Document:

exv10w56

 

Exhibit 10.56

EXECUTION

VERSION

AMENDED AND RESTATED TRUST AGREEMENT

among

CAPITALSOURCE FINANCE LLC,

as Depositor

CAPITALSOURCE INC.,

as Guarantor

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Property Trustee

CHASE BANK USA, NATIONAL ASSOCIATION,

as Delaware Trustee

and

THE ADMINISTRATIVE TRUSTEES NAMED HEREIN

as Administrative Trustees

 

Dated as of February 22, 2006

 

CAPITALSOURCE TRUST PREFERRED SECURITIES 2006-1

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE I DEFINED TERMS	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 1.1.	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II THE TRUST	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 2.1.	 	Name	 	 	12	 
	 
	 	Section 2.2.	 	Office of the Delaware Trustee; Principal Place of Business	 	 	12	 
	 
	 	Section 2.3.	 	Initial Contribution of Trust Property; Fees, Costs and Expenses	 	 	12	 
	 
	 	Section 2.4.	 	Purposes of Trust	 	 	12	 
	 
	 	Section 2.5.	 	Authorization to Enter into Certain Transactions	 	 	13	 
	 
	 	Section 2.6.	 	Assets of Trust	 	 	16	 
	 
	 	Section 2.7.	 	Title to Trust Property	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III PAYMENT ACCOUNT; PAYING AGENTS	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 3.1.	 	Payment Account	 	 	16	 
	 
	 	Section 3.2.	 	Appointment of Paying Agents	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV DISTRIBUTIONS; REDEMPTION	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 4.1.	 	Distributions	 	 	17	 
	 
	 	Section 4.2.	 	Redemption	 	 	19	 
	 
	 	Section 4.3.	 	Subordination of Common Securities	 	 	21	 
	 
	 	Section 4.4.	 	Payment Procedures	 	 	22	 
	 
	 	Section 4.5.	 	Withholding Tax	 	 	22	 
	 
	 	Section 4.6.	 	Tax Returns and Other Reports	 	 	23	 
	 
	 	Section 4.7.	 	Payment of Taxes, Duties, Etc. of the Trust	 	 	23	 
	 
	 	Section 4.8.	 	Payments under Indenture or Pursuant to Direct Actions	 	 	23	 
	 
	 	Section 4.9.	 	Exchanges	 	 	23	 
	 
	 	Section 4.10.	 	Calculation Agent	 	 	24	 
	 
	 	Section 4.11.	 	Certain Accounting Matters	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V SECURITIES	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 5.1.	 	Initial Ownership	 	 	26	 
	 
	 	Section 5.2.	 	Authorized Trust Securities	 	 	26	 

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	 	 	 	 	 	 	Page	 
	 
	 	Section 5.3.	 	Issuance of the Common Securities; Subscription and Purchase of Notes	 	 	26	 
	 
	 	Section 5.4.	 	The Securities Certificates	 	 	26	 
	 
	 	Section 5.5.	 	Rights of Holders	 	 	27	 
	 
	 	Section 5.6.	 	Book-Entry Preferred Securities	 	 	27	 
	 
	 	Section 5.7.	 	Registration of Transfer and Exchange of Preferred Securities Certificates	 	 	29	 
	 
	 	Section 5.8.	 	Mutilated, Destroyed, Lost or Stolen Securities Certificates	 	 	31	 
	 
	 	Section 5.9.	 	Persons Deemed Holders	 	 	31	 
	 
	 	Section 5.10.	 	Cancellation	 	 	32	 
	 
	 	Section 5.11.	 	Ownership of Common Securities by Depositor	 	 	32	 
	 
	 	Section 5.12.	 	Restrictive Legends	 	 	33	 
	 
	 	Section 5.13.	 	Form of Certificate of Authentication	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI MEETINGS; VOTING; ACTS OF HOLDERS	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 6.1.	 	Notice of Meetings	 	 	35	 
	 
	 	Section 6.2.	 	Meetings of Holders of the Preferred Securities	 	 	35	 
	 
	 	Section 6.3.	 	Voting Rights	 	 	36	 
	 
	 	Section 6.4.	 	Proxies, Etc	 	 	36	 
	 
	 	Section 6.5.	 	Holder Action by Written Consent	 	 	36	 
	 
	 	Section 6.6.	 	Record Date for Voting and Other Purposes	 	 	36	 
	 
	 	Section 6.7.	 	Acts of Holders	 	 	37	 
	 
	 	Section 6.8.	 	Inspection of Records	 	 	38	 
	 
	 	Section 6.9.	 	Limitations on Voting Rights	 	 	38	 
	 
	 	Section 6.10.	 	Acceleration of Maturity; Rescission of Annulment; Waivers of Past Defaults	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII REPRESENTATIONS AND WARRANTIES	 	 	41	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 7.1.	 	Representations and Warranties of the Property Trustee and the Delaware Trustee	 	 	41	 
	 
	 	Section 7.2.	 	Representations and Warranties of Depositor	 	 	42	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII THE TRUSTEES	 	 	43	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 8.1.	 	Number of Trustees	 	 	43	 
	 
	 	Section 8.2.	 	Property Trustee Required	 	 	43	 
	 
	 	Section 8.3.	 	Delaware Trustee Required	 	 	44	 

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	 	 	 	 	 	 	Page	 
	 
	 	Section 8.4.	 	Appointment of Administrative Trustees	 	 	44	 
	 
	 	Section 8.5.	 	Duties and Responsibilities of the Trustees	 	 	45	 
	 
	 	Section 8.6.	 	Notices of Defaults and Extensions	 	 	46	 
	 
	 	Section 8.7.	 	Certain Rights of Property Trustee	 	 	47	 
	 
	 	Section 8.8.	 	Delegation of Power	 	 	49	 
	 
	 	Section 8.9.	 	May Hold Securities	 	 	49	 
	 
	 	Section 8.10.	 	Compensation; Reimbursement; Indemnity	 	 	49	 
	 
	 	Section 8.11.	 	Resignation and Removal; Appointment of Successor	 	 	50	 
	 
	 	Section 8.12.	 	Acceptance of Appointment by Successor	 	 	52	 
	 
	 	Section 8.13.	 	Merger, Conversion, Consolidation or Succession to Business	 	 	52	 
	 
	 	Section 8.14.	 	Not Responsible for Recitals or Issuance of Securities	 	 	52	 
	 
	 	Section 8.15.	 	Property Trustee May File Proofs of Claim	 	 	53	 
	 
	 	Section 8.16.	 	Reports to and from the Property Trustee	 	 	53	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX TERMINATION, LIQUIDATION AND MERGER	 	 	54	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 9.1.	 	Dissolution Upon Expiration Date	 	 	54	 
	 
	 	Section 9.2.	 	Early Termination	 	 	54	 
	 
	 	Section 9.3.	 	Termination	 	 	55	 
	 
	 	Section 9.4.	 	Liquidation	 	 	55	 
	 
	 	Section 9.5.	 	Mergers,  Consolidations,  Amalgamations  or  Replacements  of Trust	 	 	56	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE X INFORMATION TO PURCHASER	 	 	58	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 10.1.	 	Depositor Obligations to Purchaser	 	 	58	 
	 
	 	Section 10.2.	 	Property Trustee’s Obligations to Purchaser	 	 	58	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI MISCELLANEOUS PROVISIONS	 	 	58	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 11.1.	 	Limitation of Rights of Holders	 	 	58	 
	 
	 	Section 11.2.	 	Agreed Tax Treatment of Trust and Trust Securities	 	 	58	 
	 
	 	Section 11.3.	 	Amendment	 	 	59	 
	 
	 	Section 11.4.	 	Separability	 	 	60	 
	 
	 	Section 11.5.	 	Governing Law	 	 	60	 
	 
	 	Section 11.6.	 	Successors	 	 	61	 
	 
	 	Section 11.7.	 	Headings	 	 	61	 
	 
	 	Section 11.8.	 	Reports, Notices and Demands	 	 	61	 

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	 	 	 	 	 	 	Page	 
	 
	 	Section 11.9.	 	Agreement Not to Petition	 	 	62	 
	 
	 	Section 11.10.	 	Counterparts	 	 	62	 

	 	 	 
	EXHIBITS AND SCHEDULE
	 
	 	 
	Exhibit A

	 	Certificate of Trust of CapitalSource Trust Preferred Securities 2006-1
	Exhibit B

	 	Form of Common Securities Certificate
	Exhibit C

	 	Form of Preferred Securities Certificate
	Exhibit D

	 	Junior Subordinated Indenture
	Exhibit E

	 	Form of Transferee Certificate
	Exhibit F

	 	Form of Officer’s Certificate under Section 8.16(a)
	Exhibit G

	 	Form of Officer’s Financial Certificate of the Guarantor
	 
	 	 
	Schedule A

	 	Determination of LIBOR

iv

 

AMENDED AND RESTATED TRUST AGREEMENT

     This
AMENDED AND RESTATED TRUST AGREEMENT, dated as of February 22,
2006, (this “Trust Agreement”), among (i) CapitalSource Finance LLC, a Delaware limited liability company (including
any successors or permitted assigns, the “Depositor”), (ii) CapitalSource Inc., a Delaware
corporation (including any successors or permitted assigns, the
“Guarantor”), (iii) JPMorgan Chase
Bank, National Association, a national banking association, as property trustee (in such capacity,
the “Property Trustee”), (iv) Chase Bank USA, National Association, a national banking
association, as Delaware trustee (in such capacity, the “Delaware Trustee”), (v) Thomas A.
Fink, an individual, Steven A. Muscles, an individual, and Bryan D. Smith, an individual, each of
whose address is c/o CapitalSource Finance LLC, 4445 Willard Avenue, 12th Floor, Chevy Chase,
Maryland 20815, as administrative trustees (in such capacities, each
an “Administrative Trustee” and, collectively, the “Administrative Trustees” and, together with the
Property Trustee and the Delaware Trustee, the “Trustees”) and (vi) the several Holders, as
hereinafter defined.

WITNESSETH:

     WHEREAS, the Depositor and the Delaware Trustee have heretofore created a Delaware statutory
trust pursuant to the Delaware Statutory Trust Act by entering into a Trust Agreement, dated as of
February 21, 2006 (the “Original Trust Agreement”), and by executing and filing with the Secretary
of State of the State of Delaware the Certificate of Trust, substantially in the form attached
hereto as Exhibit A (the “Certificate of Trust”); and

     WHEREAS, the Depositor and the Trustees desire to amend and restate the Original Trust
Agreement in its entirety as set forth herein to provide for, among other things, (i) the issuance
of the Common Securities by the Trust to the Depositor, (ii) the issuance and sale of the Preferred
Securities by the Trust pursuant to the Purchase Agreement and (iii) the acquisition by the Trust
from the Depositor of all of the right, title and interest in and to the Notes;

     NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each party, for the benefit of the other parties and for the benefit of the Holders,
hereby amends and restates the Original Trust Agreement in its entirety and agrees as follows:

ARTICLE I

DEFINED TERMS

     Section 1.1. Definitions.

     For all purposes of this Trust Agreement, except as otherwise expressly provided or unless the
context otherwise requires:

     (a) the terms defined in this Article I have the meanings assigned to
them in this Article I;

 

 

     (b) the words “include,” “includes” and “including” shall be deemed to be
followed by the phrase “without limitation”;

     (c) all accounting terms used but not defined herein have the meanings
assigned to them in accordance with United States generally accepted accounting
principles;

     (d) unless the context otherwise requires, any reference to an “Article”, a
“Section”, a “Schedule” or an “Exhibit” refers to an Article, a Section, a Schedule or
an Exhibit, as the case may be, of or to this Trust Agreement;

     (e) the words “hereby,” “herein,” “hereof and “hereunder” and other words of
similar import refer to this Trust Agreement as a whole and not to any particular
Article, Section or other subdivision;

     (f) a reference to the singular includes the plural and vice versa; and

     (g) the masculine, feminine or neuter genders used herein shall include the
masculine, feminine and neuter genders.

     “Act” when used with respect to any Holder, has the meaning specified in Section 6.7.

     “Additional Interest” has the meaning specified in Section 1.1 of the Indenture.

     “Additional Interest Amount” means, with respect to Trust Securities of a given
Liquidation Amount and/or a given period, the amount of Additional Interest paid by the Depositor
on a Like Amount of Notes for such period.

     “Additional Tax Sums” has the meaning specified in Section 10.5 of the
Indenture.

     “Additional Taxes” has the meaning specified in Section 1.1 of the
Indenture.

     “Administrative Trustee” means each of the Persons identified as an
“Administrative Trustee” in the preamble to this Trust Agreement, solely in each such
Person’s capacity as Administrative Trustee of the Trust and not in such Person’s individual
capacity, or any successor Administrative Trustee appointed as herein provided.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person, means the
power to direct the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

     “Applicable Depositary Procedures” means, with respect to any transfer or transaction
involving a Book-Entry Preferred Security, the rules and procedures of the Depositary for such
Book-Entry Preferred Security, in each case to the extent applicable to such transaction and as in
effect from time to time.

2

 

     “Bankruptcy Event” means, with respect to any Person:

(a) the entry of a decree or order by a court having jurisdiction in the
premises (i) judging such Person a bankrupt or insolvent, (ii) approving as
properly filed a petition seeking reorganization, arrangement, adjustment
or composition of or in respect of such Person under any applicable
federal or state bankruptcy, insolvency, reorganization or other similar
law, (iii) appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of such Person or of any substantial
part of its property or (iv) ordering the winding up or liquidation of its
affairs, and the continuance of any such decree or order unstayed and in
effect for a period of sixty (60) consecutive days; or

(b) the institution by such Person of proceedings to be adjudicated a
bankrupt or insolvent, or the consent by it to the institution of bankruptcy
or insolvency proceedings against it, or the filing by it of a petition or
answer or consent seeking reorganization or relief under any applicable
federal or state bankruptcy, insolvency, reorganization or other similar
law, or the consent by it to the filing of any such petition or to the
appointment of a custodian, receiver, liquidator, assignee,
trustee,
sequestrator or similar official of such Person or of any substantial part of
its property, or the making by it of an assignment for the benefit of
creditors, or the admission by it in writing of its inability to pay its debts
generally as they become due and its willingness to be adjudicated a
bankrupt or insolvent, or the taking of corporate action by such Person in
furtherance of any such action.

     “Bankruptcy Laws” means all federal and state bankruptcy, insolvency, reorganization
and other similar laws, including the United States Bankruptcy Code.

     “Book-Entry Preferred Security” means a Preferred Security, the ownership and
transfers of which shall be made through book entries by a Depositary.

     “Business Day” means a day other than (a) a Saturday or Sunday, (b) a day on which
banking institutions in the City of New York are authorized or required by law or executive order
to remain closed or (c) a day on which the Corporate Trust Office is closed for business.

     “Calculation Agent” has the meaning specified in Section 4.10.

     “Certificate of Trust” has the meaning specified in the recitals to this Trust
Agreement.

     “Closing
Date” has the meaning specified in the Purchase Agreement.

     “Code” means the United States Internal Revenue Code of 1986 or any successor statute thereto,
in each case as amended from time to time.

     “Commission” means the Securities and Exchange Commission.

3

 

     “Common Securities Certificate” means a certificate evidencing ownership of Common
Securities, substantially in the form attached hereto as Exhibit B.

     “Common Securities Subscription Agreement” means the agreement of even date herewith
by and between the Depositor and the Trust pertaining to the sale and purchase of the Common
Securities.

     “Common Security” means a common security of the Trust, denominated as such and
representing an undivided common beneficial interest in the assets of the Trust, having a
Liquidation Amount of $1,000 and having the rights provided therefor in this Trust Agreement.

     “Corporate Trust Office” means the principal office of the Property Trustee at which
any particular time its corporate trust business shall be administered, which office at the date
of this Trust Agreement is located at 600 Travis, 50th Floor, Houston, Texas 77002, Attention:
Worldwide Securities Services—CapitalSource Trust Preferred Securities 2006-1.

     “Definitive Preferred Securities Certificates” means Preferred Securities issued in
certificated, fully registered form that are not Global Preferred Securities.

     “Delaware Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code § 3801 et seq., or any successor statute thereto, in each case as amended from time to
time.

     “Delaware Trustee” means the Person identified as the “Delaware Trustee” in the
preamble to this Trust Agreement, solely in its capacity as Delaware Trustee of the Trust and not
in its individual capacity, or its successor in interest in such capacity, or any successor
Delaware Trustee appointed as herein provided.

     “Depositary” means an organization registered as a clearing agency under the Exchange Act
that is designated as Depositary by the Depositor or any successor thereto. DTC will be the
initial Depositary.

     “Depositary Participant” means a broker, dealer, bank, other financial institution or
other Person for whom from time to time the Depositary effects book-entry transfers and pledges of
securities deposited with the Depositary.

     “Depositor” has the meaning specified in the preamble to this Trust Agreement and any
successors and permitted assigns.

     “Depositor
Affiliate” has the meaning specified in Section 4.9(a).
 

     “Distribution Date” has the meaning specified in
Section 4.1(a)(i).

     “Distributions” means amounts payable in respect of the Trust Securities as provided in
Section 4.1.

     “DTC” means The Depository Trust Company, a New York corporation, or any successor thereto.

4

 

     “Early Termination Event” has the meaning specified in
Section 9.2.

     “EDGAR” has the meaning specified in Section
4.11(c).

     “Equity Interests” means (a) the partnership interests (both common and preferred
partnership interests) in a partnership (whether general or limited), (b) the membership interests
in a limited liability company (both common and preferred membership interests) and (c) the shares
or stock interest (both common stock and preferred stock) in a corporation.

     “ERISA” means the Employment Retirement Income Security Act of 1974 or any successor statute
thereto, in each case as amended from time to time.

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

(a) the occurrence of a Note Event of Default; or

(b) default by the Trust in the payment of any Distribution when it becomes due
and payable, and continuation of such default for a period of thirty (30) days;
or

(c) default by the Trust in the payment of any Redemption Price of any Trust
Security when it becomes due and payable; or

(d) default in the performance, or breach, in any material respect of any
covenant or warranty of the Trustees in this Trust Agreement (other than those
specified in clause (b) or (c) above) and continuation of such default or
breach for a period of thirty (30) days after there has been given, by
registered or certified mail, to the Trustees and to the Depositor by the
Holders of at least twenty five percent (25%) in aggregate Liquidation Amount
of the Outstanding Preferred Securities a written notice specifying
such default or breach and requiring it to be remedied and stating that such
notice is a “Notice of Default” hereunder (a “Notice of Default”); or

(e) the occurrence of a Bankruptcy Event with respect to the Property Trustee
if a successor Property Trustee has not been appointed within ninety (90) days
thereof.

     “Exchange Act” means the Securities Exchange Act of 1934 or any successor statute
thereto, in each case as amended from time to time.

     “Expiration Date” has the meaning specified in Section
9.1.

     “Extension Period” has the meaning specified in
Section 4.1(a)(ii).

5

 

     “Fiscal Year” shall be the fiscal year of the Trust, which shall be the calendar year, or
such other period as is required by the Code.

     “Global Preferred Security” means a Preferred Securities Certificate evidencing
ownership of Book-Entry Preferred Securities.

     “Guarantor” has the meaning specified in the preamble to this Trust Agreement and any
successors and permitted assigns.

     “Holder” means a Person in whose name a Trust Security or Trust Securities are registered in
the Securities Register; any such Person shall be deemed to be a “beneficial owner” within the
meaning of the Delaware Statutory Trust Act.

     “Indemnified Person” has the meaning specified in Section 8.10(c).

     “Indenture” means the Junior Subordinated Indenture executed and delivered by the Depositor,
the Guarantor and the Note Trustee contemporaneously with the execution and delivery of this Trust
Agreement, for the benefit of the holders of the Notes, a copy of which is attached hereto as
Exhibit D, or as it may from time to time be amended or supplemented by one or more
amendments or indentures supplemental thereto entered into pursuant to the applicable provisions
thereof.

     “Indenture Redemption Price” means the Optional Note Redemption Price or the Special
Note Redemption Price, as applicable.

     “Interest Payment Date” has the meaning specified in Section 1.1 of the Indenture.

     “Investment Company Act” means the Investment Company Act of 1940 or any successor
statute thereto, in each case as amended from time to time.

     “Investment Company Event” has the meaning specified in Section 1.1 of the
Indenture.

     “Junior Subordinated Note Purchase Agreement” means the agreement of even date
herewith by and between the Depositor and the Trust pertaining to the issuance and purchase of the
Notes.

     “LIBOR” has the meaning specified in Schedule A.

     “LIBOR Business Day” has the meaning specified in Schedule A.

     “LIBOR Determination Date” has the meaning specified in Schedule A.

     “Lien” means any lien, pledge, charge, encumbrance, mortgage, deed of trust, adverse
ownership interest, hypothecation, assignment, security interest or preference, priority or other
security agreement or preferential arrangement of any kind or nature whatsoever.

     “Like Amount” means (a) with respect to a redemption of any Trust Securities, Trust
Securities having a Liquidation Amount equal to the aggregate principal amount of Notes to be

6

 

contemporaneously redeemed or paid at maturity in accordance with the Indenture, the proceeds of
which will be used to pay the Redemption Price of such Trust Securities, (b) with respect to a
distribution of Notes to Holders of Trust Securities in connection with a dissolution of the
Trust, Notes having an aggregate principal amount equal to the Liquidation Amount of the Trust
Securities of the Holder to whom such Notes are distributed and (c) with respect to any
distribution of Additional Interest Amounts to Holders of Trust Securities, Notes having an
aggregate principal amount equal to the Liquidation Amount of the Trust Securities in respect of
which such distribution is made.

     “Liquidation Amount” means the stated liquidation amount of $ 1,000 per Trust
Security.

     “Liquidation Date” means the date on which assets are to be distributed to Holders in
accordance with Section 9.4(a) hereunder following dissolution of the Trust.

     “Liquidation Distribution” has the meaning specified in Section 9.4(d).

     “Majority in Liquidation Amount” means Common or Preferred Securities, as the case
may be, representing more than fifty percent (50%) of the aggregate Liquidation Amount of all (or
a specified group of) then Outstanding Common or Preferred Securities, as the case may be.

     “Note Event of Default” means any “Event of Default” specified in Section 5.1
of the Indenture.

     “Note Redemption Date” means, with respect to any Notes to be redeemed under the
Indenture, the date fixed for redemption of such Notes under the Indenture.

     “Note Trustee” means the Person identified as the “Trustee” in the Indenture, solely in its
capacity as Trustee pursuant to the Indenture and not in its individual capacity, or its successor
in interest in such capacity, or any successor Trustee appointed as provided in the Indenture.

     “Notes” means the Depositor’s Junior Subordinated Notes issued pursuant to the Indenture.

     “Notice of Default” has the meaning specified in clause (d) of the definition of Event
of Default in this Section 1.1.

     “Officers’ Certificate” means a certificate signed by the Chief Executive Officer,
the President or a Senior Vice President, and by the Chief Financial Officer, Chief Accounting
Officer, Treasurer or an Assistant Treasurer, of the Depositor, or the Guarantor, as the context
requires, and delivered to the Trustees. Any Officers’ Certificate delivered with respect to
compliance with a condition or covenant provided for in this Trust Agreement (other than the
certificate provided pursuant to Section 8.16(b) which is not an Officers’ Certificate)
shall include:

(a) a statement by each officer signing the Officers’ Certificate that such
officer has read the condition or covenant and the definitions herein
relating thereto;

7

 

(b) a brief statement of the nature and scope of the examination or
investigation undertaken by such officer in rendering the Officers’
Certificate;

(c) a statement that such officer has made such examination or investigation
as, in such officer’s opinion, is necessary to enable such officer to express
an informed opinion as to whether or not such condition or covenant has been
complied with; and

(d) a statement as to whether, in the opinion of such officer, such condition
or covenant has been complied with.

     “Operative Documents” means the Purchase Agreement, the Indenture, the Trust
Agreement, the Notes and the Trust Securities.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for, or
an employee of, the Depositor or the Guarantor or any Affiliate of the Depositor or the Guarantor.

     “Optional Note Redemption Price” means, with respect to any Note to be redeemed on
any Redemption Date for an optional redemption under the Indenture, an amount equal to one hundred
percent (100%) of the outstanding principal amount of such Note (or the redeemed portion thereof,
as applicable), together with accrued and unpaid interest, including any Additional Interest (to
the extent legally enforceable), thereon to but excluding the date fixed as such Redemption Date.

     “Optional Redemption Price” means, with respect to any Trust Security, an amount
equal to one hundred percent (100%) of the Liquidation Amount of such Trust Security on the
Redemption Date, plus accumulated and unpaid Distributions through but excluding the Redemption
Date, plus the related amount of the premium, if any, and/or accrued and unpaid interest,
including Additional Interest, if any, thereon paid by the Depositor upon the concurrent
redemption or payment at maturity of a Like Amount of Notes.

     “Original Issue Date” means the date of original issuance of the Trust Securities.

     “Original Trust Agreement” has the meaning specified in the recitals to this Trust
Agreement.

     “Outstanding” means when used in reference to any Trust Securities, as of the date of
determination, all Trust Securities theretofore executed and delivered under this Trust Agreement,
except:

(a) Trust Securities theretofore canceled by the Property Trustee or delivered
to the Property Trustee for cancellation;

(b) Trust Securities for which payment or redemption money in the necessary
amount has been theretofore deposited with the Property Trustee or any
Paying Agent (other than the Depositor or the Guarantor) in trust or set aside
and segregated in trust by the Depositor or the Guarantor

8

 

(if the Depositor, the Guarantor and/or their respective Affiliates shall
act as Paying Agent) for the Holders of such Trust Securities;
provided, that if the Depositor or the Guarantor is acting as Paying
Agent, Trust Securities for which payment or redemption money has been so
deposited in trust with the Paying Agent shall be considered to remain
Outstanding until such time as such payment or redemption money has actually
been paid in full to the Holders of such Trust Securities; provided,
further, that, if such Trust Securities are to be redeemed, notice of
such redemption has been duly given pursuant to this Trust Agreement or
provision therefor satisfactory to the Property Trustee has been made; and

(c) Trust Securities that have been paid or in substitution for or in lieu
of which other Trust Securities have been executed and delivered pursuant to
the provisions of this Trust Agreement, unless proof satisfactory to the
Trust and the Property Trustee is presented that any such Trust Securities
are held by Holders in whose hands such Trust Securities are valid, binding
and legal obligations of the Trust;

provided, that in determining whether the Holders of the requisite Liquidation Amount of
the Outstanding Preferred Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, Preferred Securities owned by the Depositor, the Guarantor,
any Trustee or any Affiliate of the Depositor, the Guarantor or of any Trustee shall be
disregarded and deemed not to be Outstanding, except that (i) in determining whether any Trustee
shall be protected in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Preferred Securities that such Trustee knows to be so owned shall be so
disregarded and (ii) the foregoing shall not apply at any time when all of the Outstanding
Preferred Securities are owned by the Depositor, the Guarantor, one or more of the Trustees and/or
any such Affiliate. Preferred Securities so owned that have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Administrative
Trustees the pledgee’s right so to act with respect to such Preferred Securities and that the
pledgee is not the Depositor, the Guarantor, any Trustee or any Affiliate of the Depositor, the
Guarantor or of any Trustee.

     “Owner” means each Person who is the beneficial owner of Book-Entry Preferred Securities as
reflected in the records of the Depositary or, if a Depositary Participant is not the beneficial
owner, then the beneficial owner as reflected in the records of the Depositary Participant.

     “Paying Agent” means any Person authorized by the Administrative Trustees to pay
Distributions or other amounts in respect of any Trust Securities on behalf of the Trust.

     “Payment Account” means a segregated non-interest-bearing corporate trust account
maintained by the Property Trustee for the benefit of the Holders in which all amounts paid in
respect of the Notes will be held and from which the Property Trustee, through the Paying Agent,
shall make payments to the Holders in accordance with Sections 3.1, 4.1 and 4.2.

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     “Person” means a legal person, including any individual, corporation, estate, partnership
(general or limited), joint venture, association, joint stock company, company, limited liability
company, trust, unincorporated association or government, or any agency or political subdivision
thereof, or any other entity of whatever nature.

     “Preferred Securities Certificate” means a certificate evidencing ownership of
Preferred Securities, substantially in the form attached hereto as Exhibit C.

     “Preferred Security” means a preferred security of the Trust, denominated as such and
representing an undivided preferred beneficial interest in the assets of the Trust, having a
Liquidation Amount of $1,000 and having the rights provided therefor in this Trust Agreement.

