aggregate Outstanding Principal Balance
	 	 	0.00	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class D Outstanding Principal Balance as a percent of Aggregate Outstanding Principal Balance
	 	 	0.00	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class E Outstanding Principal Balance as a percent of Aggregate Outstanding Principal Balance
	 	 	0.00	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Class F Outstanding Principal Balance as a percent of Aggregate Outstanding Principal Balance
	 	 	0.00	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PORTFOLIO RATE / YIELD CALCULATION
	 	 	 	 	 	 	 	 
	Interest Collections, balance as of end of Due Period (annualized)
	 	 	—	 	 	 	 	 
	Aggregate Principal Amount of Class A, Class B, Class C , Class D and Class E as of last day of Due Period
	 	#REF! 
	 	 	 	 
	Portfolio Rate, for current Due Period
	 	 	0.0000	%	 	 	 	 
	Weighted Average Interest Rate
	 	 	0.0000	%	 	 	 	 
	Portfolio Yield, current period
	 	 	0.0000	%	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	CONCENTRATION CRITERIA
	 	 	 	 	 	 	 	 
	Sum of the Outstanding Loan Balances of Obligors in the same industry (by at least 3 digit NAICS Code)
expressed as a Percentage
	 	 	0.0	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Sum of the Outstanding Loan Balances of Obligors in the same State expressed as a Percentage
	 	 	0.0	%	 	 	 	 
	 
	 	 	 	 	 	 	 

 

 

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Wells	 	S&P	 	Capital Source	 	Note Holders	 	 	 	 	 	 	 	 	Note Holders	 
	PRIOR TO AN EVENT OF DEFAULT, SERVICER DEFAULT OR ACCELERATED AMORTIZATION EVENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Prior to an Event of Default, a Servicer Default, an Accelerated Amortization Event,
Collections on deposit in the Principal and Interest Account, balances as of end of Due Period
	 	 	 	 	 	Due	 	Paid	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	All Investment Earnings and losses on funds held in the Trust Accounts
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve Account balance
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total available for distribution
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Shortfall	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1 Amounts owed to the Hedge Counterparties (other than Hedge Breakage Cost)
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	2 Pro rata, based on the amounts owed to such Persons under this item two, subject to certain limitations, amounts to Indenture Trustee, Backup Servicer, Owner Trustee,
Successor Servicer (if any), and Irish Stock Exchange Fees (if applicable) (excluded amounts related to indemnification)
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	3 From the Collections received on the specific Loans for which Scheduled Payment Advances were made, reimbursement for the amount
of any Scheduled Payment Advances relating such Loans
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	4 (1) to S&P an amount equal to any accrued and unpaid fees due to S&P
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(2) to the Servicer an amount equal to its accrued and unpaid Servicing Fee minus amounts paid to S&P pursuant to this clause
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	5 Class A Interest Amount plus any Class A Interest Shortfall (and any interest thereon) and
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	6 Class B Interest Amount plus any Class B Interest Shortfall (and any interest thereon)
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	7 Class C Interest Amount plus any Class C Interest Shortfall (and any interest thereon)
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	8 Class D Interest Amount plus any Class D Interest Shortfall (and any interest thereon)
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	9 Class E Interest Amount plus any Class E Interest Shortfall (and any interest thereon)
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	10 Any amount to the Reserve Fund which will equal (3) times the sum of the Class A, B, C, D and E Interest Amounts for current remittance date
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 
	a) Available Principal Distributable (amount remaining after 9)
	 	 	 	 	 	 	—	 	 	#REF!	 	#REF!	 	 	—	 	 	 	—	 	 	 	—	 	 	#REF!	 	 	 	 	 	#REF!
	11 (i) on each Remittance Date prior to the occurrence of any Sequential Pay Date, to the Holders of the Notes as follows:
	 	 	 	 	 	 	 	 	 	 	 	 	 	Remaining Balance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(a) if on such Remittance Date no Principal Distributable Shortfall exists, to the Holders of the Class A Notes, the Class B Notes, the Class C Notes
the Class D Notes, the Class E Notes and the Class F Note, pro rata, in an amount up to the Total Principal Distributable; and
	 	Class A	 	#REF!	 	 	 	 	 	-        #REF!	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Class B	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 
	 
	 	Class C	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 
	 
	 	Class D	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 
	 
	 	Class E	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 
	 
	 	Class F	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	(b) if on such Remittance Date a Principal Distributable Shortfall exists, to the Holders of the Class A Notes, the Class B Notes, the Class C Notes,
the Class D Notes and the Class E Notes, pro rata in an amount up to the Total Principal Distributable until each such class of Offered Notes is paid in full, and
second to the Class F Notes in an amount up to the Total Principal Distributable until the Class F Notes are paid in full;
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(ii) on each Remittance Date on and after the occurrence of a Sequential Pay Event (other than an Event of Default, a Servicer Default or an
Accelerated Amortization Event), unless, solely in the case of a Sequential Pay Event of the type specified in clause (f) of the definition thereof, the Rating Agency Condition
shall have been satisfied with respect to the payment of principal of the Notes being made in accordance with subclause (i)(a) under this item 10, sequentially to the Holders of the Notes as follows
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(a) to the Holders of the Class A Notes paid in full, in an amount up to the Total Principal Distributable;
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(b) to the Holders of the Class B Notes, the Class B Accrued Payable if any
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(c) to the Holders of the Class B Notes until paid in full, in an amount up to the remaining Total Principal Distributable after payments to the Class A
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Notes under this Item 11
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(d) to the Holders of the Class C Notes, the Class C Accrued Payable if any
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(e) to the Holders of the Class C Notes until paid in full, in an amount up to the remaining Total Principal Distributable after payments to the Class A
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	Notes, and the Class B Notes aunder this Item 11
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(f) to the Holders of the Class D Notes, the Class D Accrued Payable if any
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(g) to the Holders of the Class D Notes until paid in full, in an amount up to the remaining Principal Distributable after payments to the Class A Notes,
the Class B Notes and the Class C Notes under this Item 11
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(h) to the Holders of the Class E Notes, the Class E Accrued Payable if any
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(i) to
the Holders of the Class E Notes until paid in full, in an amount up to the remaining Principal Distributable after payments to the Class A Notes, the Class B Notes, the Class C Notes,and the Class D Notes under this Item 11
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	12 To the Reserve Fund until the amount therein equals three (3) time s the sum of the Class A, Class B, Class C, Class D and Class E Interest
Amounts for the next Remittance Date plus the Outstanding Loan Balance of each Delinquent Loan
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	13 To the
extent not paid by the Originator, any amounts due in respect of the listing of the Class A, the Class B Notes, the Class C Notes the Class D Notes and the Class E Notes on the Irish Stock Exchange
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	14 To the extent not reimbursed under item three above, reimbursement for the amount of any Scheduled Payment Advances relating to such Loans
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	15 Hedge Breakage Costs
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	16 Other amounts to the Indenture Trustee, Backup Servicer, Hedge Counterparty and Owner Trustee plus Additional Servicing Fee
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	17 To the Holder of the Class F Notes, the remaining Principal Distributable
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	18 To the Owner Trustee for payment to the holdes of the Certificates, any excess remaining after application of amounts under item 17
	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	AFTER AN EVENT of DEFAULT, SERVICER DEFAULT OR ACCELERATED AMORTIZATION EVENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Following an Event of Default, Servicer Default, an Accelerated Amortization Event
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	Collections on deposit in the Principal and Interest Account,
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance as of end of Due Period
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Available for Distribution
	 	 	 	 	 	 	—	 	 	 	—	 	 	Remaining	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Balance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1 Amounts
owed to Hedge Counterparties (other than Hedge Breakage Costs and after an Event of Default, Hedge Breakage Costs not to exceed $500,000)
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	2 Pro rata,
based on the amounts owed to such Persons under this item 2, subject to applicable limitations, amounts to Indenture Trustee, Backup Service, Owner Trustee, Successor Servicer (if any), and Irish Stock Exchange Fees (if applicable) (excluded amounts related to indemnification)
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	3 From the Collections received on the specific loans or which Scheduled Payment Advances were made, reimbursement for the amount of any Scheduled Payment Advances relating to such loans
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	4 (1) to S&P an amount equal to any accrued and unpaid fees due to S&P
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(2) to the Servicer an amount equal to its accrued and unpaid Servicing Fee minus amounts paid to S&P pursuant under this item 4
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	5 Class A Interest Amount plus any Class A Interest Shortfall (and any interest thereon)
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	6 Class B Interest Amount plus any Class B Interest Shortfall
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	7 Class C Interest Amount plus any Class C Interest Shortfall
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	8 Class D Interest Amount plus any Class D Interest Shortfall
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	9 Class E Interest Amount plus any Class E Interest Shortfall
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	10 (a) to the Holders of the Class A Notes until the Outstanding Principal Balance of the Class A Notes is reduced to zero;
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(b) to the Holders of the Class B Notes, the Class B Accrued Payable if any
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(c) to the Class B Notes until Outstanding Principal Balance is reduced to zero;
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(d) to the Holders of the Class C Notes, the Class C Accrued Payable if any
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(e) to the Class C Notes until Outstanding Principal Balance is reduced to zero;
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(f) to the Holders of the Class D Notes, the Class D Accrued Payable if any
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(g) to the Class D Notes until Outstanding Principal Balance is reduced to zero;
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	(h) to the Holders of the Class E Notes, the Class E Accrued Payable if any
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(i) to the Class E Notes until Outstanding Principal Balance is reduced to zero;
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	11 To the extent not reimbursed under paragraph 3 above, reimbursement for the amount of any Scheduled Payment Advances relating to interest on such Loans
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	12 Hedge Breakage Costs
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	13 Other amounts related indemnification to the Indenture Trustee, Backup Servicer, Hedge Counterparty and Owner Trustee plus Additional Servicing Fee
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	14 To the extent not paid above, any amounts due in respect to listing on the Irish Stock Exchange
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	15 To the Holders of the Class F Note, the Total Principal Distributable
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 
	16 To the Owner Trustee for payment to the holders of the Certificates, any remaining Collections
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 

	 	 	 	 	 
	Signature

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title
	 	 	 	 
	 

	 	 	 	 

 

 

CAPITALSOURCE FINANCE LLC

SERVICER’S CERTIFICATE 
COMMERCIAL
LOAN BACKED NOTES 
SERIES 2006-1
January 0, 1900

SUBSTITUTIONS TO DATE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2006-1 Original	 	 	2006-1 Current	 	 	 	 	 	 	 	 	 	 
	 	 	Name	 	 	Close Date	 	 	Maturity Date	 	 	Amount	 	 	Amount	 	 	Collateral Type	 	 	Period of Substitution	 	 	Reason for Substitution	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Percentage of Original Aggregate Loan Balance

0.00%

DELINQUENT LOANS

Asset-Based Loans

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2006-1 Original	 	 	2006-1 Current	 	 	 	 	 	 	 	 	 	 
	 	 	Name	 	 	Close Date	 	 	Maturity Date	 	 	Amount	 	 	Amount	 	 	Collateral Type	 	 	Period of Delinquency	 	 	Days Past Due	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

All Other Loan Types

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2006-1 Original	 	 	2006-1 Current	 	 	 	 	 	 	 	 	 	 
	 	 	Name	 	 	Close Date	 	 	Maturity Date	 	 	Amount	 	 	Amount	 	 	Collateral Type	 	 	Period of Delinquency	 	 	Days Past Due	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

CHARGED-OFF LOANS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2006-1 Original	 	 	2006-1 Current	 	 	 	 	 	 	 	 	 	 	Recoveries on Charged-Off Loans to	 
	 	 	Name	 	 	Close Date	 	 	Maturity Date	 	 	Amount	 	 	Amount	 	 	Collateral Type	 	 	Period of Charge-Off	 	 	Date	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

LOANS SUBJECT TO SPECIFIED AMENDMENTS (1)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2006-1 Original	 	 	2006-1 Current	 	 	 	 	 	 	 	 	 	 
	 	 	Name	 	 	Close Date	 	 	Maturity Date	 	 	Amount	 	 	Amount	 	 	Collateral Type	 	 	Period of Amendment	 	 	Reason for Restructure	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	(1)	 	Provide in separate attachment in tabular format; Coupon
Prior to Amendment, Coupon Post Amendment Amortization
Schedule Prior to Amendment; Amortization Schedule
Post Amendment ; Maturity Date Prior to Amendment; Maturity
Date Post Amendment

 

SERVICER ADVANCES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	2006-1 Original	 	2006-1 Current	 	 	 	 	 	 
	 	 	Name	 	Close Date	 	Maturity Date	 	Amount	 	Amount	 	Collateral Type	 	Number of Days Outstanding	 	Amount of Servicer Advance
	1

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

OVERADVANCES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2006-1 Original	 	 	2006-1 Current	 	 	 	 	 	 	 	 	 	 
	 	 	Name	 	 	Close Date	 	 	Maturity Date	 	 	Amount	 	 	Amount	 	 	Collateral Type	 	 	Number of Days Outstanding	 	 	Amount of Overadvance	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

LOAN RATING CHANGES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	2006-1 Original	 	 	2006-1 Current	 	 	 	 	 	 	 	 	 	 
	Name	 	Close Date	 	 	Maturity Date	 	 	Amount	 	 	Amount	 	 	Collateral Type	 	 	Original Loan Rating	 	 	Revised Loan Rating	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

As of the date hereof, there has been no change to the ratings scale or
underlying methodology of the Loan Rating system set forth in the Credit and
Collection Policy other than as has been previously provided to each Rating
Agency.

