Exhibit 10.4


 


Execution Version 


 


SERVICING AGREEMENT




 


among




 


CONN’S RECEIVABLES FUNDING 2019-B,
LLC,

AS ISSUER,


 


CONN’S RECEIVABLES 2019-B TRUST,

AS RECEIVABLES TRUST,



 


CONN APPLIANCES, INC.,

AS SERVICER,


 


and


 


WELLS FARGO BANK, NATIONAL ASSOCIATION,

AS TRUSTEE


 





 



 


DATED AS OF NOVEMBER 26, 2019


 






     


     


    

 


TABLE OF CONTENTS





 


	 	
        
	Page
	ARTICLE
    I      
      DEFINITIONS	 
	Section 1.01	Defined Terms	1
	Section 1.02	Definitions	4
	Section 1.03	Other Definitional Provisions	5
	ARTICLE
    II    
       ADMINISTRATION AND SERVICING OF RECEIVABLES AND RELATED SECURITY	 
	Section 2.01	Appointment of Servicer	5
	Section 2.02	Duties of Servicer	7
	Section 2.03	Purchase of Ineligible Receivables	13
	Section 2.04	Purchase of Returned and Refinanced Receivables	14
	Section 2.05	Rights After Designation of New Servicer	14
	Section 2.06	Servicer Default	17
	Section 2.07	Servicer Indemnification of Indemnified Parties	18
	Section 2.08	Grant of License	19
	Section 2.09	Servicing Compensation	19
	Section 2.10	Representations and Warranties of the Servicer	20
	Section 2.11	Reports and Records for the Trustee	22
	Section 2.12	Reports to the Commission	23
	Section 2.13	Affirmative Covenants of the Servicer	23
	Section 2.14	Negative Covenants of the Servicer	25
	Section 2.15	Sale of Defaulted Receivables	26
	Section 2.16	Deemed Collections	26
	ARTICLE
    III    
      RIGHTS OF NOTEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS	 
	Section 3.01	Establishment of Accounts	27
	Section 3.02	Collections and Allocations	27
	ARTICLE
IV   
      OTHER SERVICER POWERS	 
	Section 4.01	Appointment of Paying Agent	27
	Section 4.02	[Reserved.]	28
	ARTICLE
    V     
     OTHER MATTERS RELATING TO THE SERVICER	 
	Section 5.01	Liability of the Servicer	28
	Section 5.02	Limitation on Liability of the Servicer and Others	28
	Section 5.03	Servicer Not to Resign	28



 






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TABLE OF CONTENTS


 


	 	
        

        
	Page



	Section 5.04	Waiver of Defaults	29
	ARTICLE VI      ADDITIONAL OBLIGATION OF THE SERVICER WITH RESPECT TO THE TRUSTEE	 
	Section 6.01	Successor Trustee	29
	Section 6.02	Tax Returns	29
	Section 6.03	Final Payment with Respect to Any Series	30
	Section 6.04	Optional Purchase of Receivables Trust Estate	30
	ARTICLE VII     MISCELLANEOUS PROVISIONS	 
	Section 7.01	Amendment	31
	Section 7.02	Protection of Right, Title and Interest to Receivables and Related Security	32
	Section 7.03	Governing Law	33
	Section 7.04	Notices	33
	Section 7.05	Severability of Provisions	34
	Section 7.06	Delegation	34
	Section 7.07	Waiver of Trial by Jury	34
	Section 7.08	Further Assurances	34
	Section 7.09	No Waiver; Cumulative Remedies	34
	Section 7.10	Counterparts	34
	Section 7.11	Third-Party Beneficiaries	34
	Section 7.12	Actions by Noteholders	34
	Section 7.13	Rule 144A Information	35
	Section 7.14	Merger and Integration	35
	Section 7.15	Headings	35
	Section 7.16	Rights of the Trustee	35
	Section 7.17	Sales Tax Proceeds	35
	Section 7.18	Limitation of Liability	35
	EXHIBITS	 	 
	Exhibit
A     Form of Monthly Servicer Report	 
	Exhibit
    B     
    Form of Annual Servicer’s Certificate	 
	 	 	 
	SCHEDULES	 	 
	 	 	 
	Schedule
2.10(i)              Litigation	 




 



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SERVICING AGREEMENT dated
as of November 26, 2019 (the “Agreement”) by and among CONN’S RECEIVABLES FUNDING 2019-B, LLC,
a Delaware limited liability company, as issuer (the “Issuer”), CONN’S RECEIVABLES 2019-B TRUST,
a Delaware statutory trust, as receivables trust (the “Receivables Trust”), CONN APPLIANCES, INC., a
Texas corporation (“Conn Appliances”), as initial Servicer, and WELLS FARGO BANK, NATIONAL ASSOCIATION,
a national banking association, as trustee under the Indenture (defined below) (in such capacity, together with its successors
and assigns in such capacity, the “Trustee”).