     “Property Trustee” means the Person identified as the “Property Trustee” in the
preamble to this Trust Agreement, solely in its capacity as Property Trustee of the Trust and not
in its individual capacity, or its successor in interest in such capacity, or any successor
Property Trustee appointed as herein provided.

     “Purchase Agreement” means the Preferred Securities Purchase Agreement executed and
delivered by the Trust, the Depositor, the Guarantor and the Purchaser contemporaneously with the
execution and delivery of this Trust Agreement, as amended from time to time.

     “Purchaser” means Kodiak Warehouse LLC, as purchaser of the Preferred Securities pursuant to
the Purchase Agreement, whose address is c/o Kodiak Capital Management Company LLC, 2107 Wilson
Boulevard, Suite 410, Arlington, Virginia 22201.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A under the Securities
Act.

     “QIB/QP” means a QIB that is also a QP.

     “QP” means a “qualified purchaser” as defined in Section 2(a)(51) of the Investment Company
Act.

     “Redemption Date” means, with respect to any Trust Security to be redeemed, the date
fixed for such redemption by or pursuant to this Trust Agreement; provided, that each Note
Redemption Date and the stated maturity (or any date of principal repayment upon early maturity)
of the Notes shall be a Redemption Date for a Like Amount of Trust Securities.

     “Redemption Price” means the Special Redemption Price or Optional Redemption Price, as
applicable. If the Depositor has redeemed the Notes at the Special Note Redemption Price, the Trust
shall redeem the Trust Securities at the Special Redemption Price. If the Depositor has redeemed
the Notes at the Optional Note Redemption Price, the Trust shall redeem the Trust Securities at the
Optional Redemption Price.

     “Reference Banks” has the meaning specified in Schedule A.

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     “Responsible Officer” means, with respect to the Property Trustee, any officer in the
Worldwide Securities Services department of the Property Trustee having direct responsibility for
the administration of this Trust Agreement.

     “Securities Act” means the Securities Act of 1933 or any successor statute thereto,
in each case as amended from time to time.

     “Securities Certificate” means any one of the Common Securities Certificates or the
Preferred Securities Certificates.

     “Securities Register” and “Securities Registrar” have the respective meanings
specified in Section 5.7(a).

     “Special Event Redemption Price” has the meaning specified in Section 11.2 of the
Indenture.

     “Special Note Redemption Price” means, with respect to any Note to be redeemed on any
Redemption Date under the Indenture, an amount equal to one hundred percent (100.0%) of the
outstanding principal amount of such Note, together with accrued interest, including Additional
Interest, thereon to but excluding the date fixed as such Redemption Date.

     “Special Redemption Price” means, with respect to any Trust Security, an amount equal
to one hundred percent (100.0%) of the Liquidation Amount of such Trust Security on the Redemption
Date, plus accumulated and unpaid Distributions through but excluding the Redemption Date, plus
the related amount of the premium, if any, and/or accrued interest, including Additional Interest,
if any, thereon paid by the Depositor upon the concurrent redemption or payment at maturity of a
Like Amount of Notes.

     “Successor Securities” has the meaning specified in Section
9.5(a).

     “Tax Event” has the meaning specified in Section 1.1 of the
Indenture.

     “Trust” means the Delaware statutory trust known as “CapitalSource Trust Preferred Securities
2006-1,” which was created on February 21, 2006 under the Delaware Statutory Trust Act pursuant to
the Original Trust Agreement and the filing of the Certificate of Trust, and continued pursuant to
this Trust Agreement.

     “Trust Agreement” means this Amended and Restated Trust Agreement, including all
Schedules and Exhibits attached hereto (other than Exhibit D), as the same may be modified,
amended or supplemented from time to time in accordance with the applicable provisions hereof.

     “Trustees” means the Administrative Trustees, the Property Trustee and the Delaware Trustee,
each as defined in this Article I.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 or any successor statute
thereto, in each case as amended from time to time.

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     “Trust Property” means (a) the Notes, (b) any cash on deposit in, or owing to, the
Payment Account and (c) all proceeds and rights in respect of the foregoing and any other property
and assets for the time being held or deemed to be held by the Property Trustee pursuant to the
trusts of this Trust Agreement.

     “Trust Security” means any one of the Common Securities or the Preferred Securities.

ARTICLE II

THE TRUST

     Section 2.1. Name.

     The trust continued hereby shall be known as “CapitalSource Trust Preferred Securities
2006-1,” as such name may be modified from time to time by the Administrative Trustees following
written notice to the Holders of Trust Securities and the other Trustees, in which name the
Trustees may conduct the business of the Trust, make and execute contracts and other instruments
on behalf of the Trust and sue and be sued.

     Section 2.2. Office of the Delaware Trustee; Principal Place of Business.

     The address of the Delaware Trustee in the State of Delaware is Chase Bank USA, National
Association, 500 Stanton Christiana Road, Building 4 (3rd Floor), Newark, Delaware 19713,
Attention: Worldwide Securities Services, or such other address in the State of Delaware as the
Delaware Trustee may designate by written notice to the Holders, the Depositor, the Guarantor, the
Property Trustee and the Administrative Trustees. The principal executive office of the Trust is
c/o CapitalSource Finance LLC, 4445 Willard Avenue, 12th Floor, Chevy Chase, Maryland 20815,
Attention: Chief Legal Officer, as such address may be changed from time to time by the
Administrative Trustees following written notice to the Holders and the other Trustees.

     Section 2.3. Initial Contribution of Trust Property; Fees, Costs and Expenses.

     The Property Trustee acknowledges receipt from the Depositor in connection with the Original
Trust Agreement of the sum of ten dollars ($10), which constituted the initial Trust Property. The
Depositor shall pay all fees, costs and expenses of the Trust (except with respect to the Trust
Securities) as they arise or shall, upon request of any Trustee, promptly reimburse such Trustee
for any such fees, costs and expenses paid by such Trustee. The Depositor shall make no claim upon
the Trust Property for the payment of such fees, costs or expenses.

     Section 2.4. Purposes of Trust.

     (a) The exclusive purposes and functions of the Trust are to (i) issue and sell Trust
Securities and use the proceeds from such sale to acquire the Notes and (ii) engage in only those
activities necessary or incidental thereto. The Delaware Trustee, the Property Trustee and the
Administrative Trustees are trustees of the Trust, and have all the rights, powers and duties to
the extent set forth herein. The Trustees hereby acknowledge that they are trustees of the Trust.

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     (b) So long as this Trust Agreement remains in effect, the Trust (or the Trustees acting on
behalf of the Trust) shall not undertake any business, activities or transaction except as
expressly provided herein or contemplated hereby. In particular, the Trust (or the Trustees acting
on behalf of the Trust) shall not (i) acquire any investments or engage in any activities not
authorized by this Trust Agreement, (ii) sell, assign, transfer, exchange, mortgage, pledge,
set-off or otherwise dispose of any of the Trust Property or interests therein, including to
Holders, except as expressly provided herein, (iii) incur any indebtedness for borrowed money or
issue any other debt, (iv) take or consent to any action that would result in the placement of a
Lien on any of the Trust Property, (v) take or consent to any action that would reasonably be
expected to cause (or, in the case of the Property Trustee, to the actual knowledge of a
Responsible Officer would cause) the Trust to become taxable as a corporation or classified as
other than a grantor trust for United States federal income tax purposes, (vi) take or consent to
any action that would cause (or, in the case of the Property Trustee, to the actual knowledge of a
Responsible Officer would cause) the Notes to be treated as other than indebtedness of the
Depositor for United States federal income tax purposes or (vii) take or consent to any action that
would cause (or, in the case of the Property Trustee, to the actual knowledge of a Responsible
Officer would cause) the Trust to be deemed to be an “investment company” required to be registered
under the Investment Company Act.

     Section 2.5. Authorization to Enter into Certain Transactions.

     (a) The Trustees shall conduct the affairs of the Trust in accordance with and subject to the
terms of this Trust Agreement. In accordance with the following provisions (i) and (ii), the
Trustees shall have the authority to enter into all transactions and agreements determined by the
Trustees to be appropriate in exercising the authority, express or implied, otherwise granted to
the Trustees under this Trust Agreement, and to perform all acts in furtherance thereof, including
the following:

     (i) As among the Trustees, each Administrative Trustee shall severally have the power
and authority to act on behalf of the Trust with respect to the following matters:

     (A) the issuance and sale of the Trust Securities;

     (B) to cause the Trust to enter into, and to execute, deliver and perform on
behalf of the Trust, such agreements, documents, instruments, certificates and other
writings as may be necessary or desirable in connection with the purposes and
function of the Trust, including, without limitation, the Common Securities
Subscription Agreement and the Junior Subordinated Note Purchase Agreement and to
cause the Trust to perform the Purchase Agreement executed by the Depositor on
behalf of the Trust;

     (C) assisting in the sale of the Preferred Securities in one or more
transactions exempt from registration under the Securities Act, and in compliance
with the Securities Act and applicable state securities or blue sky laws;

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     (D) assisting in the sending of notices (other than notices of default) and other
information regarding the Trust Securities and the Notes to the Holders in accordance with
this Trust Agreement;

     (E) the appointment of a successor Paying Agent and Calculation Agent in accordance
with this Trust Agreement;

     (F) execution of the Trust Securities on behalf of the Trust in accordance with this
Trust Agreement;

     (G) execution and delivery of closing certificates, if any, pursuant to the Purchase
Agreement and application for a taxpayer identification number for the Trust;

     (H) preparation and filing of all applicable tax returns and tax information reports
that are required to be filed on behalf of the Trust;

     (I) establishing a record date with respect to all actions to be taken hereunder that
require a record date to be established, except as provided in
Section 6.10(a);

     (J) unless otherwise required by the Delaware Statutory Trust Act, to execute on
behalf of the Trust (either acting alone or together with the other Administrative
Trustees) any documents and other writings that such Administrative Trustee has the power
to execute pursuant to this Trust Agreement; and

     (K) the taking of any action incidental to the foregoing as such Administrative
Trustee may from time to time determine is necessary or advisable to give effect to the
terms of this Trust Agreement.

     (ii) As among the Trustees, the Property Trustee shall have the power, duty and
authority to act on behalf of the Trust with respect to the following matters:

     (A) the receipt and holding of legal title of the Notes;

     (B) the establishment of the Payment Account;

     (C) the collection of interest, principal and any other payments made in respect of
the Notes and the holding of such amounts in the Payment Account;

     (D) the distribution through the Paying Agent of amounts distributable to the Holders
in respect of the Trust Securities;

     (E) the exercise of all of the rights, powers and privileges of a holder of the Notes
in accordance with the terms of this Trust Agreement;

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     (F) the sending of notices of default and other information regarding the Trust
Securities and the Notes to the Holders in accordance with this Trust Agreement;

     (G) the distribution of the Trust Property in accordance with the terms of this
Trust Agreement;

     (H) to the extent provided in this Trust Agreement, the winding up of the
affairs of and liquidation of the Trust; provided, that the Administrative
Trustees shall have the power, duty and authority to act on behalf of the Trust
with respect to the preparation, execution and filing of the certificate of
cancellation of the Trust with the Secretary of State of the State of Delaware;

     (I) the authentication of the Preferred Securities as provided in this Trust
Agreement; and

     (J) the taking of any action incidental to the foregoing as the Property
Trustee may from time to time determine is necessary or advisable to give effect to
the terms of this Trust Agreement and protect and conserve the Trust Property for
the benefit of the Holders (without consideration of the effect of any such action
on any particular Holder).

     (b) In connection with the issue and sale of the Preferred Securities, the Depositor shall
have the right and responsibility to assist the Trust with respect to, or effect on behalf of the
Trust, the following (and any actions taken by the Depositor in furtherance of the following prior
to the date of this Trust Agreement are hereby ratified and confirmed in all respects):

     (i) the negotiation of the terms of, and the execution and delivery of, the Purchase
Agreement providing for the sale of the Preferred Securities in one or more transactions
exempt from registration under the Securities Act, and in compliance with applicable state
securities or blue sky laws; and

     (ii) the taking of any other actions necessary or desirable to carry out any of the
foregoing activities.

     (c) Notwithstanding anything herein to the contrary, the Administrative Trustees are
authorized and directed to conduct the affairs of the Trust and authorized to operate the Trust so
that the Trust will not be taxable as a corporation or classified as other than a grantor trust for
United States federal income tax purposes, so that the Notes will be treated as indebtedness of the
Depositor for United States federal income tax purposes and so that the Trust will not be deemed to
be an “investment company” required to be registered under the Investment Company Act. In respect
thereof, each Administrative Trustee is authorized to take any action, not inconsistent with
applicable law, the Certificate of Trust or this Trust Agreement, that such Administrative Trustee
determines in his or her discretion to be necessary or desirable for such purposes, as long as such
action does not adversely affect in any material respect the interests of the Holders of the
Outstanding Preferred Securities. In no event shall the Administrative Trustees be liable to the
Trust or the Holders for any failure to comply with this Section 2.5 to the extent that
such failure results solely from a change in law or regulation or in the interpretation thereof.

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     (d) Any action taken by a Trustee in accordance with his, her or its powers shall constitute
the act of and serve to bind the Trust. In dealing with any Trustee acting on behalf of the Trust,
no Person shall be required to inquire into the authority of such Trustee to bind the Trust.
Persons dealing with the Trust are entitled to rely conclusively on the power and authority of any
Trustee as set forth in this Trust Agreement.

     Section 2.6. Assets of Trust.

     The assets of the Trust shall consist of the Trust Property.

     Section 2.7. Title to Trust Property.

     (a) Legal title to all Trust Property shall be vested at all times in the Property Trustee and
shall be held and administered by the Property Trustee in trust for the benefit of the Trust and
the Holders in accordance with this Trust Agreement.

     (b) The Holders shall not have any right or title to the Trust Property other than the
undivided beneficial interest in the assets of the Trust conferred by their Trust Securities and
they shall have no right to call for any partition or division of property, profits or rights of
the Trust except as described below. The Trust Securities shall be personal property giving only
the rights specifically set forth therein and in this Trust Agreement.

ARTICLE III

PAYMENT ACCOUNT; PAYING AGENTS

     Section 3.1. Payment
Account.

     (a) On or prior to the Closing Date, the Property Trustee shall establish the Payment Account.
The Property Trustee and the Paying Agent shall have exclusive control and sole right of withdrawal
with respect to the Payment Account for the purpose of making deposits in and withdrawals from the
Payment Account in accordance with this Trust Agreement. All monies and other property deposited or
held from time to time in the Payment Account shall be held by the Property Trustee in the Payment
Account for the exclusive benefit of the Holders and for Distribution as herein provided.

     (b) The Property Trustee shall deposit in the Payment Account, promptly upon receipt, all
payments of principal of, premium, if any, or interest on, and any other payments with respect to,
the Notes. Amounts held in the Payment Account shall not be invested by the Property Trustee
pending distribution thereof.

     Section 3.2. Appointment of Paying Agents.

     The Property Trustee is appointed as the initial Paying Agent and the Property Trustee hereby
accepts such appointment. The Paying Agent shall make Distributions to Holders from the Payment
Account and shall report the amounts of such Distributions to the Property Trustee and the
Administrative Trustees. Any Paying Agent shall have the revocable power to withdraw funds from the
Payment Account solely for the purpose of making the Distributions referred to

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above. The Administrative Trustees may revoke such power and remove the Paying Agent in their
sole discretion. Any Person acting as Paying Agent shall be permitted to resign as Paying Agent
upon thirty (30) days’ written notice to the Administrative Trustees and the Property Trustee. If
the Property Trustee shall no longer be the Paying Agent or a successor Paying Agent shall resign
or its authority to act be revoked, the Administrative Trustees shall appoint a successor (which
shall be a bank or trust company) to act as Paying Agent. Such successor Paying Agent appointed by
the Administrative Trustees shall execute and deliver to the Trustees an instrument in which such
successor Paying Agent shall agree with the Trustees that as Paying Agent, such successor Paying
Agent will hold all sums, if any, held by it for payment to the Holders in trust for the benefit
of the Holders entitled thereto until such sums shall be paid to such Holders. The Paying Agent
shall return all unclaimed funds to the Property Trustee and upon removal of a Paying Agent such
Paying Agent shall also return all funds in its possession to the Property Trustee. The provisions
of Article VIII shall apply to the Property Trustee also in its role as Paying Agent, for so long
as the Property Trustee shall act as Paying Agent and, to the extent applicable, to any other
Paying Agent appointed hereunder. Any reference in this Trust Agreement to the Paying Agent shall
include any co-paying agent unless the context requires otherwise.

ARTICLE IV

DISTRIBUTIONS; REDEMPTION

     Section 4.1.
Distributions.

     (a) The Trust Securities represent undivided beneficial interests in the Trust Property, and
Distributions (including any Additional Interest Amounts) will be made on the Trust Securities at
the rate and on the dates that payments of interest (including any Additional Interest) are made
on the Notes. Accordingly:

     (i) Distributions on the Trust Securities shall be cumulative, and shall accumulate
whether or not there are funds of the Trust available for the payment of Distributions.
Distributions shall accumulate from February 22, 2006, and, except as provided in clause
(ii) below, shall be payable quarterly in arrears on January 30, April 30, July 30 and
October 30 of each year, commencing on April 30, 2006. If any date on which a Distribution
is otherwise payable on the Trust Securities is not a Business Day, then the payment of such
Distribution shall be made on the next succeeding Business Day (and no interest shall accrue
in respect of the amounts whose payment is so delayed for the period from and after each
such date until the next succeeding Business Day), except that, if such Business Day falls
in the next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case, with the same force and effect as if made on such date
(each date on which Distributions are payable in accordance with this
Section 4.1(a)(i), a “Distribution Date”);

     (ii) in the event (and to the extent) that the Depositor exercises its right under
the Indenture to defer the payment of interest on the Notes, Distributions on the Trust
Securities shall be deferred. Under the Indenture, so long as no Note Event of Default has
occurred and is continuing, the Depositor shall have the right, at any time and from time

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to time during the term of the Notes, to defer the payment of interest on the Notes
for a period of up to four (4) consecutive quarterly interest payment periods (each such
extended interest payment period, an “Extension Period”), during which Extension Period no
interest on the Notes shall be due and payable (except any Additional Tax Sums that may be
due and payable). No interest on the Notes shall be due and payable during an Extension
Period, except at the end thereof, but each installment of interest that would otherwise
have been due and payable during such Extension Period shall bear Additional Interest (to
the extent payment of such interest would be legally enforceable) at a fixed rate equal to
6.964% per annum through the Interest Payment Date in April 2011 and thereafter at a
variable rate, reset quarterly, equal to LIBOR plus 1.95% per annum, compounded quarterly,
from and including the dates on which amounts would have otherwise been due and payable to
but excluding the dates on which such amounts are paid or funds for the payment thereof have
been made available for payment. If Distributions are deferred as a result of the deferral
of the payment of interest on the Notes as described above, the deferred Distributions
(including Additional Interest Amounts) shall be paid on the date that the related Extension
Period terminates, to Holders of the Trust Securities as they appear on the books and
records of the Trust on the record date immediately preceding such termination date.

     (iii) Distributions shall accumulate in respect of the Trust Securities at a fixed
rate equal to 6.964% per annum through the Interest Payment Date in April 2011 and
thereafter at a variable rate, reset quarterly, equal to LIBOR plus 1.95% per annum of the
Liquidation Amount of the Trust Securities, such rate being the rate of interest payable on
the Notes. LIBOR shall be determined by the Calculation Agent in accordance with
Schedule A attached hereto. The amount of Distributions payable for any period less
than a full Distribution period shall be computed on the basis of a 360-day year and the
actual number of days elapsed in the relevant Distribution period. The amount of
Distributions payable for any period shall include any Additional Interest Amounts in
respect of such period; and

     (iv) Distributions on the Trust Securities shall be made by the Paying Agent from the
Payment Account and shall be payable on each Distribution Date only to the extent that the
Trust has funds then on hand and available in the Payment Account for the payment of such
Distributions.

     (b) Distributions on the Trust Securities with respect to a Distribution Date shall be payable
to the Holders thereof as they appear on the Securities Register for the Trust Securities at the
close of business on the relevant record date, which shall be at the close of business on the
fifteenth (15th) day (whether or not a Business Day) preceding the relevant Distribution Date,
except that Distributions and any Additional Interest Amounts payable on the stated maturity (or
any date of principal repayment upon early maturity) of the principal of a Trust Security or on a
Redemption Date shall be paid to the Person to whom principal is paid. Distributions payable on any
Trust Securities that are not punctually paid on any Distribution Date as a result of the Depositor
having failed to make an interest payment under the Notes will cease to be payable to the Person in
whose name such Trust Securities are registered on the relevant record date, and such defaulted
Distributions and any Additional Interest Amounts will instead be payable to the Person in whose
name such Trust Securities are registered on the special record date, or other

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specified date for determining Holders entitled to such defaulted Distribution and Additional
Interest Amount, established in the same manner, and on the same date, as such is established with
respect to the Notes under the Indenture.

     (c) As a condition to the payment of any principal of or interest on the Trust Securities
without the imposition of withholding tax, the Administrative Trustees shall require the previous
delivery of properly completed and signed applicable U.S. federal income tax certificates
(generally, an Internal Revenue Service Form W-9 (or applicable successor form) in the case of a
person that is a “United States person” within the meaning of Section 7701(a)(30) of the Code or
an Internal Revenue Service Form W-8 (or applicable successor form) in the case of a person that
is not a “United States person” within the meaning of Section 7701(a)(30) of the Code) and any
other certification acceptable to it to enable the Paying Agent to determine its duties and
liabilities with respect to any taxes or other charges that it may be required to pay, deduct or
withhold in respect of such Trust Securities.

     Section 4.2.
Redemption.

     (a) On each Note Redemption Date and on the stated maturity (or any date of principal
repayment upon early maturity) of the Notes and on each other date on (or in respect of) which any
principal on the Notes is repaid, the Trust will be required to redeem a Like Amount of Trust
Securities at the Redemption Price.

     (b) Notice of redemption shall be given by the Property Trustee by first-class mail, postage
prepaid, mailed not less than thirty (30) nor more than sixty (60) days prior to the Redemption
Date to each Holder of Trust Securities to be redeemed, at such Holder’s address appearing in the
Securities Register. All notices of redemption shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price or, if the Redemption Price cannot be calculated prior to
the time the notice is required to be sent, the estimate of the Redemption Price provided
pursuant to the Indenture, as calculated by the Depositor, together with a statement that
it is an estimate and that the actual Redemption Price will be calculated by the
Calculation Agent on the fifth (5th) Business Day prior to the Redemption Date (and if an
estimate is provided, a further notice shall be sent of the actual Redemption Price on the
date that such Redemption Price is calculated);

     (iii) if less than all the Outstanding Trust Securities are to be redeemed, the
identification and Liquidation Amounts of the particular Trust Securities to be redeemed;

     (iv) that on the Redemption Date, the Redemption Price will become due and payable
upon each such Trust Security, or portion thereof, to be redeemed and that Distributions
thereon will cease to accumulate on such Trust Security or such portion, as the case may
be, on and after said date, except as provided in Section 4.2(d);

     (v) the place or places where the Trust Securities are to be surrendered for the
payment of the Redemption Price; and

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     (vi) such other provisions as the Property Trustee deems relevant.

     (c) The Trust Securities (or portion thereof) redeemed on each Redemption Date shall be
redeemed at the Redemption Price with the proceeds from the contemporaneous redemption or payment
at maturity of Notes. Redemptions of the Trust Securities (or portion thereof) shall be made and
the Redemption Price shall be payable on each Redemption Date only to the extent that the Trust has
funds then on hand and available in the Payment Account for the payment of such Redemption Price.
Under the Indenture, the Notes may be redeemed by the Depositor on any Interest Payment Date, at
the Depositor’s option, on or after April 30, 2011, in whole at any time or in part from time to
time, at the Optional Note Redemption Price. The Notes may also be redeemed by the Depositor, at
its option pursuant to the terms of the Indenture, at any time prior to April 30, 2011, in whole
but not in part, upon the occurrence and during the continuation of an Investment Company Event or
a Tax Event, at the Special Note Redemption Price.

     (d) If the Property Trustee gives a notice of redemption in respect of any Preferred
Securities, then by 10:00 A.M., New York City time, on the Redemption Date, the Depositor shall
deposit sufficient funds with the Property Trustee to pay the Redemption Price. If such deposit has
been made by such time, then by 12:00 noon, New York City time, on the Redemption Date, the
Property Trustee will, with respect to 

Book-Entry Preferred Securities, irrevocably deposit with
the Depositary for such Book-Entry Preferred Securities, to the extent available therefor, funds
sufficient to pay the applicable Redemption Price and will give such Depositary irrevocable
instructions and authority to pay the Redemption Price to the Holders of the Preferred Securities.
With respect to Preferred Securities that are not Book-Entry Preferred Securities, the Property
Trustee will irrevocably deposit with the Paying Agent, to the extent available therefor, funds
sufficient to pay the applicable Redemption Price and will give the Paying Agent irrevocable
instructions and authority to pay the Redemption Price to the Holders of the Preferred
Securities upon surrender of their Preferred Securities Certificates. Notwithstanding
the foregoing, Distributions payable on or prior to the Redemption Date for any Trust Securities
(or portion thereof) called for redemption shall be payable to the Holders of such Trust Securities
as they appear on the Securities Register on the relevant record dates for the related Distribution
Dates. If notice of redemption shall have been given and funds deposited as required, then upon the
date of such deposit, all rights of Holders holding Trust Securities (or portion thereof) so called
for redemption will cease, except the right of such Holders to receive the Redemption Price and any
Distribution payable in respect of the Trust Securities on or prior to the Redemption Date, but
without interest, and, in the case of a partial redemption, the right of such Holders to receive a
new Trust Security or Securities of authorized denominations, in aggregate Liquidation Amount equal
to the unredeemed portion of such Trust Security or Securities, and such Trust Securities (or
portion thereof) called for redemption will cease to be Outstanding. In the event that any date on
which any Redemption Price is payable is not a Business Day, then payment of the Redemption Price
payable on such date will be made on the next succeeding Business Day (and no interest shall accrue
in respect of the amounts whose payment is so delayed for the period from and after each such date
until the next succeeding Business Day), except that, if such Business Day falls in the next
succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in
each case, with the same force and effect as if made on such date. In the event that payment of the
Redemption Price in respect of any Trust Securities (or portion thereof) called for redemption is
improperly withheld or refused and not paid either by the Trust, the Depositor or the Guarantor
pursuant to the

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Indenture, Distributions on such Trust Securities (or portion thereof) will continue to
accumulate, as set forth in Section 4.1, from the Redemption Date originally established
by the Trust for such Trust Securities (or portion thereof) to the date such Redemption Price is
actually paid, in which case the actual payment date will be the date fixed for redemption for
purposes of calculating the Redemption Price.

     (e) Subject
to Section 4.3(a), if less than all the Outstanding Trust Securities are
to be redeemed on a Redemption Date, then the aggregate Liquidation Amount of Trust Securities to
be redeemed shall be allocated pro rata to the Common Securities and the Preferred Securities based
upon the relative aggregate Liquidation Amounts of the Common Securities and the Preferred
Securities. The Preferred Securities to be redeemed shall be selected on a pro rata basis based
upon their respective Liquidation Amounts not more than sixty (60) days prior to the Redemption
Date by the Property Trustee from the Outstanding Preferred Securities not previously called for
redemption; provided, however, that with respect to Holders that would be required to hold
less than one hundred (100) but more than zero (0) Trust Securities as a result of such redemption,
the Trust shall redeem Trust Securities of each such Holder so that after such redemption such
Holder shall hold either one hundred (100) Trust Securities or such Holder no longer holds any
Trust Securities, and shall use such method (including, without limitation, by lot) as the Trust
shall deem fair and appropriate; provided, further, that so long as the Preferred
Securities are Book-Entry Preferred Securities, such selection shall be made in accordance with the
Applicable Depositary Procedures for the Preferred Securities held by such Depositary. The Property
Trustee shall promptly notify the Securities Registrar in writing of the Preferred Securities (or
portion thereof) selected for redemption and, in the case of any Preferred Securities selected for
partial redemption, the Liquidation Amount thereof to be redeemed. For all purposes of this Trust
Agreement, unless the context otherwise requires, all provisions relating to the redemption of
Preferred Securities shall relate, in the case of any Preferred Securities redeemed or to be
redeemed only in part, to the portion of the aggregate Liquidation Amount of Preferred Securities
that has been or is to be redeemed.