	 	 	 	 	 
	Signature

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title
	 	 	 	 
	 

	 	 	 	 

 

 

	 	 	 	 	 
	Distribution by NAICS Code	 	Distribution by States	 
	236
	 	AL	 
	311
	 	AZ	 
	313
	 	CA	 
	314
	 	CO	 
	315
	 	CT	 
	322
	 	DE	 
	323
	 	FL	 
	325
	 	GA	 
	326
	 	IL	 
	332
	 	IN	 
	336
	 	IT	 
	337
	 	KS	 
	339
	 	KY	 
	423
	 	MA	 
	424
	 	MD	 
	442
	 	ME	 
	454
	 	MI	 
	488
	 	MN	 
	511
	 	MO	 
	515
	 	NC	 
	517
	 	ND	 
	522
	 	NH	 
	524
	 	NJ	 
	531
	 	NV	 
	532
	 	NY	 
	541
	 	OH	 
	561
	 	OR	 
	562
	 	PA	 
	611
	 	RI	 
	621
	 	SC	 
	622
	 	SD	 
	623
	 	TN	 
	713
	 	TX	 
	721
	 	UT	 
	811
	 	VA	 
	 
	 	 	 
	812
	 	WA	 
	 
	 	 	 
	—
	 	—	 
	 
	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	Prior Month	 	 	Current Month	 
	 	 	 
	Asset based loans
	 	$	—	 	 	 	 	 
	Non-asset based loans
	 	 	—	 	 	 	 	 
	 	 	 
	 
	 	$	—	 	 	$	—	 
	 	 	 

 

 

Total CS Portfolio

	 	 	 	 	 	 	 	 	 
	Risk Rating	 	Total Portfolio % of Obligors	 	 	% of Par Outstanding	 
	       1
	 	 	 	 	 	 	 	 
	       2
	 	 	 	 	 	 	 	 
	       3
	 	 	 	 	 	 	 	 
	       4
	 	 	 	 	 	 	 	 
	       5
	 	 	 	 	 	 	 	 
	       6
	 	 	 	 	 	 	 	 

Performing Loans

Loans Delinquent

Loan Charge-Offs

 

 

CapitalSource Loan Tape 2006-1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Original	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Risk	 	 	Current Risk	 	 	Current Risk	 	 	 	 
	Loan #	 	Name on Note	 	 	State	 	 	NAICS	 	 	Initial Pool Balance	 	 	Pool Balance	 	 	Obligor Balance	 	 	Loan Collateral	 	 	Lien	 	 	Type	 	 	Loan Category	 	 	Closing	 	 	Maturity	 	 	Pricing Index	 	 	Interest Frequency	 	 	Coupon	 	 	Industry	 	 	Rating	 	 	Rating	 	 	Rating	 	 	Status	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Asset Based
   All
Other

 

 

SERVICER’S
MONTHLY COMPUTER TAPE FORMAT

The computer tape to be delivered in electronic format shall contain the following information for
each Loan transferred to the Issuer as of the related Transfer Date:

	1.	 	Loan Number
	 
	2.	 	State
	 
	3.	 	Industry
	 
	4.	 	Loan Category (i.e., asset based financed, healthcare
secured, senior cash flow, subordinate cash flow or Pooled Obligor)
	 
	5.	 	Total Commitment
	 
	6.	 	Principal Balance
	 
	7.	 	Lending Type
	 
	8.	 	Loan Type
	 
	9.	 	Origination Date
	 
	10.	 	Maturity Date
	 
	11.	 	Pricing Index
	 
	12.	 	Margin
	 
	13.	 	Interest Rate
	 
	14.	 	Any additional information reasonably requested by the Indenture Trustee
	 
	15.	 	Current Loan Rating of the Loan
	 
	16.	 	Original Loan Rating of the Loan
	 
	17.	 	Statement Date
	 
	18.	 	Prior Month Risk Rating
	 
	19.	 	Current Month Risk Rating
	 
	20.	 	Initial Month Risk Rating

 

 

	21.	 	Cash & Marketable Security*
	 
	22.	 	Total Current Assets*
	 
	23.	 	Total Intangible Assets*
	 
	24.	 	Total Assets*
	 
	25.	 	Total Current Liabilities*
	 
	26.	 	Total Debt*
	 
	27.	 	Retained Earnings*
	 
	28.	 	Net Sales*
	 
	29.	 	Cost of Goods Sold*
	 
	30.	 	EBIT*
	 
	31.	 	Total Interest Expense*
	 
	32.	 	Net Income*
	 
	33.	 	Depreciation & Amortization*
	 
	34.	 	Electronic Excel file for the Fitch CRS model*

For Total CS Portfolio

	 	 	 	 	 	 	 	 	 
	Risk Rating	 	 	Total Portfolio % of Obligors	 	% of Par Outstanding	 
	 	 	 	 	1
	 	 	 	 
	 	 	 	 	2
	 	 	 	 
	 	 	 	 	3
	 	 	 	 
	 	 	 	 	4
	 	 	 	 
	 	 	 	 	5
	 	 	 	 

Performing Loans

Loans Delinquent

Loan Charge-Offs

 

			
	*	 	To the extent reasonably available, to be updated on a quarterly basis.

 

 

Exhibit I

to Sale and

Servicing Agreement

FORM OF SUBSEQUENT TRANSFER AGREEMENT

     SUBSEQUENT
TRANSFER AGREEMENT (the “Agreement”), dated as of [___] [___], 20[___], by
and among CAPITALSOURCE COMMERCIAL LOAN TRUST 2006-1, as the Issuer
(the “Issuer”), CAPITALSOURCE
COMMERCIAL LOAN LLC, 2006-1, a Delaware limited liability company, as the Trust Depositor (the
“Trust Depositor”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as the Indenture Trustee (the
“Indenture Trustee”) and as the Backup Servicer (the
“Backup Servicer”), and CAPITALSOURCE FINANCE
LLC, a Delaware limited liability company, as the Servicer (the
“Servicer”) and as the Originator
(the “Originator”), is entered into pursuant to the Sale and Servicing Agreement referred to below.

WITNESSETH:

     WHEREAS, the Issuer, the Trust Depositor, the Servicer, the Originator, the Indenture Trustee,
and the Backup Servicer are parties to the Sale and Servicing Agreement, dated as April 11, 2006
(such agreement as amended, modified, waived, supplemented or restated from time to time, the “Sale
and Servicing Agreement”);

     WHEREAS, pursuant to the Sale and Servicing Agreement, the Trust Depositor wishes to sell the
Substitute Loans to the Issuer, and the Issuer wishes to purchase the same, for the consideration
described in the Sale and Servicing Agreement; and

     WHEREAS, the Servicer has timely delivered an Addition Notice related to such conveyance as
required in the Sale and Servicing Agreement.

     NOW, THEREFORE, the parties hereto agree as follows:

Defined Terms.

     Capitalized terms used herein shall have the meanings ascribed to them in the Sale and
Servicing Agreement unless otherwise defined herein.

“Subsequent
Cutoff Date” shall mean, with respect to the Substitute Loans transferred hereby,
[___] [___], 20[___].

“Substitute
Loans” shall mean, for purposes of this Agreement, the Substitute Loans listed in the
Subsequent List of Loans attached hereto as Exhibit A.

“Subsequent
Transfer Date” shall mean, with respect to the Substitute Loans transferred hereby,
[___] [___], 20[___].

 

 

Subsequent List of Loans.

     The
Subsequent List of Loans attached hereto as Exhibit A is an amendment to the initial List
of Loans attached as Exhibit G to the Sale and Servicing Agreement, as contemplated in the
definition of List of Loans set forth therein. The Subsequent List of Loans separately identifies
the Substitute Loans to be transferred pursuant to this Agreement on the Subsequent Transfer Date,
and also further separately identifies the related Loan or Loans with respect to which a
Substitution Event has occurred and which Loans are being deleted from the List of Loans by virtue
of the delivery of the Subsequent List of Loans.

Transfer of [Substitute Loans][Additional Loans].

     (a) Subject to and upon the terms and conditions set forth in Section 2.04 of the Sale and
Servicing Agreement and this Agreement, the Trust Depositor hereby sells, transfers, assigns, sets
over and otherwise conveys to the Issuer all of the Trust Depositor’s rights, title and interest in
and to the following, including but not limited to, all accounts, cash and currency, chattel paper,
electronic chattel paper, tangible 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 the following:

     (i) the Substitute Loans listed in the related Addition Notice, all payments paid in
respect thereof and all monies due, to become due or paid in respect thereof accruing on and
after the related Subsequent Cut–Off Date and all Liquidation Proceeds and recoveries
thereon, in each case as they arise after the related Subsequent Cut–Off Date, but not
including the Retained Interest or Interest Collections received prior to the Subsequent
Cut–Off Date;

     (ii) all security interests and liens and Collateral subject thereto from time to time
purporting to secure payment by Obligors under such Loans;

     (iii) all guaranties, indemnities and warranties, and other agreements or arrangements
of whatever character from time to time supporting or securing payment of such Loans;

     (iv) the Trust Accounts, each Obligor Lock–Box, each Obligor Lock–Box Account, each
Lock–Box, each Lock–Box Account, and together with all cash and investments in each of the
foregoing;

     (v) all collections and records (including computer records) with respect to the
foregoing;

     (vi) all documents relating to the Loan Files; and

     (vii) all income, payments, proceeds and other benefits of any and all of the
foregoing.

 

 

     (b) It is the intention of the Trust Depositor and Owner Trustee that the transfer
contemplated by this Agreement shall constitute an absolute assignment and sale of the Substitute
Loans from the Trust Depositor to the Issuer, conveying good title thereto free and clear of any
Liens (other than Permitted Liens).

Representations and Warranties of the Trust Depositor.

     (a) The Trust Depositor hereby represents and warrants to the Issuer that the representations
and warranties of the Trust Depositor required by Section 2.04 of the Sale and Servicing Agreement
are true and correct as of the date such representations and warranties are required to be made.

     (b) The Trust Depositor hereby represents and warrants that (a) the Outstanding Loan Balance
of the Substitute Loans listed on the Subsequent List of Loans and conveyed to the Trust Depositor
pursuant to this Agreement is $[___] as of the Subsequent Cutoff Date, and (b) the
conditions set forth in Section 2.04 of the Sale and Servicing Agreement have been satisfied as of
the Subsequent Transfer Date.

Ratification of Agreement.

     As supplemented by this Agreement, the Sale and Servicing Agreement is in all respects
ratified and confirmed and, as so supplemented by this Agreement, shall be read, taken and
construed as one and the same instrument.

Counterparts.

     This Agreement may be executed by facsimile signatures and in one or more counterparts (and by
different parties in separate counterparts), each of which shall be an original but all of which
together shall constitute one and the
same instrument.

Governing Law.

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

Authorization of Servicer.

     Pursuant to the terms of the Sale and Servicing Agreement, the Servicer has the power and
authority to execute and deliver this Agreement on behalf of the Issuer.

* * * * * *

 

 

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

	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN
	 	 	LLC, 2006-1, as the Trust Depositor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	CAPITALSOURCE FINANCE LLC, as the
	 	 	Originator and as the Servicer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN

TRUST 2006-1
	 
	 	 	 	 
	 

	 	By:
	 	CapitalSource Finance LLC, as Servicer
	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL
	 	 	ASSOCIATION, not in its individual capacity but solely as the Indenture
Trustee and as Backup Servicer
	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

Exhibit J

to Sale and

 Servicing Agreement

FORM OF SUBSEQUENT PURCHASE AGREEMENT

     SUBSEQUENT
PURCHASE AGREEMENT (the “Agreement”), dated as of [___________] [___], 20[___], by
and between CAPITALSOURCE COMMERCIAL LOAN LLC, 2006-1, a Delaware limited liability company (the
“Trust Depositor”), and CAPITALSOURCE FINANCE LLC, a Delaware limited liability company
(“CapitalSource” or the “Originator”), entered into pursuant to the Loan Sale Agreement referred to
below.

WITNESSETH:

     WHEREAS, the Trust Depositor and the Originator are parties to the Commercial Loan Sale
Agreement, dated as of April 11, 2006 (such agreement as amended, modified, waived, supplemented or
restated from time to time, the “Loan Sale Agreement”);

     WHEREAS, pursuant to the Loan Sale Agreement, the Originator wishes to sell the Substitute
Loans to the Trust Depositor, and the Trust Depositor wishes to purchase the same, for the purchase
price set forth in Section 3 below; and

     WHEREAS, the Originator has timely delivered an Addition Notice related to such conveyance as
required in the Loan Sale Agreement.

     NOW, THEREFORE, the Originator and the Trust Depositor hereby agree as follows:

Defined Terms.

     Capitalized terms used herein shall have the meanings ascribed to them in the Sale and
Servicing Agreement unless otherwise defined herein.

     “Subsequent Cutoff Date” shall mean, with respect to the Substitute Loans transferred hereby,
[___________] [___], 20[___].

     “Substitute Loans” shall mean, for purposes of this Agreement, the Substitute Loans listed in the
Subsequent List of Loans attached hereto as Exhibit A.

     “Subsequent Transfer Date” shall mean, with respect to the Substitute Loans transferred hereby,
[___________] [___], 20[___].

Subsequent List of Loans.

     The Subsequent List of Loans attached hereto as Exhibit A is an amendment to the initial List
of Loans attached as Exhibit G to the Sale and Servicing Agreement, as contemplated in the
definition of List of Loans set forth therein. The Subsequent List of Loans separately identifies
(by attached schedule, or marking or other effective identifying designation) the Substitute Loans
to be transferred pursuant to this Agreement on the Subsequent Transfer Date, and also further

 

 

separately identifies (by attached schedule, or marking or other effective identifying
designation) the related Loan or Loans with respect to which a Substitution Event has occurred and
which Loans are being deleted from the List of Loans by virtue of the delivery of the Subsequent
List of Loans.

Transfer of Substitute Loans.

     (a) Subject to and upon the terms and conditions set forth in Section 2.04 of the Loan Sale
Agreement and
this Agreement, the Originator hereby sells, transfers, assigns, sets over and otherwise
conveys to the Trust Depositor, in consideration of the Trust Depositor’s (x) payment of $
[___________] as the purchase price therefor, representing the prepayment proceeds received with
respect to the related Substitution Event (if applicable) or (y) release and redelivery to the
Originator of the related Loan Assets with respect to which a Substitution Event has occurred (if
applicable), all of the Originator’s rights, title and interests in and to the following, including
but not limited to, all accounts, cash and currency, chattel paper, electronic chattel paper,
tangible 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 the following:

     (i) the Substitute Loans listed in the related Addition Notice, all payments paid in
respect thereof and all monies due, to become due or paid in respect thereof accruing on and
after the related Subsequent Cut–Off Date and all Liquidation Proceeds and recoveries
thereon, in each case as they arise after the related Subsequent Cut–Off Date, but not
including the Retained Interest or Interest Collections received prior to the Subsequent
Cut–Off Date;

     (ii) all security interests and liens and Collateral subject thereto from time to time
purporting to secure payment by Obligors under such Loans;

     (iii) all guaranties, indemnities and warranties, and other agreements or arrangements
of whatever character from time to time supporting or securing payment of such Loans;

     (iv) the Trust Accounts, each Obligor Lock–Box, each Obligor Lock–Box Account, each
Lock–Box, each Lock–Box Account, and together with all cash and investments in each of the
foregoing;

     (v) all collections and records (including computer records) with respect to the
foregoing;

     (vi) all documents relating to the Loan Files; and

     (vii) all income, payments, proceeds and other benefits of any and all of the
foregoing.

     (b) It is the intention of the Originator and the Trust Depositor that the transfer
contemplated by this Agreement shall constitute a sale of the Substitute Loans from the

 

 

Originator to the Trust Depositor, conveying good title thereto free and clear of any Liens
(other than Permitted Liens), and that the Substitute Loans shall not be part of the Originator’s
estate in the event of the filing of a bankruptcy petition by or against the Originator under any
bankruptcy or similar law.

Representations and Warranties of the Originator.

     (a) The Originator hereby represents and warrants to the Trust Depositor that the
representations and warranties of the Originator required by [Section 2.04][Section 2.05] of the
Loan Sale Agreement are true and correct as of the date such representations and warranties are
required to be made.

     (b) The Originator hereby represents and warrants that (i) the Outstanding Loan Balance of the
Substitute Loans listed on the Subsequent List of Loans and conveyed to the Trust Depositor
pursuant to this Agreement is $[___] as of the Subsequent Cutoff Date, and (ii) the
conditions set forth in Section 2.04 of the Loan Sale Agreement have been satisfied as of the
Subsequent Transfer Date.