     (f) The Trust in issuing the Trust Securities may use “CUSIP” numbers (if then generally in
use), and, if so, the Property Trustee shall indicate the “CUSIP” numbers of the Trust Securities
in notices of redemption and related materials as a convenience to
Holders; provided, that
any such notice may state that no representation is made as to the correctness of such numbers
either as printed on the Trust Securities or as contained in any notice of redemption and related
materials.

     Section 4.3.
Subordination of Common Securities.

     (a) Payment of Distributions (including any Additional Interest Amounts) on, the Redemption
Price of and the Liquidation Distribution in respect of, the Trust Securities, as applicable,
shall be made, pro rata among the Common Securities and the Preferred Securities based on the
Liquidation Amount of the respective Trust Securities;
provided, that if on any
Distribution Date, Redemption Date or Liquidation Date an Event of Default shall have occurred and
be continuing, no payment of any Distribution (including any Additional Interest Amounts) on,
Redemption Price of or Liquidation Distribution in respect of, any Common Security, and no other
payment on account of the redemption, liquidation or other acquisition of Common Securities, shall
be made unless payment in full in cash of all accumulated and unpaid

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Distributions (including any Additional Interest Amounts) on all Outstanding Preferred Securities
for all Distribution periods terminating on or prior thereto, or in the case of payment of the
Redemption Price the full amount of such Redemption Price on all Outstanding Preferred Securities
then called for redemption, or in the case of payment of the Liquidation Distribution the full
amount of such Liquidation Distribution on all Outstanding Preferred Securities, shall have been
made or provided for, and all funds immediately available to the Property Trustee shall first be
applied to the payment in full in cash of all Distributions (including any Additional Interest
Amounts) on, or the Redemption Price of or the Liquidation Distribution in respect of, the
Preferred Securities then due and payable.

     (b) In the case of the occurrence of any Event of Default, the Holders of the Common
Securities shall have no right to act with respect to any such Event of Default under this Trust
Agreement until all such Events of Default with respect to the Preferred Securities have been
cured, waived or otherwise eliminated. Until all such Events of Default under this Trust Agreement
with respect to the Preferred Securities have been so cured, waived or otherwise eliminated, the
Property Trustee shall act solely on behalf of the Holders of the Preferred Securities and not on
behalf of the Holders of the Common Securities, and only the Holders of all the Preferred
Securities will have the right to direct the Property Trustee to act on their behalf.

     Section 4.4.
Payment Procedures.

     Payments of Distributions (including any Additional Interest Amounts), the Redemption Price,
Liquidation Amount or any other amounts in respect of the Preferred Securities shall be made by
wire transfer at such place and to such account at a banking institution in the United States as
may be designated in writing at least ten (10) Business Days prior to the date for payment by the
Person entitled thereto unless proper written transfer instructions have not been received by the
relevant record date, in which case such payments shall be made by check mailed to the address of
such Person as such address shall appear in the Securities Register. If any Preferred Securities
are held by a Depositary, such Distributions thereon shall be made to the Depositary in
immediately available funds. Payments in respect of the Common Securities shall be made in such
manner as shall be mutually agreed between the Property Trustee and the Holder of all the Common
Securities.

     Section 4.5.
Withholding Tax.

     The Trust and the Administrative Trustees shall comply with all withholding and backup
withholding tax requirements under United States federal, state and local law. The Administrative
Trustees on behalf of the Trust shall request, and the Holders shall provide to the Trust, such
forms or certificates as are necessary to establish an exemption from withholding and backup
withholding tax with respect to each Holder and any representations and forms as shall reasonably
be requested by the Administrative Trustees on behalf of the Trust to assist it in determining the
extent of, and in fulfilling, its withholding and backup withholding tax obligations. The
Administrative Trustees shall file required forms with applicable jurisdictions and, unless an
exemption from withholding and backup withholding tax is properly established by a Holder, shall
remit amounts withheld with respect to the Holder to applicable jurisdictions. To the extent that
the Trust is required to withhold and pay over any amounts to any jurisdiction with respect to
Distributions or allocations to any Holder, the amount withheld shall be deemed

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to be a Distribution in the amount of the withholding to the Holder. In the event of any claimed
overwithholding, Holders shall be limited to an action against the applicable jurisdiction. If the
amount required to be withheld was not withheld from actual Distributions made, the Administrative
Trustees on behalf of the Trust may reduce subsequent Distributions by the amount of such required
withholding.

     Section 4.6.
Tax Returns and Other Reports.

     The Administrative Trustees shall prepare (or cause to be prepared) at the principal office
of the Trust in the United States, as defined for purposes of Treasury regulations section
301.7701-7, at the Depositor’s expense, and file, all United States federal, state and local tax
and information returns and reports required to be filed by or in respect of the Trust. The
Administrative Trustees shall prepare at the principal office of the Trust in the United States,
as defined for purposes of Treasury regulations section 301.7701-7, and furnish (or cause to be
prepared and furnished), by January 31 in each taxable year of the Trust to each Holder all
Internal Revenue Service forms and returns required to be provided by the Trust. The
Administrative Trustees shall provide the Depositor and the Property Trustee with a copy of all
such returns and reports promptly after such filing or furnishing.

     Section 4.7.
Payment of Taxes, Duties, Etc. of the Trust.

     Upon receipt under the Notes of Additional Tax Sums and upon the written direction of the
Administrative Trustees, the Property Trustee shall promptly pay, solely out of monies on deposit
pursuant to this Trust Agreement, any Additional Taxes imposed on the Trust by the United States or
any other taxing authority.

     Section 4.8.
Payments under Indenture or Pursuant to Direct Actions.

     Any amount payable hereunder to any Holder of Preferred Securities shall be reduced by the
amount of any corresponding payment such Holder (or any Owner with respect thereto) has directly
received pursuant to Section 5.8 of the Indenture or Section 6.10(b) of this Trust
Agreement.

     Section 4.9.
Exchanges.

     (a) If at any time the Depositor or any of its Affiliates (in either case, a “Depositor
Affiliate”) is the Owner or Holder of any Preferred Securities, such Depositor Affiliate shall
have the right to deliver to the Property Trustee all or such portion of its Preferred Securities
as it elects and, subject to compliance with Sections 2.2 and 3.5 of the Indenture, receive, in
exchange therefor, a Like Amount of Notes. Such election shall be exercisable effective on any
Distribution Date by such Depositor Affiliate delivering to the Property Trustee (i) at least ten
(10) Business Days prior to the Distribution Date on which such exchange is to occur, the
registration instructions and the documentation, if any, required pursuant to Sections 2.2 and 3.5
of the Indenture to enable the Indenture Trustee to issue the requested Like Amount of Notes, (ii)
a written notice of such election specifying the Liquidation Amount of Preferred Securities with
respect to which such election is being made and the Distribution Date on which such exchange
shall occur, which Distribution Date shall be not less than ten (10) Business Days after the date
of receipt by the Property Trustee of such election notice and (iii) shall be conditioned upon
such

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Depositor Affiliate having delivered or caused to be delivered to the Property Trustee or its
designee the Preferred Securities that are the subject of such election by 10:00 A.M. New York
City time, on the Distribution Date on which such exchange is to occur. After the exchange, such
Preferred Securities will be canceled and will no longer be deemed to be Outstanding and all
rights of the Depositor Affiliate with respect to such Preferred Securities will cease.

     (b) In
the case of an exchange described in Section 4.9(a), the Property Trustee on
behalf of the Trust will, on the date of such exchange, exchange Notes having a principal amount
equal to a proportional amount of the aggregate Liquidation Amount of the Outstanding Common
Securities, based on the ratio of the aggregate Liquidation Amount of the Preferred Securities
exchanged pursuant to Section 4.9(a) divided by the aggregate Liquidation Amount of the
Preferred Securities Outstanding immediately prior to such exchange, for such proportional amount
of Common Securities held by the Depositor (which contemporaneously shall be canceled and no longer
be deemed to be Outstanding); provided, that the Depositor delivers or causes to be
delivered to the Property Trustee or its designee the required amount of Common Securities to be
exchanged by 10:00 A.M. New York time, on the Distribution Date on which such exchange is to occur.

     Section 4.10.
Calculation Agent.

     (a) The Property Trustee shall initially, and, subject to the immediately following sentence,
for so long as it holds any of the Notes, be the Calculation Agent for purposes of determining
LIBOR for each Distribution Date. The Calculation Agent may be removed by the Administrative
Trustees at any time. If the Calculation Agent is unable or unwilling to act as such or is removed
by the Administrative Trustees, the Administrative Trustees will promptly appoint as a replacement
Calculation Agent the London office of a leading bank which is engaged in transactions in three (3)
month Eurodollar deposits in the international Eurodollar market and which does not control or is
not controlled by or under common control with the Administrative Trustee or its Affiliates. The
Calculation Agent may not resign its duties without a successor having been duly appointed.

     (b) The Calculation Agent shall be required to agree, and the Property Trustee as the initial
Calculation Agent hereby agrees, that, as soon as possible after 11:00 A.M. (London time) on each
LIBOR Determination Date, but in no event later than 11:00 A.M. (London time) on the Business Day
immediately following each LIBOR Determination Date, the Calculation Agent will calculate the
interest rate (rounded to the nearest cent, with half a cent being rounded upwards) for the related
Distribution Date, and will communicate such rate and amount to the Depositor, the Administrative
Trustees, the Note Trustee, the Property Trustee (if the Property Trustee is not the Calculation
Agent), each Paying Agent and the Depositary. The Calculation Agent will also specify to the
Administrative Trustee the quotations upon which the foregoing rates and amounts are based and, in
any event, the Calculation Agent shall notify the Administrative Trustees before 5:00 P.M. (London
time) on each LIBOR Determination Date that either: (i) it has determined or is in the process of
determining the foregoing rates and amounts or (ii) it has not determined and is not in the process
of determining the foregoing rates and amounts, together with its reasons therefor. The Calculation
Agent’s determination of the foregoing rates and amounts for any Distribution Date will (in the
absence of manifest error) be final and binding upon all parties. For the sole purpose of
calculating the interest rate for the

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Trust
Securities, “Business Day” shall be defined as any day on which dealings in deposits in
Dollars are transacted in the London interbank market.

     Section 4.11.
Certain Accounting Matters.

     (a) At all times during the existence of the Trust, the Administrative Trustees shall keep, or
cause to be kept at the principal office of the Trust in the United States, as defined for purposes
of Treasury Regulations section 301.7701-7, full books of account, records and supporting
documents, which shall reflect in reasonable detail each transaction of the Trust. The books of
account shall be maintained on the accrual method of accounting, in accordance with U.S. generally
accepted accounting principles, consistently applied.

     (b) The Administrative Trustees shall either (i) if the Guarantor is then subject to such
reporting requirements, cause each Form 10-K and Form 10-Q prepared by the Guarantor and filed with
the Commission in accordance with the Exchange Act to be delivered to each Holder, with a copy to
the Property Trustee, within thirty (30) days after the filing thereof or (ii) cause to be prepared
at the principal office of the Trust in the United States, as defined for purposes of Treasury
Regulations section 301.7701-7, and delivered to each of the Holders, with a copy to the Property
Trustee, within ninety (90) days after the end of each Fiscal Year, annual financial statements of
the Trust, including a balance sheet of the Trust as of the end of such Fiscal Year, and the
related statements of income or loss.

     (c) For so long as the Guarantor (or if applicable, the Depositor) intends to file its annual
and quarterly information with the Commission in electronic form pursuant to Regulation S-T of the
Commission using the Commission’s Electronic Data Gathering,
Analysis and Retrieval (“EDGAR”)
system, the Administrative Trustees shall notify the Property Trustee in the manner prescribed
herein of each such annual and quarterly filing. The Property Trustee is hereby authorized and
directed to access the EDGAR system for purposes of retrieving the financial information so filed.
Compliance with the foregoing shall constitute delivery by the Administrative Trustees of its
financial statements to the Property Trustee in compliance with the provisions of Section 314(a) of
the Trust Indenture Act, if applicable. The Property Trustee shall have no duty to search for or
obtain any electronic or other filings that the Guarantor (or if applicable, the Depositor) makes
with the Commission, regardless of whether such filings are periodic, supplemental or otherwise.
Delivery of reports, information and documents to the Property Trustee pursuant to this Section
4.11(c) shall be solely for purposes of compliance with this Section 4.11 and, if
applicable, with Section 314(a) of the Trust Indenture Act. The Property Trustee’s receipt of such
reports, information and documents shall not constitute notice to it of the content thereof or any
matter determinable from the content thereof, including the Depositor’s compliance with any of its
covenants hereunder, as to which the Property Trustee is entitled to rely upon Officers’
Certificates.

     (d) The Trust shall maintain one or more bank accounts in the United States, as defined for
purposes of Treasury Regulations section 301.7701-7, in the name and for the sole benefit of the
Trust; provided, however, that all payments of funds in respect of the Notes held by the
Property Trustee shall be made directly to the Payment Account and no other funds of the Trust
shall be deposited in the Payment Account. The sole signatories for such accounts (including the
Payment Account) shall be designated by the Property Trustee.

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ARTICLE V

SECURITIES

     Section 5.1.
Initial Ownership.

     Upon the creation of the Trust and the contribution by the Depositor referred to in
Section 2.3 and until the issuance of the Trust Securities, and at any time during which
no Trust Securities are Outstanding, the Depositor shall be the sole beneficial owner of the
Trust.

     Section 5.2.
Authorized Trust Securities.

     The Trust shall be authorized to issue one series of Preferred Securities having an aggregate
Liquidation Amount of Fifty Million dollars ($50,000,000) and one series of Common Securities
having an aggregate Liquidation Amount of One Million Five Hundred Forty-Five Thousand dollars
($1,545,000).

     Section 5.3. Issuance of the Common Securities; Subscription and Purchase of
Notes.

     On the Closing Date, an Administrative Trustee, on behalf of the Trust, shall execute and
deliver to the Depositor Common Securities Certificates, registered in the name of the Depositor,
evidencing an aggregate of 1,545 Common Securities having an aggregate Liquidation Amount of One
Million Five Hundred Forty-Five Thousand dollars ($1,545,000), against receipt by the Trust of the
aggregate purchase price of such Common Securities of One Million Five Hundred Forty-Five Thousand
dollars ($1,545,000). Contemporaneously therewith and with the sale by the Trust to the Holders of
an aggregate of 50,000 Preferred Securities having an aggregate Liquidation Amount of Fifty Million
dollars ($50,000,000), an Administrative Trustee, on behalf of the Trust, shall subscribe for and
purchase from the Depositor Notes, to be registered in the name of the Property Trustee on behalf
of the Trust and having an aggregate principal amount equal to Fifty-One Million Five Hundred
Forty-Five Thousand dollars ($51,545,000), and, in satisfaction of the purchase price for such
Notes, the Property Trustee, on behalf of the Trust, shall deliver to the Depositor the sum of
Fifty-One Million Five Hundred Forty-Five Thousand dollars ($51,545,000) (being the sum of the
aggregate amount paid by the Holders for the Preferred Securities and the amount paid by the
Depositor for the Common Securities).

     Section 5.4.
The Securities Certificates.

     (a) The Preferred Securities Certificates shall be issued in minimum denominations of
$100,000 Liquidation Amount and integral multiples of $1,000 in excess thereof, and the Common
Securities Certificates shall be issued in minimum denominations of $10,000 Liquidation Amount and
integral multiples of $1,000 in excess thereof. The Securities Certificates shall be executed on
behalf of the Trust by manual or facsimile signature of at least one Administrative Trustee.
Securities Certificates bearing the signatures of individuals who were, at the time when such
signatures shall have been affixed, authorized to sign such Securities Certificates on behalf of
the Trust shall be validly issued and entitled to the benefits of this Trust Agreement,
notwithstanding that such individuals or any of them shall have ceased to be so authorized prior
to the delivery of such Securities Certificates or did not have such authority at the date of
delivery of such Securities Certificates.

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     (b) On the Closing Date, upon the written order of an authorized officer of the Depositor, the
Administrative Trustees shall cause Securities Certificates to be executed on behalf of the Trust
and delivered, without further corporate action by the Depositor, in authorized denominations.

     (c) The Preferred Securities issued to QIB/QPs and/or the Purchaser shall be, except as
provided in Section 5.6, Book-Entry Preferred Securities issued in the form of one or more
Global Preferred Securities registered in the name of the Depositary, or its nominee and deposited
with the Depositary or the Property Trustee as custodian for the Depositary for credit by the
Depositary to the respective accounts of the Depositary Participants thereof (or such other
accounts as they may direct). The Preferred Securities issued to a Person other than a QIB/QP shall
be issued in the form of Definitive Preferred Securities Certificates.

     (d) A Preferred Security shall not be valid until authenticated by the manual signature of an
authorized signatory of the Property Trustee. Such signature shall be conclusive evidence that the
Preferred Security has been authenticated under this Trust Agreement. Upon written order of the
Trust signed by one Administrative Trustee, the Property Trustee shall authenticate and deliver one
or more Preferred Security Certificates evidencing the Preferred Securities for original issue. The
Property Trustee may appoint an authenticating agent that is a U.S. Person acceptable to the Trust
to authenticate the Preferred Securities. A Common Security need not be so authenticated and shall
be valid upon execution by one or more Administrative Trustees. The form of the certificate of
authentication is specified in Section 5.13.

     (e) Upon issuance of the Trust Securities as provided in this Trust Agreement, the Trust
Securities so issued shall be deemed to be validly issued, fully paid and non-assessable, and each
Holder thereof shall be entitled to the benefits provided by this Trust Agreement.

     Section 5.5.
Rights of Holders.

     The Trust Securities shall have no, and the issuance of the Trust Securities is not subject
to, preemptive or similar rights and when issued and delivered to Holders against payment of the
purchase price therefor will be fully paid and non-assessable by the Trust. Except as provided in
Section 5.11(b), the Holders of the Trust Securities, in their capacities as such, shall
be entitled to the same limitation of personal liability extended to stockholders of private
corporations for profit organized under the General Corporation Law of the State of Delaware.

     Section 5.6.
Book-Entry Preferred Securities.

     (a) A Global Preferred Security may be exchanged, in whole or in part, for Definitive
Preferred Securities Certificates registered in the names of the Owners only if such exchange
complies with Section 5.7 and (i) the Depositary advises the Administrative Trustees and
the Property Trustee in writing that the Depositary is no longer willing or able properly to
discharge its responsibilities with respect to the Global Preferred Security, and no qualified
successor is appointed by the Administrative Trustees within ninety (90) days of receipt of such
notice, (ii) the Depositary ceases to be a clearing agency registered under the Exchange Act and
the Administrative Trustees fail to appoint a qualified successor within ninety (90) days of
obtaining knowledge of such event, (iii) the Administrative Trustees at their option advise the
Property

27

 

Trustee in writing that the Trust elects to terminate the book-entry system through the Depositary
or (iv) a Note Event of Default has occurred and is continuing. Upon the occurrence of any event
specified in clause (i), (ii), (iii) or (iv) above in this Section 5.6(a), the
Administrative Trustees shall notify the Depositary and instruct the Depositary to notify all
Owners of Book-Entry Preferred Securities, the Delaware Trustee and the Property Trustee of the
occurrence of such event and of the availability of the Definitive Preferred Securities
Certificates to Owners of the Preferred Securities requesting the same. Upon the issuance of
Definitive Preferred Securities Certificates, the Trustees shall recognize the Holders of the
Definitive Preferred Securities Certificates as Holders. Notwithstanding the foregoing, if an
Owner of a beneficial interest in a Global Preferred Security wishes at any time to transfer an
interest in such Global Preferred Security to a Person other than a QIB/QP and/or the Purchaser,
such transfer shall be effected, subject to the Applicable Depositary Procedures, in accordance
with the provisions of this Section 5.6 and
Section 5.7, and the transferee shall
receive a Definitive Preferred Securities Certificate in connection with such transfer. A holder
of a Definitive Preferred Securities Certificate that is a QIB/QP or the Purchaser may, upon
request and in accordance with the provisions of this
Section 5.6 and Section 5.7,
exchange such Definitive Preferred Securities Certificate for a beneficial interest in a Global
Preferred Security.

     (b) If any Global Preferred Security is to be exchanged for Definitive Preferred Securities
Certificates or canceled in part, or if any Definitive Preferred Securities Certificate is to be
exchanged in whole or in part for any Global Preferred Security, then either (i) such Global
Preferred Security shall be so surrendered for exchange or cancellation as provided in this
Article V or (ii) the aggregate Liquidation Amount represented by such Global Preferred
Security shall be reduced, subject to Section 5.4, or increased by an amount equal to the
Liquidation Amount represented by that portion of the Global Preferred Security to be so exchanged
or canceled, or equal to the Liquidation Amount represented by such Definitive Preferred Securities
Certificates to be so exchanged for any Global Preferred Security, as the case may be, by means of
an appropriate adjustment made on the records of the Securities Registrar, whereupon the Property
Trustee, in accordance with the Applicable Depositary Procedures, shall instruct the Depositary or
its authorized representative to make a corresponding adjustment to its records. Upon any such
surrender to the Administrative Trustees or the Securities Registrar of any Global Preferred
Security or Securities by the Depositary, accompanied by registration instructions, the
Administrative Trustees, or any one of them, shall execute the Definitive Preferred Securities
Certificates in accordance with the instructions of the Depositary and the Property Trustee, upon
receipt thereof, shall authenticate and deliver such Definitive Preferred Securities Certificates.
None of the Securities Registrar or the Trustees shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be fully protected in relying on, such
instructions.

     (c) Every Securities Certificate executed and delivered upon registration or transfer of, or
in exchange for or in lieu of, a Global Preferred Security or any portion thereof shall be executed
and delivered in the form of, and shall be, a Global Preferred Security, unless such Securities
Certificate is registered in the name of a Person other than the Depositary for such Global
Preferred Security or a nominee thereof.

     (d) The Depositary or its nominee, as registered owner of a Global Preferred Security, shall
be the Holder of such Global Preferred Security for all purposes under this Trust

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Agreement and the Global Preferred Security, and Owners with respect to a Global Preferred
Security shall hold such interests pursuant to the Applicable Depositary Procedures. The
Securities Registrar and the Trustees shall be entitled to deal with the Depositary for all
purposes of this Trust Agreement relating to the Global Preferred Securities (including the
payment of the Liquidation Amount of and Distributions on the Book-Entry Preferred Securities
represented thereby and the giving of instructions or directions by Owners of Book-Entry Preferred
Securities represented thereby and the giving of notices) as the sole Holder of the Book-Entry
Preferred Securities represented thereby and shall have no obligations to the Owners thereof. None
of the Trustees nor the Securities Registrar shall have any liability in respect of any transfers
effected by the Depositary.

     (e) The rights of the Owners of the Book-Entry Preferred Securities shall be exercised only
through the Depositary and shall be limited to those established by law, the Applicable Depositary
Procedures and agreements between such Owners and the Depositary and/or the Depositary
Participants; provided, that solely for the purpose of determining whether the Holders of
the requisite amount of Preferred Securities have voted on any matter provided for in this Trust
Agreement, to the extent that Preferred Securities are represented by a Global Preferred Security,
the Trustees may conclusively rely on, and shall be fully protected in relying on, any written
instrument (including a proxy) delivered to the Property Trustee by the Depositary or a Depositary
Participant setting forth the Owners’ votes or assigning the right to vote on any matter to any
other Persons either in whole or in part. To the extent that Preferred Securities are represented
by a Global Preferred Security, the initial Depositary will make book-entry transfers among the
Depositary Participants and receive and transmit payments on the Preferred Securities that are
represented by a Global Preferred Security to such Depositary Participants, and none of the
Depositor or the Trustees shall have any responsibility or obligation with respect thereto.

     (f) To the extent that a notice or other communication to the Holders is required under this
Trust Agreement, for so long as Preferred Securities are represented by a Global Preferred
Security, the Trustees shall give all such notices and communications to the Depositary and shall
have no obligations to the Owners.

     Section 5.7. Registration of Transfer and Exchange of Preferred Securities
Certificates.

     (a) The Property Trustee shall keep or cause to be kept, at the Corporate Trust Office, a
register or registers (the “Securities Register”) in which the registrar and transfer agent with
respect to the Trust Securities (the “Securities Registrar”), subject to such reasonable
regulations as it may prescribe, shall provide for the registration of Preferred Securities
Certificates and Common Securities Certificates and registration of transfers and exchanges
of Preferred Securities Certificates as herein provided. The Person acting as the Property Trustee
shall at all times also be the Securities Registrar. The provisions of Article VIII shall apply to
the Property Trustee in its role as Securities Registrar.

     (b) Subject
to Section 5.7(d), upon surrender for registration of transfer of any
Preferred Securities Certificate at the office or agency maintained pursuant to Section
5.7(f), the Administrative Trustees or any one of them shall execute by manual or facsimile
signature and deliver to the Property Trustee, and upon receipt thereof the Property Trustee shall
authenticate

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and deliver, in the name of the designated transferee or transferees, one or more new Preferred
Securities Certificates in authorized denominations of a like aggregate Liquidation Amount as may
be required by this Trust Agreement dated the date of execution by such Administrative Trustee or
Trustees. At the option of a Holder, Preferred Securities Certificates may be exchanged for other
Preferred Securities Certificates in authorized denominations and of a like aggregate Liquidation
Amount upon surrender of the Preferred Securities Certificate to be exchanged at the office or
agency maintained pursuant to Section 5.7(f). Whenever any Preferred Securities
Certificates are so surrendered for exchange, the Administrative Trustees or any one of them shall
execute by manual or facsimile signature and deliver to the Property Trustee, and upon receipt
thereof the Property Trustee shall authenticate and deliver, the Preferred Securities Certificates
that the Holder making the exchange is entitled to receive.

     (c) The Securities Registrar shall not be required (i) to issue, register the transfer of or
exchange any Preferred Security during a period beginning at the opening of business fifteen (15)
days before the day of selection for redemption of such Preferred Securities pursuant to
Article IV and ending at the close of business on the day of mailing of the notice of
redemption or (ii) to register the transfer of or exchange any Preferred Security so selected for
redemption in whole or in part, except, in the case of any such Preferred Security to be redeemed
in part, any portion thereof not to be redeemed.

     (d) Every Preferred Securities Certificate presented or surrendered for registration of
transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer
in form satisfactory to the Securities Registrar duly executed by the Holder or such Holder’s
attorney duly authorized in writing and accompanied by a certificate of the transferee
substantially in the form set forth as Exhibit E attached hereto.

     (e) No service charge shall be made for any registration of transfer or exchange of Preferred
Securities Certificates, but the Property Trustee on behalf of the Trust may require payment of a
sum sufficient to cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of Preferred Securities Certificates.

     (f) The Administrative Trustees shall designate an office or offices or agency or agencies
where Preferred Securities Certificates may be surrendered for registration of transfer or exchange
and initially designate the Corporate Trust Office as the office and agency for such purposes. The
Administrative Trustees shall give prompt written notice to the Depositor, the Property Trustee and
to the Holders of any change in the location of any such office or agency.

     (g) The Preferred Securities may only be transferred to a “Qualified Purchaser” as such term
is defined in Section 2(a)(51) of the Investment Company Act.

     (h) Neither the Property Trustee nor the Securities Registrar shall be responsible for
ascertaining whether any transfer hereunder complies with the registration provisions of or any
exemptions from the Securities Act, applicable state securities laws or the applicable laws of any
other jurisdiction, ERISA, the Code or the Investment Company Act; provided, that if a
Preferred Securities Certificate is specifically required by the express terms of this Section
5.7 to be delivered to the Property Trustee or the Securities Registrar by a Holder or
transferee of a Preferred Security, Property Trustee and the Securities Registrar shall be under a
duty to receive

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and examine the same to determine whether the Preferred Securities Certificate substantially
conforms on its face to the requirements of this Trust Agreement and shall promptly notify the
party delivering the same if such Preferred Securities Certificate does not comply with such
terms.

     Section 5.8.
Mutilated, Destroyed, Lost or Stolen Securities Certificates.

     (a) If any mutilated Securities Certificate shall be surrendered to the Securities Registrar
together with such security or indemnity as may be required by the Securities Registrar to save
each of the Trustees harmless, the Administrative Trustees, or any one of them, on behalf of the
Trust, shall execute and make available for delivery and, with respect to Preferred Securities, the
Property Trustee shall authenticate, in exchange therefor a new Securities Certificate of like
class, tenor and denomination.

     (b) If the Securities Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Securities Certificate and there shall be delivered to the
Securities Registrar such security or indemnity as may be required by it to save each of the
Trustees harmless, then in the absence of notice that such Securities Certificate shall have been
acquired by a protected purchaser, the Administrative Trustees, or any one of them, on behalf of
the Trust, shall execute and make available for delivery, and, with respect to Preferred
Securities, the Property Trustee shall authenticate, in exchange for or in lieu of any such
destroyed, lost or stolen Securities Certificate, a new Securities Certificate of like class, tenor
and denomination.