Ratification of Agreement.

     As supplemented by this Agreement, the Loan Sale Agreement is in all respects ratified and
confirmed and, as so supplemented by this Agreement, shall be read, taken and construed as one and
the same instrument.

Counterparts.

     This Agreement may be executed by facsimile signatures and in one or more counterparts (and by
different parties in separate counterparts), each of which shall be an original but all of which
together shall constitute one and the same instrument.

Governing Law.

     This Agreement shall be construed in accordance with the laws of the State of New York, and
the obligations, rights and remedies of the parties hereunder shall be determined in accordance
with such laws.

* * * * * *

 

 

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

	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN
	 	 	LLC, 2006-1
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	CAPITALSOURCE FINANCE LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

Exhibit K

to Sale and

Servicing Agreement

CREDIT AND COLLECTION POLICY

(SEE ATTACHED)

 

 

CapitalSource Finance LLC

CREDIT POLICY MANUAL

For Internal Use Only

 

 

CREDIT POLICY MANUAL

TABLE OF CONTENTS

	 	 	 
	INTRODUCTION
	 	I
	 
	 	 
	LENDING GUIDELINES
	 	II
	 
	 	 
	ORGINATION
	 	III
	 
	 	 
	UNDERWRITING STANDARDS
	 	IV
	 
	 	 
	PORTFOLIO MONITORING
	 	V
	 
	 	 
	LOAN RATING/SERVICING
	 	VI
	 
	 	 
	FILE MAINTENANCE/RECORD KEEPING
	 	VII
	 
	 	 
	APPENDICES
	 	 

 

 

INTRODUCTION

This Credit Policy and Procedure Manual (the “Manual”) governs the extension of any form of
credit by CapitalSource Finance LLC (“Company” or CapitalSource”). The Manual can be updated based
on recommendation of the Chief Credit Officer and approval by the credit committee.

This manual is to be used by CapitalSource employees exclusively. Any unauthorized use or
reproduction is prohibited.

I

 

OBJECTIVES

The objective of the Manual is to establish standard procedures for originating, underwriting
and monitoring assets. Creating standard credit and investment policies helps ensure consistency
in approach and documentation, which leads to improved overall asset quality.

I-1

 

EXCEPTIONS TO POLICY

Management believes that close adherence to this credit policy is conducive to generating
high asset quality. Therefore, credit decisions should be made based on adherence to the policy.

Credits that fail to comply with policy, that is, contain material exceptions to policy, must be so
noted in the loan underwriting. The justification for the exceptions must be fully detailed and
reflect careful analysis of the mitigants that justify the exception and must be approved by the
credit committee.

I-2

 

LENDING GUIDELINES

	 	 	 
	LOAN SIZE
	 	II- 1
	LOAN APPROVAL AUTHORITIES
	 	II-3
	PRICING
	 	II-4

II

 

 

LOAN SIZE

The maximum credit limits set forth have been established as a guideline. Any changes to
the lending limits, or delegation of authority will be documented as an amendment to policy.
Please refer to loan approval policy.

Equity and Debt Hold Limits

Set forth below are proposed policies with respect to: (1) direct equity investments, (2) fund
commitments, and (3) maximum hold limits for loans:

Overall Equity Allocation:

Without the approval of a majority of the Board of Directors, management will not cause the
Company to make an equity investment or a capital commitment to any fund that would cause the
Company’s total commitment to fund investments plus direct equity investments to exceed 10% of the
then tangible book value of the Company.

Sub limit on Fund Investments and Approval of Fund Investments:

Without the approval of a majority of the Board of Directors, management will not cause the
Company to commit to a fund investment if that commitment would cause the total of all fund
commitments to exceed 2.5% of the then tangible book value of the Company. All fund investments
will require the approval of a majority of the Board of Directors.

Limit on any Individual Equity Investment:

Without the approval of a majority of the Board of Directors, management will not cause the
company to commit to an individual equity investment of greater than $2.5 million.

Maximum Hold Limits for Loans:

Without the approval of a majority of the Board of Directors, the following hold limits shall
apply for the different types of loans made by the Company:

	 	 	 	 	 
	Asset Based Loans and First Mortgage
Real Estate Loans:
	 	$55 Million.
	 
	 	 	 	 
	Cash Flow Senior Loans:
	 	$40 Million.
	 
	 	 	 	 
	Cash Flow Term B Loans:
	 	$30 Million.
	 
	 	 	 	 
	Cash Flow Mezzanine Loans:
	 	$25 Million.
	 
	 	 	 	 
	Mezzanine Real Estate Loans:
	 	$30 Million.

II-1

 

	 	 	 	 	 
	Asset Based Loans with a “Stretch
Piece” that does not exceed 10% of the Asset
Based Loan:
	 	$50 Million.
	 
	 	 	 	 
	Cash Flow Loans with a Highly
Confident Syndication Bridge (the Company
needs to be highly confident that the Maximum
Hold Limit will be met within 60 days).
	 	$80 Million.
	 
	 	 	 	 
	Asset Based Loans and Real Estate with a
Highly Confident Syndication Bridge (the
Company needs to be highly confident that the
Maximum Hold Limit will be met within 60
days).
	 	$100 Million.

II-2

 

LOAN APPROVAL AUTHORITIES FOR NEW TRANSACTIONS

All transactions must have unanimous approval by the following officers, who together
comprise the credit committee:

	 	 	 
	CEO

	 	John Delaney
	 
	 	 
	President

	 	Jason Fish
	 
	 	 
	Chief Credit Officer

	 	Bryan Corsini
	 
	 	 
	Chief Legal Officer

	 	Steven Museles

CapitalSource Mortgage Finance LLC

Generally, CapitalSource Mortgage Finance underwrites and simultaneously places HUD mortgages. In
the event a mortgage needs to be warehoused for over 45 days, approval is required by the Chief
Credit Officer. Loans to be warehoused for more than 90 days require full credit committee
approval.

PrivateSource Mortgage LLC

Consumer Loans generated by PrivateSource for the purpose of providing fractional mortgage
financing. The credit committee has approved underwriting guidelines for this product. Loans that
are within these guidelines do not require separate approval. These guidelines are included in this
manual in section IV.

II-3

 

PRICING

The following sets forth guidelines in structuring pricing for transactions. If questions
arise over appropriate pricing on a particular transaction, it is advisable to discuss the
situation with the Managing Director, CEO or President prior to moving forward with a term sheet.

PRICING GUIDELINES

The Company should price all transactions on a floating rate basis. Generally, all senior
loans are to be charged at a spread over the base rate (prime or libor). Fixed rates may be used.
The client will always be liable for any and all hedging fees associated with fixed rate pricing.

Maximum pricing should be obtained through the combination of commitment fees, floating base rate,
servicing and monitoring fees, float days, success fees, warrants and
legal fees.

On all transactions, a fee or audit fee will be charged to offset costs. Term sheets where this
element of pricing is negotiated must be pre-approved by the Managing Director of the respective
business unit.

REVOLVING LOANS

Pricing should include either collection float days or clearance fees to enhance our yield.

Revolving loans or other loans where all or a portion of the Company’s committed facility
remains un-drawn at closing should include an unused commitment fee.

Annual
service fees or a loan-servicing fee should be part of the overall
pricing.

Up-front fees for commitments will be charged.

Finally, all out of pocket expenses such as UCC filings, legal, audit and any other ongoing expense
required to monitor the loan must be reimbursed by the customer.

Generally, a non-refundable deposit of at least 50% of the negotiated commitment fee should be
collected upon issuing a commitment to a prospective borrower.

The Managing Directors have the discretion to adjust these guidelines as specific situations
arise.

II-4

 

SENIOR TERM LOANS

Senior term loans should be priced on a floating basis. Any fixed rate accommodation should be
match funded, the costs of which should the responsibility of our customer. This includes any
break-up fees for early termination.

Up-front fees for commitments will be charged.

Finally, all out of pocket expenses need to reimbursed such as UCC filings, legal, audit along with
any other on-going expense required to monitor the loan.

Generally, a non-refundable deposit of at least 50% of the negotiated commitment fee should be
collected upon issuing a commitment to a prospective borrower.

MEZZANINE/SUBORDINATED LOANS

For mezzanine loans, the all-in rate is comprised of up-front fees, servicing fees, coupon,
PIK, equity warrants, and/or success fees. A satisfactory yield should be obtained assuming no
incremental value is ascribed to the warrants.

If a portion of a mezzanine loan is secured by excess collateral from a revolving loan or some
other term facility, the all-in interest rate should be adjusted to factor in the portion of the
loan that is secured.

II-5

 

ORIGINATION

	 	 	 
	GENERAL
	 	III-l
	 
	 	 
	DEAL FLOW CHART
	 	III-2
	 
	 	 
	NEW BUSINESS APPROVAL FORM
	 	III-3
	 
	 	 
	TERM SHEETS
	 	III-5
	 
	 	 
	DUE DILIGENCE PLANNING
	 	III-6
	 
	 	 
	EVALUATION OF MANAGEMENT
	 	III-7
	 
	 	 
	CLOSING PROCEDURES/DEVIATIONS
	 	III-9
	 
	 	 
	DELAY BETWEEN APPROVAL AND CLOSING
	 	III-11

III

 

 

GENERAL

This portion of the Manual summarizes the origination process. The process begins with
sourcing a transaction and ends with the ultimate funding of the transaction. On the next page is a
flow chart that summarizes the Company’s deal process. Essentially, once a deal is originated, an
Investment Officer reviews whatever package of information is supplied, analyzes financial
information and then prepares a term sheet. Once the term sheet is approved internally (this
internal approval process is dictated by the Managing Director of each respective business unit),
it is sent to the prospective client for review. Once any negotiation issues are resolved and a
term sheet is accepted, the Investment Officer prepares an initial client memo (see DealTracker for
various examples).

When a term sheet is accepted, Underwriting is notified, and an Underwriting Officer is assigned.
Due diligence is then planned, scoped and coordinated between Underwriting and the Investment
Officer, except for certain real estate transactions. The Underwriting Officer will perform all
field due diligence and will issue an independent report, again, except in certain real estate
transactions. The Investment Officer will perform independent analysis simultaneously and will also
complete a report. The two reports are the basis for seeking approval from the Credit Committee.

It should be noted the content and scope of the due diligence performed by an underwriter or
investment officer can vary. In certain cases, such as in commercial real estate transactions, it
may be determined that a separate underwriting report and/or separate due diligence is not
required. The rational for these situations must be explained to the credit committee and will be
considered in the loan approval process.

The following page illustrates this process in a process flow chart.

III-1

 

III-2

 

NEW BUSINESS APPROVAL FORM

[NAME OF BORROWER]

[$ AMOUNT]

[TYPE OF LOAN]

Approval Date:

Date of Credit Committee Memorandum:

Date of Underwriting Memorandum:

Approved By:

	 	 	 	 	 
	Title	 	Name	 	Signature
	Credit Officer

	 	Bryan Corsini	 	 
	General Counsel

	 	Steven A. Museles	 	 
	President

	 	Jason M. Fish	 	 
	CEO

	 	John K. Delaney	 	 

We do not have the greatest risk of loss related to this loan, and, therefore, do not consider
it necessary to consolidate the operations of this loan in accordance with FIN #46.

III-3

 

Approval Conditions:

	 	 	 	 	 	 
	 	 	 	 	 	Condition Met
	 	 	Conditions	 	 	(Y/N)
	1.

	 	 	 	 	 
	2.

	 	 	 	 	 
	3.

	 	 	 	 	 
	4.

	 	 	 	 	 

Review of Approval Conditions prior to Closing:

The loan documents accurately reflect the transaction as approved by the Credit Committee
(including all conditions set forth above), all deviations have been duly authorized, and I have
reviewed the background check(s) on the principals of the borrower and have determined that no
material issues were identified therein.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	CS Legal
	 	 

III-4

 

Term Sheet

All proposals on new business should be documented in writing with a term sheet. The term
sheet should document the negotiated aspects of the deal including, but not limited to, pricing,
length of contract, structure of various debt traunches, advance rates, amortization, fees,
responsibility for due diligence costs, terms of warrants, or other equity. The sheet should
include appropriate disclaimers as to not bind the Company. A copy of the countersigned term sheet
should be included in the credit package that is submitted to the Credit Committee for approval.
Please refer to deal tracker for multiple examples of term sheet formats and language.

A nonrefundable deposit should be received as part of the acceptance of the term sheet. These fees
will range from $10,000 to $75,000 to reflect the size and scope of the transaction.

III-5

 

DUE DILIGENCE PLANNING

The planning and coordination of all due diligence is the responsibility of the Investment
Officer and assigned Underwriting Officer. Scope of the due diligence will vary depending on the
deal structure, industry, and reliance on assets or cash flow for source of repayment.

Due diligence will be conducted in accordance with the standards established by CapitalAnalytics.
Due diligence by an outside party must be pre-approved by the Chief Credit Officer. A full due
diligence report must be included in the credit package, which is submitted to the Credit Committee
for approval.

III-6

 

EVALUATION OF MANAGEMENT

A critical area of the underwriting is the accurate assessment of management’s strengths and
weaknesses. Past performance of the company, past experience of management, references, how
management reacts under stress and to poor business conditions and the quality of a company’s MIS
are important indicators of the quality of management. Management needs to be capable of making the
difficult decisions that may be necessary to get a company through difficult times. Equally
important is determining management’s commitment to the business.

The Investment Officer and Underwriter are always to be involved in this analysis. When necessary,
Senior Management of the Company should supplement this process.

In the case of an LBO, we should evaluate not only the buying or sponsor group but also the
management who will be executing the business plan.

The qualities that should be addressed in making this evaluation are as follows:

Performance-What has been management’s track record in delivering projected performance?

Accountability-Are key aspects of the business plan identified and assigned to specific
persons for execution?

Decisiveness-Is management capable of making timely decisions?

Industry Knowledge-Does management possess an in-depth knowledge of their industry? Are
they capable of quickly adapting to changes in the industry?

Commitment-Is management sufficiently committed (subject to non-competition agreement) to
the business so that if a downturn should occur they will remain in place?

Communication-Does management do a good job of openly communicating with customers,
vendors, employees, lenders, etc.? Keeping all parties informed of good and bad news?

Organization Intelligence-Does management have the MIS in place to intelligently run its
business? Is management sufficiently informed about its competitors, customers, vendors,
etc. in order to anticipate problems?

III-7

 

Incentive. Is management motivated and committed to the business?

The underwriting should identify who has met with senior management of prospect customers
and the conclusions of the evaluation. When Senior Management of the Company are involved, it is
preferable for meetings to take place at the customer’s location so those Senior Managers are
seeing the operation they are being asked to finance.

Without exception, a background check must be performed on the principals and senior management
team of all borrowers. The legal department will review the results prior to closing of the
transaction.

III-8

 

CLOSING PROCEDURES

Responsibility for closing new loans rests with the assigned Loan Officer and the Investment
Officer. Consideration should be given to the location of the Loan Officer or Investment Officer as
well as his/her relative experience. Various factors will dictate the responsibility of each in the
loan negotiation/documentation process such as timing, complexity, client relationship, etc.

At a minimum, procedures should provide for the following:

	 	1.	 	Any changes in financial covenants on non-asset based loans require the written approval
of the Chief Credit Officer.
	 
	 	2.	 	Final documentation, including third party agreements must be in a form acceptable to
Legal Counsel. To the extent that any documents or other matters remain open and will be completed
on a post-closing basis, Counsel is responsible for tracking any open items.

It is legal’s responsibility to determine that the loan has been closed in accordance with the
approval. This includes completing all subject to’s. Any material modification in the approved
conditions must be communicated to the Credit Committee and approvals, as appropriate, obtained in
writing

Closing Memos

Deviations Memoranda from this point forward will be referred to as “Closing Memoranda.”
These memos must be prepared for all transactions and signed by the relevant Managing Director. The
Closing Memo must also be signed by three members of the Credit Committee if any of the following
situations occur:

1. A material change to any aspect of the transaction or the business prospects of the borrower;

2. Any asset based deals are modified to include an “air ball” or overline in the amount of
$500,000 or more;

3. Any transactions that have material changes in lien position;

4. If the amount of equity (or capital junior to CapitalSource) proposed to be invested in an
acquisition (real estate or cash flow) is reduced by more than 10% from that set forth in the CCM;
or

5. If specific Approval Conditions set forth on the New Business Approval Form are not
satisfied.

If there is any change to financial covenants on cash flow loans, the Chief Credit
Officer’s signature is required.

Materiality determinations for items 1 and 3 above shall be made by the relevant Managing
Director.

III-9

 

Initial Fundings

Initial fundings require the following signatures:

1. Account Executive responsible for the transaction;

2. Two loan officers from the relevant business group; and

3. Second page of New Business Approval Form to be signed by CS internal attorney.

The Managing Director of each business group may add further signature requirements, in their
discretion.

The CEO, President, Managing Directors and Chief Legal Officer will have the authority to execute
loan documents, amendments, etc. on behalf of the company. This signing authority can be delegated
on a deal by deal basis or in general as evidenced in writing.

Financial performance subsequent to approval should be tracked prior to funding. This tracking
should be evidenced, and significant deviations should be communicated to the Credit Committee
prior to funding.

III-10

 

DELAYS BETWEEN APPROVAL AND CLOSING

If a transaction is closed more than 90 days after approval, then the underwriting, in the
discretion of the Chief Credit Officer, must be updated. Depending on the scope of the original due
diligence and underwriting, this may require an updated field examination. The Chief Credit Officer
must approve the scope of any update work. The results of the update should be evidenced in writing
and attached to the closing memo.

If a material deviation in the security, cashflow or other performance is detected, a memo
addressed to all key persons in the process is required. If a review of the transaction does not
note any significant issues, a memo must still be provided by the Investment Officer and approved
by the Managing Director

III-11

 

UNDERWRITING STANDARDS

	 	 	 
	GENERAL GUIDELINES

	 	IV-1
	 
	 	 
	ETHICS IN LENDING

	 	IV-2
	 
	 	 
	CONFLICTS OF INTEREST

	 	IV-3
	 
	 	 
	UNDERWRITING OBJECTIVES

	 	IV-4

IV

 

GENERAL GUIDELINES

All loans and other extensions of credit including, without limitation, leases and
repurchase agreements, shall be underwritten in compliance with Company and CapitalAnalytics
policy. It is the responsibility of the underwriter to insure that appropriate policy and
procedures of CapitalAnalytics have been applied to each transaction. All underwriting is to be
evidenced in writing and filed in the credit file.

All due diligence on transactions is to be performed by CapitalAnalytics unless it is pre-approved
by the Chief Credit Officer.

All underwriting must address the quality and depth of management. In addition, the character of
management, including their personal and business dealings is of utmost importance. Background
searches are required. At a minimum management of prospective customers will be credit checked as
well as subject to a background search. The scope of the background check must be discussed and
decided upon during the planning process. Any firm used for this purpose must be approved by the
Managing Directors of each business unit. Any reports prepared by such firms are to be reviewed by
Legal prior to closing.

All fundamental terms and conditions of a credit as well as covenants must be included in the
credit write-up for approval.

Speculative, high-tech and start-up companies should be avoided without the presence of sufficient
collateral.

Borrowers in regulated industries should be subject to in depth diligence regarding the current
regulatory environment and, if deemed appropriate, by Legal, special regulatory counsel should be
engaged.

IV-1

 

ETHICS IN LENDING

CapitalSource Finance LLC places considerable trust, responsibility and authority in
management, officers and account officers. Accordingly, all employees involved in the credit
process are expected to keep the highest ethical standards. Furthermore, the Company requires
everyone to adhere to the spirit as well as the letter of the local laws and regulations governing
the extension of credit.

Anyone who has any doubts as to the ethical or legal probity of a course of action or situation
should consult Legal.

Ethical Lending

All employees of the Company are required to place in the file and make known to appropriate
approval bodies all material information necessary to make informed credit decisions.

It is unethical and could result in civil suit/criminal prosecution should any employee of the
Company or CapitalAnalytics withhold detrimental information that, if known, would result in the
decline or withdrawal of a credit.

Insider Trading/Loans and Kickbacks:

Insider Trading:

Employees are absolutely prohibited from buying or selling stock (or options) of any company
to which the Company lends or to which the Company is considering a loan.

Loans and Kickbacks:

Employees are absolutely forbidden to accept any gratuity, monetary, or otherwise, as an
inducement to provide credit or conceal the status of a current credit. Employees are prohibited
from accepting any inducement by borrowers to grant credit on more favorable terms than is
warranted by the credit of the borrower.

Any instances of “kickbacks” or (offers thereof) must be reported immediately to Legal.

IV-2

 

Conflicts of Interest:

Each employee occupies a position of trust and confidence with respect to the Company. Each
person has a fiduciary duty to act for the primary benefit of the Company in all manners pertaining
to that person’s employment. Accordingly, each employee must conduct him or herself in such a
manner as to avoid any actual or apparent conflict of interest between such individual’s personal
financial interests and the best interest of the Company.

Confidential Information:

The Company is the recipient of much information, which must, for a variety of reasons, be
strictly confidential and used for only legitimate internal purposes.

Information is invariably presented to the Company by customers on the basis of confidentiality and
shall not be disclosed outside the Company without the consent of the customer, except that:

The exchange of commercial credit information (i.e. status inquiry) between banks and other credit
institutions shall be permitted, as well as information necessary for review by outside legal and
/or consultants.

Any information that might possibly be used for improper monetary gain or unfair advantage by
Company personnel or third parties shall be considered strictly confidential and privileged.
Personnel are strictly forbidden to use or disclose information in their possession for personal
gain. This injunction extends to family, personal acquaintances, and business relationships.

IV-3

 

UNDERWRITING OBJECTIVES

The purpose of underwriting is to:

     Support a transaction based on known facts, industry information, and analysis of books and
records, field examinations, thorough financial analysis, legal opinions and evaluation of
management.

Underwriting should be based on supporting collateral, supporting financial performance, enterprise
value, sound judgment and expert opinions. Time constraints (drop dead clauses) budgetary factors
or referral source pressures should not affect a thorough underwriting. Where appropriate, the
final funding of a transaction could be postponed for the addition of current information (e.g.
year-end audited financial statements, updated budget, etc.) or the resolution of unknown outcomes
(i.e. lawsuits).

IV-4

 

UNDERWRITING PROCESS

The initial underwriting process begins when a deal is sourced and entered into the
CapitalSource Deal Tracker (“DT”). The information gathered at this point includes, but is not
limited to, financial statements, management profile, projections, need for financing, sponsor or
buying group profile (if applicable). Once a deal is sourced, either a Development Officer or
Investment Officer prepares a term sheet. See origination section for a discussion on term sheets.

When the decision to issue a term sheet is made, Underwriting should be notified by entering the
information on the DT so that the progress of the term sheet can be tracked. All term sheets, along
with other pertinent deal flow information should be communicated to Underwriting such that
appropriate staffing decisions and planning can be accomplished.

Once a term sheet is executed by a potential customer, the Investment Officer and assigned
Underwriting Officer should go through a planning process. This process will include setting the
expectations for timing of delivery of a closing, and then working backwards, determine a date for
approval, a date that the credit write-up needs to be completed, date the field exam needs to be
completed, etc. Any scheduling of appraisals, outside research, background checks etc. should be
determined, and responsible parties determined at that time.

The majority of all new transactions will require a field examination. The scope will vary
depending on whether there is a reliance on collateral, cashflow, or both. The scope of this
fieldwork would be determined in the planning process. Obviously, as fieldwork is being performed,
adjustments to the scope of the work are often necessary. The underwriter and Investment Officer
must be kept appraised of the process so that any adjustments to the timing, structure, etc. can be
considered and communicated back to the customer as necessary.

Field examination work is to be summarized in a comprehensive document in a standard format as
determined by CapitalAnalytics. This report is to be included in the credit package submitted to
the credit committee for approval.

The accumulation of the due diligence/underwriting process will be documented in the form of an
underwriting report. An underwriter must prepare this document. This report has a standardized
format as determined by CapitalAnalytics. The Investment Officer will prepare a separate credit
memorandum with his/her analysis of the transaction. These documents have a standardized format.
The credit committee format is dictated by the respective Managing Directors. The underwriting
report is dictated by CapitalAnalytics. In general, an underwriting file should contain
information/analysis on a company’s years in business, company history, management team experience,
industry, capital structure, financial performance and discussion of collateral.

IV-5

 

The completed credit package shall be the basis for approving each transaction. Material omissions
of information such as final year-end financial statements, budgets, etc. will be noted as open
items on the approval sheet. Any and all conditions of approval will also be included on the
approval sheet so that the legal department administration will have a record of all approval
conditions in order to resolve them at closing.

The Credit Committee will make approvals for new loans. Meetings will take place no less frequently
than weekly either in person or via teleconference. Approval is to be evidenced by signatures on
the approval page and will be retained in the credit file. Facsimile copies or email approvals are
adequate. A verbal approval by a Credit Committee member must be evidenced by signature
subsequently and filed in the credit file.

IV-6

 

RISK ACCEPTANCE CRITERIA

The company has developed Risk Acceptance Criteria, (“RAC’s) to be used as a guide in
structuring and evaluating loan transactions. These criteria must be considered when underwriting a
transaction. The underwriting officer is responsible for summarizing compliance with the RACs and
noting exceptions. Any and all exceptions must be considered in determining whether a transaction
should be recommended for approval.

While there are common considerations when considering loans of all types such as credit,
collateral, etc, the separate business units contain their own unique sets of risks and credit
considerations. Therefore, RAC’s have been developed for each business unit for various types of
transactions within those units.

The following pages show the current risk acceptance criteria developed for each group. Healthcare
transactions are evaluated using three sets of RACs. One for term loans, one for revolvers and one
for equipment leases. For Corporate Finance, three sets of RACs have been developed. The RAC’s are
for ABL, Senior Term Loans and Mezzanine/Subdebt transactions. Finally, Structured Finance has
three sets of RACs, Vacation Ownership, Real Estate and Rediscount.

IV-7

 

HealthCare Finance — Secured Term Deals Risk Acceptance Criteria

	 	 	 	 	 
	Risk Acceptance Criteria	 	Risk Acceptance Description	 	Comment on Compliance
	Market Segment

	 	Healthcare service companies
including Skilled Nursing Facilities,
Assisted Living Facilities, Congregate
Care Retirement Communities, Acute
Care and Long-Term Acute Care
Hospitals, Ambulatory Surgery Centers,
Home Health Providers, and Mental
Health Providers	 	 
	 
	Borrower Size

	 	$5MM annual revenues	 	 
	 
	Loan Size (hold)

	 	Minimum SIMM, maximum $55MM	 	 
	 
	Geographic Region

	 	No Restrictions	 	 
	 
	Borrower Recourse

	 	Normal and customary
non-recourse carve-outs	 	 
	 
	Interest Rate

	 	Prime or Libor Based	 	 
	 
	Term Loan Maturity

	 	Up to seven years	 	 
	 
	Term Loan Amortization

	 	Negotiable; Typically 25 year with
balloon	 	 
	 
	Use of Proceeds

	 	Business Acquisition, Real

Estate Financing	 	 
	 
	Collateral

	 	First Mortgage on Real Property
and all available assets	 	 
	 
	Loan to Value

	 	Loan to value should not exceed
80% of M.A.I, appraised value and also
a multiple of underwritten cash
flows.	 	 
	 
	Debt Service Coverage

	 	Stabilized should support Debt
Service in excess of CapitalSource
Facility	 	 
	 
	Appraisals

	 	Required	 	 
	 
	Personal Guarantees

	 	Negotiable	 	 
	 
	Evaluation
of Management

	 	Must be performed by an
Investment Officer and Underwriting
Officer	 	 

IV-8

 

HealthCare Finance — Asset Based Deals Risk Acceptance Criteria

	 	 	 	 	 
	Risk Acceptance Criteria	 	Risk Acceptance Description	 	Comment on Compliance
	Market Segment

	 	Healthcare service companies
including Skilled Nursing Facilities,
Assisted Living Facilities, Congregate
Care Retirement Communities, Site
Maintenance Organizations, Contract
Research Organizations, Acute Care and
Long-Term Acute Care Hospitals,
Ambulatory Surgery Centers, Durable
Equipment Manufacturers, Physician
Practice Management Companies, Home
Health Providers, Mental Health
Providers, Healthcare Technology
companies and other Healthcare Service
Companies	 	 
	 
	Borrower Size

	 	$5MM annual revenues	 	 
	 
	Loan Size (hold)

	 	Minimum $1MM, maximum $55MM	 	 
	 
	Geographic Region

	 	No Restrictions	 	 
	 
	Borrower Recourse

	 	Required	 	 
	 
	Use of Proceeds

	 	Working Capital, Business

Acquisition	 	 
	 
	Collateral

	 	First perfected lien on Accounts
Receivable / Inventory and all
available assets, as applicable	 	 
	 
	Advance Rates

	 	Advance rate, 70-85% of net
collectible collateral value for
accounts receivable and 45-60% for
inventory	 	 
	 
	Eligibility Period

	 	Typically, Current- 180 days
dependant on industry	 	 
	 
	Loan Turn

	 	Industry Specific, Generally
20-90 days	 	 
	 
	Lockbox Control

	 	Required	 	 
	 
	Loan Term

	 	2-3 Years	 	 
	 
	Interest Rate

	 	Prime or Libor Based Rate	 	 
	 
	Debt Service Coverage

	 	Stabilized Debt Service Coverage

supports CapitalSource Facility	 	 
	 
	Covenants

	 	Negotiable; typically include
census and fixed charge coverage
ratios.	 	 
	 