     (c) In connection with the issuance of any new Securities Certificate under this Section
5.8, the Administrative Trustees or the Securities Registrar may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection
therewith.

     (d) Any duplicate Securities Certificate issued pursuant to this Section 5.8 shall
constitute conclusive evidence of an undivided beneficial interest in the assets of the Trust
corresponding to that evidenced by the mutilated, lost, stolen or destroyed Securities Certificate,
as if originally issued, whether or not the lost, stolen or destroyed Securities Certificate shall
be found at any time.

     (e) If any such mutilated, destroyed, lost or stolen Securities Certificate has become or is
about to become due and payable, the Depositor in its discretion may provide the Property Trustee
or the Paying Agent, as applicable, with the funds to pay such Trust Security and upon receipt of
such funds, the Property Trustee or the Paying Agent, as applicable, shall pay such Trust Security
instead of issuing a new Securities Certificate.

     (f) The provisions of this Section 5.8 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement of mutilated, destroyed, lost
or stolen Securities Certificates.

     Section 5.9.
Persons Deemed Holders.

     The Trustees and the Securities Registrar shall each treat the Person in whose name any
Securities Certificate shall be registered in the Securities Register as the owner of the Trust

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Securities evidenced by such Securities Certificate for the purpose of receiving Distributions and
for all other purposes whatsoever, and none of the Trustees and the Securities Registrar shall be
bound by any notice to the contrary.

     Section 5.10.
Cancellation.

     All Preferred Securities Certificates surrendered for registration of transfer or exchange or
for payment shall, if surrendered to any Person other than the Property Trustee, be delivered to
the Property Trustee, and any such Preferred Securities Certificates and Preferred Securities
Certificates surrendered directly to the Property Trustee for any such purpose shall be promptly
canceled by the Property Trustee. The Administrative Trustees may at any time deliver to the
Property Trustee for cancellation any Preferred Securities Certificates previously delivered
hereunder that the Administrative Trustees may have acquired in any manner whatsoever, and all
Preferred Securities Certificates so delivered shall be promptly canceled by the Property Trustee.
No Preferred Securities Certificates shall be executed and delivered in lieu of or in exchange for
any Preferred Securities Certificates canceled as provided in this Section 5.10, except as
expressly permitted by this Trust Agreement. All canceled Preferred Securities Certificates shall
be retained by the Property Trustee in accordance with its customary practices.

     Section 5.11.
Ownership of Common Securities by Depositor.

     (a) On the Closing Date, the Depositor shall acquire, and thereafter shall retain, beneficial
and record ownership of the Common Securities. Neither the Depositor nor any successor Holder of
the Common Securities may transfer less than all of the Common Securities, and the Depositor or any
such successor Holder may transfer the Common Securities only (i) in connection with a
consolidation or merger of the Depositor into another Person, or any conveyance, transfer or lease
by the Depositor of its properties and assets substantially as an entirety to any Person (in which
event such Common Securities will be transferred to such surviving entity, transferee or lessee, as
the case may be), pursuant to Section 8.1 of the Indenture or (ii) to the Depositor or an Affiliate
of the Depositor, in each such case in compliance with applicable law (including the Securities
Act, and applicable state securities and blue sky laws). To the fullest extent permitted by law,
any attempted transfer of the Common Securities other than as set forth in the immediately
preceding sentence shall be void. The Administrative Trustees shall cause each Common Securities
Certificate issued to the Depositor to contain a legend stating substantially “THIS CERTIFICATE IS
NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11 OF THE TRUST
AGREEMENT.”

     (b) Any Holder of the Common Securities shall be liable for the debts and obligations of the
Trust in the manner and to the extent set forth with respect to the Depositor and agrees that it
shall be subject to all liabilities to which the Depositor may be subject and, prior to becoming
such a Holder, shall deliver to the Administrative Trustees an instrument of assumption
satisfactory to such Trustees.

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     Section 5.12. Restrictive Legends.

     (a) Each Preferred Security Certificate shall bear a legend in substantially the
following form:

“IF THIS SECURITY IS A GLOBAL SECURITY INSERT: THIS PREFERRED SECURITY IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS
PREFERRED SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER
THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT,
AND NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A TRANSFER OF THIS PREFERRED
SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER
NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO
CAPITALSOURCE TRUST PREFERRED SECURITIES 2006-1 OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT HEREON 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 PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND SUCH PREFERRED SECURITIES OR ANY INTEREST THEREIN, MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM. EACH PURCHASER OF ANY PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE
SELLER OF THE PREFERRED SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF
SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

THE HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE
BENEFIT OF THE TRUST AND THE DEPOSITOR THAT (A) SUCH PREFERRED SECURITIES MAY BE OFFERED,
RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE TRUST OR (II) TO

33

 

A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED PURCHASER” (AS DEFINED IN
SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED), AND (B) THE HOLDER WILL
NOTIFY ANY PURCHASER OF ANY PREFERRED SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN
(A) ABOVE.

THE PREFERRED SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE
LIQUIDATION AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
ATTEMPTED TRANSFER OF PREFERRED SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN
AGGREGATE LIQUIDATION AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL
BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH PREFERRED SECURITIES
FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF LIQUIDATION AMOUNT OF OR
DISTRIBUTIONS ON SUCH PREFERRED SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED
TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH PREFERRED SECURITIES.

THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE PROVISIONS OF AN
AMENDED AND RESTATED TRUST AGREEMENT OF CAPITALSOURCE TRUST PREFERRED SECURITIES 2006-1 DATED AS OF
FEBRUARY 22, 2006 (A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE ISSUER) AND MAY NOT BE
SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE
WITH THE PROVISIONS OF SUCH TRUST AGREEMENT. THE HOLDER OF THIS PREFERRED SECURITY, OR ANY INTEREST
THEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN
EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”). OR SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR SIMILAR LAW (EACH A “PLAN”). OR AN
ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE
ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS PREFERRED
SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER OR HOLDER OF THE PREFERRED SECURITIES OR ANY
INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS
NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE
BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN
OR PLAN TO FINANCE SUCH PURCHASE.”

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     (b) The above legend shall not be removed from any of the Preferred Securities Certificates
unless there is delivered to the Property Trustee and the Depositor satisfactory evidence, which
may include an opinion of counsel, as may be reasonably required to ensure that any future
transfers thereof may be made without restriction under or violation of the provisions of the
Securities Act and other applicable law. Upon provision of such satisfactory evidence, one or more
of the Administrative Trustees on behalf of the Trust shall execute and deliver to the Property
Trustee, and the Property Trustee shall authenticate and deliver, at the written direction of the
Administrative Trustees and the Depositor, Preferred Securities Certificates that do not bear the
legend.

     Section 5.13. Form of Certificate of Authentication.

     The Property Trustee’s certificate of authentication shall be in substantially the following form:

          This is one of the Preferred Securities referred to in the within-mentioned Trust Agreement.

	 	 	 	 	 
	Dated:	 	JPMORGAN CHASE BANK, NATIONAL
	 	 	ASSOCIATION, not in its individual capacity, but
	 	 	solely as Property Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

ARTICLE VI

MEETINGS; VOTING; ACTS OF HOLDERS

     Section 6.1. Notice of Meetings.

     Notice of all meetings of the Holders of the Preferred Securities, stating the time, place and
purpose of the meeting, shall be given by the Property Trustee pursuant to Section 10.8 to
each Holder of Preferred Securities, at such Holder’s registered address, at least fifteen (15)
days and not more than ninety (90) days before the meeting. At any such meeting, any business
properly before the meeting may be so considered whether or not stated in the notice of the
meeting. Any adjourned meeting may be held as adjourned without further notice.

     Section 6.2. Meetings of Holders of the Preferred Securities.

     (a) No annual meeting of Holders is required to be held. The Property Trustee, however, shall call
a meeting of the Holders of the Preferred Securities to vote on any matter upon the written request
of the Holders of at least twenty five percent (25%) in aggregate Liquidation Amount of the
Outstanding Preferred Securities and the Administrative Trustees or the Property Trustee may, at
any time in their discretion, call a meeting of the
Holders of the Preferred Securities to vote on any matters as to which such Holders are entitled to
vote.

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     (b) The Holders of at least a Majority in Liquidation Amount of the Preferred Securities,
present in person or by proxy, shall constitute a quorum at any meeting of the Holders of the
Preferred Securities.

     (c) If a quorum is present at a meeting, an affirmative vote by the Holders present, in person or
by proxy, holding Preferred Securities representing at least a Majority in Liquidation Amount of
the Preferred Securities held by the Holders present, either in person or by proxy, at such meeting
shall constitute the action of the Holders of the Preferred Securities, unless this Trust Agreement
requires a lesser or greater number of affirmative votes.

     Section 6.3. Voting Rights.

     Holders shall be entitled to one vote for each $10,000 of Liquidation Amount represented by their
Outstanding Trust Securities in respect of any matter as to which such Holders are entitled to
vote.

     Section 6.4. Proxies, Etc.

     At any meeting of Holders, any Holder entitled to vote thereat may vote by proxy; provided,
that no proxy shall be voted at any meeting unless it shall have been placed on file with the
Administrative Trustees, or with such other officer or agent of the Trust as the Administrative
Trustees may direct, for verification prior to the time at which such vote shall be taken. Pursuant
to a resolution of the Property Trustee, proxies may be solicited in the name of the Property
Trustee or one or more officers of the Property Trustee. Only Holders of record shall be entitled
to vote. When Trust Securities are held jointly by several Persons, any one of them may vote at any
meeting in person or by proxy in respect of such Trust Securities, but if more than one of them
shall be present at such meeting in person or by proxy, and such joint owners or their proxies so
present disagree as to any vote to be cast, such vote shall not be received in respect of such
Trust Securities. A proxy purporting to be executed by or on behalf of a Holder shall be deemed
valid unless challenged at or prior to its exercise and the burden of proving invalidity shall rest
on the challenger. No proxy shall be valid more than three (3) years after its date of execution.

     Section 6.5. Holder Action by Written Consent.

     Any action that may be taken by Holders at a meeting may be taken without a meeting and without
prior notice if Holders holding at least a Majority in Liquidation Amount of all Preferred
Securities entitled to vote in respect of such action (or such lesser or greater proportion thereof
as shall be required by any other provision of this Trust Agreement) shall consent to the action in
writing; provided, that notice of such action is promptly provided to the Holders of
Preferred Securities that did not consent to such action. Any action that may be taken by the
Holders of all the Common Securities may be taken without a meeting and without prior notice if
such Holders
shall consent to the action in writing.

     Section 6.6. Record Date for Voting and Other Purposes.

     Except as provided in Section 6.10(a), for the purposes of determining the Holders who are
entitled to notice of and to vote at any meeting or to act by written consent, or to participate

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in any distribution on the Trust Securities in respect of which a record date is not otherwise
provided for in this Trust Agreement, or for the purpose of any other action, the Administrative
Trustees may from time to time fix a date, not more than ninety (90) days prior to the date of any
meeting of Holders or the payment of a Distribution or other action, as the case may be, as a
record date for the determination of the identity of the Holders of record for such purposes.

     Section 6.7. Acts of Holders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Trust Agreement to be given, made or taken by Holders may be embodied
in and evidenced by one or more instruments of substantially similar tenor signed by such Holders
in person or by an agent thereof duly appointed in writing; and, except as otherwise expressly
provided herein, such action shall become effective when such instrument or instruments are
delivered to an Administrative Trustee. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders 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 Trust Agreement and
conclusive in favor of the Trustees, if made in the manner provided in this Section 6.7.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than such signer’s individual capacity, such certificate
or affidavit shall also constitute sufficient proof of such signer’s authority. The fact and date
of the execution of any such instrument or writing, or the authority of the Person executing the
same, may also be proved in any other manner that any Trustee receiving the same deems sufficient.

     (c) The ownership of Trust Securities shall be proved by the Securities Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of
the Holder of any Trust Security shall bind every future Holder of the same Trust Security and the
Holder of every Trust Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the
Trustees, the Administrative Trustees or the Trust in reliance thereon, whether or not notation of
such action is made upon such Trust Security.

     (e) Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder
with regard to any particular Trust Security may do so with regard to all or
any part of the Liquidation Amount of such Trust Security or by one or more duly appointed agents
each of which may do so pursuant to such appointment with regard to all or any part of such
Liquidation Amount.

     (f) If any dispute shall arise among the Holders or the Trustees with respect to the
authenticity, validity or binding nature of any request, demand, authorization, direction, notice,

37

 

consent, waiver or other Act of such Holder or Trustee under this Article VI, then the
determination of such matter by the Property Trustee shall be conclusive with respect to such
matter.

     Section 6.8. Inspection of Records.

     Upon reasonable written notice to the Administrative Trustees and the Property Trustee, the records
of the Trust shall be open to inspection by any Holder during normal business hours for any purpose
reasonably related to such Holder’s interest as a Holder.

     Section 6.9. Limitations on Voting Rights.

     (a) Except as expressly provided in this Trust Agreement and in the Indenture and as
otherwise required by law, no Holder of Preferred Securities shall have any right to vote or in any
manner otherwise control the administration, operation and management of the Trust or the
obligations of the parties hereto, nor shall anything herein set forth, or contained in the terms
of the Securities Certificates, be construed so as to constitute the Holders from time to time as
partners or members of an association.

     (b) So long as any Notes are held by the Property Trustee on behalf of the Trust, the
Property Trustee shall not (i) direct the time, method and place of conducting any proceeding for
any remedy available to the Note Trustee or exercise any trust or power conferred on the Property
Trustee with respect to the Notes, (ii) waive any past default that may be waived under Section
5.13 of the Indenture or waive compliance with any covenant or condition under Section 10.7 of the
Indenture, (iii) exercise any right to rescind or annul a declaration that the principal of all the
Notes shall be due and payable or (iv) consent to any amendment, modification or termination of the
Indenture or the Notes, where such consent shall be required, without, in each case, obtaining the
prior approval of the Holders of at least a Majority in Liquidation Amount of the Preferred
Securities; provided, that where a consent under the Indenture would require the consent of
each holder of Notes (or each Holder of Preferred Securities) affected thereby, no such consent
shall be given by the Property Trustee without the prior written consent of each Holder of
Preferred Securities. The Property Trustee shall not revoke any action previously authorized or
approved by a vote of the Holders of the Preferred Securities, except by a subsequent vote of the
Holders of the Preferred Securities. In addition to obtaining the foregoing approvals of the
Holders of the Preferred Securities, prior to taking any of the foregoing actions, the Property
Trustee shall, at the expense of the Depositor, obtain an Opinion of Counsel experienced in such
matters to the effect that such action shall not cause the Trust to be taxable as a corporation or
classified as other than a grantor trust for United States federal income tax purposes.

     (c) If any proposed amendment to the Trust Agreement provides for, or the Trustees otherwise
propose to effect, (i) any action that would adversely affect in any material respect the powers,
preferences or special rights of the Preferred Securities, whether by way of amendment to this
Trust Agreement or otherwise or (ii) the dissolution, winding-up or termination of the Trust, other
than pursuant to the terms of this Trust Agreement, then the Holders of Outstanding Preferred
Securities as a class will be entitled to vote on such amendment or proposal and such amendment or
proposal shall not be effective except with the approval of the Holders of at least a

38

 

Majority in Liquidation Amount of the Preferred Securities. Notwithstanding any other
provision of this Trust Agreement, no amendment to this Trust Agreement may be made if, as a result
of such amendment, it would cause the Trust to be taxable as a corporation or classified as other
than a grantor trust for United States federal income tax purposes.

     Section 6.10. Acceleration of Maturity; Rescission of Annulment; Waivers of Past Defaults.

     (a) For so long as any Preferred Securities remain Outstanding, if, upon a Note Event of Default,
the Note Trustee fails or the holders of not less than twenty five percent (25%) in principal
amount of the outstanding Notes fail to declare the principal of all of the Notes to be immediately
due and payable, the Holders of at least twenty five percent (25%) in Liquidation Amount of the
Preferred Securities then Outstanding shall have the right to make such declaration by a notice in
writing to the Property Trustee, the Depositor, the Guarantor and the Note Trustee. At any time
after a declaration of acceleration with respect to the Notes has been made and before a judgment
or decree for payment of the money due has been obtained by the Note Trustee as provided in the
Indenture, the Holders of at least a Majority in Liquidation Amount of the Preferred Securities, by
written notice to the Property Trustee, the Depositor, the Guarantor and the Note Trustee, may
rescind and annul such declaration and its consequences if:

          (i) the Depositor or the Guarantor has paid or deposited with the Note Trustee a sum sufficient to
pay:

     (A) all overdue installments of interest on all of the Notes;

     (B) any accrued Additional Interest on all of the Notes;

     (C) the principal of and any premium, if any, on any Notes that have become due otherwise
than by such declaration of acceleration and interest and Additional Interest thereon at the rate
borne by the Notes; and

     (D) all sums paid or advanced by the Note Trustee under the Indenture and the reasonable
compensation, expenses, disbursements and advances of the Note Trustee, the Property Trustee and
their agents and counsel; and

      (ii) all Note Events of Default, other than the non-payment of the principal of the Notes that has
become due solely by such acceleration, have been cured or waived as provided in Section 5.13 of
the Indenture.

     Upon receipt by the Property Trustee of written notice requesting such an acceleration, or
rescission and annulment thereof, by Holders of any part of the Preferred Securities, a record date
shall be established for determining Holders of Outstanding Preferred Securities entitled to join
in such notice, which record date shall be at the close of business on the day the Property Trustee
receives such notice. The Holders on such record date, or their duly designated proxies, and only
such Persons, shall be entitled to
join in such notice, whether or not such Holders remain Holders after such record date;
provided, that, unless such declaration of acceleration, or rescission and annulment, as
the case may be, shall have become effective by virtue of the requisite percentage having joined in
such notice prior to the day that is ninety (90) days after

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such record date, such notice of declaration of acceleration, or rescission and annulment,
as the case may be, shall automatically and without further action by any Holder be canceled and of
no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from
giving, after expiration of such ninety (90)-day period, a new written notice of declaration of
acceleration, or rescission and annulment thereof, as the case may be, that is identical to a
written notice that has been canceled pursuant to the proviso to the immediately preceding
sentence, in which event a new record date shall be established pursuant to the provisions of this
Section 6.10(a).

     (b) For so long as any Preferred Securities remain Outstanding, to the fullest extent permitted by
law and subject to the terms of this Trust Agreement and the Indenture, upon a Note Event of
Default specified in paragraph (a) or (b) of Section 5.1 of the Indenture, any Holder of Preferred
Securities shall have the right to institute a proceeding directly against the Depositor or the
Guarantor, pursuant to Section 5.8 of the Indenture, for enforcement of payment to such Holder of
any amounts payable in respect of Notes having an aggregate principal amount equal to the aggregate
Liquidation Amount of the Preferred Securities of such Holder. Except as set forth in Section
6.10(a) and this Section 6.10(b), the Holders of Preferred Securities shall have no
right to exercise directly any right or remedy available to the holders of, or in respect of, the
Notes.

     (c) Notwithstanding paragraphs (a) and (b) of this Section 6.10, the Holders of at least a
Majority in Liquidation Amount of the Preferred Securities may, on behalf of the Holders of all the
Preferred Securities, waive any Note Event of Default, except any Note Event of Default arising
from the failure to pay any principal of, premium, if any, or interest on (including any Additional
Interest) the Notes (unless such Note Event of Default has been cured and a sum sufficient to pay
all matured installments of interest and all principal and premium, if any, on all Notes due
otherwise than by acceleration has been deposited with the Note Trustee) or a Note Event of Default
in respect of a covenant or provision that under the Indenture cannot be modified or amended
without the consent of the holder of each outstanding Note. Upon any such waiver, such Note Event
of Default shall cease to exist and any Note Event of Default arising therefrom shall be deemed to
have been cured for every purpose of the Indenture; but no such waiver shall affect any subsequent
Note Event of Default or impair any right consequent thereon.

     (d) Notwithstanding paragraphs (a) and (b) of this Section 6.10, the Holders of at
least a Majority in Liquidation Amount of the Preferred Securities may, on behalf of the Holders of
all the Preferred Securities, waive any past Event of Default and its consequences except any Event
of Default which is attributable to a Note Event of Default which may not be waived pursuant to
paragraph (c) of this Section 6.10. Upon such waiver, any such Event of Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for
every purpose of this Trust Agreement, but no such waiver shall extend to any subsequent or other
Event of Default or impair any right consequent thereon.

     (e) The Holders of a Majority in Liquidation Amount of the Preferred Securities shall have
the right to direct the time, method and place of conducting any proceeding for any remedy
available to the Property Trustee in respect of this Trust Agreement or the Notes or exercising any
trust or power conferred upon the Property Trustee under this Trust Agreement; provided,
that, subject to Sections 8.5 and 8.7, the Property Trustee shall have the right to
decline to follow

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any such direction if the Property Trustee being advised by counsel determines that the action so
directed may not lawfully be taken, or if the Property Trustee in good faith shall, by an officer
or officers of the Property Trustee, determine that the proceedings so directed would be illegal or
involve it in personal liability or be unduly prejudicial to the rights of Holders not party to
such direction; provided, further, that nothing in this Trust Agreement shall impair the
right of the Property Trustee to take any action deemed proper by the Property Trustee and which is
not inconsistent with such direction.

ARTICLE VII

REPRESENTATIONS AND WARRANTIES

     Section 7.1. Representations and Warranties of the Property Trustee and the Delaware
Trustee.

     The Property Trustee and the Delaware Trustee, each severally on behalf of and as to itself, hereby
represents and warrants for the benefit of the Depositor, the Guarantor and the Holders that:

     (a) the Property Trustee is a national banking association, duly organized and validly
existing under the laws of the United States of America;

     (b) the Property Trustee has full corporate power, authority and legal right to execute,
deliver and perform its obligations under this Trust Agreement and has taken all necessary action
to authorize the execution, delivery and performance by it of this Trust Agreement;

     (c) the Delaware Trustee is a national banking association, duly formed and validly existing under
the laws of the United States of America with its principal place of business in the State of
Delaware;

     (d) the Delaware Trustee has full corporate power, authority and legal right to execute,
deliver and perform its obligations under this Trust Agreement and has taken all necessary action
to authorize the execution, delivery and performance by it of this Trust Agreement;

     (e) this Trust Agreement has been duly authorized, executed and delivered by the Property
Trustee and the Delaware Trustee and constitutes the legal, valid and binding agreement of each of
the Property Trustee and the Delaware Trustee enforceable against each of them in accordance with
its terms, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws affecting creditors’ rights generally and to general principles of
equity and the discretion of the court (regardless of whether considered in a proceeding in equity
at law);

     (f) the execution, delivery and performance of this Trust Agreement have been
duly authorized by all necessary corporate or other action on the part of the Property Trustee and
the Delaware Trustee and do not require any approval of stockholders of the Property Trustee and
the Delaware Trustee and such execution, delivery and performance

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will not (i) violate the Restated Organization Certificate or Articles of Association, as
applicable, or By-laws of the Property Trustee or the Delaware Trustee, (ii) violate any provision
of, or constitute, with or without notice or lapse of time, a default under, or result in the
imposition of any lien on any properties included in the Trust Property pursuant to the provisions
of any indenture, mortgage, credit agreement, license or other agreement or instrument to which the
Property Trustee or the Delaware Trustee is a party or by which it or any of its properties or
assets is bound or (iii) violate any applicable law, governmental rule or regulation of the United
States or the State of Delaware, as the case may be, governing the banking, trust or general powers
of the Property Trustee or the Delaware Trustee or any order, judgment or decree applicable to the
Property Trustee or the Delaware Trustee;

     (g) neither the authorization, execution or delivery by the Property Trustee or the Delaware
Trustee of this Trust Agreement nor the consummation of any of the transactions by the Property
Trustee or the Delaware Trustee contemplated herein requires the consent or approval of, the giving
of notice to, the registration with or the taking of any other action with respect to any
governmental authority or agency under any existing law of the United States or the State of
Delaware governing the banking, and trust or general powers of the Property Trustee or the Delaware
Trustee, as the case may be; and

     (h) to the best of each of the Property Trustee’s and the Delaware Trustee’s knowledge, there are
no proceedings pending or threatened against or affecting the Property Trustee or the Delaware
Trustee in any court or before any governmental authority, agency or arbitration board or tribunal
that, individually or in the aggregate, would materially and adversely affect the Trust or would
question the right, power and authority of the Property Trustee or the Delaware Trustee, as the
case may be, to enter into or perform its obligations as one of the Trustees under this Trust
Agreement.

     Section 7.2. Representations and Warranties of Depositor.

     The Depositor hereby represents and warrants for the benefit of the Holders that:

     (a) the Depositor is a limited liability corporation duly organized, validly existing and in
good standing under the laws of its state of formation;

     (b) the Depositor has full limited liability company power, authority and legal right to
execute, deliver and perform its obligations under this Trust Agreement and has taken all necessary
action to authorize the execution, delivery and performance by it of this Trust Agreement;

     (c) this Trust Agreement has been duly authorized, executed and delivered by the Depositor and
constitutes the legal, valid and binding agreement of the Depositor enforceable against the
Depositor in accordance with its terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights generally and to general principles of equity;

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     (d) the Securities Certificates issued at the Closing Date on behalf of the Trust have been
duly authorized and will have been duly and validly executed, issued and delivered by the
applicable Trustees pursuant to the terms and provisions of, and in accordance with the
requirements of, this Trust Agreement and the Holders will be, as of such date, entitled to the
benefits of this Trust Agreement;

     (e) the execution, delivery and performance of this Trust Agreement have been duly
authorized by all necessary limited liability company or other action on the part of the Depositor
and do not require any approval of the members of the Depositor and such execution, delivery and
performance will not (i) violate the certificate formation or limited liability company operating
agreement (or the organizational documents) of the Depositor or (ii) violate any applicable law,
governmental rule or regulation governing the Depositor or any material portion of its property or
any order, judgment or decree applicable to the Depositor or any material portion of its property;

     (f) neither the authorization, execution or delivery by the Depositor of this Trust
Agreement nor the consummation of any of the transactions by the Depositor contemplated herein
requires the consent or approval of, the giving of notice to, the registration with or the taking
of any other action with respect to any governmental authority or agency under any existing law
governing the Depositor or any material portion of its property; and

     (g) there are no proceedings pending or, to the best of the Depositor’s knowledge,
threatened against or affecting the Depositor or any material portion of its property in any court
or before any governmental authority, agency or arbitration board or tribunal that, individually or
in the aggregate, would materially and adversely affect the Trust or would question the right,
power and authority of the Depositor, as the case may be, to enter into or perform its obligations
under this Trust Agreement.

ARTICLE VIII

THE TRUSTEES

     Section 8.1. Number of Trustees.

     The number of Trustees shall be five (5); provided, that the Property Trustee and the
Delaware Trustee may be the same Person, in which case the number of Trustees shall be four (4).
The number of Trustees may be increased or decreased by Act of the Holder of the Common Securities
subject to Sections 8.2, 8.3, and 8.4. The death, resignation, retirement, removal,
bankruptcy, incompetence or incapacity to perform the duties of a Trustee shall not operate to
annul, dissolve or terminate the Trust.

     Section 8.2. Property Trustee Required.

     There shall at all times be a Property Trustee hereunder with respect to the Trust Securities. The
Property Trustee shall be a corporation or national banking association
organized and doing business under the laws of the United States or of any state thereof,
authorized to exercise corporate trust powers, having a combined capital and surplus of at least
fifty million

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dollars ($50,000,000), subject to supervision or examination by federal or state authority
and having an office within the United States. If any such Person publishes reports of condition at
least annually pursuant to law or to the requirements of its supervising or examining authority,
then for the purposes of this Section 8.2, the combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Property Trustee shall cease to be eligible in
accordance with the provisions of this Section 8.2, it shall resign immediately in the
manner and with the effect hereinafter specified in this Article VIII.

     Section 8.3. Delaware Trustee Required.

     (a) If required by the Delaware Statutory Trust Act, there shall at all times be a Delaware
Trustee with respect to the Trust Securities. The Delaware Trustee shall either be (i) a natural
person who is at least 21 years of age and a resident of the State of Delaware or (ii) a legal
entity that has its principal place of business in the State of Delaware, otherwise meets the
requirements of applicable Delaware law and shall act through one or more persons authorized to
bind such entity. If at any time the Delaware Trustee shall cease to be eligible in accordance with
the provisions of this Section 8.3, it shall resign immediately in the manner and with the
effect hereinafter specified in this Article VIII. The Delaware Trustee shall have the same
rights, privileges and immunities as the Property Trustee.

     (b) The Delaware Trustee shall not be entitled to exercise any powers, nor shall the Delaware
Trustee have any of the duties and responsibilities, of the Property Trustee or the Administrative
Trustees set forth herein. The Delaware Trustee shall be one of the trustees of the Trust for the
sole and limited purpose of fulfilling the requirements of Section 3807 of the Delaware Statutory
Trust Act and for taking such actions as are required to be taken by a Delaware trustee under the
Delaware Statutory Trust Act. The duties (including fiduciary duties), liabilities and obligations
of the Delaware Trustee shall be limited to (a) accepting legal process served on the Trust in the
State of Delaware and (b) the execution of any certificates required to be filed with the Secretary
of State of the State of Delaware that the Delaware Trustee is required to execute under Section
3811 of the Delaware Statutory Trust Act and there shall be no other duties (including fiduciary
duties) or obligations, express or implied, at law or in equity, of the Delaware Trustee.

     Section 8.4. Appointment of Administrative Trustees.

     (a) There shall at all times be one or more Administrative Trustees hereunder with respect to
the Trust Securities. Each Administrative Trustee shall be either a natural person who is at least
21 years of age or a legal entity that shall act through one or more persons authorized to bind
that entity. Each of the individuals identified as an “Administrative Trustee” in the preamble of
this Trust Agreement hereby accepts his or her appointment as such.

     (b) Except where a requirement for action by a specific number of Administrative Trustees is
expressly set forth in this Trust Agreement, any act required or permitted to be taken by, and any
power of the Administrative Trustees may be exercised by, or with the consent of, any one such
Administrative Trustee. Whenever a vacancy in the offices of the Administrative Trustees shall
occur, until such vacancy is filled by the appointment of an Administrative Trustee

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in accordance with Section 8.11, the Administrative Trustees in office, regardless of
their number (and notwithstanding any other provision of this Trust Agreement), shall have all the
powers granted to the Administrative Trustees and shall discharge all the duties imposed upon the
Administrative Trustees by this Trust Agreement.

     Section 8.5. Duties and Responsibilities of the Trustees.

     (a) The rights, immunities, duties and responsibilities of the Trustees shall be as provided
by this Trust Agreement and there shall be no other duties (including fiduciary duties) or
obligations, express or implied, at law or in equity, of the Trustees; provided, however,
that if an Event of Default known to the Property Trustee has occurred and is continuing, the
Property Trustee shall, prior to the receipt of directions, if any, from the Holders of at least a
Majority in Liquidation Amount of the Preferred Securities, exercise such of the rights and powers
vested in it by this Trust Agreement, and use the same degree of care and skill in its exercise, as
a prudent person would exercise or use under the circumstances in the conduct of such person’s own
affairs. Notwithstanding the foregoing, no provision of this Trust Agreement shall require any of
the Trustees to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its or their rights or
powers, if it or they shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to it. Whether or not
herein expressly so provided, every provision of this Trust Agreement relating to the conduct or
affecting the liability of or affording protection to the Trustees shall be subject to the
provisions of this Section 8.5. Nothing in this Trust Agreement shall be construed to
release any Trustee from liability for his, her or its own bad faith or gross negligence, or his,
her or its own willful misconduct. To the extent that, at law or in equity, a Trustee has duties
and liabilities relating to the Trust or to the Holders, such Trustee shall not be liable to the
Trust or to any Holder for such Trustee’s good faith reliance on the provisions of this Trust
Agreement. The provisions of this Trust Agreement, to the extent that they restrict the duties and
liabilities of the Trustees otherwise existing at law or in equity, are agreed by the Depositor,
the Guarantor and the Holders to replace such other duties and liabilities of the Trustees.

     (b) All payments made by the Property Trustee or a Paying Agent in respect of the Trust
Securities shall be made only from the revenue and proceeds from the Trust Property and only to the
extent that there shall be sufficient revenue or proceeds from the Trust Property to enable the
Property Trustee or a Paying Agent to make payments in accordance with the terms hereof. Each
Holder, by its acceptance of a Trust Security, agrees that it will look solely to the revenue and
proceeds from the Trust Property to the extent legally available for distribution to it as herein
provided and that the Trustees are not personally liable to it for any amount distributable in
respect of any Trust Security or for any other liability in respect of any Trust Security. This
Section 8.5(b) does not limit the liability of the Trustees expressly set forth elsewhere
in this Trust Agreement.

     (c) No provisions of this Trust Agreement shall be construed to relieve the Property Trustee from
liability with respect to matters that are within the authority of the Property
Trustee under this Trust Agreement for its own negligent action, negligent failure to act or
willful misconduct, except that:

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     (i) the Property Trustee shall not be liable for any error or judgment made in good faith by
an authorized officer of the Property Trustee, unless it shall be proved that the Property Trustee
was negligent in ascertaining the pertinent facts;

     (ii) the Property Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of at least a Majority in
Liquidation Amount of the Preferred Securities (or such other percentage as may be required by the
terms hereof) relating to the time, method and place of conducting any proceeding for any remedy
available to the Property Trustee hereunder or under the Indenture, or exercising any trust or
power conferred upon the Property Trustee under this Trust Agreement;

     (iii) the Property Trustee’s sole duty with respect to the custody, safe keeping and physical
preservation of the Notes and the Payment Account shall be to deal with such Trust Property in a
similar manner as the Property Trustee deals with similar property for its own account, subject to
the protections and limitations on liability afforded to the Property Trustee under this Trust
Agreement;

     (iv) the Property Trustee shall not be liable for any interest on any money received by it except
as it may otherwise agree in writing with the Depositor; and money held by the Property Trustee
need not be segregated from other funds held by it except in relation to the Payment Account
maintained by the Property Trustee pursuant to Section 3.1 and except to the extent
otherwise required by law; and

     (v) the Property Trustee shall not be responsible for monitoring the compliance by the
Administrative Trustees, the Guarantor or the Depositor with their respective duties under this
Trust Agreement, nor shall the Property Trustee be liable for the default or misconduct of any
other Trustee, the Guarantor or the Depositor.

     Section 8.6. Notices of Defaults and Extensions.

     (a) Within ninety (90) days after the occurrence of a default actually known to the Property
Trustee, the Property Trustee shall transmit notice of such default to the Holders, the
Administrative Trustees, the Guarantor and the Depositor, unless such default shall have been cured
or waived. For the purpose of this Section 8.6, the term “default” means any event that is,
or after notice or lapse of time or both would become, an Event of Default.

     (b) Within five (5) Business Days after the receipt of written notice of the Depositor’s
exercise of its right to defer the payment of interest on the Notes pursuant to the Indenture, the
Property Trustee shall transmit, in the manner and to the extent provided in Section 11.8,
notice of such exercise to the Holders and the Administrative Trustees, unless such exercise shall
have been revoked.

     (c) The Property Trustee shall not be charged with knowledge of any Event of Default
unless either (i) a Responsible Officer of the Property Trustee shall have actual knowledge or (ii)
the Property Trustee shall have received written notice thereof from the Depositor, the Guarantor,
an Administrative Trustee or a Holder.

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     Section 8.7. Certain Rights of Property Trustee .

     Subject to the provisions of Section 8.5:

     (a) the Property Trustee may conclusively rely and shall be protected in acting or
refraining from acting in good faith and in accordance with the terms hereof upon any resolution,
Opinion of Counsel, Officer’s Certificate or other certificate, written representation of a
Holder or transferee, certificate of auditors or any other resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, appraisal, bond,
debenture, note, other evidence of indebtedness or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties;

     (b) if (i) in performing its duties under this Trust Agreement the Property Trustee is
required to decide between alternative courses of action, (ii) in construing any of the provisions
of this Trust Agreement the Property Trustee finds a provision ambiguous or inconsistent with any
other provisions contained herein or (iii) the Property Trustee is unsure of the application of any
provision of this Trust Agreement, then, except as to any matter as to which the Holders of the
Preferred Securities are entitled to vote under the terms of this Trust Agreement, the Property
Trustee shall deliver a notice to the Depositor requesting the Depositor’s written instruction as
to the course of action to be taken and the Property Trustee shall take such action, or refrain
from taking such action, as the Property Trustee shall be instructed in writing to take, or to
refrain from taking, by the Depositor; provided, that if the Property Trustee does not
receive such instructions of the Depositor within ten (10) Business Days after it has delivered
such notice or such reasonably shorter period of time set forth in such notice, the Property
Trustee may, but shall be under no duty to, take such action, or refrain from taking such action,
as the Property Trustee shall deem advisable and in the best interests of the Holders, in which
event the Property Trustee shall have no liability except for its own negligence, bad faith or
willful misconduct;

     (c) any direction or act of the Depositor or the Guarantor contemplated by this Trust Agreement
shall be sufficiently evidenced by an Officers’ Certificate unless otherwise expressly provided
herein;

     (d) any direction or act of an Administrative Trustee contemplated by this Trust Agreement
shall be sufficiently evidenced by a certificate executed by such Administrative Trustee and
setting forth such direction or act;

     (e) the Property Trustee shall have no duty to see to any recording, filing or registration
of any instrument (including any financing or continuation statement or any filing under tax or
securities laws) or any re-recording, re-filing or re-registration thereof;

     (f) the Property Trustee may consult with counsel (which counsel may be counsel to the
Property Trustee, the Depositor or the Guarantor or any of the Depositor’s or the Guarantor’s
Affiliates, and may include any of its employees) and the advice of such counsel shall be full and
complete authorization and protection in respect of any

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action taken, suffered or omitted by it hereunder in good faith and in reliance thereon and in
accordance with such advice; the Property Trustee shall have the right at any time to seek
instructions concerning the administration of this Trust Agreement from any court of competent
jurisdiction;

     (g) the Property Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Trust Agreement at the request or direction of any of the Holders pursuant to
this Trust Agreement, unless such Holders shall have offered to the Property Trustee reasonable
security or indemnity against the costs, expenses (including reasonable attorneys’ fees and
expenses) and liabilities that might be incurred by it in compliance with such request or
direction, including reasonable advances as may be requested by the Property Trustee; provided,
 however, that nothing contained in this Section 8.7(g) shall prevent the Property
Trustee from exercising its rights under Section 8.11 hereof;

     (h) the Property Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, approval, bond, debenture, note or other evidence of indebtedness or
other paper or document, unless requested in writing to do so by one or more Holders, but the
Property Trustee may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Property Trustee shall determine to make such inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Depositor, personally or by
agent or attorney;

     (i) the Property Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through its agents, attorneys, custodians or nominees and the
Property Trustee shall not be responsible for any negligence or misconduct on the part of any such
agent, attorney, custodian or nominee appointed with due care by it hereunder;

     (j) whenever in the administration of this Trust Agreement the Property Trustee shall deem it
desirable to receive instructions with respect to enforcing any remedy or right hereunder, the
Property Trustee (i) may request instructions from the Holders (which instructions may only be
given by the Holders of the same proportion in Liquidation Amount of the Trust Securities as would
be entitled to direct the Property Trustee under this Trust Agreement in respect of such remedy,
right or action), (ii) may refrain from enforcing such remedy or right or taking such other action
until such instructions are received and (iii) shall be protected in acting in accordance with such
instructions;

     (k) except as otherwise expressly provided by this Trust Agreement, the Property Trustee shall not
be under any obligation to take any action that is discretionary under the provisions of this Trust
Agreement;

     (l) without prejudice to any other rights available to the Property Trustee under applicable law,
when the Property Trustee incurs expenses or renders services in connection with a Bankruptcy
Event, such expenses (including legal fees and expenses of

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its agents and counsel) and the compensation for such services are intended to constitute expenses
of administration under any bankruptcy law or law relating to creditors rights generally; and

     (m) whenever in the administration of this Trust Agreement the Property Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any action
hereunder, the Property Trustee (unless other evidence is herein specifically prescribed) may, in
the absence of bad faith on its part, request and rely on an Officers’ Certificate which, upon
receipt of such request, shall be promptly delivered by the Depositor.

     No provision of this Trust Agreement shall be deemed to impose any duty or obligation on any
Trustee to perform any act or acts or exercise any right, power, duty or obligation conferred or
imposed on it, in any jurisdiction in which it shall be illegal, or in which such Person shall be
unqualified or incompetent in accordance with applicable law, to perform any such act or acts, or
to exercise any such right, power, duty or obligation.

     Section 8.8. Delegation of Power.

     Any Trustee may, by power of attorney consistent with applicable law, delegate to any other natural
person over the age of 21 its, his or her power for the purpose of executing any documents
contemplated in Section 2.5. The Trustees shall have power to delegate from time to time to
such of their number or to the Depositor the doing of such things and the execution of such
instruments either in the name of the Trust or the names of the Trustees or otherwise as the
Trustees may deem expedient, to the extent such delegation is not prohibited by applicable law or
contrary to the provisions of this Trust Agreement.

     Section 8.9. May Hold Securities.

     Any Trustee or any other agent of any Trustee or the Trust, in its individual or any other
capacity, may become the owner or pledgee of Trust Securities and except as provided in the
definition of the term “Outstanding” in Article I, may otherwise deal with the Trust with
the same rights it would have if it were not a Trustee or such other agent.

     Section 8.10. Compensation; Reimbursement; Indemnity.

     The Depositor agrees:

     (a) to pay to the Trustees from time to time such reasonable compensation for all services
rendered by them hereunder as may be agreed by the Depositor and the Trustees from time to time
(which compensation shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

     (b) to reimburse the Trustees upon request for all reasonable expenses,
disbursements and advances incurred or made by the Trustees in accordance with any provision of
this Trust Agreement (including the reasonable compensation and the expenses and disbursements of
their agents and counsel), except any such expense,

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disbursement or advance as may be attributable to their gross negligence, bad faith or willful
misconduct; and

     (c) to the fullest extent permitted by applicable law, to indemnify and hold harmless (i) each
Trustee (including in its individual capacity), (ii) any Affiliate of any Trustee, (iii) any
officer, director, shareholder, employee, representative or agent of any Trustee or any Affiliate
of any Trustee and (iv) any employee or agent of the Trust
(referred to herein as an “Indemnified Person”) from and against any loss, damage, liability, tax (other than income, franchise or other
taxes imposed on amounts paid pursuant to Section 8.10(a) or (b) hereof), penalty,
expense or claim of any kind or nature whatsoever incurred without gross negligence, bad faith or
willful misconduct on its part, arising out of or in connection with the acceptance or
administration of the Trust hereunder, including the advancement of funds to cover the costs and
expenses of defending itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder.

     The Trust shall have no payment, reimbursement or indemnity obligations to the Trustees under this
Section 8.10. The provisions of this Section 8.10 shall survive the termination of
this Trust Agreement and the earlier removal or resignation of any Trustee.

     No Trustee may claim any Lien on any Trust Property whether before or after termination of the
Trust as a result of any amount due pursuant to this Section 8.10.

     To the fullest extent permitted by law, in no event shall any Trustee be liable for any indirect,
special, punitive or consequential loss or damage of any kind whatsoever, including, but not
limited to, lost profits, even if the Trustee has been advised of the likelihood of such loss or
damage and regardless of the form of action.

     In no event shall the Property Trustee and the Delaware Trustee be liable for any failure or delay
in the performance of its obligations hereunder because of circumstances beyond its control,
including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism,
fire, riot, embargo, government action, including any laws, ordinances, regulations, governmental
action or the like which delay, restrict or prohibit the providing of the services contemplated by
this Trust Agreement.

     Section 8.11. Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of any Trustee and no appointment of a successor Trustee
pursuant to this Article VIII shall become effective until the acceptance of appointment by
the successor Trustee in accordance with the applicable requirements
of Section 8.12.

     (b) A Trustee may resign at any time by giving written notice thereof to the
Depositor and, in the case of the Property Trustee and the Delaware Trustee, to the Holders.

     (c) Unless an Event of Default shall have occurred and be continuing, the Property Trustee or the
Delaware Trustee, or both of them, may be removed (with or without cause) at any time by Act of the
Holder of Common Securities. If an Event of Default shall have occurred and be continuing, the
Property Trustee or the Delaware Trustee, or both of them, may be removed

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(with or without cause) at such time by Act of the Holders of at least a Majority in Liquidation
Amount of the Preferred Securities, delivered to the removed Trustee (in its individual capacity
and on behalf of the Trust). An Administrative Trustee may be removed (with or without cause) only
by Act of the Holder of the Common Securities at any time.

     (d) If any Trustee shall resign, be removed or become incapable of acting as Trustee, or if a
vacancy shall occur in the office of any Trustee for any reason, at a time when no Event of Default
shall have occurred and be continuing, the Holder of the Common Securities, by Act of the Holder of
the Common Securities, shall promptly appoint a successor Trustee or Trustees, and such successor
Trustee and the retiring Trustee shall comply with the applicable requirements of
Section 8.12. If the Property Trustee or the Delaware Trustee shall resign, be removed or
become incapable of continuing to act as the Property Trustee or the Delaware Trustee, as the case
may be, at a time when an Event of Default shall have occurred and be continuing, the Holders of
the Preferred Securities, by Act of the Holders of a Majority in Liquidation Amount of the
Preferred Securities, shall promptly appoint a successor Property Trustee or Delaware Trustee, as
applicable, and such successor Property Trustee or Delaware Trustee and the retiring Property
Trustee or Delaware Trustee shall comply with the applicable requirements of Section 8.12.
If an Administrative Trustee shall resign, be removed or become incapable of acting as
Administrative Trustee, at a time when an Event of Default shall have occurred and be continuing,
the Holder of the Common Securities by Act of the Holder of Common Securities shall promptly
appoint a successor Administrative Trustee and such successor Administrative Trustee and the
retiring Administrative Trustee shall comply with the applicable
requirements of Section 8.12. If
no successor Trustee shall have been so appointed by the Holder of the Common Securities or Holders
of the Preferred Securities, as the case may be, and accepted appointment in the manner required by
Section 8.12 within thirty (30) days after the giving of a notice of resignation by a
Trustee, the removal of a Trustee, or a Trustee becoming incapable of acting as such Trustee, any
Holder who has been a Holder of Preferred Securities for at least six (6) months may, on behalf of
himself, herself or itself and all others similarly situated, and any resigning Trustee may, in
each case, at the expense of the Depositor, petition any court of competent jurisdiction for the
appointment of a successor Trustee.

     (e) The Depositor shall give notice of each resignation and each removal of the Property
Trustee or the Delaware Trustee and each appointment of a successor Property Trustee or Delaware
Trustee to all Holders in the manner provided in Section 10.8. Each notice shall include
the name of the successor Property Trustee or Delaware Trustee and the address of its Corporate
Trust Office if it is the Property Trustee.

     (f) Notwithstanding the foregoing or any other provision of this Trust Agreement, in the
event any Administrative Trustee or a Delaware Trustee who is a natural person
dies or becomes, in the opinion of the Holder of Common Securities, incompetent or incapacitated,
the vacancy created by such death, incompetence or incapacity may be filled by (i) the unanimous
act of the remaining Administrative Trustees if there are at least two (2) of them or (ii)
otherwise by the Holder of the Common Securities (with the successor in each case being a Person
who satisfies the eligibility requirement for Administrative Trustees or Delaware Trustee, as the
case may be, set forth in Sections 8.3 and 8.4).

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     (g) Upon the appointment of a successor Delaware Trustee, such successor Delaware Trustee shall
file a Certificate of Amendment to the Certificate of Trust with the Secretary of State of the
State of Delaware in accordance with Section 3810 of the Delaware Statutory Trust Act.

     Section 8.12. Acceptance of Appointment by Successor.

     (a) In case of the appointment hereunder of a successor Trustee, each successor Trustee
shall execute and deliver to the Depositor and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee shall become
effective and each such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on
request of the Trust or any successor Trustee such retiring Trustee shall, upon payment of its
charges, duly assign, transfer and deliver to such successor Trustee all Trust Property, all
proceeds thereof and money held by such retiring Trustee hereunder with respect to the Trust
Securities and the Trust.

     (b) Upon request of any such successor Trustee, the Trust (or the retiring Trustee if
requested by the Depositor) shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Trustee all such rights, powers, trusts and duties
referred to in the preceding paragraph.

     (c) No successor Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article VIII.

     Section 8.13. Merger, Conversion, Consolidation or Succession to Business.

     Any Person into which the Property Trustee or the Delaware Trustee may be merged or converted or
with which it may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which such Trustee shall be a party, or any Person succeeding to all or
substantially all the corporate trust business of such Trustee, shall be the successor of such
Trustee hereunder, without the execution or filing of any paper or any further act on the part of
any of the parties hereto; provided, that such Person shall be otherwise qualified and
eligible under this Article VIII.

     Section 8.14. Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities Certificates shall be taken as the statements
of the Trust and the Depositor, and the Trustees do not assume any responsibility for their
correctness. The Trustees make no representations as to the title to, or value or condition of, the
Trust Property or any part thereof, nor as to the validity or sufficiency of this Trust Agreement,
the Notes or the Trust Securities. The Trustees shall not be accountable for the use or application
by the Depositor of the
proceeds of the Notes. It is expressly understood and agreed by the parties hereto that insofar as
any document, agreement or certificate is executed on behalf of the Trust by any Trustee (i) such
document, agreement or certificate is executed and delivered by such Trustee, not in its individual
capacity but solely as Trustee under this Trust Agreement in the exercise of the powers and
authority conferred and vested in it, (ii) each of the representations, undertakings and agreements
made on the part of the Trust is made and intended

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not as individual capacity but is made and intended not as representations, warranties, covenants,
undertakings and agreements by any Trustee in its individual capacity but is made and intended for
the purpose of binding only the Trust and (iii) under no circumstances shall any Trustee in its
individual capacity be personally liable for the payment of any indebtedness or expenses of the
Trust or be liable for the breach or failure of any obligation, representation, warranty or
covenant made or undertaken by the Trust under this Trust Agreement or any other document,
agreement or certificate.

     Section 8.15. Property Trustee May File Proofs of Claim.

     (a) In case of any Bankruptcy Event (or event that with the passage of time would become a
Bankruptcy Event) relative to the Trust or any other obligor upon the Trust Securities or the Trust
Property or of such other obligor or their creditors, the Property Trustee (irrespective of whether
any Distributions on the Trust Securities shall then be due and payable and irrespective of whether
the Property Trustee shall have made any demand on the Trust for the payment of any past due
Distributions) shall be entitled and empowered, to the fullest extent permitted by law, by
intervention in such proceeding or otherwise:

     (i) to file and prove a claim for the whole amount of any Distributions owing and unpaid in respect
of the Trust Securities and to file such other papers or documents as may be necessary or advisable
in order to have the claims of the Property Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Property Trustee, its agents and counsel)
and of the Holders allowed in such judicial proceeding; and

     (ii) to collect and receive any monies or other property payable or deliverable on any such claims
and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such proceeding is hereby authorized by each Holder to make such payments to the Property
Trustee and, in the event the Property Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Property Trustee first any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Property Trustee, its agents and counsel,
and any other amounts due the Property Trustee.

     (b) Nothing herein contained shall be deemed to authorize the Property Trustee to authorize
or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or compensation affecting the Trust Securities or the rights of any Holder thereof or to
authorize the Property Trustee to vote in respect of the claim of any Holder in any such
proceeding.

     Section 8.16. Reports to and from the Property Trustee.

     (a) The Depositor, the Guarantor and the Administrative Trustees shall deliver to the Property
Trustee, not later than forty-five (45) days after the end of each of the first three (3) fiscal
quarters of each fiscal year of the Depositor and the Guarantor and not later than ninety (90) days
after the end of each fiscal year of the Depositor and the Guarantor ending after the date of this
Trust Agreement, an Officers’ Certificate (substantially in the form attached hereto as

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Exhibit F) covering the preceding fiscal period, stating whether or not to the knowledge of
the signers thereof the Depositor, the Guarantor, the Administrative Trustees or the Trust are in
default in the performance or observance of any of the terms, provisions and conditions of this
Trust Agreement (without regard to any period of grace or requirement of notice provided hereunder)
and, if the Depositor, the Guarantor, the Administrative Trustees or the Trust shall be in default,
specifying all such defaults and the nature and status thereof of which they have knowledge.

     (b) The Depositor and the Guarantor shall furnish to (i) the Property Trustee; (ii) the Purchaser
and (iii) any Owner of the Preferred Securities reasonably identified to the Depositor, the
Guarantor or the Trust (which identification may be made either by such Owner or by the Purchaser)
and (iv) any designee of (i), (ii) or (iii) above a duly completed and executed officer’s financial
certificate substantively and substantially in the form attached
hereto as Exhibit  G,
including the financial statements referenced in such Exhibit, which certificate and financial
statements shall be so furnished by the Depositor and the Guarantor not later than forty five (45)
days after the end of each of the first three (3) fiscal quarters of each fiscal year of the
Depositor and the Guarantor and not later than ninety (90) days after the end of each fiscal year
of the Depositor and the Guarantor.

ARTICLE IX

TERMINATION, LIQUIDATION AND MERGER

     Section 9.1. Dissolution Upon Expiration Date.

     Unless earlier dissolved, the Trust shall automatically dissolve on April 30, 2041 (the “Expiration
Date”), and the Trust Property shall be liquidated in accordance with Section 9.4.

     Section 9.2. Early Termination.

     The first to occur of any of the following events is an “Early Termination Event”, upon the
occurrence of which the Trust shall be dissolved:

     (a) the occurrence of a Bankruptcy Event in respect of, or the dissolution or liquidation of,
the Depositor, in its capacity as the Holder of the Common Securities, unless the Depositor shall
have transferred the Common Securities as provided by Section 5.11, in which case this
provision shall refer instead to any such successor Holder of the Common Securities;

     (b) the written direction to the Property Trustee from the Holder of the Common Securities at
any time to dissolve the Trust and, after satisfaction of any liabilities of the Trust as required
by applicable law, to distribute the Notes the Holders in exchange for the Preferred Securities
(which direction is optional and wholly within
the discretion of the Holder of the Common Securities);

     (c) the redemption of all of the Preferred Securities in connection with the payment at
maturity or redemption of all the Notes; and

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     (d) the entry of an order for dissolution of the Trust by a court of competent
jurisdiction.

     Section 9.3. Termination.

     (a) The respective obligations and responsibilities of the Trustees and the Trust shall
terminate upon the latest to occur of the following: (i) the distribution by the Property Trustee
to the Holders of all amounts required to be distributed hereunder upon the liquidation of the
Trust pursuant to Section 9.4, or upon the redemption of all of the Trust Securities
pursuant to Section 4.2; (ii) the satisfaction of any expenses owed by the Trust; and (iii)
the discharge of all administrative duties of the Administrative Trustees, including the
performance of any tax reporting obligations with respect to the Trust or the Holders.

     (b) As soon as practicable thereafter, and after satisfaction of liabilities to creditors of
the Trust as required by applicable law, including Section 3808 of the Delaware Statutory Trust
Act, the Delaware Trustee, when notified in writing of the completion of the winding up of the
Trust in accordance with the Delaware Statutory Trust Act, shall terminate the Trust by filing, at
the expense of the Depositor, a certificate of cancellation with the Secretary of State of the
State of Delaware.

     Section 9.4.
Liquidation.

     (a) If
an Early Termination Event specified in Section 9.2(a),
(b) or (d)
occurs or upon the Expiration Date, the Trust shall be liquidated by the Property Trustee as
expeditiously as the Property Trustee shall determine to be possible by distributing, after
satisfaction of liabilities to creditors of the Trust as provided by applicable law, to each Holder
a Like Amount of Notes, subject to Section 9.4(d). Notice of liquidation shall be given by
the Property Trustee not less than thirty (30) nor more than sixty (60) days prior to the
Liquidation Date to each Holder of Trust Securities at such Holder’s address appearing in the
Securities Register. All such notices of liquidation shall:

     (i) state the Liquidation Date;

     (ii) state that from and after the Liquidation Date, the Trust Securities will no longer be deemed
to be Outstanding and (subject to Section 9.4(d)) any Securities Certificates not
surrendered for exchange will be deemed to represent a Like Amount of Notes; and

     (iii) provide such information with respect to the mechanics by which Holders may exchange
Securities Certificates for Notes, or if Section 9.4(d) applies, receive a Liquidation
Distribution, as the Property Trustee shall deem appropriate.