	Personal Guarantee

	 	Negotiable	 	 
	 
	Evaluation of Management

	 	Must be performed by an
Investment Officer and Underwriting
Officer	 	 

IV-9

 

HealthCare Finance — Equipment Leases

	 	 	 	 	 
	Risk Acceptance Criteria	 	Risk Acceptance Description	 	Comment on Compliance
	Market Segment

	 	Healthcare service companies including
Skilled Nursing Facilities, Assisted Living
Facilities, Congregate Care Retirement
Communities, Acute Care and Long-Term Acute
Care Hospitals, Ambulatory Surgery Centers,
Home Health Providers, and Mental Health
Providers	 	 
	 
	Borrower Size

	 	$5MM annual revenues	 	 
	 
	Loan Size (hold)

	 	Minimum $1MM, maximum $5MM	 	 
	 
	Geographic Region

	 	No Restrictions	 	 
	 
	Borrower Recourse

	 	Normal and customary non-recourse
carve-outs	 	 
	 
	Interest Rate

	 	Prime or Libor Based. Can be fixed	 	 
	 
	Term Loan Maturity

	 	Up to seven years	 	 
	 
	Term Loan Amortization

	 	Up to 84 months	 	 
	 
	Use of Proceeds

	 	The related equipment with respect to
the lease is not a fixture. Lease arises
under a contract pursuant to the installation
of the equipment.	 	 
	 
	Collateral

	 	Equipment securing the lease.	 	 
	 
	Loan to Value

	 	Loan to value should not exceed 80% of
M.A.I. appraised value and also a multiple of
underwritten cash flows,(i.e. applicable for
example in an MRI center, or other such
treatment center).	 	 
	 
	Debt Service Coverage

	 	Stabilized should support Debt Service
in excess of CapitalSource
Facility	 	 
	 
	Appraisals

	 	Not required	 	 
	 
	Personal Guarantees

	 	Negotiable	 	 
	 
	Evaluation of Management

	 	Must be performed by an Investment
Officer and Underwriting Officer	 	 

IV-10

 

	 	 	 	 	 
	Senior Secured Deals	 	 	 	 
	Risk Acceptance Criteria	 	Risk Acceptance Description	 	Comment on Compliance
	Market Segment

	 	Manufacturers, Wholesalers,
Distributors, Service Organizations,
Retailers, Healthcare companies, and
companies undergoing
recapitalization/leveraged buyout,
turnaround, restructuring, DIP, growth,
acquisitions, modernization.	 	 
	 
	 	 	 	 
	 

	 	Discouraged Industries:

General Contractors, Construction	 	 
	 
	Borrower Size

	 	$10MM minimum annual revenues	 	 
	 
	Loan Size (hold)

	 	Minimum $1MM, maximum $40MM hold.	 	 
	 
	Geographic Region

	 	No Restrictions	 	 
	 
	Term Loan Amortization

	 	No material term loan collateral
exposure at end of contract using scheduled
amortization.	 	 
	 
	 	 	 	 
	Term Loan Maturity

	 	5-7 years	 	 
	 
	Work-in-process (WIP) advances

	 	Limited unless supported by firm
purchase orders or customer releases.	 	 
	 
	Accounts Receivable Advances

	 	Limited to 90% based upon dilution.	 	 
	 
	Principal Moratorium

	 	Interest only period for term loans
limited to one year	 	 
	 
	Evaluation of Management

	 	Must be performed by a Investment
Officer and Underwriting Officer at a
minimum.	 	 

IV-11

 

Corporate Finance

	 	 	 	 	 
	Sr. Cash Flow Term Loan	 	 	 	 
	Risk Acceptance Criteria	 	Risk Acceptance Description	 	Comment on Compliance
	Market Segment

	 	Manufacturers, Wholesalers,
Distributors, Service Organizations,
Retailers, Healthcare companies, and
companies undergoing
recapitalization, leveraged buyout
and acquisitions.	 	 
	 
	 	 	 	 
	 

	 	Discouraged Industries:

General Contractors, Construction, Hi-Tech,

Cyclical, Oil& Gas	 	 
	 
	Borrower Size

	 	$20MM minimum annual revenues

$3MM minimum EBITDA	 	 
	 
	Loan Size (hold)

	 	$40MM maximum loan	 	 
	 
	Geographic Region

	 	No Restrictions	 	 
	 
	Leverage — Senior Debt

	 	Maximum Senior debt to
operating cashflow (EBITDA less
maintenance capex) of 3.50x.	 	 
	 
	Interest Coverage

	 	EBITDA to Senior interest of
3:1 at a minimum.	 	 
	 
	Capitalization

	 	Senior debt (senior,
subordinated, seller notes) limited
to 60% of the
capital structure.	 	 
	 
	Concentrations

	 	Sales concentrations with one
customer in excess of 30% or a major
single product (in excess of 30% of
sales).	 	 
	 
	Term Loan Amortization

	 	Within first three years 30% of
total term loans should
amortize.	 	 
	 
	Term Loan Maturity

	 	Maximum 10 years.	 	 

IV-12

 

Corporate Finance

	 	 	 	 	 
	Mezzanine/Sub Debt	 	 	 	 
	Risk
Acceptance Criteria	 	Risk Acceptance Description	 	Comment on Compliance
	Market Segment

	 	Manufacturers, Wholesalers,
Distributors, Service Organizations,
Retailers, Healthcare companies, and
companies undergoing recapitalization,
leveraged buyout and
acquisitions.	 	 
	 
	 	 	 	 
	 

	 	Discouraged Industries:

General Contractors, Construction, 
Hi-Tech,
Cyclical, Oil& Gas	 	 
	 
	Borrower Size

	 	$30MM minimum annual revenues

$7.5MM minimum EBITDA	 	 
	 
	Loan Size

	 	$25MM	 	 
	 
	Loan Size

	 	$25MM maximum loan	 	 
	 
	Geographic Region

	 	No Restrictions	 	 
	 
	Leverage — Total Debt

	 	Maximum total debt to operating
cashflow (EBITDA less maintenance
capex) of 4.5x.	 	 
	 
	Interest Coverage

	 	EBITDA to total interest of 2:1
at a minimum.	 	 
	 
	Capitalization

	 	Total debt (senior,
subordinated, seller notes) limited to
75% of the capital structure.	 	 
	 
	Concentrations

	 	Sales concentrations with one
customer in excess of 30% or a major
single product (in excess of 30% of
sales.)	 	 
	 
	Term Loan Amortization

	 	Within five years 90% of senior
term loans should amortize.	 	 
	 
	Term Loan Maturity

	 	Maximum 7 years.	 	 

IV-13

 

VACATION OWNERSHIP

Table I — Asset Based Transaction

	 	 	 	 	 
	Asset Secured Deals	 	 	 	 
	Risk Acceptance Criteria	 	Risk Acceptance Description	 	Comment on Compliance
	Loan Size

	 	Maximum $55MM	 	 
	 
	Geographic Region

	 	United States	 	 
	 
	Market Segment

	 	Borrower shall be involved in the
financing of notes receivable to
consumers associated with the purchase
of vacation ownership intervals or the
sale of marketable vacation ownership
intervals.	 	 
	 
	Advance Rate

	 	Maximum of 90% of Eligible
Accounts Receivable; maximum of 90% of
Eligible Inventory	 	 
	 
	Eligibility Criteria

	 	Receivables: secured by a first
mortgage lien on a timeshare interest;
payable in US dollars; carrying minimum
interest rate higher than that charged
by CapitalSource; matures in no more
than 84 months from origination date;
current with no more than 90 days past
due on contractual basis; maintains
acceptable title insurance; maintains
acceptable property insurance; properly
documented with original note in
CapitalSource’s possession.	 	 
	 
	 	 	 	 
	 
	 

	 	Inventory: secured by a first
mortgage lien on the timeshare interval;
located in the US, Caribbean, Canada or
Mexico; maintains acceptable title
insurance; maintains acceptable property
insurance.	 	 
	 
	Loan Amortization

	 	Amortization shall be based on
the sale of assets based on a
pre-determined release price.	 	 
	 
	Loan Term

	 	No longer than five (5) years	 	 
	 
	Delinquency History

	 	Historical data must reflect
acceptable delinquency
characteristics.	 	 
	 
	Credit Underwriting &

Asset Management

	 	Borrower must maintain documented
credit underwriting and asset management
procedures.	 	 
	 
	File Maintenance

	 	Credit and legal files should be
maintained in good order and exhibit
consistent compliance with credit
underwriting and asset management
guidelines	 	 
	 
	Evaluation of
Management

	 	Must be performed by an
Investment Officer and Underwriting
Officer at a minimum.	 	 

IV-14

 

REDISCOUNT

	 	 	 	 	 
	Asset Secured Deals	 	 	 	 
	Risk Acceptance Criteria	 	Risk Acceptance Description	 	Comment on Compliance
	Loan Size

	 	Maximum $55MM	 	 
	 
	Geographic Region

	 	United States	 	 
	 
	Market Segment

	 	Borrower shall be involved
in the financing of consumer
and/or commercial notes
receivable secured by a
first lien on underlying
collateral.	 	 
	 
	Advance Rate

	 	Maximum of 90% of Eligible
Accounts Receivable	 	 
	 
	Eligibility Criteria

	 	Receivables: secured by a
first lien on underlying
collateral; payable in US
dollars; originated in a
state approved by
CapitalSource; carrying
minimum interest rate higher
than that charged by
CapitalSource; current with
no more than 90 days past
due on contractual basis;
properly documented with
original note and other
applicable instruments in
the possession of
CapitalSource or a
third-party approved by
CapitalSource.	 	 
	 
	Loan Amortization

	 	Maintain either (i) the
Borrowing Base, as certified
by the Borrower or (ii) the
amortization schedule if
loan is a term loan or
liquidity asset pool.	 	 
	 
	Loan Term

	 	No longer than five (5) years	 	 
	 
	Delinquency History

	 	Historical data must reflect
acceptable delinquency
characteristics.	 	 
	 
	Credit Underwriting

& Asset Management

	 	Borrower must maintain
documented credit
underwriting and asset
management procedures.	 	 
	 
	File Maintenance

	 	Credit and legal files
should be maintained in good
order and exhibit consistent
compliance with credit
underwriting and asset
management guidelines	 	 
	 
	Evaluation of
Management

	 	Must be performed by an
Investment Officer and
Underwriting Officer at a
minimum.	 	 
	 
	Financial Reporting

	 	To be provided monthly.
Annual financial statements
to be reviewed if
outstanding loan is less
than $5MM and audited if
greater than
$5MM.	 	 

IV-15

 

REAL ESTATE

	 	 	 	 	 
	Asset Secured Deals	 	 	 	 
	Risk
Acceptance Criteria	 	Risk Acceptance Description	 	Comment on Compliance
	Loan Size

	 	Maximum $55MM/$30MM for mezzanine	 	 
	 
	Geographic Region

	 	United States	 	 
	 
	Advance Rate

	 	Maximum of 90% loan-to-value	 	 
	 
	Eligibility Criteria

	 	Commercial property located within the United
States.	 	 
	 
	Loan Amortization
	 	Loans are structured as either (i) interest
only or (ii) amortizing per a preset schedule.	 	 
	 
	Loan Term

	 	No longer than five (5) years	 	 
	 
	Delinquency History

	 	Historical data must reflect acceptable
delinquency characteristics.	 	 
	 
	Credit Underwriting &

Asset Management

	 	Borrower must maintain documented credit
underwriting and asset management procedures.	 	 
	 
	File Maintenance

	 	Credit and legal files should be maintained in
good order and exhibit consistent compliance with
credit underwriting and asset management
guidelines	 	 
	 
	Evaluation of Management

	 	Must be performed by an Investment Officer.	 	 
	 
	Financial Reporting

	 	To be provided monthly. Annual financial
statements to be reviewed.	 	 

IV-16

 

PrivateSource

PrivateSource Mortgage LLC (“PrivateSource”), a wholly-owned subsidiary of CapitalSource
Inc., has successfully obtained its California Lender’s License, which was a prerequisite to
provide fractional mortgage financing in the State of California. As a result, PrivateSource has
now begun soliciting loan applications from individuals.. Each loan application will be evaluated
according to the following minimum underwriting criteria.

	 	 	 
	Minimum Credit Score (i.e. FICO)

	 	650

	Maximum Monthly Debt Payments to Monthly Net Income Ratio

	 	50.00%
	Minimum Down Payment

	 	15.00% *
	Maximum Loan-to-Cost/Value

	 	85.00% *
	Maximum Loan Length

	 	30 years
	Minimum Loan Length

	 	15 years
	Approved Resort

	 	Must be approved by
PrivateSource, either through
(i) an inventory financing that
has obtained separate Credit
Committee approval or (ii)
independent approval by
PrivateSource following, among
other items, an on-site visit
and a review of Developer’s
financial statements and
business plan.
	Approved Credit Bureau Processor

	 	NCO Credit Services will
electronically transmit a
tri-merge credit report from all
three credit agencies (i.e.
Equifax, Experian and Trans
Union), complete with a
“Bankruptcy Model Score” to
enhance applicant screening.
	Minimum Information Required from Each Prospect

	 	See attached Exhibit A
	Appraisal

	 	Each funded loan for each
fractional unit will require a FNMA 2065 Appraisal Report.
	Approved State

	 	PrivateSource has satisfied
(i) the necessary state
qualifications to do business
and, where applicable, (ii) the
necessary state licensing
requirements to originate
mortgage loans. As the need
arises, PrivateSource will
coordinate with Pierrette
Bradshaw to satisfy these
requirements prior to initiating
loan origination activity in any
new state.
	Approved Legal Documentation

	 	PrivateSource has assembled
near full loan documentation at
the direction and guidance of
Pierrette Bradshaw. Each
Approved State will have a
tailored Deed of Trust and
Promissory Note, the content of
which will be reviewed and
approved by local counsel at the
direction of Pierrette Bradshaw.
	Approved Custodian

	 	BNY Midwest Trust (or other
approved third-party custodian).
	Approved Servicing Agent

	 	Concord Servicing Corporation

IV-17

 

PORTFOLIO MONITORING

	 	 	 
	PORTFOLIO MEETINGS

	 	V-l
	 
	 	 
	CONTRACT EXTENSIONS/AMENDMENTS

	 	V-2
	 
	 	 
	TERM LOAN RELOADS

	 	V-3
	 
	 	 
	OVERADVANCES/OVERLINES

	 	V-4
	 
	 	 
	COVENANT DEFAULTS

	 	V-5
	 
	 	 
	FIELD EXAMINATION REPORTS

	 	V-6
	 
	 	 
	PROBLEM LOAN REPORTING

	 	V-7
	 
	 	 
	LOSS RESERVES

	 	V-9

 V

 

 

PORTFOLIO MEETINGS

Portfolio meetings generally will take place once per week. During this meeting, selected loans in
the portfolio will be reviewed by the loan officers responsible for the accounts. All members of
the Credit Committee will be present each week for these meetings. The purpose of a portfolio
meeting is to provide a status up-date of pertinent, material events and information on applicable
accounts. The responsibility for overall portfolio management and monitoring will reside within the
various business units as dictated by the Managing Directors of those units. The frequency and
scope of detailed portfolio meetings as part of the overall objective of portfolio management will
therefore be developed and recommended by the Managing Directors and documented in their respective
servicing manuals. In addition, the credit committee will conduct periodic portfolio meetings to
encompass the entire portfolio on an as needed basis, but no less than quarterly.