     (b) Except where Section 9.2(c) or 9.4(d) applies, in order to effect the
liquidation of the Trust and distribution of the Notes to the Holders, the Property Trustee, either
itself acting as exchange agent or through the appointment of a separate exchange agent, shall
establish a record date for such distribution (which shall not be more than forty-five (45)
days prior to the Liquidation Date nor prior to the date on which notice of such liquidation is
given to the

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Holders) and establish such procedures as it shall deem appropriate to effect the
distribution of Notes in exchange for the Outstanding Securities Certificates.

     (c) Except where Section 9.2(c) or 9.4(d) applies, after the Liquidation Date, (i)
the Trust Securities will no longer be deemed to be Outstanding, (ii) certificates representing a
Like Amount of Notes will be issued to Holders of Securities Certificates, upon surrender of such
Certificates to the exchange agent for exchange, (iii) the Depositor shall use its best efforts to
have the Notes listed on the New York
Stock Exchange or on such other exchange, interdealer
quotation system or self-regulatory organization on which the Preferred Securities are then listed,
if any, (iv) Securities Certificates not so surrendered for exchange will be deemed to represent a
Like Amount of Notes bearing accrued and unpaid interest in an amount equal to the accumulated and
unpaid Distributions on such Securities Certificates until such certificates are so surrendered
(and until such certificates are so surrendered, no payments of interest or principal will be made
to Holders of Securities Certificates with respect to such Notes) and (v) all rights of Holders
holding Trust Securities will cease, except the right of such Holders to receive Notes upon
surrender of Securities Certificates.

     (d) Notwithstanding
the other provisions of this Section 9.4, if distribution of the Notes
in the manner provided herein is determined by the Property Trustee not to be permitted or
practical, the Trust Property shall be liquidated, and the Trust shall be wound up by the Property
Trustee in such manner as the Property Trustee determines. In such event, Holders will be entitled
to receive out of the assets of the Trust available for distribution to Holders, after satisfaction
of liabilities to creditors of the Trust as provided by applicable law, an amount equal to the
Liquidation Amount per Trust Security plus accumulated and unpaid Distributions thereon to the date
of payment (such amount being the “Liquidation Distribution”). If, upon any such winding up the
Liquidation Distribution can be paid only in part because the Trust has insufficient assets
available to pay in full the aggregate Liquidation Distribution, then, subject to the next
succeeding sentence, the amounts payable by the Trust on the Trust Securities shall be paid on a
pro rata basis (based upon Liquidation Amounts). The Holder of the Common Securities will be
entitled to receive Liquidation Distributions upon any such winding up pro rata (based upon
Liquidation Amounts) with Holders of all Trust Securities, except that, if an Event of Default has
occurred and is continuing, the Preferred Securities shall have a priority over the Common
Securities as provided in Section 4.3.

     Section 9.5.
Mergers, Consolidations, Amalgamations or Replacements of Trust.

     The Trust may not merge with or into, consolidate, amalgamate, or be replaced by, or convey,
transfer or lease its properties and assets substantially as an entirety to, any Person except
pursuant to this Article IX. At the request of the Holders of the Common Securities,
without the consent of the Holders of the Preferred Securities, the Trust may merge with or into,
consolidate, amalgamate, or be replaced by or
convey, transfer or lease its properties and assets substantially as an entirety to a trust
organized as such under the laws of any State; provided, that:

     (a) such successor entity either (i) expressly assumes all of the obligations of the Trust under
this Trust Agreement with respect to the Preferred Securities or (ii) substitutes for the Preferred
Securities other securities having substantially identical

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terms as the Preferred Securities (such other Securities, the “Successor Securities”) so long as
the Successor Securities have the same priority as the Preferred Securities with respect to
distributions and payments upon liquidation, redemption and otherwise;

     (b) a trustee of such successor entity possessing substantially the same powers and duties as the
Property Trustee is appointed to hold the Notes;

     (c) if the Preferred Securities or the Notes are rated, such merger, consolidation, amalgamation,
replacement, conveyance, transfer or lease does not cause the Preferred Securities or the Notes
(including any Successor Securities) to be downgraded by any nationally recognized statistical
rating organization that then assigns a rating to the Preferred Securities or the Notes;

     (d) the Preferred Securities are listed, or any Successor Securities will be listed upon
notice of issuance, on any national securities exchange or interdealer quotation system on which
the Preferred Securities are then listed, if any;

     (e) such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not adversely affect the rights, preferences and privileges of the Holders of the Preferred
Securities (including any Successor Securities) in any material respect;

     (f) such successor entity has a purpose substantially identical to that of the Trust;

     (g) prior to such merger, consolidation, amalgamation, replacement,
conveyance, transfer or lease, the Depositor has received an Opinion of Counsel to the effect that
(i) such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not
adversely affect the rights, preferences and privileges of the Holders of the Preferred Securities
(including any Successor Securities) in any material respect; (ii) following such merger,
consolidation, amalgamation, replacement, conveyance, transfer or lease, neither the Trust nor
such successor entity will be required to register as an “investment company” under the Investment
Company Act and (iii) following such merger, consolidation, amalgamation, replacement, conveyance,
transfer or lease, the Trust (or the successor entity) will continue to be classified as a grantor
trust for U.S. federal income tax purposes; and

     (h) the Depositor or its permitted transferee owns all of the common securities of such successor
entity and the Depositor and the Guarantor guarantee the obligations of such successor entity under
the Successor Securities at least to the extent provided by the Indenture.

     Notwithstanding the foregoing, the Trust shall not, except with the consent of Holders of all of
the Preferred Securities, consolidate, amalgamate, merge with or into, or be
replaced by or convey, transfer or lease its properties and assets substantially as an entirety to
any other Person or permit any other entity to consolidate, amalgamate, merge with or into or
replace, the Trust if such consolidation, amalgamation, merger, replacement, conveyance, transfer
or lease would cause the Trust or the successor entity to be taxable as a corporation or classified
as other than a

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grantor trust for United States federal income tax purposes or cause the Notes to be treated as
other than indebtedness of the Depositor for United States federal income tax purposes.

ARTICLE X

INFORMATION TO PURCHASER

     Section 10.1.
Depositor Obligations to Purchaser.

     Notwithstanding any other provision herein, the Depositor and the Guarantor shall furnish to (a)
the Purchaser, (b) any Owner of the Preferred Securities reasonably identified to the Depositor,
the Guarantor or the Trust (which identification may be made either by such Owner or by the
Purchaser) and (c) any designee of (a) or (b) above, copies of all correspondence, notices, forms,
filings, reports and other documents required to be provided by the Depositor or the Guarantor,
whether acting through an Administrative Trustee or otherwise, to the Property Trustee or Delaware
Trustee under this Trust Agreement.

     Section 10.2.
Property Trustee’s Obligations to Purchaser.

     Notwithstanding any other provision herein, the Property Trustee shall furnish to (a) the Purchaser
and (b) a designee of (a) above as identified in writing to the Property Trustee, copies of all
items required to be furnished by the Property Trustee to the Holders or the Depositor.

ARTICLE XI

MISCELLANEOUS PROVISIONS

     Section 11.1.
Limitation of Rights of Holders.

     Except
as set forth in Section 9.2, the death, bankruptcy, termination, dissolution or
incapacity of any Person having an interest, beneficial or otherwise, in Trust Securities shall not
operate to terminate this Trust Agreement, nor annul, dissolve or terminate the Trust nor entitle
the legal representatives or heirs of such Person or any Holder for such Person, to claim an
accounting, take any action or bring any proceeding in any court for a partition or winding up of
the arrangements contemplated hereby, nor otherwise affect the rights, obligations and liabilities
of the parties hereto or any of them.

     Section 11.2.
Agreed Tax Treatment of Trust and Trust Securities.

     The parties hereto and, by its acceptance or acquisition of a Trust Security or a
beneficial interest therein, the Holder of, and any Person that acquires a beneficial interest in,
such Trust Security intend and agree to treat the Trust as a grantor trust for United States
federal, state and local tax purposes, and to treat the Trust Securities (including all payments
and proceeds with respect to such Trust Securities) as undivided beneficial ownership interests in
the Trust Property (and payments and proceeds therefrom, respectively) for United States federal,
state and local tax purposes and to treat the Notes as indebtedness of the Depositor for United
States federal, state and local tax purposes. The provisions of this Trust Agreement shall be
interpreted to further this intention and agreement of the parties.

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     Section 11.3. Amendment.

     (a) This Trust Agreement may be amended from time to time by the Property Trustee, the
Administrative Trustees and the Holder of all the Common Securities, without the consent of any
Holder of the Preferred Securities, (i) to cure any ambiguity, correct or supplement any provision
herein that may be defective or inconsistent with any other provision herein, (ii) to make or amend
any other provisions with respect to matters or questions arising under this Trust Agreement, which
shall not be inconsistent with the other provisions of this Trust Agreement, (iii) to modify,
eliminate or add to any provisions of this Trust Agreement to such extent as shall be necessary to
ensure that the Trust will neither be taxable as a corporation nor be classified as other than a
grantor trust for United States federal income tax purposes at all times that any Trust Securities
are Outstanding or to ensure that the Notes are treated as indebtedness of the Depositor for United
States federal income tax purposes, or to ensure that the Trust will not be required to register as
an “investment company” under the Investment Company Act or (iv) to add to the covenants,
restrictions or obligations of the Depositor; provided, that in the case of clause (i),
such amendment shall not be effected unless the Depositor and/or the Guarantor has delivered a
written notice of such amendment to the Holders at least twenty (20) days prior to the effective
date of such amendment; provided, further, that in the case of clauses (i), (ii), (iii) or
(iv), such action shall not adversely affect in any material respect the interests of any Holder.

     (b) Except as provided in Section 11.3(c), any provision of this Trust Agreement may
be amended by the Property Trustee, the Administrative Trustees and the Holder of all of the Common
Securities and with (i) the consent of Holders of at least a Majority in Liquidation Amount of the
Outstanding Preferred Securities and (ii) receipt by the Trustees of an Opinion of Counsel to the
effect that such amendment or the exercise of any power granted to the Trustees in accordance with
such amendment will not cause the Trust to be taxable as a corporation or classified as other than
a grantor trust for United States federal income tax purposes or affect the treatment of the Notes
as indebtedness of the Depositor for United States federal income tax purposes or affect the
Trust’s exemption from status (or from any requirement to register) as an “investment company”
under the Investment Company Act. In addition to and subject to the foregoing, the Distribution
Dates, Redemption Date and Stated Maturity (as defined in the Indenture) with respect to the
Preferred Securities or a portion of the Preferred Securities shall be conformed in connection with
any modification of the Interest Payment Date, Redemption Date or Stated Maturity of the Junior
Subordinated Notes made by the Company and the Trust at the direction of any holder of the
Preferred Securities or a portion of the Preferred Securities as set forth in Section 6(n) of the
Purchase Agreement; provided, that all reasonable expenses in connection with such
modification shall be paid by the Holders of the Preferred Securities directing such modification.

Notwithstanding any other provision of this Trust Agreement, without the consent of
each Holder, this Trust Agreement may not be amended to (i) change the accrual rate, amount,
currency or timing of any Distribution on or the Redemption Price of the Trust Securities or
otherwise adversely affect the amount of any Distribution or other payment required to be made in
respect of the Trust Securities as of a specified date, except as set forth in the last sentence of
Section 10.3(b) above, (ii) restrict or impair the right of a Holder to institute suit for
the enforcement of any such payment on or after such date, (iii) reduce the percentage of aggregate

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Liquidation Amount of Outstanding Preferred Securities, the consent of whose Holders is
required for any such amendment, or the consent of whose Holders is required for any waiver of
compliance with any provision of this Trust Agreement or of defaults hereunder and their
consequences provided for in this Trust Agreement; (iv) impair or adversely affect the rights and
interests of the Holders in the Trust Property, or permit the creation of any Lien on any portion
of the Trust Property; or (v) modify the definition of
“Outstanding,” this Section 11.3(c),
Sections 4.1, 4.2, 43, 6.10(e) or Article IX.

     (c) Notwithstanding any other provision of this Trust Agreement, no Trustee shall enter into or
consent to any amendment to this Trust Agreement that would cause the Trust to be taxable as a
corporation or to be classified as other than a grantor trust for United States federal income tax
purposes or that would cause the Notes to fail or cease to be treated as indebtedness of the
Depositor for United States federal income tax purposes or that would cause the Trust to fail or
cease to qualify for the exemption from status (or from any requirement to register) as an
“investment company” under the Investment Company Act.

     (d) If any amendment to this Trust Agreement is made, the Administrative Trustees or the
Property Trustee shall promptly provide to the Depositor and the Note Trustee a copy of such
amendment.

     (e) No Trustee shall be required to enter into any amendment to this Trust Agreement that
affects its own rights, duties or immunities under this Trust Agreement. The Trustees shall be
entitled to receive an Opinion of Counsel and an Officers’ Certificate stating that any amendment
to this Trust Agreement is in compliance with this Trust Agreement and all conditions precedent
herein provided for relating to such action have been met.

     (f) No amendment or modification to this Trust Agreement that adversely affects in any
material respect the rights, duties, liabilities, indemnities or immunities of the Delaware Trustee
hereunder shall be permitted without the prior written consent of the Delaware Trustee.

     Section 11.4.
Separability.

     If any provision in this Trust Agreement or in the Securities Certificates 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, and there shall be deemed substituted for the
provision at issue a valid, legal and enforceable provision as similar as possible to the provision
at issue.

     Section 11.5.
Governing Law.

     THIS TRUST AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF EACH OF THE HOLDERS, THE TRUST, THE
DEPOSITOR, THE GUARANTOR AND THE TRUSTEES WITH RESPECT TO THIS TRUST AGREEMENT AND THE TRUST
SECURITIES SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE
OF
DELAWARE WITHOUT REFERENCE TO ITS CONFLICTS OF LAWS PROVISIONS.

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     Section 11.6.
Successors.

     This Trust Agreement shall be binding upon and shall inure to the benefit of any successor to the
Depositor, the Guarantor, the Trust and any Trustee, including any successor by operation of law.
Except in connection with a transaction involving the Depositor that is permitted under Article
VIII of the Indenture and pursuant to which the assignee agrees in writing to perform the
Depositor’s obligations hereunder, the Depositor shall not assign its obligations hereunder.

     Section 11.7.
Headings..

     The Article and Section headings are for convenience only and shall not affect the construction of
this Trust Agreement.

     Section 11.8.
Reports, Notices and Demands.

     (a) Any report, notice, demand or other communication that by any provision of this Trust
Agreement is required or permitted to be given or served to or upon any Holder, the Depositor or
the Guarantor may be given or served in writing delivered in person, or by reputable, overnight
courier, by telecopy or by deposit thereof, first-class postage prepaid, in the United States mail,
addressed, (a) in the case of a Holder of Preferred Securities, to such Holder as such Holder’s
name and address may appear on the Securities Register; and (b) in the case of the Holder of all
the Common Securities or the Depositor, to CapitalSource Finance LLC, 4445 Willard Avenue, 12th
Floor, Chevy Chase, Maryland 20815, Attention: Director of Treasury, with a copy to the Chief Legal
Officer, or to such other address as may be specified in a written notice by the Holder of all the
Common Securities or the Depositor, as the case may be, to the Property Trustee; and (c) in the
case of the Guarantor, to CapitalSource Inc., 4445 Willard Avenue, 12th Floor, Chevy Chase,
Maryland 20815, Attention: Director of Treasury, with a copy to the Chief Legal Officer, or to such
other address as may be specified in a written notice by the Guarantor to the Property Trustee.
Such report, notice, demand or other communication to or upon a Holder, the Depositor or the
Guarantor shall be deemed to have been given when received in person, within one (1) Business Day
following delivery by overnight courier, when telecopied with receipt confirmed, or within three
(3) Business Days following delivery by mail, except that if a notice or other document is refused
delivery or cannot be delivered because of a changed address of which no notice was given, such
notice or other document shall be deemed to have been delivered on the date of such refusal or
inability to deliver.

     (b) Any notice, demand or other communication that by any provision of this Trust Agreement
is required or permitted to be given or served to or upon the Property Trustee, the Delaware
Trustee, the Administrative Trustees or the Trust shall be given in writing by deposit thereof,
first-class postage prepaid, in the U.S. mail, personal delivery or facsimile transmission,
addressed to such Person as follows: (i) with respect to the Property Trustee to JPMorgan Chase
Bank, National Association, 600 Travis, 50th Floor, Houston, Texas 77002, Attention:
Worldwide Securities Services—
CapitalSource Trust Preferred Securities 2006-1, facsimile no. (713) 216-2101, (ii) with respect to
the Delaware Trustee, to Chase Bank USA, National Association, 500 Stanton Christiana Road,
Building 4 (3rd Floor), Newark, Delaware 19713, Attention: Worldwide Securities
Services—CapitalSource Trust Preferred Securities 2006-1,

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facsimile no. (302) 552-6280; (iii) with respect to the Administrative Trustees, to them at
the address above for notices to the Depositor, marked “Attention: Administrative Trustees of
CapitalSource Trust Preferred Securities 2006-1”, and (iv) with respect to the Trust, to its
principal executive office specified in Section 2.2, with a copy to the Property Trustee.
Such notice, demand or other communication to or upon the Trust, the Property Trustee or the
Administrative Trustees shall be deemed to have been sufficiently given or made only upon actual
receipt of the writing by the Trust, the Property Trustee or the Administrative Trustees.

     Section 11.9.
Agreement Not to Petition.

     Each of the Trustees and the Depositor agree for the benefit of the Holders that, until at least
one (1) year and one (1) day after the Trust has been
terminated in accordance with Article IX, they shall not file, or join in the filing of, a petition against the Trust under any
Bankruptcy Law or otherwise join in the commencement of any proceeding against the Trust under any
Bankruptcy Law. If the Depositor takes action in violation of this
Section 11.9, the
Property Trustee agrees, for the benefit of Holders, that at the expense of the Depositor, it shall
file an answer with the applicable bankruptcy court or otherwise properly contest the filing of
such petition by the Depositor against the Trust or the commencement of such action and raise the
defense that the Depositor has agreed in writing not to take such action and should be estopped and
precluded therefrom and such other defenses, if any, as counsel for the Property Trustee or the
Trust may assert.

     Section 11.10.
Counterparts.

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

[signature page follows]

62

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Trust
Agreement as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	CAPITALSOURCE FINANCE LLC,
	 	 	 	 	 	 	as Depositor
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Thomas A. Fink
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Thomas A. Fink
	 

	 	 	 	 	 	Title:
	 	Chief Financial Officer
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	CAPITALSOURCE INC.,
	 	 	 	 	 	 	as Guarantor
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Steven A. Museles
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Steven A. Museles
	 

	 	 	 	 	 	Title:
	 	Senior Vice President
	 
	JPMORGAN CHASE BANK, NATIONAL	 	 	 	CHASE BANK USA, NATIONAL
	ASSOCIATION, as Property Trustee	 	 	 	ASSOCIATION, as Delaware Trustee
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Maria D. Calzado
	 	 	 	By:	 	/s/ Sarika M. Sheth
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	MARIA D. CALZADO
	 	 	 	Name:	 	Sarika M. Sheth
	 

	 	 	 	 	 	 	 	 
	Title:

	 	Vice President
	 	 	 	Title:	 	Assistant Vice President
	 
	 

	 	 	 	 	 	 	 	 
	 
	 	/s/ Thomas A. Fink	 	 	 	 	 	/s/ Steven A. Museles
	 	 	 	 	 
	as Administrative Trustee	 	 	 	as Administrative Trustee
	Name: Thomas A. Fink	 	 	 	Name: Steven A. Museles
	 
	 
	 	/s/ Bryan D. Smith	 	 	 	 	 	 
	 	 	 	 	 	 	 
	as Administrative Trustee	 	 	 	 	 	 
	Name: Bryan D. Smith	 	 	 	 	 	 

 

 

Exhibit A

FORM OF

CERTIFICATE OF TRUST

OF

CAPITALSOURCE TRUST PREFERRED SECURITIES 2006-1

     This Certificate of Trust of CapitalSource Trust Preferred Securities 2006-1 (the “Trust”) is
being duly executed and filed on behalf of the Trust by the undersigned, as trustee, to form a
statutory trust under the Delaware Statutory Trust Act (12 Del.
C. §3801 et  seq.) (the
“Act”).

     1. Name. The name of the statutory trust formed by this Certificate of Trust
is: “CapitalSource Trust Preferred Securities 2006-1”.

     2. Delaware Trustee. The name and business address of the trustee of the Trust with
its principal place of business in the State of Delaware are Chase Bank USA, National Association,
500 Stanton Christiana Road, Building 4 (3rd Floor), Newark, Delaware 19713, Attention: Worldwide
Securities Services.

     3. Effective Date. This Certificate of Trust shall be effective upon its filing
with the Secretary of State of the State of Delaware.

     IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of Trust in accordance
with Section 381 l(a)(l) of the Act.

	 	 	 	 	 
	 	 	Chase Bank USA, National Association, not in its
	 	 	individual capacity, but solely as Delaware Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

A-1

 

Exhibit B

[FORM OF COMMON SECURITIES CERTIFICATE]

THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE

SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS OR

ANY OTHER APPLICABLE SECURITIES LAWS AND MAY NOT BE OFFERED,

SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN

EXEMPTION FROM REGISTRATION. THIS CERTIFICATE IS NOT

TRANSFERABLE EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND

SECTION 5.11 OF THE TRUST AGREEMENT

	 	 	 
	Certificate Number
	 	Number of Common Securities

     C-[                    ]

Certificate Evidencing Common Securities

of

CapitalSource Trust Preferred Securities 2006-1

Common Securities

(liquidation amount $1,000 per Common Security)

CapitalSource Trust Preferred Securities 2006-1, a statutory trust created under the laws of the
State of Delaware (the “Trust”), hereby certifies that [         
           ], a [        
            ] (the
“Holder”), is the registered owner of [Amount (#)] common securities of the Trust representing
undivided common beneficial interests in the assets of the Trust and designated “CapitalSource
Trust Preferred Securities 2006-1 Common Securities (liquidation amount $1,000 per Common
Security)” (the “Common Securities”). Except in accordance with Section 5.11 of the Trust Agreement
(as defined below), the Common Securities are not transferable and, to the fullest extent permitted
by law, any attempted transfer hereof other than in accordance therewith shall be void. The
designations, rights, privileges, restrictions, preferences and other terms and conditions of the
Common Securities are set forth in, and this certificate and the Common Securities represented
hereby are issued and shall in all respects be subject to the terms and conditions of, the Amended
and Restated Trust Agreement of the Trust, dated as of February 22, 2006, as the same may be
amended from time to time (the “Trust Agreement”), among CapitalSource Finance LLC, as Depositor,
CapitalSource Inc., as Guarantor, JPMorgan Chase Bank, National Association, as Property Trustee,
Chase Bank USA, National Association, as Delaware Trustee, the Administrative Trustees named
therein and the Holders, from time to time, of the Trust Securities. The Trust will furnish a copy
of the Trust Agreement to the Holder

B-1

 

without charge upon written request to the Trust at its principal place of business or registered
office.

Upon receipt of this certificate, the Holder is bound by the Trust Agreement and is entitled to the
benefits thereunder.

This Common Securities Certificate shall be governed by and construed in accordance with the laws
of the State of Delaware.

All capitalized terms used but not defined in this Common Securities Certificate are used with the
meanings specified in the Trust Agreement, including the Schedule and Exhibits thereto.

IN WITNESS WHEREOF, one of the Administrative Trustees of the Trust has executed on
behalf of the Trust this Common Securities Certificate this             
         day of             
                      
      , 20[              
      ].

	 	 	 	 	 
	 	 	CAPITALSOURCE TRUST PREFERRED
	 	 	SECURITIES 2006-1
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Administrative Trustee

B-2

 

Exhibit C

[FORM OF PREFERRED SECURITIES CERTIFICATE]

“IF THIS SECURITY IS A GLOBAL SECURITY INSERT: THIS PREFERRED SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN
THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS PREFERRED SECURITY IS
EXCHANGEABLE FOR PREFERRED SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT, AND NO TRANSFER OF
THIS PREFERRED SECURITY (OTHER THAN A TRANSFER OF THIS PREFERRED SECURITY AS A WHOLE BY DTC TO A
NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT
IN LIMITED CIRCUMSTANCES.

 UNLESS THIS PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO CAPITALSOURCE
TRUST PREFERRED SECURITIES 2006-1 OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY PREFERRED SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON 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 PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). AND SUCH PREFERRED SECURITIES OR ANY INTEREST THEREIN MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF ANY PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED
SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

THE HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF
THE TRUST AND THE DEPOSITOR THAT (A) SUCH PREFERRED SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE
TRANSFERRED ONLY (I) TO THE TRUST OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
“QUALIFIED PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS
AMENDED),

C-1

 

AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY PREFERRED SECURITIES FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO IN (A) ABOVE.

THE PREFERRED SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE
LIQUIDATION AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY ATTEMPTED
TRANSFER OF PREFERRED SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE
LIQUIDATION AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED
TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH
PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH PREFERRED SECURITIES FOR ANY
PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF LIQUIDATION AMOUNT OF OR DISTRIBUTIONS ON
SUCH PREFERRED SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
TO HAVE NO INTEREST WHATSOEVER IN SUCH PREFERRED SECURITIES.

THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE PROVISIONS OF AN
AMENDED AND RESTATED TRUST AGREEMENT OF CAPITALSOURCE TRUST PREFERRED SECURITIES 2006-1 DATED AS OF
FEBRUARY 22, 2006 (A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE ISSUER) AND MAY NOT BE
SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE
WITH THE PROVISIONS OF SUCH TRUST AGREEMENT. THE HOLDER OF THIS PREFERRED SECURITY, OR ANY INTEREST
THEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN
EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE
I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
“CODE”), OR SIMILAR LAW (EACH A “PLAN”), OR AN
ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE
ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS PREFERRED
SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER OR HOLDER OF THE PREFERRED SECURITIES OR ANY
INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS
NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE
BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN
OR PLAN TO FINANCE SUCH PURCHASE.

C-2

 

			
	Certificate Number P-[                    ]
	 	$[                    ] Aggregate Liquidation Amount

[                    ] Preferred Securities

CUSIP NO.

 

Certificate Evidencing Preferred Securities

of

CapitalSource Trust Preferred Securities 2006-1

Preferred Securities

(liquidation amount $1,000 per Preferred Security)

CapitalSource Trust Preferred Securities 2006-1, a statutory trust created under the laws of the
State of Delaware (the “Trust”), hereby certifies that          
                               , a                                         
(the “Holder”) is the registered owner of [Amount (#)] Preferred Securities [IF THE PREFERRED
SECURITY IS A GLOBAL SECURITY, THEN INSERT: or such other number of Preferred Securities
represented hereby as may be set forth in the records of the Securities Registrar hereinafter
referred to in accordance with the Trust Agreement (as defined below)] of the Trust representing an
undivided preferred beneficial interest in the assets of the Trust and designated the
“CapitalSource Preferred Securities 2006-1 Preferred Securities, (liquidation amount $1,000 per
Preferred Security)” (the “Preferred Securities”). Subject to the terms of the Trust Agreement (as
defined below), the Preferred Securities are transferable on the books and records of the Trust, in
person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in
proper form for transfer as provided in Section 5.7 of the Trust Agreement. The designations,
rights, privileges, restrictions, preferences and other terms and conditions of the Preferred
Securities are set forth in, and this certificate and the Preferred Securities represented hereby
are issued and shall in all respects be subject to the terms and conditions of, the Amended and
Restated Trust Agreement of the Trust, dated as of February 22, 2006, as the same may be amended
from time to time (the “Trust Agreement”), among CapitalSource Finance LLC, as Depositor,
CapitalSource Inc., as Guarantor, JPMorgan Chase Bank, National Association, as Property Trustee,
Chase Bank USA, National Association, as Delaware Trustee, the Administrative Trustees named
therein and the Holders, from time to time, of Trust Securities. The Trust will furnish a copy of
the Trust Agreement to the Holder without charge upon written request to the Property Trustee at
its Corporate Trust Office.

Upon receipt of this certificate, the Holder is bound by the Trust Agreement and is entitled to the
benefits thereunder.

This Preferred Securities Certificate shall be governed by and construed in accordance with the
laws of the State of Delaware.

All capitalized terms used but not defined in this Preferred Securities Certificate are used with
the meanings specified in the Trust Agreement, including the Schedule and Exhibits thereto.

C-3

 

IN WITNESS WHEREOF, one of the Administrative Trustees of the Trust has executed on
behalf of the Trust this Preferred Securities Certificate this       
               day of       
                     
             , 20 [       
             ].