V-1

 

CONTRACT EXTENSIONS/AMENDMENTS

The extension/amendment of a contract and release of an obligor without repayment requires approval
by the Chief Credit Officer. A credit memorandum prepared by the loan officer must be completed
and submitted.

The following are items that would not require approval by the Chief Credit Officer:

	1.	 	Reductions in a line of credit.
	 
	2.	 	Reductions in eligible collateral.
	 
	3.	 	Addition of a new entity in the borrowing base provided the
information has been audited, and the addition does not increase the
overall line of credit.
	 
	4.	 	Extension of an existing line of credit provided there is no
deterioration in the financial performance of the borrower or in the
collateral.
	 
	5.	 	Release of collateral due to sale.

The Managing Director must approve the changes listed above. Additionally, any extension,
modification, amendment or forbearance on any transactions with a four rating or greater must be
approved by the Chief Credit Officer, regardless of aforementioned items.

Finally, all modifications, amendments, extensions, waivers, consents, collateral releases, etc.
must be approved by the legal department with copies of executed documents promptly furnished to
the legal department.

V-2

 

TERM LOAN RELOADS

Term loans can be reloaded on existing contracts provided the customer’s credit performance and
collateral has not deteriorated. The contract term, pricing and possible fees must be considered in
conjunction with the request. The Credit Committee must approve any reloads of a term facility. An
approval memorandum must be prepared and approval signatures retained for the file.

V-3

 

OVERADVANCES/OVERLINES

Advances beyond the authorized credit line should be discouraged, as that procedure would be in
direct contradiction of our approval process. However, the expectation of having all loans fall
within their available collateral base or credit line is unrealistic.

Any overadvance or overline that extends beyond 30 days and/or exceed $500,000 requires approval by
either the President, Chief Credit Officer or the CEO. Amounts under $500,000 and less than 30 days
will adhere to the schedule proposed by each Managing Director as documented in the respective
servicing guidelines for each group. These approval authorities are to be reviewed periodically,
and changes and/or additions should be approved by the CEO and/or the Chief Credit Officer. Any
overadvance to a borrower with a four rated credit or lower must be approved by the Chief Credit
Officer.

All overadvances/overlines must be approved in writing. The reasons for the accommodation, along
with a repayment schedule, financial spreadsheet and reporting status must be attached to the
approval form.

V-4

 

COVENANT DEFAULTS

All material violations of loan covenant defaults should be communicated to the credit committee.

The respective Managing Director for each group must approve any waivers of covenant defaults. The
scope of the allowable waivers shall be documented in each group’s respective service manuals. The
Legal Department should be consulted prior to granting the waiver and their advice followed with
respect to the wording of any waiver. The Chief Credit Officer must be consulted with respect to
covenant default for four rated credits or lower.

It is important that when we become informed of covenant defaults, we promptly address these
defaults by either granting waivers, negotiating terms of forbearance, or notifying the client that
we are aware of the default and are reserving all our rights to pursue remedies. Again, the Legal
Department should be consulted as circumstances dictate.

V-5

 

FIELD EXAMINATION REPORTS

Capital Analytics must conduct field examinations. This procedure should entail an independent
impartial review of a customer’s financial/collateral position. This assessment will be made from
the company’s books and records as well as physical observation of the business.

Standardized forms shall be used for field examinations. These forms should in no way limit the
field examiner in his/her examination. Prior to embarking on a field examination, the field
examiner must discuss the current status of the customer he/she is about to visit with the loan
officer. The loan officer should mention any particular areas of concern during the planning phase.
Fieldwork will not be scheduled in absence of a pre-audit conference.

The Chief Credit Officer or his designee will approve all field examination reports prior to
distribution. Initials from the loan officer will evidence the review of the field examination
reports by loan administration. Any recommendations or exceptions noted in the examination must be
addressed in writing within 15 working days from distribution of the report. Responses to the
examinations will be copied to the Chief Credit Officer, and the Managing Director of the
respective business unit. The original will be filed in the credit file.

V-6

 

PROBLEM LOAN REPORTING

Overview

Over the lifecycle of any borrower, there may be periods where operational and financial problems
may negatively affect the repayment of a loan. It is important that we proactively manage these
situations to try and preserve our relationship with our borrower while managing the increasing
level of risk in a particular loan.

Once a loan is rated 4 or higher, it is considered a problem loan. Loans rated 3 or higher may be
experiencing negative trends in financial or operational performance, cash flow and debt service
capability or collateral value. In these cases the loan officer should consider consulting with the
Problem Loan Manager as to strategy and tactics in managing the loan before the situation
deteriorates further. When a loan is downgraded to a 4 it is the responsibility of the loan officer
to arrange a meeting with the respective MD and Problem Loan Manager to determine:

	 	•	 	what level of supervision will be required by the Problem Loan Manager
or other representatives from Capital Analytics (CA)
	 
	 	•	 	what strategy and tactics will be adopted to prevent further
deterioration and ultimately lead to an upgrade of the risk rating to
3 or better?

Problem Loan Manager/Capital Analytics Supervision

Loans rated 4 or higher will require the supervision of the Problem Loan Manager or other
representative from CA. The level of supervision will be determined in a meeting between the loan
officer, the respective MD and the Problem Loan Manager. This meeting is to be held on a timely
basis, but no more than 5 days after the downgrade. The level of supervision will be determined
based upon the specific circumstance for a particular loan. Consideration will be given to the
severity and speed of the deterioration, the strength of the loan documentation, our collateral
position and the likelihood of a bankruptcy filing. The levels of supervision are:

	 	•	 	Shadow Supervision
	 
	 	•	 	Active Involvement
	 
	 	•	 	Direct Management

Shadow
Supervision: the loan officer will provide frequent, detailed updates on the (i)
progress of the company’s turnaround efforts, (ii) any deterioration in collateral coverage, (iii)
any deterioration of repayment ability, (iv) the status of covenant or payment defaults, (v) status
of pertinent negotiations, (vi) other relevant issues.

Active
Involvement: the Loan Officer will (i) include the Problem Loan Manager or other
representative from CA in all negotiations and discussions with management, sponsor groups or other
relevant third parties, (ii) provide the Problem Loan Manager or other representative from CA with
all relevant financial analysis and financial information, (iii) consult with the Problem Loan
Manager or other representative from CA in establishing loan management strategies and/or action
plans.

V-7

 

Direct
Management: the Problem Loan Manager or other representatives from CA will take full
responsibility for the day to day management of a loan under certain circumstances. In these cases
the loan officer will ensure that there is a proper transition in the management of the loan and
will remain available to provide historical perspective as needed.

Loan Administration Procedures

When a loan is downgraded to a 4, in addition to the procedures outlined in section V-7 of the
Credit Policy Manual, the Loan Officer must request an updated field exam and updated appraisals of
inventory and fixed assets. Consideration should be given to reviewing the legal file in detail
and/or transferring the legal file to outside legal counsel, under the supervision of in-house
counsel, with a strong background in working with problem loans for a comprehensive legal file
review. The Problem Loan Manager should be consulted for a recommendation. Please note that
whenever the decision to utilize outside counsel is considered, that the legal department must
approve it.

For all loans rated 4 or lower, the Loan Officer is required to report on a regular basis on the
status of the loan. This report should focus on the root cause problems and the corrective actions
being taken. This reporting will also address repayment capability, both current and projected, and
collateral valuation based on fully funded loan facilities. In addition, the loan officer should
track the key performance indicators (occupancy, census, payor mix, backlog, book to billings
ratio, achievement of synergies, etc.) along with the trends. In addition, if there are
guarantors, the loan officer must request updated personal financial statements on the CA format
signed by all of the guarantors as well as copies of the signed and filed federal income tax
returns for the last two tax years. The loan officer should prepare a detailed analysis of these
documents.

When a loan is downgraded to a 5, if not already done, consideration should be given to assigning
the legal file to outside legal counsel with a strong background in handling problem loans. If
collateral includes real estate the Loan Officer must determine if Phase I or Phase II
environmental reports are necessary. For those loans where enterprise value is the primary source
of repayment, the account officer should consider engaging an investment banker to perform a
business valuation.

The Loan Officer is responsible for recommending downgrades and upgrades of risk ratings as well as
changes to accrual status and loan loss reserves on a timely basis.

When a loan is downgraded to a 4 or lower every effort should be made improve our ability to manage
the risk related to this loan. The following steps are recommended:

	 	1.	 	obtain full control of cash including a lockbox and the daily sweep of cash against
revolving loans
	 
	 	2.	 	monthly financial reporting and monthly covenant reporting
	 
	 	3.	 	daily collateral reporting
	 
	 	4.	 	eliminate any limitations on the frequency of field exams and caps on expenses which can be
passed along

V-8

 

LOSS RESERVES

Overview

CapitalSource’s most significant asset is its loan portfolio, which accounts for approximately 90%
of the total assets on the balance sheet. Accordingly, a loan loss reserve policy has been
established to record appropriate reserves based on the risk inherent in the type of loan and the
risk rating assigned to it by the credit committee. The risk inherent in the loan is based on the
seniority of CapitalSource’s position, senior loans are less risky than subordinated loans, and the
type of collateral supporting the loan, asset based, cash flow or real estate. Asset based loans
are considered lower risk, real estate loans are considered moderate risk, and cash flow loans are
considered higher risk. These risk factors are combined and a risk factor is assigned to every loan
in each class in order to calculate the loan loss reserve on the current loan portfolio.

Accounting Technical Literature

Generally accepted accounting principles for recognition of loan losses is provided by Statement of
Financial Accounting Standards No. 5, Accounting for Contingencies (“SFAS No. 5”) and No. 114,
Accounting by Creditors for Impairment of a Loan (“SFAS No. 114”). SFAS 5 deals with the general
reserve booked to all loans in the portfolio and SFAS 114 deals with specific reserve, which are
applied to loans classified as a 6 or troubled debt restructurings.

General Reserve

Per paragraph 85 of SFAS 5; the conditions for accrual are not “intended to be so rigid that they
require virtual certainty before a loss is accrued. They require only that it is probable that an
asset has been impaired or a liability has been incurred and that the amount of loss be reasonably
estimable”. Applying this statement to CapitalSource’s loan portfolio, it is probable the portfolio
will experience some loss prior to maturity although it is not certain to the extent of the loss
and to which loans. Therefore, CapitalSource will apply a general reserve to the loans in the
portfolio in which there is no measurable impairment. These loans will be assigned a loan rating
between 1 and 5, depending on the likelihood of any future impairment. Those loans with a lower
loan rating, 1, will be assessed a lower reserve factor than those loans assigned a higher loan
rating, up to 5.

Specific Reserve-6 Rated Loans

SFAS 114 should be applied to those loans that are either assigned a 6 loan rating, which occurs
when it is likely CapitalSource will incur a loss on the principal of the loan, or those determined
as troubled debt restructurings, as defined in Statement of Financial Accounting Standards No. 15,
Accounting by Debtors and Creditors for Troubled Debt Restructurings. Per SFAS 114, “a loan is
impaired when, based on current information and events, it is probable that a creditor will be
unable to collect all amounts due according to the contractual terms of the loan agreement”. Since
CapitalSource rates all loans in which a loss pf principal is likely a 6, a specific reserve is
calculated in accordance with the definition of SFAS 144 above. The impairment is calculated per

V-9

 

paragraph 13, which states, “regardless of the measurement method, a creditor shall measure
impairment based on the fair value of the collateral when the creditor determines that foreclosure
is probable”. Thus, the loan is valued based on the proceeds CapitalSource will expect to receive
in a liquidation of the business or underlying collateral. Since CapitalSource will base the value
and allocate a specific reserve based on the value of the underlying asset or the expected proceeds
from liquidation, a reserve factor is not assigned to the 6 rated loans. Therefore, the entire loss
should be booked as a specific reserve,

Specific Reserve-Troubled Debt Restructurings

Per SFAS 15, a “troubled debt restructuring may include, but is not limited to:

	 	1.	 	Transfer from the debtor to the creditor of receivables from third parties, real estate
or other assets to satisfy or partially satisfy a debt;
	 
	 	2	 	Issuance or granting of an equity interest to the creditor by the debtor to satisfy
fully or partially a debt unless the equity interest is granted pursuant to existing terms
for converting the debt into equity interest; and
	 
	 	3.	 	Modification of terms of the debt including a change in the interest rate, extension of
the maturity date at a lower rate of interest, a reduction in the face amount or a
reduction in accrued interest.

In the above situations, a specific reserve is calculated, “based on the present value of the
expected future cash flows discounted at the loan’s effective interest rate, except that as a
practical expedient, a creditor may measure impairment based on a loan’s observable market price,
or the fair value of the collateral if the loan is collateral dependent”. The difference between
the present value and the carrying value of the asset, which is the face value less any
non-amortized fees, results in a specific reserve to the loan. When the specific reserve is applied
to the loan, the general reserve is first backed-out of the impairment calculation. Since these
loans are typically a 4 or 5, a general reserve is already calculated on the outstanding principal
balance and should be considered when calculating a specific reserve.

Reserve Policy

On a current basis, CapitalSource will maintain a reserve based on the formula applied to each loan
set forth below. “Reserve Factor” is the percentage allocation for each Loan Type as further
segmented by Loan Rating. The loan loss reserve will be calculated at the end of each month based
on the reserve factors below:

V-10

 

	 	 	 	 	 
	For Senior Loans:	 	 	 	 
	Loan Type	 	Loan Ratine	 	Reserve Factor
	Asset Based
	 	1	 	0.00%
	Asset Based
	 	2&3	 	0.25%
	Asset Based
	 	4&5	 	0.50%
	Asset Based
	 	6	 	Discount the loan as appropriate
	 
	 	 	 	 
	Real Estate
	 	1	 	0.00%
	Real Estate
	 	2&3	 	0.50%
	Real Estate
	 	4&5	 	1.00%
	Real Estate
	 	6	 	Discount the loan as appropriate
	 
	 	 	 	 
	Cash Flow
	 	1	 	0.00%
	Cash Flow
	 	2&3	 	1.00%
	Cash Flow
	 	4&5	 	2.00%
	Cash Flow
	 	6	 	Discount the loan as appropriate
	 
	 	 	 	 
	For Subordinate (Term “B” or Mezzanine Loans:
	Real Estate
	 	1	 	0.00%
	Real Estate
	 	2&3	 	1.00%
	Real Estate
	 	4&5	 	200%
	Real Estate
	 	6	 	Discount the loan as appropriate
	 
	 	 	 	 
	Cash Flow
	 	1	 	0.00%
	Cash Flow
	 	2&3	 	1.25%
	Cash Flow
	 	4&5	 	2.50%
	Cash Flow
	 	6	 	Discount the loan as appropriate

Loan Rating Process

As noted above, loans assigned a lower loan rating are assessed a lower reserve factor and those
assessed a higher loan rating receive a higher reserve factor. As a result, CapitalSource’s ability
to manage the loan rating process in a consistent and accurate manner is important to the success
of this Reserve Policy. Accordingly, CapitalSource established the following procedures for
assessing and approving the loan rating on a monthly basis as of January 1, 2003:

	 	1.	 	Each quarter all Loan Officers will suggest a rating for each loan in
their portfolio (due by the end of the month for the prior month to
allow for the receipt of financial information from the borrower,
etc).
	 