	 	 	 	 	 
	 	 	CAPITALSOURCE TRUST PREFERRED
	 	 	SECURITIES 2006-1
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Administrative Trustee

     This is one of the Preferred Securities referred to in the within-mentioned Trust Agreement.

Dated:

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, NATIONAL
	 	 	ASSOCIATION, not in its individual capacity, but
	 	 	solely as Property Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

C-4

 

[FORM OF REVERSE OF SECURITY]

     The Trust promises to pay Distributions from Closing Date, or from the most recent
Distribution Date to which Distributions have been paid or duly provided for, quarterly (subject
to deferral as set forth herein) in arrears on January 30, April 30, July 30 and October 30 of
each year, commencing on April 30, 2006, at a fixed rate equal to 6.964% per annum through the
Interest Payment Date in April 2011 and thereafter at a variable rate, reset quarterly, equal to
LIBOR plus 1.95% per annum of the Liquidation Amount of the Preferred Securities represented by
this Preferred Securities Certificate, together with any Additional Interest Amounts, in respect
of such period.

     Distributions on the Trust Securities shall be made by the Paying Agent from the Payment
Account and shall be payable on each Distribution Date only to the extent that the Trust has funds
then on hand and available in the Payment Account for the payment of such Distributions.

     In the event (and to the extent) that the Depositor exercises its right under the Indenture
to defer the payment of interest on the Notes, Distributions on the Preferred Securities shall be
deferred.

     Under the Indenture, so long as no Note Event of Default has occurred and is continuing, the
Depositor shall have the right, at any time and from time to time during the term of the Notes, to
defer the payment of interest on the Notes for a period of up to four (4) consecutive quarterly
interest payment periods (each such extended interest payment period, an “Extension Period”),
during which Extension Period no interest shall be due and payable (except any Additional Tax Sums
that may be due and payable). No interest on the Notes shall be due and payable during an Extension
Period (except any Additional Tax Sums that may be due and payable), except at the end thereof, but
each installment of interest that would otherwise have been due and payable during such Extension
Period shall bear Additional Interest (to the extent payment of such interest would be legally
enforceable) at a fixed rate equal to 6.964% per annum through the Interest Payment Date in April
2011 and thereafter at a variable rate, reset quarterly, equal to LIBOR plus 1.95% per annum,
compounded quarterly, from and including the dates on which amounts would have otherwise been due
and payable to but excluding the dates such amounts are paid or funds for the payment thereof have
been made available for payment. If Distributions are deferred as a result of the deferral of the
payment of interest on the Notes as described above, the deferred Distributions (including
Additional Interest Amounts) shall be paid on the date that the related Extension Period terminates
to Holders (as defined in the Trust Agreement) of the Trust Securities as they appear on the books
and records of the Trust on the record date immediately preceding such termination date.

     Distributions on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds available for the payment of such
Distributions in the Payment Account of the Trust. The Trust’s funds available for Distribution to
the Holders of the Preferred Securities will be limited to payments received from the Depositor.

     During any such Extension Period or an Event of Default, the Depositor shall not (i) declare
or pay any dividends or distributions on, or redeem, purchase, acquire or make a

C-5

 

liquidation payment with respect to, any of the Depositor’s Equity Interests or (ii) make
any payment of principal of or any interest or premium, if any, on or repay, repurchase or redeem
any debt securities of the Depositor that rank pari passu in all respects with or junior in
interest to the Notes (other than (a) repurchases, redemptions or other acquisitions of Equity
Interests of the Depositor in connection with (1) any employment contract, benefit plan or other
similar arrangement with or for the benefit of any one or more employees, officers, directors or
consultants, (2) a dividend reinvestment or Equity Interests purchase plan or (3) the issuance of
Equity Interests of the Depositor (or securities convertible into or exercisable for such Equity
Interests) as consideration in an acquisition transaction entered into prior to the applicable
Event of Default or Extension Period, (b) as a result of an exchange or conversion of any class or
series of the Depositor’s Equity Interests (or any Equity Interests of a Subsidiary (as defined in
the Indenture) of the Depositor) for any class or series of the Depositor’s Equity Interests or of
any class or series of the Depositor’s indebtedness for any class or series of the Depositor’s
Equity Interests, (c) the purchase of fractional interests in shares of the Depositor’s Equity
Interests pursuant to the conversion or exchange provisions of such Equity Interests or the
security being converted or exchanged, (d) any declaration of a dividend in connection with any
Rights Plan (as defined in the Indenture), the issuance of rights, Equity Interests or other
property under any Rights Plan, or the redemption or repurchase of rights pursuant thereto or (e)
any dividend in the form of Equity Interests, warrants, options or other rights where the dividend
interest or the interest issuable upon exercise of such warrants, options or other rights is the
same interest as that on which the dividend is being paid or ranks pari passu with or junior to
such interest).

     On each Note Redemption Date, on the stated maturity (or any date of principal repayment upon
early maturity) of the Notes and on each other date on (or in respect of) which any principal on
the Notes is repaid, the Trust will be required to redeem a Like Amount of Trust Securities at the
Redemption Price. Under the Indenture, the Notes may be redeemed by the Depositor on any Interest
Payment Date, at the Depositor’s option, on or after April 30, 2011 in whole at any time or in
part from time to time, at the Optional Note Redemption Price. The Notes may also be redeemed by
the Depositor, at its option, at any time prior to April 30, 2011, in whole but not in part, upon
the occurrence and during the continuation of an Investment Company Event or a Tax Event, at the
Special Note Redemption Price.

     The Trust Securities redeemed on each Redemption Date shall be redeemed at the Redemption
Price with the proceeds from the contemporaneous redemption or payment at maturity of Notes.
Redemptions of the Trust Securities (or portion thereof) shall be made and the Redemption Price
shall be payable on each Redemption Date only to the extent that the Trust has funds then on hand
and available in the Payment Account for the payment of such Redemption Price.

     Payments of Distributions (including any Additional Interest Amounts), the Redemption Price,
Liquidation Amount or any other amounts in respect of the Preferred Securities shall be made by
wire transfer at such place and to such account at a banking institution in the United States as
may be designated in writing at least ten (10) Business Days prior to the date for payment by the
Person entitled thereto unless proper written transfer instructions have not been received by the
relevant record date, in which case such payments shall be made by check mailed to the address of
such Person as such address shall appear in the Security Register. If any

C-6

 

Preferred Securities are held by a Depositary, such Distributions shall be made to the
Depositary in immediately available funds.

     The indebtedness evidenced by the Notes is, to the extent provided in the Indenture,
subordinate and junior in right of payment to the prior payment in full of all Senior Debt of the
Company and the Guarantor (as defined in the Indenture), and this Security is issued subject to the
provisions of the Indenture with respect thereto.

C-7

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Preferred Securities Certificate to:

(Insert assignee’s social security or tax identification number)

(Insert address and zip code of assignee)

and irrevocably appoints

agent to transfer this Preferred Securities Certificate on the books of the Trust. The agent may
substitute another to act for him or her.

	 	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 
	Signature:
	 	 
	 

	 	 
	 

	 	(Sign exactly as your name appears on the other side of this Preferred Securities
Certificate)

The signature(s) should be guaranteed by an eligible guarantor institution (banks,
stockbrokers, savings and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.

C-8

 

Exhibit D

Junior Subordinated Indenture

D-1

 

Exhibit E

Form of Transferee Certificate

To be Executed by Transferees

                                         ,20[                    ]

JPMorgan Chase Bank,

National Association

600 Travis, 50th Floor

Houston, Texas 77002

Attention: Worldwide Securities

Services— CapitalSource Trust

Preferred Securities 2006-1

CapitalSource Finance LLC

Capital Source Trust Preferred Securities 2006-1

4445 Willard Avenue

12th Floor

Chevy Chase, Maryland 20815

Attn: Chief Legal Counsel

	 	 	 	 	 
	 

	 	Re:
	 	Purchase of $                                         stated liquidation amount of Preferred
Securities (the “Preferred Securities”) of CapitalSource Trust Preferred
Securities 2006-1

Ladies and Gentlemen:

     In connection with our purchase of the Preferred Securities we confirm that:

     1. We
understand that the Preferred Securities (the “Preferred Securities”) of CapitalSource
Trust Preferred Securities 2006-1 (the “Trust”) of
CapitalSource Finance LLC (the “Company”)
executed in connection therewith) and the Junior Subordinated Notes due 2036 of the Company (the
“Subordinated Notes”) (the entire amount of the Trust’s outstanding Preferred Securities and the
Subordinated Notes together being referred to herein as the “Offered Securities”), have not
been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be
offered or sold except as permitted in the following sentence. We agree on our own behalf and on
behalf of any investor account for which we are purchasing the Offered Securities that, if we
decide to offer, sell or otherwise transfer any such Offered Securities, (i) such offer, sale or
transfer will be made only (a) to the Trust, (b) to a person we reasonably believe is a “qualified
purchaser” (a “QP”) (as defined in section 2(a)(51) of the Investment Company Act of 1940, as
amended (the “Investment Company Act”) and in compliance with the Securities Act. We
understand that the certificates for any Offered Security that we receive will bear a legend
substantially to the effect of the foregoing.

E-1

 

     2. We are a “qualified purchaser” within the meaning of section 2(a)(51) of the Investment
Company Act of 1940, as amended, and are purchasing for our own account or for the account of such
a “qualified purchaser,” and we have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of our investment in the Offered
Securities, and we and any account for which we are acting are each able to bear the economic
risks of our or its investment.

     3. We are acquiring the Offered Securities purchased by us for our own account (or for one or
more accounts as to each of which we exercise sole investment discretion and have authority to
make, and do make, the statements contained in this letter) and not with a view to any
distribution of the Offered Securities, subject, nevertheless, to the understanding that the
disposition of our property will at all times be and remain within our control.

     4. In the event that we purchase any Preferred Securities or any Subordinated Notes, we will
acquire such Preferred Securities having an aggregate stated liquidation amount of not less than
$100,000 or such Subordinated Notes having an aggregate principal amount not less than $100,000,
for our own account and for each separate account for which we are acting.

     5. We acknowledge that we are not a fiduciary of (i) an employee benefit, individual
retirement account or other plan or arrangement subject to Title I of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
1986, as amended (the “Code”), or similar law (each a “Plan”); or (ii) an entity whose underlying
assets include “plan assets” by reason of any Plan’s investment in the entity, and are not
purchasing any of the Offered Securities on behalf of or with “plan assets” by reason of any
Plan’s investment in the entity.

     6. We acknowledge that the Trust and the Company and others will rely upon the truth and
accuracy of the foregoing acknowledgments, representations, warranties and agreements and agree
that if any of the acknowledgments, representations, warranties and agreements deemed to have been
made by our purchase of any of the Offered Securities are no longer accurate, we shall promptly
notify the Company. If we are acquiring any Offered Securities as a fiduciary or agent for one or
more investor accounts, we represent that we have sole discretion with respect to each such
investor account and that we have full power to make the foregoing acknowledgments, representations
and agreement on behalf of each such investor account.

	 	 	 	 	 
	 	 	[Name of Purchaser]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

E-2

 

     Upon transfer, the Preferred Securities (having a stated liquidation amount
of $                     ) would be registered in the name of the new beneficial owner as follows.

	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Taxpayer ID Number:
	 	 	 	 
	 

	 	 

	 	 

E-3

 

Exhibit F

FORM OF

OFFICERS’ CERTIFICATE

UNDER

SECTION 8.16(a)

     Pursuant to Section 8.16(a) of the Amended and Restated Trust Agreement, dated as of February
22, 2006 (as modified, supplemented or amended from time to time, the “Trust Agreement”) of
CapitalSource Trust Preferred Securities 2006-1, a Delaware statutory trust (the “Trust”), each of
the undersigned hereby certifies that, to the knowledge of the undersigned, none of the Depositor,
the Guarantor, the Administrative Trustees and the Trust are in default in the performance or
observance of any of the terms, provisions and conditions of the Trust Agreement (without regard to
any period of grace or requirement of notice provided under the Trust Agreement) for the fiscal
period ending on [date], [year] [, except as follows: specify each such default and the nature and
status thereof].

     Capitalized terms used herein, and not otherwise defined herein, have the respective meanings
assigned thereto in the Trust Agreement.

[signatures pages follow]

F-1

 

IN WITNESS WHEREOF, the undersigned have executed this Officers’ Certificate as of
                                        , 20                     .

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	[Must be the Chief Executive Officer, the President or a Senior Vice President] of

CapitalSource Finance LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	[Must be the Chief Financial Officer, the

Chief Accounting Officer, the Treasurer or an

Assistant Treasurer] of Capital Source Finance

LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	[Must be the Chief Executive officer, the President or a Senior Vice President] of
CapitalSource Inc.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	[Must be the Chief Financial Officer, Chief
Accounting Officer, the Treasurer or an
Assistant Treasurer] of
CapitalSource Inc.

F-2

 

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Administrative Trustee of CapitalSource Trust Preferred Securities 2006-1
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Administrative Trustee of CapitalSource Trust Preferred Securities 2006-1
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Administrative Trustee of CapitalSource Trust Preferred Securities 2006-1

F-3

 

Exhibit G

FORM OF OFFICER’S FINANCIAL CERTIFICATE

     The undersigned, the [Chairman/Vice Chairman/Chief Executive Officer/President/Vice
President/Chief Financial Officer/Chief Accounting Officer/Treasurer/Assistant Treasurer], hereby
certifies pursuant to Section 8.16(b) of the Amended and Restated Trust Agreement, dated as of
February 22, 2006, (the “Trust Agreement”),
among CapitalSource Finance LLC (the “Company”),
CapitalSource Inc. (the “Guarantor”), JPMorgan Chase Bank, National Association, as Property
Trustee, Chase Bank USA, National Association, as Delaware trustee, and the administrative
trustees named therein, that, as of [date],
[year], the Guarantor had the following ratios and
balances on a consolidated basis:

As of [Quarterly/Annual Financial Date], [year]

	 	 	 
	Senior secured indebtedness for
borrowed money (“Debt”)

	 	$                    
	 
	 	 
	Senior unsecured Debt

	 	$                    
	 
	 	 
	Subordinated Debt

	 	$                    
	 
	 	 
	Total Debt

	 	$                    
	 
	 	 
	Ratio of (x) senior secured and unsecured
Debt to (y) total Debt

	 	                       %

[FOR FISCAL YEAR END: Attached hereto are the audited consolidated financial statements
(including the balance sheet, income statement and statement of cash flows, and notes thereto,
together with the report of the independent accountants thereon) of the Company and its
consolidated subsidiaries for the three (3) years ended [date], [year].]

[FOR FISCAL QUARTER END: Attached hereto are the unaudited consolidated and consolidating financial
statements (including the balance sheet and income statement) of the Company and its consolidated
subsidiaries for the fiscal quarter ended [date], [year].]

     The financial statements fairly present in all material respects, in accordance with U.S.
generally accepted accounting principles (“GAAP”), the financial position of the Company and its
consolidated subsidiaries, and the results of operations and changes in financial condition as of
the date, and for the [quarter] [annual]
period ended [date], [year], and such financial
statements have been prepared in accordance with GAAP consistently applied throughout the period
involved (expect as otherwise noted therein).

     IN WITNESS WHEREOF, the undersigned has executed this Officer’s Financial
Certificate as of this
                     day of                                  , [year].

G-1

 

	 	 	 	 	 
	 	 	CAPITALSOURCE INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	CapitalSource Inc.
	 

	 	 	 	4445 Willard Avenue, 12th Floor
	 

	 	 	 	Chevy Chase, Maryland 20815
	 

	 	 	 	(301)841-2700

G-2

 

Schedule A

DETERMINATION OF LIBOR

     With
respect to the Trust Securities, the London interbank offered rate
(“LIBOR”) shall be
determined by the Calculation Agent in accordance with the following provisions (in each case
rounded to the nearest .000001%):

     (1) On the second LIBOR Business Day (as defined below) prior to a Distribution Date (except
with respect to the first interest payment period, such date shall be February 20, 2006) (each
such day, a “LIBOR Determination Date”), LIBOR for any given security shall for the
following interest payment period equal the rate, as obtained by the Calculation Agent from
Bloomberg Financial Markets Commodities News, for three (3)-month Eurodollar deposits that appears
on Dow Jones Telerate Page 3750 (as defined in the International Swaps and Derivatives
Association, Inc. 2000 Interest Rate and Currency Exchange Definitions as the same may be amended
from time to time), or such other page as may replace such Page 3750 (as any such replacement may
be amended from time to time), as of 11:00 A.M. (London time) on such LIBOR Determination Date.

     (2) If, on any LIBOR Determination Date, such rate does not appear on Dow Jones Telerate Page
3750 or such other page as may replace such Page 3750, the Calculation Agent shall determine the
arithmetic mean of the offered quotations of the Reference Banks (as defined below) to leading
banks in the London interbank market for three (3)-month Eurodollar deposits in an amount
determined by the Calculation Agent by reference to requests for quotations as of approximately
11:00 A.M. (London time) on the LIBOR Determination Date made by the Calculation Agent to the
Reference Banks. If, on any LIBOR Determination Date, at least two (2) of the Reference Banks
provide such quotations, LIBOR shall equal such arithmetic mean of such quotations. If, on any
LIBOR Determination Date, only one or none of the Reference Banks
provide such quotations, LIBOR
shall be deemed to be the arithmetic mean of the offered quotations that leading banks in the City
of New York selected by the Calculation Agent are quoting on the relevant LIBOR Determination Date
for three (3)-month Eurodollar deposits in an amount determined by the Calculation Agent by
reference to the principal London offices of leading banks in the London interbank market;
provided, that, if the Calculation Agent is required but is unable to determine a rate in
accordance with at least one of the procedures provided above or adequate and fair means do not
exist for ascertaining the applicable interest rate on the basis set forth above (due to changes
arising in the interbank Eurocurrency market or otherwise), then the Securities shall not bear
interest in respect of LIBOR but shall instead bear interest with reference to a floating rate
equal to the Base Rate (as defined below).

     (3) As used herein: “Reference Banks” means four (4) major banks in the London
interbank market selected by the Calculation Agent; “LIBOR Business Day” means a day on
which commercial banks are open for business (including dealings in foreign exchange and foreign
currency deposits) in London; the “Base Rate” on any day shall equal the greater of the arithmetic
mean of (i) the “prime rate” for dollar denominated loans quoted by leading banks in the City of
New York selected by the Calculation Agent and (ii) the Federal Funds Rate (as defined below) plus
0.50% per annum; and the “Federal Funds Rate” on any day equals the rate per annum equal
to the weighted average (rounded upwards to the nearest 0.000001) of the rate on overnight federal
funds transactions with members of the Federal Reserve System only

Schedule A-1

 

 

arranged by federal funds brokers, as published as of such day by the Federal Reserve Bank of New
York.

Schedule A-2exv10w57

 

Exhibit 10.57

	 	 	 
	

	 	Master Repurchase
	 

	 	Agreement
	 

	 	September 1996 Version

	 	 	 
	Dated as of:

	 	January 17, 2006
	 
	 	 
	Between:

	 	Barclays Capital Inc.
	 
	 	 
	And:

	 	CSE Mortgage LLC

1. Applicability

From time to time the parties hereto may enter into transactions in which one party
(“Seller”) agrees to transfer to the other (“Buyer”) securities or other assets (“Securities”)
against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to
Seller such Securities at a date certain or on demand, against the transfer of funds by Seller.
Each such transaction shall be referred to herein as a “Transaction” and, unless otherwise
agreed in writing, shall be governed by this Agreement, including any supplemental terms or
conditions contained in Annex I hereto and in any other annexes identified herein or therein as
applicable hereunder.

2. Definitions

	 	(a)	 	“Act of Insolvency”, with respect to any party, (i) the commencement by such party as
debtor of any case or proceeding under any bankruptcy, insolvency, reorganization,
liquidation, moratorium, dissolution, delinquency or similar law, or such party seeking the
appointment or election of a receiver, conservator, trustee, custodian or similar official
for such party or any substantial part of its property, or the convening of any meeting of
creditors for purposes of commencing any such case or proceeding or seeking such an
appointment or election, (ii) the commencement of any such case or proceeding against such
party, or another seeking such an appointment or election, or the filing against a party of
an application for a protective decree under the provisions of the Securities Investor
Protection Act of 1970, which (A) is consented to or not timely contested by such party,
(B) results in the entry of an order for relief, such an appointment or election, the
issuance of such a protective decree or the entry of an order having a similar effect, or
(C) is not dismissed within 15 days, (iii) the making by such party of a general assignment
for the benefit of creditors, or (iv) the admission in writing by such party of such
party’s inability to pay such party’s debts as they become due;
	 
	 	(b)	 	“Additional Purchased Securities”, Securities provided by Seller to Buyer pursuant to
Paragraph 4(a) hereof;

1 § September 1996 § Master Repurchase Agreement

 

 

	 	(c)	 	“Buyer’s Margin Amount”, with respect to any Transaction as of any date, the
amount obtained by application of the Buyer’s Margin Percentage to the Repurchase Price for
such Transaction as of such date;
	 
	 	(d)	 	“Buyer’s Margin Percentage”, with respect to any Transaction as of any date, a percentage
(which may be equal to the Seller’s Margin Percentage) agreed to by Buyer and Seller or, in
the absence of any such agreement, the percentage obtained by dividing the Market Value of the
Purchased Securities on the Purchase Date by the Purchase Price on the Purchase Date for such
Transaction;
	 
	 	(e)	 	“Confirmation”, the meaning specified in Paragraph 3(b) hereof;
	 
	 	(f)	 	“Income”, with respect to any Security at any time, any principal thereof and all interest,
dividends or other distributions thereon;
	 
	 	(g)	 	“Margin Deficit”, the meaning specified in Paragraph 4(a) hereof;
	 
	 	(h)	 	“Margin Excess”, the meaning specified in Paragraph 4(b) hereof;
	 
	 	(i)	 	“Margin Notice Deadline”, the time agreed to by the parties in the relevant Confirmation,
Annex I hereto or otherwise as the deadline for giving notice requiring same-day satisfaction
of margin maintenance obligations as provided in Paragraph 4 hereof (or, in the absence of any
such agreement, the deadline for such purposes established in accordance with market
practice);
	 
	 	(j)	 	“Market Value”, with respect to any Securities as of any date, the price for such Securities
on such date obtained from a generally recognized source agreed to by the parties or the most
recent closing bid quotation from such a source, plus accrued Income to the extent not
included therein (other than any Income credited or transferred to, or applied to the
obligations of, Seller pursuant to Paragraph 5 hereof) as of such date (unless contrary to
market practice for such Securities);
	 
	 	(k)	 	“Price Differential”, with respect to any Transaction as of any date, the aggregate amount
obtained by daily application of the Pricing Rate for such Transaction to the Purchase Price
for such Transaction on a 360 day per year basis for the actual number of days during the
period commencing on (and including) the Purchase Date for such Transaction and ending on (but
excluding) the date of determination (reduced by any amount of such Price Differential
previously paid by Seller to Buyer with respect to such Transaction);
	 
	 	(1)	 	“Pricing Rate”, the per annum percentage rate for determination of the Price Differential;
	 
	 	(m)	 	“Prime Rate”, the prime rate of U.S. commercial banks as published in The Wall Street
Journal (or, if more than one such rate is published, the average of such rates);
	 
	 	(n)	 	“Purchase Date”, the date on which Purchased Securities are to be transferred by Seller to
Buyer;

2 § September 1996 § Master Repurchase Agreement

 

 

	(o)	 	“Purchase Price”, (i) on the Purchase Date, the price at which Purchased
Securities are transferred by Seller to Buyer, and (ii) thereafter, except where Buyer and
Seller agree otherwise, such price increased by the amount of any cash transferred by Buyer to
Seller pursuant to Paragraph 4(b) hereof and decreased by the amount of any cash transferred
by Seller to Buyer pursuant to Paragraph 4(a) hereof or applied to reduce Seller’s obligations
under clause (ii) of Paragraph 5 hereof;
	 
	(p)	 	“Purchased Securities”, the Securities transferred by Seller to Buyer in a Transaction
here-under, and any Securities substituted therefore in accordance with Paragraph 9 hereof.
The term “Purchased Securities” with respect to any Transaction at any time also shall include
Additional Purchased Securities delivered pursuant to Paragraph 4(a) hereof and shall exclude
Securities returned pursuant to Paragraph 4(b) hereof;
	 
	(q)	 	“Repurchase Date”, the date on which Seller is to repurchase the Purchased Securities from
Buyer, including any date determined by application of the provisions of Paragraph 3(c) or 11
hereof;
	 
	(r)	 	“Repurchase Price”, the price at which Purchased Securities are to be transferred from Buyer to
Seller upon termination of a Transaction, which will be determined in each case (including
Transactions terminable upon demand) as the sum of the Purchase Price and the Price
Differential as of the date of such determination;
	 
	(s)	 	“Seller’s Margin Amount”, with respect to any Transaction as of any date, the amount
obtained by application of the Seller’s Margin Percentage to the Repurchase Price for
such Transaction as of such date;
	 
	(t)	 	“Seller’s Margin Percentage”, with respect to any Transaction as of any date, a percentage
(which may be equal to the Buyer’s Margin Percentage) agreed to by Buyer and Seller or, in the
absence of any such agreement, the percentage obtained by dividing the Market Value of the
Purchased Securities on the Purchase Date by the Purchase Price on the Purchase Date for such
Transaction.

3. Initiation; Confirmation; Termination

	(a)	 	An agreement to enter into a Transaction may be made orally or in writing at the initiation
of either Buyer or Seller. On the Purchase Date for the Transaction, the Purchased Securities
shall be transferred to Buyer or its agent against the transfer of the Purchase Price to an
account of Seller.
	 
	(b)	 	Upon agreeing to enter into a Transaction hereunder, Buyer or Seller (or both), as shall be
agreed, shall promptly deliver to the other party a written confirmation of each Transaction
(a “Confirmation”). The Confirmation shall describe the Purchased Securities (including CUSIP
number, if any), identify Buyer and Seller and set forth (i) the Purchase Date, (ii) the
Purchase Price, (iii) the Repurchase Date, unless the Transaction is to be terminable on
demand, (iv) the Pricing Rate or Repurchase Price applicable to the Transaction, and (v) any
additional terms or conditions of the Transaction not inconsistent with this Agreement. The
Confirmation, together with this Agreement, shall constitute conclusive evidence of the terms
agreed between Buyer and Seller with respect to the Transaction to which the Confirmation
relates, unless with

3 § September 1996 § Master Repurchase Agreement

 

 

respect to the Confirmation specific objection is made promptly after receipt
thereof. In the event of any conflict between the terms of such Confirmation and this
Agreement, this Agreement shall prevail.

	(c)	 	In the case of Transactions terminable upon demand, such demand shall be made by Buyer or
Seller, no later than such time as is customary in accordance with market practice, by
telephone or otherwise on or prior to the business day on which such termination will be
effective. On the date specified in such demand, or on the date fixed for termination in the
case of Transactions having a fixed term, termination of the Transaction will be effected by
transfer to Seller or its agent of the Purchased Securities and any Income in respect thereof
received by Buyer (and not previously credited or transferred to, or applied to the
obligations of, Seller pursuant to Paragraph 5 hereof) against the transfer of the Repurchase
Price to an account of Buyer.

4. Margin Maintenance

	(a)	 	If at any time the aggregate Market Value of all Purchased Securities subject to all
Transactions in which a particular party hereto is acting as Buyer is less than the aggregate
Buyer’s Margin Amount for all such Transactions (a “Margin Deficit”), then Buyer may by notice
to Seller require Seller in such Transactions, at Seller’s option, to transfer to Buyer cash
or additional Securities reasonably acceptable to Buyer (“Additional Purchased Securities”),
so that the cash and aggregate Market Value of the Purchased Securities, including any such
Additional Purchased Securities, will thereupon equal or exceed such aggregate Buyer’s Margin
Amount (decreased by the amount of any Margin Deficit as of such date arising from any
Transactions in which such Buyer is acting as Seller).
	 
	(b)	 	If at any time the aggregate Market Value of all Purchased Securities subject to all
Transactions in which a particular party hereto is acting as Seller exceeds the aggregate
Seller’s Margin Amount for all such Transactions at such time (a “Margin Excess”), then Seller
may by notice to Buyer require Buyer in such Transactions, at Buyer’s option, to transfer cash
or Purchased Securities to Seller, so that the aggregate Market Value of the Purchased
Securities, after deduction of any such cash or any Purchased Securities so transferred, will
thereupon not exceed such aggregate Seller’s Margin Amount (increased by the amount of any
Margin Excess as of such date arising from any Transactions in which such Seller is acting as
Buyer).
	 
	(c)	 	If any notice is given by Buyer or Seller under subparagraph (a) or (b) of this Paragraph at
or before the Margin Notice Deadline on any business day, the party receiving such notice
shall transfer cash or Additional Purchased Securities as provided in such subparagraph no
later than the close of business in the relevant market on such day. If any such notice is
given after the Margin Notice Deadline, the party receiving such notice shall transfer such
cash or Securities no later than the close of business in the relevant market on the next
business day following such notice.
	 
	(d)	 	Any cash transferred pursuant to this Paragraph shall be attributed to such Transactions as
shall be agreed upon by Buyer and Seller.

4 § September 1996 § Master Repurchase Agreement

 

 

	 	(e)	 	Seller and Buyer may agree, with respect to any or all Transactions
hereunder, that the respective rights of Buyer or Seller (or both) under subparagraphs
(a) and (b) of this Paragraph may be exercised only where a Margin Deficit or Margin
Excess, as the case may be, exceeds a specified dollar amount or a specified percentage
of the Repurchase Prices for such Transactions (which amount or percentage shall be
agreed to by Buyer and Seller prior to entering into any such Transactions).
	 
	 	(f)	 	Seller and Buyer may agree, with respect to any or all Transactions hereunder, that
the respective rights of Buyer and Seller under subparagraphs (a) and (b) of this
Paragraph to require the elimination of a Margin Deficit or a Margin Excess, as the case
may be, may be exercised whenever such a Margin Deficit or Margin Excess exists with
respect to any single Transaction hereunder (calculated without regard to any other
Transaction outstanding under this Agreement).

5. Income Payments

Seller shall be entitled to receive an amount equal to all Income paid or distributed on
or in respect of the Securities that is not otherwise received by Seller, to the full extent it
would be so entitled if the Securities had not been sold to Buyer. Buyer shall, as the parties
may agree with respect to any Transaction (or, in the absence of any such agreement, as Buyer
shall reasonably determine in its discretion), on the date such Income is paid or distributed
either (i) transfer to or credit to the account of Seller such Income with respect to any
Purchased Securities subject to such Transaction or (ii) with respect to Income paid in cash,
apply the Income payment or payments to reduce the amount, if any, to be transferred to Buyer by
Seller upon termination of such Transaction. Buyer shall not be obligated to take any action
pursuant to the preceding sentence (A) to the extent that such action would result in the
creation of a Margin Deficit, unless prior thereto or simultaneously therewith Seller transfers
to Buyer cash or Additional Purchased Securities sufficient to eliminate such Margin Deficit, or
(B) if an Event of Default with respect to Seller has occurred and is then continuing at the time
such Income is paid or distributed.

6. Security Interest

Although the parties intend that all Transactions hereunder be sales and purchases and not
loans, in the event any such Transactions are deemed to be loans, Seller shall be deemed to have
pledged to Buyer as security for the performance by Seller of its obligations under each such
Transaction, and shall be deemed to have granted to Buyer a security interest in, all of the
Purchased Securities with respect to all Transactions hereunder and all Income thereon and other
proceeds thereof.

7. Payment and Transfer

Unless otherwise mutually agreed, all transfers of funds hereunder shall be in immediately
available funds. All Securities transferred by one party hereto to the other party (i) shall be
in suitable form for transfer or shall be accompanied by duly executed instruments of transfer or
assignment in blank and such other documentation as the party receiving possession may reasonably
request, (ii) shall be transferred on the book-entry system of a Federal Reserve Bank, or (iii)
shall be transferred by any other method mutually acceptable to Seller and Buyer.

5 § September 1996 § Master Repurchase Agreement

 

 

8. Segregation of Purchased Securities

To the extent required by applicable law, all Purchased Securities in the possession of
Seller shall be segregated from other securities in its possession and shall be identified as
subject to this Agreement. Segregation may be accomplished by appropriate identification on the
books and records of the holder, including a financial or securities intermediary or a clearing
corporation. All of Seller’s interest in the Purchased Securities shall pass to Buyer on the
Purchase Date and, unless otherwise agreed by Buyer and Seller, nothing in this Agreement shall
preclude Buyer from engaging in repurchase transactions with the Purchased Securities or
otherwise selling, transferring, pledging or hypothecating the Purchased Securities, but no such
transaction shall relieve Buyer of its obligations to transfer Purchased Securities to Seller
pursuant to Paragraph 3, 4 or 11 hereof, or of Buyer’s obligation to credit or pay Income to, or
apply Income to the obligations of, Seller pursuant to Paragraph 5 hereof.

Required Disclosure for Transactions in Which the Seller
Retains Custody of the Purchased Securities

Seller is not permitted to substitute other securities for those subject to
this Agreement and therefore must keep Buyer’s securities segregated at all times,
unless in this Agreement Buyer grants Seller the right to substitute other
securities. If Buyer grants the right to substitute, this means that Buyer’s
securities will likely be commingled with Seller’s own securities during the trading
day. Buyer is advised that, during any trading day that Buyer’s securities are
commingled with Seller’s securities, they [will]* [may]** be subject to liens
granted by Seller to [its clearing bank]* [third parties]** and may be used by
Seller for deliveries on other securities transactions. Whenever the securities are
commingled, Seller’s ability to resegregate substitute securities for Buyer will be
subject to Seller’s ability to satisfy [the clearing]* [any]** lien or to obtain
substitute securities.

 

*
Language to be used under 17 C.F.R. b403.4(e) if Seller is a government
securities broker or dealer other than a financial
institution.

** Language to be used under 17 C.F.R. b403.5(d) if Seller is a financial institution.

9. Substitution

	 	(a)	 	Seller may, subject to agreement with and acceptance by Buyer, substitute other
Securities for any Purchased Securities. Such substitution shall be made by transfer to
Buyer of such other Securities and transfer to Seller of such Purchased Securities. After
substitution, the substituted Securities shall be deemed to be Purchased Securities.
	 
	 	(b)	 	In Transactions in which Seller retains custody of Purchased Securities, the parties
expressly agree that Buyer shall be deemed, for purposes of subparagraph (a) of this
Paragraph, to have agreed to and accepted in this Agreement substitution by Seller of other
Securities for Purchased Securities; provided, however, that such other Securities shall
have a Market Value at least equal to the Market Value of the Purchased Securities for which
they are substituted.

6
§ September 1996 §  Master Repurchase Agreement

 

 

10. Representations

Each of Buyer and Seller represents and warrants to the other that (i) it is duly
authorized to execute and deliver this Agreement, to enter into Transactions contemplated
hereunder and to perform its obligations hereunder and has taken all necessary action to
authorize such execution, delivery and performance, (ii) it will engage in such Transactions as
principal (or, if agreed in writing, in the form of an annex hereto or otherwise, in advance of
any Transaction by the other party hereto, as agent for a disclosed principal), (iii) the
person signing this Agreement on its behalf is duly authorized to do so on its behalf (or on
behalf of any such disclosed principal), (iv) it has obtained all authorizations of any
governmental body required in connection with this Agreement and the Transactions hereunder and
such authorizations are in full force and effect and (v) the execution, delivery and
performance of this Agreement and the Transactions hereunder will not violate any law,
ordinance, charter, by- law or rule applicable to it or any agreement by which it is bound or
by which any of its assets are affected. On the Purchase Date for any Transaction Buyer and
Seller shall each be deemed to repeat all the foregoing representations made by it.

11. Events of Default

In the event that (i) Seller fails to transfer or Buyer fails to purchase Purchased
Securities upon the applicable Purchase Date, (ii) Seller fails to repurchase or Buyer fails to
transfer Purchased Securities upon the applicable Repurchase Date, (iii) Seller or Buyer fails
to com-ply with Paragraph 4 hereof, (iv) Buyer fails, after one business day’s notice, to
comply with Paragraph 5 hereof, (v) an Act of Insolvency occurs with respect to Seller or
Buyer, (vi) any representation made by Seller or Buyer shall have been incorrect or untrue in
any material respect when made or repeated or deemed to have been made or repeated, or (vii)
Seller or Buyer shall admit to the other its inability to, or its intention not to, perform any
of its obligations hereunder (each an “Event of Default”):

	 	(a)	 	The nondefaulting party may, at its option (which option shall be deemed to have been
exercised immediately upon the occurrence of an Act of Insolvency), declare an Event of
Default to have occurred hereunder and, upon the exercise or deemed exercise of such
option, the Repurchase Date for each Transaction hereunder shall, if it has not already
occurred, be deemed immediately to occur (except that, in the event that the Purchase Date
for any Transaction has not yet occurred as of the date of such exercise or deemed
exercise, such Transaction shall be deemed immediately canceled). The nondefaulting party
shall (except upon the occurrence of an Act of Insolvency) give notice to the defaulting
party of the exercise of such option as promptly as practicable.
	 
	 	(b)	 	In all Transactions in which the defaulting party is acting as Seller, if the
nondefaulting party exercises or is deemed to have exercised the option referred to in
subparagraph (a) of this Paragraph, (i) the defaulting party’s obligations in such
Transactions to repurchase all Purchased Securities, at the Repurchase Price therefore on
the Repurchase Date determined in accordance with subparagraph (a) of this Paragraph,
shall thereupon become immediately due and payable, (ii) all Income paid after such
exercise or deemed exercise shall be retained by the nondefaulting party and applied to
the aggregate unpaid Repurchase Prices and any other amounts owing by the defaulting party
hereunder, and (iii) the defaulting party shall immediately deliver to the nondefaulting
party any Purchased Securities subject to such Transactions then in the defaulting party’s
possession or control.

7  §  September 1996  §  Master Repurchase Agreement

 

 

	(c)	 	In all Transactions in which the defaulting party is acting as Buyer, upon
tender by the nondefaulting party of payment of the aggregate Repurchase Prices for all such
Transactions, all right, title and interest in and entitlement to all Purchased Securities
subject to such Transactions shall be deemed transferred to the nondefaulting party, and the
defaulting party shall deliver all such Purchased Securities to the nondefaulting party.
	 
	(d)	 	If the nondefaulting party exercises or is deemed to have exercised the option referred to in
subparagraph (a) of this Paragraph, the nondefaulting party, without prior notice to the
defaulting party, may:

	 	(i)	 	as to Transactions in which the defaulting party is acting as Seller, (A) immediately
sell, in a recognized market (or otherwise in a commercially reasonable manner) at such
price or prices as the nondefaulting party may reasonably deem satisfactory, any or all
Purchased Securities subject to such Transactions and apply the proceeds thereof to the
aggregate unpaid Repurchase Prices and any other amounts owing by the defaulting party
hereunder or (B) in its sole discretion elect, in lieu of selling all or a portion of such
Purchased Securities, to give the defaulting party credit for such Purchased Securities in
an amount equal to the price therefore on such date, obtained from a generally recognized
source or the most recent closing bid quotation from such a source, against the aggregate
unpaid Repurchase Prices and any other amounts owing by the defaulting party hereunder;
and
	 
	 	(ii)	 	as to Transactions in which the defaulting party is acting as Buyer, (A) immediately
purchase, in a recognized market (or otherwise in a commercially reasonable manner) at
such price or prices as the nondefaulting party may reasonably deem satisfactory,
securities (“Replacement Securities”) of the same class and amount as any Purchased
Securities that are not delivered by the defaulting party to the nondefaulting party as
required hereunder or (B) in its sole discretion elect, in lieu of purchasing Replacement
Securities, to be deemed to have purchased Replacement Securities at the price therefor on
such date, obtained from a generally recognized source or the most recent closing offer
quotation from such a source.

Unless otherwise provided in Annex I, the parties acknowledge and agree that (1) the Securities
subject to any Transaction hereunder are instruments traded in a recognized market, (2) in the
absence of a generally recognized source for prices or bid or offer quotations for any
Security, the nondefaulting party may establish the source therefore in its sole discretion and
(3) all prices, bids and offers shall be determined together with accrued Income (except to the
extent contrary to market practice with respect to the relevant Securities).

	(e)	 	As to Transactions in which the defaulting party is acting as Buyer, the defaulting party
shall be liable to the nondefaulting party for any excess of the price paid (or deemed paid)
by the nondefaulting party for Replacement Securities over the Repurchase Price for the
Purchased Securities replaced thereby and for any amounts payable by the defaulting party
under Paragraph 5 hereof or otherwise hereunder.
	 
	(f)	 	For purposes of this Paragraph 11, the Repurchase Price for each Transaction hereunder
in respect of which the defaulting party is acting as Buyer shall not increase above the

8 §  September 1996  §  Master Repurchase Agreement

 

 

amount of such Repurchase Price for such Transaction determined as of the
date of the exercise or deemed exercise by the nondefaulting party of the option
referred to in sub-paragraph (a) of this Paragraph.

	 	(g)	 	The defaulting party shall be liable to the nondefaulting party for (i) the amount
of all reasonable legal or other expenses incurred by the nondefaulting party in
connection with or as a result of an Event of Default, (ii) damages in an amount equal to
the cost (including all fees, expenses and commissions) of entering into replacement
transactions and entering into or terminating hedge transactions in connection with or as
a result of an Event of Default, and (iii) any other loss, damage, cost or expense
directly arising or resulting from the occurrence of an Event of Default in respect of a
Transaction.
	 
	 	(h)	 	To the extent permitted by applicable law, the defaulting party shall be liable to
the non-defaulting party for interest on any amounts owing by the defaulting party
hereunder, from the date the defaulting party becomes liable for such amounts hereunder
until such amounts are (i) paid in full by the defaulting party or (ii) satisfied in full
by the exercise of the nondefaulting party’s rights hereunder. Interest on any sum
payable by the defaulting party to the nondefaulting party under this Paragraph 1l(h)
shall be at a rate equal to the greater of the Pricing Rate for the relevant Transaction
or the Prime Rate.
	 
	 	(i)	 	The nondefaulting party shall have, in addition to its rights hereunder, any rights
otherwise available to it under any other agreement or applicable law.

12. Single Agreement

Buyer and Seller acknowledge that, and have entered hereinto and will enter into each
Transaction hereunder in consideration of and in reliance upon the fact that, all Transactions
hereunder constitute a single business and contractual relationship and have been made in
consideration of each other. Accordingly, each of Buyer and Seller agrees (i) to perform all of
its obligations in respect of each Transaction hereunder, and that a default in the performance
of any such obligations shall constitute a default by it in respect of all Transactions
hereunder, (ii) that each of them shall be entitled to set off claims and apply property held
by them in respect of any Transaction against obligations owing to them in respect of any other
Transactions hereunder and (iii) that payments, deliveries and other transfers made by either
of them in respect of any Transaction shall be deemed to have been made in consideration of
payments, deliveries and other transfers in respect of any other Transactions hereunder, and
the obligations to make any such payments, deliveries and other transfers may be applied
against each other and netted.

13. Notices and Other Communications

Any and all notices, statements, demands or other communications hereunder may be given
by a party to the other by mail, facsimile, telegraph, messenger or otherwise to the address
specified in Annex II hereto, or so sent to such party at any other place specified in a notice
of change of address hereafter received by the other. All notices, demands and requests
hereunder may be made orally, to be confirmed promptly in writing, or by other communication as
specified in the preceding sentence.

9  §  September 1996  §  Master Repurchase Agreement

 

 

14. Entire Agreement; Severability

This Agreement shall supersede any existing agreements between the parties containing
general terms and conditions for repurchase transactions. Each provision and agreement herein
shall be treated as separate and independent from any other provision or agreement herein and
shall be enforceable notwithstanding the unenforceability of any such other provision or
agreement.

15. Non-assignability; Termination

	 	(a)	 	The rights and obligations of the parties under this Agreement and under any
Transaction shall not be assigned by either party without the prior written consent of the
other party, and any such assignment without the prior written consent of the other party
shall be null and void. Subject to the foregoing, this Agreement and any Transactions
shall be binding upon and shall inure to the benefit of the parties and their respective
successors and assigns. This Agreement may be terminated by either party upon giving
written notice to the other, except that this Agreement shall, notwithstanding such
notice, remain applicable to any Transactions then outstanding.
	 
	 	(b)	 	Subparagraph (a) of this Paragraph 15 shall not preclude a party from assigning,
charging or otherwise dealing with all or any part of its interest in any sum payable to
it under Paragraph 11 hereof.

16. Governing Law

This Agreement shall be governed by the laws of the State of New York without giving
effect to the conflict of law principles thereof.

17. No Waivers, Etc.

No express or implied waiver of any Event of Default by either party shall constitute a
waiver of any other Event of Default and no exercise of any remedy hereunder by any party shall
constitute a waiver of its right to exercise any other remedy hereunder. No modification or
waiver of any provision of this Agreement and no consent by any party to a departure herefrom
shall be effective unless and until such shall be in writing and duly executed by both of the
parties hereto. Without limitation on any of the foregoing, the failure to give a notice
pursuant to Paragraph 4(a) or 4(b) hereof will not constitute a waiver of any right to do so at
a later date.

18. Use of Employee Plan Assets

	 	(a)	 	If assets of an employee benefit plan subject to any provision of the Employee
Retirement Income Security Act of 1974 (“ERISA”) are intended to be used by either party
hereto (the “Plan Party”) in a Transaction, the Plan Party shall so notify the other party
prior to the Transaction. The Plan Party shall represent in writing to the other party
that the Transaction does not constitute a prohibited transaction under ERISA or is
otherwise exempt therefrom, and the other party may proceed in reliance thereon but shall
not be required so to proceed.

10  §  September 1996  §  Master Repurchase Agreement

 

 

	 	(b)	 	Subject to the last sentence of subparagraph (a) of this Paragraph, any such
Transaction shall proceed only if Seller furnishes or has furnished to Buyer its most
recent available audited statement of its financial condition and its most recent
subsequent unaudited statement of its financial condition.
	 
	 	(c)	 	By entering into a Transaction pursuant to this Paragraph, Seller shall be deemed (i)
to represent to Buyer that since the date of Seller’s latest such financial statements,
there has been no material adverse change in Seller’s financial condition which Seller has
not disclosed to Buyer, and (ii) to agree to provide Buyer with future audited and
unaudited statements of its financial condition as they are issued, so long as it is a
Seller in any outstanding Transaction involving a Plan Party.

19. Intent

	 	(a)	 	The parties recognize that each Transaction is a “repurchase agreement” as that term
is defined in Section 101 of Title 11 of the United States Code, as amended (except
insofar as the type of Securities subject to such Transaction or the term of such
Transaction would render such definition inapplicable), and a “securities contract” as
that term is defined in Section 741 of Title 11 of the United States Code, as amended
(except insofar as the type of assets subject to such Transaction would render such
definition inapplicable).
	 
	 	(b)	 	It is understood that either party’s right to liquidate Securities delivered to it in
connection with Transactions hereunder or to exercise any other remedies pursuant to
Paragraph 11 hereof is a contractual right to liquidate such Transaction as described in
Sections 555 and 559 of Title 11 of the United States Code, as amended.
	 
	 	(c)	 	The parties agree and acknowledge that if a party hereto is an “insured depository
institution,” as such term is defined in the Federal Deposit Insurance Act, as amended
(“FDIA”), then each Transaction hereunder is a “qualified financial contract,” as that
term is defined in FDIA and any rules, orders or policy statements thereunder (except
insofar as the type of assets subject to such Transaction would render such definition
inapplicable).
	 
	 	(d)	 	It is understood that this Agreement constitutes a “netting contract” as defined in
and subject to Title IV of the Federal Deposit Insurance Corporation Improvement Act of
1991 (“FDICIA”) and each payment entitlement and payment obligation under any Transaction
hereunder shall constitute a “covered contractual payment entitlement” or “covered
contractual payment obligation”, respectively, as defined in and subject to FDICIA (except
insofar as one or both of the parties is not a “financial institution” as that term is
defined in FDICIA).

20. Disclosure Relating to Certain Federal Protections

The parties acknowledge that they have been advised that:

	 	(a)	 	in the case of Transactions in which one of the parties is a broker or dealer
registered with the Securities and Exchange Commission (“SEC”) under Section 15 of the
Securities Exchange Act of 1934 (“1934 Act”), the Securities Investor Protection
Corporation has

11  §  September 1996  §  Master Repurchase Agreement

 

 

taken the position that the provisions of the Securities Investor Protection Act
of 1970 (“SIP A”) do not protect the other party with respect to any Transaction hereunder;

	(b)	 	in the case of Transactions in which one of the parties is a government securities broker or
a government securities dealer registered with the SEC under Section 15C of the 1934 Act, SIP
A will not provide protection to the other party with respect to any Transaction hereunder;
and
	 
	(c)	 	In the case of Transactions in which one of the parties is a financial institution, funds
held by the financial institution pursuant to a Transaction hereunder are not a deposit and
therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit
Union Share Insurance Fund, as applicable.

	 	 	 	 	 	 	 	 	 	 	 
	Barclays Capital Inc.	 	 	 	CSE Mortgage LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Bill Lent
 

	 	 	 	By:
	 	/s/ Thomas A. Fink
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Director
	 	 	 	Title:
	 	Chief Financial Officer &	 	 
	 

	 	 	 	 	 	 	 	Senior Vice President Finance	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	1/19/06
	 	 	 	Date:
	 	1/19/05	 	 

12 § September 1996 § Master Repurchase Agreement

 

 

ANNEX I

SUPPLEMENTAL TERMS AND CONDITIONS

This Annex I supplements and forms a part of the Master Repurchase Agreement dated as of January
17, 2006 (the “Agreement”) between Barclays Capital Inc. (“Buyer”) and CSE Mortgage LLC (“Seller”).
Capitalized terms used but not defined in this Annex I shall have the meanings ascribed to them in
the Agreement.

1.
Other Applicable Annexes. In addition to this Annex I and Annex II, the following
Annexes and any Schedules thereto shall form a part of the Agreement and shall be applicable
thereunder.

     None

2.
Definitions. For purposes of the Agreement and this Annex I, the following terms shall
have the following meanings:

“Margin Notice Deadline” means 10:00 A.M. New York time.

“Business Day” or “business day”, with respect to any Transaction hereunder, a day on which regular
trading may occur in the principal market for the Purchased Securities subject to such Transaction,
which includes shortened trading days, days on which trades are permitted to occur but do not in
fact occur and days on which the Purchased Securities are subject to percentage of movement or
volume limitations, provided, however, that for purposes of calculating Market Value, such
term shall mean a day on which regular trading occurs in the principal market for the assets the
value of which is being determined. Notwithstanding the foregoing, (i) for purposes of Paragraph 4
of the Agreement, “business day” shall mean any day on which regular trading occurs in the
principal market for any Purchased Securities or for any assets constituting Additional Purchased
Securities under any outstanding Transaction hereunder and “next business day” shall mean the next
day on which a transfer of Additional Purchased Securities may be effected in accordance with
Paragraph 7 of the Agreement, and (ii) in no event shall a Saturday or Sunday be considered a
business day.

3.
Minimum Transfer Amount. Paragraph 4(e) is hereby amended and restated in its
entirety to read as follows:

     “(e) Seller and Buyer hereby agree, with respect to all Transactions hereunder, that the
respective rights of Buyer or Seller under subparagraphs (a) and (b) of this Paragraph may be
exercised only where a Margin Deficit or Margin Excess, as the case may be, exceeds $1,000,000
USD.”

4.
Purchase Price Maintenance.

(a) The parties agree that in any Transaction hereunder whose term extends over an Income
payment date for the Securities subject to such transaction, Buyer shall on the date such income is
paid transfer to or credit to the account of Seller an amount equal to such Income payment or
payments pursuant to Paragraph 5(i) and shall not apply the Income payment or payments to reduce
the amount to be transferred to Buyer or Seller upon termination of the Transaction pursuant to
Paragraph 5(ii) of the Agreement.

(b) Notwithstanding the definition of Purchase Price in Paragraph 2 of the Agreement and the
provisions of Paragraph 4 of the Agreement, the parties agree (i) that the Purchase Price will not
be increased or decreased by the amount of any cash transferred by one party to the other

 

 

pursuant to Paragraph 4 of the Agreement and (ii) that transfer of such cash shall be
treated as if it constituted a transfer of Securities (with a Market Value equal to the U.S. dollar
amount of such cash) pursuant to Paragraph 4(a) or (b), as the case may be (including for purposes
of the definition of “Additional Purchased Securities”).

(c ) The parties agree that any cash transferred by Seller to Buyer pursuant to Paragraph 4 of the
Agreement shall earn interest at a rate equal to Fed Funds Open Rate.

5.
Submission to Jurisdiction and Waiver of Immunity.

Each party irrevocably and unconditionally (i) submits to the non-exclusive jurisdiction of
any United States Federal or New York State court sitting in Manhattan, and any appellate court
from any such court, solely for the purpose of any suit, action or proceeding brought to enforce
its obligations under the Agreement or relating in any way to the Agreement or any Transaction
under the Agreement and (ii) waives, to the fullest extent it may effectively do so, any defense of
an inconvenient forum to the maintenance of such action or proceeding in any such court and any
right of jurisdiction on account of its place of residence or domicile.

To the extent that either party has or hereafter may acquire any immunity (sovereign or otherwise)
from any legal action, suit or proceeding, from jurisdiction of any court or from set off or any
legal process (whether service or notice, attachment prior to judgment, attachment in aid of
execution of judgment, execution of judgment or otherwise) with respect to itself or any of its
property, such party hereby irrevocably waives and agrees not to plead or claim such immunity in
respect of any action brought to enforce its obligations under the Agreement or relating in any way
to the Agreement or any Transaction under the Agreement.

6.
Resale of Purchased Securities.

The parties hereto acknowledge that from time to time the Purchased Securities may
consist of Securities that have not been registered under the United States Securities Act of
1933 (the “Securities Act”). Accordingly, Buyer agrees that if any Purchased Securities consist
of Securities that have not been registered under the Securities Act, Buyer will not resell or
otherwise transfer such Purchased Securities except in accordance with Regulation S or Rule
144A or other available exemption under the Securities Act and in accordance with all
applicable laws and regulations in each jurisdiction in which it offers, sells or delivers
Purchased Securities

7.
Delivery by Buyer of Purchased Securities on Repurchase Date. For the avoidance of
doubt, Buyer and Seller hereby acknowledge and agree that on each Repurchase Date, Buyer shall
transfer back to Seller all right, title and interest to the exact same Purchased Securities that
were transferred to Buyer by Seller on the Purchase Date.

8.
Intent. Paragraph 19 is hereby amended by adding the following:

          “(e) For the avoidance of doubt, the parties clarify that they intend to treat each
Transaction as a secured financing transaction for purposes of U.S. federal income tax, and agree
not to act in a manner inconsistent with such treatment of each Transaction.”

In the event of any inconsistency between the provisions of this Annex and the provisions of the
Master Repurchase Agreement attached hereto, the terms contained in this Annex shall prevail.

 

 

	 	 	 	 	 	 	 	 	 	 	 
	CSE MORTGAGE LLC	 	 	 	BARCLAYS CAPITAL INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Thomas A. Fink
 

	 	 	 	By:
	 	/s/ Bill Lent
 

	 	 
	Name:

	 	Thomas A. Fink
	 	 	 	Name:
	 	Director	 	 
	Title:

	 	Chief Financial Officer &
	 	 	 	Title:
	 	1/19/06	 	 
	 

	 	Senior Vice President Finance	 	 	 	 	 	 	 	 

 

 

ANNEX II

NAMES AND ADDRESSES FOR COMMUNICATIONS BETWEEN PARTIES

BARCLAYS CAPITAL

For all legal notices under this Agreement:

Barclays Capital Services LLC

Documentation Services Unit

200 Cedars Knolls Road

Whippany, NJ 07981

Immediate Attention: Bob Richardson

Telephone: (973) 576-3540

Fax: (973) 576-3385

with a copy to:

Barclays Capital Inc.

Legal Department

200 Park Avenue

New York, NY 10166

Immediate Attention: Jonathan Hughes, General Counsel

Telephone: (212) 412-3544

Fax: (212) 412-7519

For operational questions or problems:

Mr. William Arnold

Barclays Capital Services LLC

200 Cedars Knolls Road

Whippany, NJ 07981

Telephone: (973) 576-3202

Fax: (973) 576-6924

CSE MORTGAGE LLC

     Contract Issues:

CSE Mortgage LLC

4445 Willard Ave. 12th Floor

Chevy Chase, MD 21815

Attn: General Counsel

Facsimile No.: 301-841-2380

     Other Issues:

CSE Mortgage LLC

4445 Willard Ave. 12th Floor

Chevy Chase, MD 21815

Attn: Treasury

Facsimile No.: 301-841-2307

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