	 	2.	 	The Portfolio Review Specialist within the Credit Services and
Operation Group will review the loan rating worksheet submitted by
each Loan Officer. The Specialist will check for data and calculation
errors and review the subjective assumptions (as applicable). The
Portfolio Review Specialist reports to the Chief Credit Officer.

V-11

 

	 	3.	 	The Chief Credit Officer will review any exceptions suggested by the
Portfolio Review Specialist with the Loan Officer and approve the loan
rating accordingly.

Appropriateness of Reserve Percentages

CapitalSource was formed on September 7, 2000 and has experienced very few losses during the
relatively short operating history. As a result, it is necessary for CapitalSource to look outside
of the portfolio to determine the loan loss reserve factors. As of December 31, 2002, CapitalSource
gathered financial data regarding the loan loss reserve and the total assets from a range of
competitors over the various lending groups. This information was utilized to establish reserve
factors for each asset class, which are used to calculate the loan loss reserve on a monthly basis.
CapitalSource has updated the analysis as of December 31, 2003 and noted that the ranges continue
to support our reserve factor as noted below:

	 	 	 	 	 	 	 	 	 
	Loan Type	 	CapitalSource Range*	 	Competitor Range
	Asset Based
	 	 	.25%-.50	%	 	 	.47%-2.92	%
	Mortgage Debt
	 	 	.50%-2.0	%	 	 	.48%-2.68	%
	Cash Flow
	 	 	1.0%-2.5	%	 	 	.72%-1.65	%

 

			
	*	 	CapitalSource has a range for each loan type that is based on the loan rating each month.

Based on the analysis above, CapitalSource will continue to utilize the same reserve factors when
calculating the monthly loan loss reserve. The analysis will be updated annually and changes will
be made when necessary.

Calculating Specific Reserves for 6 Rated Loans

Loans rated 6 are loans that considered troubled and have a reasonable probability for loss. Each
quarter, the loan officer (in consultation with the Managing Director and Chief Credit Officer)
will determine (or revise) the appropriate specific reserve amount according to the following
methodology.

The Loan Officer will then prepare and distribute a memorandum to the Credit Committee setting
forth his or her analysis and the basis for the amount of the specific reserve. The Credit
Committee will meet with the Loan Officer and the relevant Managing Director to consider the
memorandum and will determine the amount of the specific reserve for the loan at issue.

	I.	 	For Asset-Backed, Real Estate or other Collateral-based Loans:
	 
	 	 	The specific reserve amount shall be determined by discounting remaining cash flows as required by
FAS 114.

V-12

 

	II.	 	For Cash Flow Loans :
	 
	 	 	A “Maximum Loss Exposure” or “MLE” will be calculated by the loan officer for each 6 rated loan.
The MLE is the loan officer’s estimate of the maximum potential loss exposure for the loan assuming
a worst-case event scenario. Generally, the MLE should be the amount of the loan balance less the
likely recovery value for the enterprise and/or collateral securing the loan based on the current
facts of the case (i.e. ignoring “upside” surprises associated with the borrower and collateral).
	 
	 	 	Each 6 rated loan should be classified into one of the following categories for specific reserve
purposes:

	 	 	 
	Category 1

	 	“Some loss is a reasonable possibility”
	 
	 	 
	 

	 	The borrower is experiencing significant financial difficulties
or the collateral is impaired or a serious threat exists to the
collateral. It is extremely difficult to assess the amount of the
loss based on the facts of the case.
	 
	 	 
	Category 2

	 	“Some loss is likely”
	 
	 	 
	 

	 	The borrower is experiencing significant financial difficulties
or the collateral is impaired or a serious threat exists to the
collateral. It is difficult to assess the amount of the loss
based on the facts of
the case.
	 
	 	 
	Category 3

	 	“Some loss is certain”
	 
	 	 
	 

	 	The borrower is experiencing significant financial difficulties
and collateral is being liquidated and some loss is certain The
exact amount of recovery is still not precisely determinable, but
is highly likely to exceed 50% of the MLE.
	 
	 	 
	Category 4

	 	“Amount of loss is known, but probability of collection is remote”
	 
	 	 
	 

	 	The borrower is experiencing significant financial difficulties
and collateral is being liquidated, the amount of maximum loss
exposure can be precisely determined and the probability of any
greater recovery is remote.

The Specific Reserve for each 6 rated loan shall be determined by multiplying a “loss factor” by
the Loss Scenario. Set forth below are the loss factors for each category.

	 	 	 	 	 
	Category 1:

	 	 	25	%
	Category 2:

	 	 	50	%

V-13

 

	 	 	 	 	 
	Category 3:

	 	 	75	%
	Category 4:

	 	 	100	%

V-14

 

LOAN RATING/SERVICING

	 	 	 	 	 
	LOAN SERVICING GENERAL
	 	VI-1
	 
	 	 	 	 
	LOAN RATING MATRIX GENERAL
	 	VI-2
	 
	 	 	 	 
	CLIENT TREND REPORTING
	 	VI-3
	 
	 	 	 	 
	DELINQUENCY REPORTING
	 	VI-4

VI

 

 

LOAN SERVICING GENERAL

The purpose of this section is to establish a system that identifies for Management and Loan
Administration the quality of the loan and the level of servicing required. To accomplish this, the
detailed daily monitoring is delegated to the loan-servicing department within each respective
business unit. The Managing Director for each business unit is responsible for establishing and
documenting appropriate reporting criteria based upon the risk profile of the respective
portfolios. Exceptions and delinquency should be established to highlight areas needing immediate
attention and/or action.

The objectives of the loan servicing system for each business unit are as follows:

	 	1.	 	To establish standards, needs and priorities of loan servicing and control,
resulting in reduced loss experience and improved client service/relationships.
	 
	 	2.	 	To maintain continuity and uniformity in client collateral and financial reporting.
	 
	 	3.	 	To keep management informed of credit and collateral changes.
	 
	 	4.	 	To identify trends in workloads and to improve productivity.
	 
	 	5.	 	To notify all departments of a rating change as it occurs so that servicing
changes and modifications can be implemented on a timely basis if appropriate.

The parts, which make up the loan servicing system, are as follows:

	 	1	 	Loan Rating Matrix — A chart designed to identify appropriate loan scoring based on
credit and collateral factors.
	 
	 	2.	 	Loan Servicing Standards — A listing of required minimum servicing levels. This is
documented in servicing manuals as appropriate by each individual business unit.
	 
	 	3.	 	Trend Report — A report to identify patterns and/or changes in reported information.
	 
	 	4.	 	Delinquency report — Used to identify delinquencies in reported client information.

VI-1

 

LOAN RATING MATRIX GENERAL

Management has designed a rating system to quantify the risk associated with each loan in the
portfolio. These ratings range from 1 (most creditworthy) through 6 (least creditworthy). Ratings
are calculated using various performance criteria for each borrower, including but not limited to
financial condition, financial performance, operating characteristics and collateral performance.
The risk rating templates are located on the server.

For each performance criteria within the matrix, the loan officer should (i) grade the borrower’s
performance on a scale of 1 (best) through 5; (ii) assign a weighting to each of the performance
criteria, indicating the relative importance of the individual criteria in evaluating the loan;
(iii) multiply the grades by the weighting to determine the rating for each performance criteria;
and (iv) sum the ratings for each criteria to arrive at an overall rating for the loan.

Each loan must be rated at closing through the submission of a matrix to CapitalAnalytics. Only
after the matrix has been reviewed and approved by the Chief Credit Officer can the assigned rating
be entered into CAM. Loans are then rated quarterly thereafter. Changes to a risk rating may also
be recommended by a loan officer at any time through the submission of an updated matrix to
CapitalAnalytics for review and approval by the Chief Credit Officer.

On occasion, factors not quantified within the matrix may over ride the calculated rating. Such
factors might be strong guarantors, abundant collateral, bankruptcy, etc. These factors must be
identified and explained in the Factors for Facility Rating section of the matrix. When one of
these factors is bankruptcy, the rating for a bankrupt borrower can not exceed 5. If a bankruptcy
is a non-DIP situation, or a Ch. 7 or Ch. 11 liquidation the loan must be rated a 6. The 5 and 6
ratings must be applied regardless of the mathematical calculation of the rating, unless waived in
writing by the Chief Credit Officer.

Upon receiving a rating of 4 or lower, the Workout Manager must be involved in the management of
the loan. See page V-8 for policy thereon.

VI-2

 

Client Trend Reporting

Trend Information should be updated by the loan administration areas of each group as well as
through direct interface by our clients. The trend data captures client data on a month-to-month
basis to reveal any trends, which may impact client performance.

VI-3

 

Delinquency Reporting

The items noted in the standard loan servicing requirements for both ABL and Mezzanine/Subordinated
Debt loans will be tracked as part of the Company’s MIS system. Delinquency reports will be
accumulated periodically to be reviewed with the Credit Committee..

VI-4

 

	 	 	 	 	 
	FILE MAINTENANCE/RECORD KEEPING
	 	 	 	 
	 
	 	 	 	 
	CREDIT/UNDERWRITING FILES
	 	VII-1
	 
	 	 	 	 
	INSURANCE
	 	VII-2
	 
	 	 	 	 
	UCC FILINGS
	 	VII-3
	 
	 	 	 	 
	TAX PAYMENTS
	 	VII-4
	 
	 	 	 	 
	NOTIFICATIONS LETTERS
	 	VII-7

VII

 

CREDIT/UNDERWRITING FILES

In general, two sets of files should be retained for each account. Credit files will be retained by
the loan administration areas for each business group. Legal files will be retained by the legal
department. Underwriting reports and associated work papers are stored electronically on the LAN.

All original underwriting files are to be maintained by loan administration. This file will contain
the original approval sheet, credit write-up, etc. Please refer to underwriting section for the
contents of this file. It is important that the original file be maintained as a reference point
for closing, amendments in the future, etc.

For each customer, a separate legal file is to be maintained. This file should contain all of
the loan agreements, (including all amendments, waivers, extensions, consents, etc.) notes,
insurance information, UCC filings, open items lists and legal correspondence.

For each account, a separate credit file is to be maintained. This file should be as comprehensive
as possible so that a trail of activity for each customer is recorded. The following items are to
be maintained in each credit file:

Approval forms for any amendments, overadvances, overlines, forbearance agreements,
etc.

Call reports or memorandums recording client visits.

Correspondence

Any retention memos or strategy memos.

Financial statements (last thirteen monthly and latest year-end).

Personal Financial Statements of Guarantors if applicable.

Industry studies, articles, research, newspaper clippings, etc.

Latest appraisal

Credit agency report on Customer/Principals

VII-1

 

INSURANCE

GENERAL

Prior to closing a new loan, and on all existing loans, where real property, inventory, equipment,
machinery, furniture & fixtures and any other insurable assets are taken as collateral on a first
priority basis, the loan officer has responsibility for determining that adequate property
insurance is in force and is maintained.

REQUIREMENTS:

The insurance policy must provide for adequate coverage.

The insurer must be satisfactory and must carry a rating by Best’s of B or higher

The policy must contain a Lender’s Loss Payable Endorsement acceptable to CS.

In the event the policy is canceled, the policy must continue in force for the
benefit of CS for tens days after notice to CS of the cancellation.

DOCUMENTATION

A copy of the policy and all applicable riders, endorsements, etc. is to obtained and filed
in the legal file

A master insurance listing will be kept for the portfolio. A tickler will be established to
track policy expirations, annual premiums, property covered, etc.

On an annual basis, the loan officer will review the adequacy of the insurance and will
document this review in the file. Amount of coverage, carrier, proper loss payee, etc. must
be reviewed annually.

CHANGE OF INSURER

Whenever a client changes insurance carriers, a complete review of coverage, endorsements,
etc. must be performed and documented for the file.

VII-2

 

UCC FILINGS

All secured loan transactions will have UCC financing statements filed in the borrower’s
jurisdiction of incorporation and as otherwise required by article 9 of the UCC.. A confirmation of
CapitalSource’s UCC filing and priority must occur before funding, where practical.

TRACKING

The loan administration department in conjunction with legal will maintain a UCC Tickler Sheet
indicating the date and place of the next re-filing required under the Uniform Commercial Code.
Once new filings are made, the tickler should be updated. UCC searches should be performed
periodically to detect the presence of any further liens.

VII-3

 

TAX PAYMENTS

When a field examination or other information reveals a potential tax delinquency problem,
loan administration needs to require reporting of appropriate tax information.

In accordance with our loan and security agreements, it is incumbent upon request that each client
provides CS with proof of payment of all FICA and Withholding Taxes. The intent of this provision
is to avoid the risk of federal tax liens, which could jeopardize the priority of Capital Source’s
security interest.

See page VII-6 for a sample schedule, which should be utilized to track proper tax payments.
Usage of this form will highlight skipped payments not readily discernible otherwise.

It is important that tax payments be further verified by canceled checks or per review of a bank
statement. The check should be reviewed for the appropriate teller stamp. Proof of deposit by the
customer could be negated by a check being returned due to insufficient funds.

In addition, review of tax payments should be part of ongoing field examination work where
appropriate.

VII-4

 

Date:

CapitalSource Finance LLC

Applicable office address

     RE: FICA Payments and Withholding Taxes

Gentlemen

Pursuant to the provisions of our loan agreement dated                      we (Customer’s name)
are enclosing a photocopy of our Federal Depository Receipt, stamped to indicate the name and
address of the Depository and the date of the deposit.

The payment of our deposit, as shown on this receipt, was for $                     which represents
our entire liability for FICA payments and withholding taxes for the period                      to
                    , during which time we employed a total of                      personnel to whom we paid
aggregate wages in the total amount of $                     .

Sincerely,

Authorized Signature and Title

VII-5

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Client Tax Payment Summary	 	 	 	 	 	 		 	 	 	 
	 	 	Sheet	 	 	 	 	 	 	Number	 	 	 	 
	Date of	 	Deposit	 	 	 	 	 	 	Payment	 	 	of	 	 	Total	 
	Receipt	 	Date	 	 	Period Covered	 	 	Amount	 	 	Employees	 	 	Wages	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

VII-6

 

NOTIFICATION LETTERS

In the event it becomes necessary to put a client’s customer on notification, the following
sample letters should be used:

The first letter shown on page VII-8 is a direct notification from the CapitalSource to our
client’s customers. This should be sent certified mail.

The second letter on page VII-9 is sent directly from our client to their customers. This should be
sent at the same time as the first letter.

The third example incorporates the client’s acknowledgment of our direct notification. This letter
is preferable, as the customer is made immediately aware that this action has the client’s consent.

Obviously, during liquidation, CapitalSource should receive all of a customer’s mail. It is
imperative to fill out a change of address card at the post office. When a loan is called, it is
often difficult to get the client’s cooperation on this point. It is advisable to obtain a signed
change of address form at closing and maintain it in the legal file.

VII-7

 

(Sample — Letter of Notification)

CapitalSource Finance LLC

Sending Office Address

Date                    

Client’s Customer Address

ATTN: Accounts Payable Supervisor

Gentlemen:

All accounts receivable presently due (our client) together with all accounts receivable
represented by invoice rendered by (our client) subsequent to this date have been assigned to
CapitalSource, LLC. This assignment of our receivable from (our client) has been perfected under
law.

Our
records indicate and unpaid balance of
$                    
 per the attached statement. Payment of
all such accounts is to be made directly to:

CapitalSource

C/O P.O.

(Sending Office Address)

If a discrepancy exists in the stated amount due, please notify CapitalSource Finance, LLC within
five days of any reasons for said discrepancy.

This notification of assignment of accounts receivable is being given to you in accordance with the
provisions of the Uniform Commercial Code. Under the provisions of the Uniform Commercial Code, if
you should make payment to (our client) instead of CapitalSource Finance, LLC, such payment will
not constitute settlement of this account, and may subject you to double liability for the amount
due on your account.

Sincerely,

CapitalSource Finance, LLC

VII-8

 

(Sample Confirmation Letter from Debtor)

(Placed on Debtor’s Stationary)

Date

To all customers and Accounts of (our Client)

Gentlemen:

This letter confirms that all accounts receivable of the undersigned has been assigned by us to
Capital Source, LLC. You should have received prior notification from CapitalSource of this
assignment. All payments on any and all accounts due the undersigned must be made directly to:

CapitalSource Finance, LLC

C/O P/O

(Sending Office)

Your cooperation is appreciated.

Sincerely,

(Our Client)

By:                                         

Its:                                         

VII-9

 

(Sample — Letter of Notification with Acknowledgment)

Date                     

CapitalSource Finance, LLC

Sending Office Address

Date                     

Client’s Customer Address

ATTN: Accounts Payable Supervisor

Gentlemen:

All accounts receivable presently due (our client) together with all accounts receivable
represented by invoice rendered by (our client) subsequent to this date have been assigned to
CapitalSource Finance, LLC. This assignment of receivables from (our client) has been perfected
under the Uniform Commercial Code.

Our
records indicate an unpaid balance of
$                    
 per the attached statement. Payment
of all such accounts should be made directly to:

CapitalSource Finance LLC

C/O P/O

(Sending Office)

If a discrepancy exists in the stated amount due, notification of any defense you may claim should
be furnished to CapitalSource Finance, LLC, within five days subsequent of this letter.

This notification of assignment of accounts receivable is being given to you in accordance with the
provisions of the Uniform Commercial Code. If you should make payment to (our client), such payment
will not constitute settlement of this account and may subject you to double liability for the
amount due on your account.

Sincerely,

CapitalSource Finance, LLC

We acknowledge the above procedure. Please make payment to CapitalSource Finance, LLC

Client Name

President

VII-10

 

Exhibit L–1

to Sale and

Servicing Agreement

FORM OF INITIAL CERTIFICATION

April 11, 2006

	 	 	 
	CapitalSource Commercial Loan LLC, 2006-1,

	 	Wachovia Bank, National Association
	   as the Trust Depositor

	 	as Hedge Counterparty
	CapitalSource Finance LLC,

	 	301 South College Street, DC-8
	   as the Originator and Servicer

	 	Charlotte, NC 28202-0600
	4445 Willard Avenue

	 	Attention:      Bruce M. Young
	12th Floor

	 	                       Senior Vice President, Risk
	Chevy Chase, Maryland 20815

	 	                       Management
	Attention:     Treasurer
	 	 
	 

	 	Citigroup Global Markets Inc.,
	CapitalSource Finance LLC,

	 	Wachovia Capital Markets, LLC,
	   as the Originator and Servicer

	 	Harris Nesbitt Corp.,
	4445 Willard Avenue

	 	J.P. Morgan Securities Inc.,
	12th Floor

	 	SunTrust Capital Markets, Inc.,
	Chevy Chase, Maryland 20815

	 	SG Americas Securities, LLC,
	Attention:     Treasurer

	 	Barclays Capital Inc.,
	 

	 	   as the Initial Purchasers
	 

	 	390 Greenwich Street
	 

	 	New York, New York 10013
	 

	 	Facsimile No.: (212) 723-8591
	 

	 	Attention: Asset-Backed Finance

			
	Re:	 	Sale and Servicing Agreement dated April 11, 2006 – CapitalSource Commercial Loan Trust
2006-1 

Ladies and Gentlemen:

     In accordance with Section 2.09 of the above–captioned Sale and Servicing Agreement (such
agreement as amended, modified, waived, supplemented or restated from time to time, the
“Agreement ”), the undersigned, as the Indenture Trustee, hereby certifies that, except as
noted on the attachment hereto, if any (the “Loan Exception Report”), it has received each
of the documents required to be delivered to it pursuant to Section 2.07 of the Agreement with
respect to each Loan listed in the List of Loans and the documents contained therein appear to bear
original signatures. Capitalized but undefined terms have the meanings set forth in the Agreement.

     The Indenture Trustee has made no independent examination of any such documents beyond the
review specifically required in the 
above–referenced Agreement.

 

 

     The Indenture Trustee makes no representations as to: (i) the validity, legality,
sufficiency, enforceability or genuineness of any such documents or any of the Loans identified on
the List of Loans, or (ii) the collectibility, insurability, effectiveness or suitability of any
such Loan.

	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL
	 	 	ASSOCIATION, as the Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

Exhibit L–2

to Sale and

Servicing Agreement

FORM OF FINAL CERTIFICATION

[date]

	 	 	 
	CapitalSource Commercial Loan LLC, 2006-1,

	 	Wachovia Bank, National Association
	  as the Trust Depositor

	 	as Hedge Counterparty
	4445 Willard Avenue

	 	301 South College Street, DC-8
	12th Floor

	 	Charlotte, NC 28202-0600
	Chevy Chase, Maryland 20815

	 	Attention:      Bruce M. Young
	Attention:     Treasurer

	 	                       Senior Vice President, Risk
	 

	 	                       Management
	CapitalSource Finance LLC,
	 	 
	  as the Originator and Servicer

	 	Citigroup Global Markets Inc.,
	4445 Willard Avenue

	 	Wachovia Capital Markets, LLC,
	12th Floor

	 	Harris Nesbitt Corp.,
	Chevy Chase, Maryland 20815

	 	J.P. Morgan Securities Inc.,
	Attention:     Treasurer

	 	SunTrust Capital Markets, Inc.,
	 

	 	SG Americas Securities, LLC,
	 

	 	Barclays Capital Inc.
	 

	 	  as the Initial Purchasers,
	 

	 	390 Greenwich Street
	 

	 	New York, New York 10013
	 

	 	Facsimile No.: (212) 723-8591
	 

	 	Attention: Asset-Backed Finance

			
	Re:	 	Sale and Servicing Agreement dated April 11, 2006 – CapitalSource Commercial Loan Trust
2006-1 

Ladies Gentlemen:

     In accordance with Section 2.09 of the above–captioned Sale and Servicing Agreement (such
agreement as amended, modified, waived, supplemented or restated from time to time, the
“Agreement ”), the undersigned, as the Indenture Trustee, hereby certifies that, except as
noted on the attachment hereto, as to each Loan listed in the List of Loans (other than any Loan
paid in full or listed on the attachment hereto), it has reviewed the documents delivered to it
pursuant to Section 2.07 of the Agreement and has determined that (i) all such documents are in its
possession, (ii) such documents have been reviewed by it and have not been mutilated, damaged, torn
or otherwise physically altered and relate to such Loan and (iii) based on its examination, and
only as to the foregoing documents, the information set forth in the List of Loans respecting such
Loan is correct. The Indenture Trustee has made no independent examination or inquiry of such
documents beyond the review specifically required in the Agreement.

 

 

     The Indenture Trustee makes no representations as to: (i) the validity, legality,
enforceability or genuineness of any such documents contained in each or any of the Loans
identified on the List of Loans, (ii) the collectibility, insurability, effectiveness or
suitability of any such Loan, or (iii) the compliance by such documents with statutory or
regulatory guidelines.

 

 

	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL
	 	 	ASSOCIATION, as the Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

Exhibit M

to Sale and

Servicing Agreement

REQUEST FOR RELEASE OF DOCUMENTS

	 	 	 
	To:

	 	Wells Fargo Bank, National Association,
	 

	 	  as the Indenture Trustee
	 

	 	Sixth Street and Marquette Avenue
	 

	 	MAC N9311–161
	 

	 	Minneapolis, Minnesota 55479
	 

	 	Attention:     Corporate Trust Services/Asset Backed
	 

	 	                     Administration
	 
	 	 
	Re:

	 	Sale and Servicing Agreement dated April 11, 2006 – CapitalSource Commercial Loan Trust
2006-1 

     In connection with the administration of the pool of Loans held by you, we request the
release, and acknowledge receipt, of the (Indenture Trustee’s Document File/[specify document]) for
the Loan described below, for the reason indicated.

Obligor’s Name, Address & Zip Code:

Loan Number:

Reason for Requesting Documents (check one)

	                    1.	 	Loan paid in full

(Servicer hereby certifies that all amounts received in connection
therewith have been credited to the Principal and Interest Account.)
	 
	                    2.	 	Loan liquidated

(Servicer hereby certifies that all proceeds of foreclosure, insurance or other liquidation
have been finally received and credited to the Principal and Interest Account.)
	 
	                    3.	 	Loan in foreclosure
	 
	                    4.	 	Loan repurchased or substituted pursuant to Article II or XI of the Sale and
Servicing Agreement (Servicer hereby certifies that the repurchase price to the extent
required has been credited to the Principal and Interest Account and/or remitted to
the Indenture Trustee for deposit into the Note Distribution Account pursuant to the
Sale and Servicing Agreement.)
	 
	                    5.	 	Collateral being released for servicing purposes pursuant to Sections 2.09(d)
or 5.02 of the Sale and Servicing Agreement.

 

 

	                    6.	 	Loan Collateral or associated loan document being substituted, released,
revised or subordinated.

     If box 1, 2 or 4 above is checked, and if all or part of the Indenture Trustee’s document file
was previously released to us, please release to us our previous receipt on file with you, as well
as any additional documents in your possession relating to the above specified Loan.

     If box 3, 5 or 6 above is checked, upon our return of all of the above documents (or the
appropriate substitutes therefor, if applicable) to you, please acknowledge your receipt by signing
in the space indicated below, and returning this form.

	 	 	 	 	 
	 	 	CAPITALSOURCE FINANCE LLC, as the Servicer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Documents returned to Indenture Trustee:	 	 
	 
	 	 	 	 
	Wells Fargo Bank, National Association,	 	 
	  as the Indenture Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title
	 	 	 	 
	 

	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

 

 

Exhibit N

to Sale and

Servicing Agreement

FORM OF ADDITION NOTICE

[Date]

Wells Fargo Bank, National Association,

  as the Indenture Trustee

Sixth Street and Marquette Avenue

MAC N9311–161

Minneapolis, Minnesota 55479

Attention:      Corporate Trust Services/Asset Backed

                     Administration

Wilmington Trust Company,

  as the Owner Trustee

1100 North Market Street

Wilmington, Delaware 19801

Attention:     Corporate Trust Administration

			
	Re:	 	Sale and Servicing Agreement (as amended, modified,
restated, replaced, waived, substituted, supplemented
or extended from time to time, the “Agreement ”),
dated April 11, 2006, by and among CapitalSource
Commercial Loan Trust 2006-1, as the Issuer,
CapitalSource Commercial Loan LLC, 2006-1, as the
Trust Depositor, CapitalSource Finance LLC, as the
Originator and Servicer, and Wells Fargo Bank,
National Association, not in its individual capacity
but as the Indenture Trustee and the Backup Servicer
(capitalized terms used but not defined herein shall
have the meanings given to such terms in the
Agreement).

Pursuant to Section 2.04 of the Transfer and Servicing Agreements, we hereby give notice of the
substitution of the following Loans and the information required in respect thereof

	1.	 	Loan(s) to be removed by substitution:
	 
	2.	 	Substitute Loan(s):
	 
	3.	 	The Subsequent Transfer Date:
	 
	4.	 	The Outstanding Loan Balance of each Substitute Loan:
	 
	5.	 	The related Substitution Event for each Loan to be removed by substitution:
	 
	6.	 	(a) The purchase price paid for the Substitute Loan pursuant to Section 2.04(a)(iii)
(i.e., the Transfer Deposit Amount in respect of such Loan):

 

 

(b)The remaining balance of the deposit made to the Principal Collection Account pursuant
to Section 2.04(a)(B), after subtracting purchase price in Item 5(a) hereof:

All information set forth herein is true, correct and complete as of the date hereof.

	 	 	 	 	 
	 	 	CAPITALSOURCE COMMERCIAL LOAN
	 	 	LLC, 2006-1, as Trust Depositor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	CAPITALSOURCE FINANCE LLC, as the
	 	 	Originator and Servicer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

Schedule I

to Sale and

Servicing Agreement

LOCK–BOX BANKS AND LOCK–BOX ACCOUNTS

	 	 	 
	1.

	 	Bank: Bank of America, N.A.
	 

	 	P.O. Box 409780
	 

	 	Atlanta, GA 30384-9780
	 
	 	 
	 

	 	Account No.: 003930559738
	 
	 	 
	 

	 	ABA: 0260-0959-3
	 
	 	 
	 

	 	Account Name: CapitalSource Funding LLC – HFG
	 
	 	 
	2.

	 	Bank: Bank of America, N.A.
	 

	 	P.O. Box 409739
	 

	 	Atlanta, GA 30384-9739
	 
	 	 
	 

	 	Account No.: 003938703751
	 
	 	 
	 

	 	ABA: 0260-0959-3
	 
	 	 
	 

	 	Account Name: CapitalSource Funding LLC – SFG
	 
	 	 
	3.

	 	Bank: Bank of America, N.A.
	 

	 	P.O. Box 409739
	 

	 	Atlanta, GA 30384-9739
	 
	 	 
	 

	 	Account No.: 003939396662
	 
	 	 
	 

	 	ABA: 0260-0959-3
	 
	 	 
	 

	 	Account Name: CapitalSource Funding LLC – CFG

 

 

	 	 	 
	4.

	 	Bank: Bank of America, N.A.
	 

	 	P.O. Box 409739
	 

	 	Atlanta, GA 30384-9739
	 
	 	 
	 

	 	Account No.: 003922575610
	 
	 	 
	 

	 	ABA: 0260-0959-3
	 
	 	 
	 

	 	Account Name: CapitalSource Funding LLC

 

 

Schedule II

to Sale and

Servicing Agreement

OBLIGOR LOCK–BOX BANKS AND OBLIGOR LOCK–BOX ACCOUNTS

Fourth Amended and Restated Three Party Agreement Relating to Lockbox Services and Control

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