 


WHEREAS, the Receivables
Trust has purchased from Conn Appliances Receivables Funding, LLC (the “Depositor”), and the Depositor purchased
from Conn Credit I, LP Contracts, Receivables and other Related Security relating to such Receivables pursuant to the terms of
and subject to the conditions set forth in the Second Receivables Purchase Agreement, dated as of November 26, 2019 between the
Depositor and the Receivables Trust;


 


WHEREAS, the Issuer is
entering into a Base Indenture and a supplement thereto, each dated as of November 26, 2019 (the Base Indenture, as amended, supplemented
or otherwise modified from time to time, the “Indenture”), between the Issuer and the Trustee, and each of the
other Transaction Documents to which it is a party, pursuant to which the Issuer plans to issue Notes in order to finance its purchase
of the Receivables Trust Certificate, which represents the ownership of the Receivables Trust, which owns the Contracts, Receivables
and other Related Security relating to such Receivables;


 


WHEREAS, the Servicer
is willing to service all Receivables and other Related Security acquired by the Receivables Trust, pursuant to the terms and subject
to the conditions set forth in this Agreement;


 


NOW, THEREFORE, in consideration
of the premises and the mutual covenants herein contained, the parties hereto agree as follows:


 


ARTICLE
I



DEFINITIONS


 


Section 1.01          
Defined Terms. As used in this Agreement, the following terms have the following meanings:


 


“Back-Up
Servicer” means Systems & Services Technologies, Inc., together with its permitted successors and assigns, in such
capacity.


 


“Back-Up
Servicing Agreement” is defined in Section 2.01(b).


 


“Conn
Appliances” is defined in the preamble.


 


“Consolidated
Net Worth” means at any date, with respect to any Person, the consolidated stockholders’ equity of such Person
and its consolidated Subsidiaries, minus (to the extent reflected in determining such consolidated stockholders’ equity)
all intangible assets (in each case, as determined in accordance with GAAP, applied on a basis consistent with the most recent
audited financial statements of such Person before the Closing Date).


 






     


     


    

 


“Custodian”
is defined in Section 2.02(a)(ii).


 


“Depositor”
is defined in the first recital.


 


“Field
Collections” is defined in Section 2.02(c).


 


“Indenture”
is defined in the second recital.


 


“In-Store
Payments” is defined in Section 2.02(c).


 


“Issuer”
is defined in the preamble.


 


“Issuer
Indemnified Parties” is defined in Section 2.07.


 


“Mail
Payments” is defined in Section 2.02(c).


 


“Optional
Purchase” is defined in Section 6.04.


 


“Optional
Purchase Price” means an amount equal to the fair market value of the Receivables on the date on which the Optional Purchase
will occur, provided, however, that the Optional Purchase Price shall not be less than the accrued and unpaid interest, if applicable,
then due on the Series 2019-B Notes and the aggregate unpaid principal, if any, of all of the outstanding Series 2019-B Notes plus
an amount sufficient to pay (A) the Servicing Fee (including to any successor servicer) for such Payment Date and all unpaid Servicing
Fees with respect to prior Payment Dates and (B) the Trustee, Receivables Trust Trustee, Back-Up Servicer and Issuer Fees and Expenses
for such Payment Date and all unpaid Trustee, Receivables Trust Trustee, Back-Up Servicer and Issuer Fees and Expenses with respect
to prior Payment Dates, after giving effect to the Available Funds for such Payment Date).


 


“Permitted
Modification” means any change to or modification (for the avoidance of doubt, any modification made solely as required
by applicable law shall be deemed to be a “Permitted Modification”) of the terms of a Receivable, including the timing
or amount of payments on the Receivable, so long as one of the following conditions has been satisfied:


 


		a.	any change or modification, individually and collectively with any other change or modification
proposed to be made with respect to the Receivable, is ministerial in nature;



 


		b.	any change or modification is (i) granted to an Obligor in accordance with the Servicer’s
Credit and Collection Policies and (ii) such change or modification (including when taken together with any other prior change
or modification) does not result in a Significant Modification;



 






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		c.	any change or modification where (i) the Obligor is in payment default or (ii) in the judgment
of the Servicer, in accordance with the Servicer’s Credit and Collection Policies, it is reasonably foreseeable that the
Obligor will default (it being understood that the Servicer may proactively contact any Obligor whom the Servicer believes may
be at higher risk of a payment default under the related Receivable); or



 


		d.	any extension, deferral, amendment, modification, alteration or adjustment, including a “payment
holiday” or “skip-a-pay” extension granted to an Obligor that is made (I) in accordance with the Servicer’s
Credit and Collection Policies and (II) with respect to which the Servicer has delivered an Opinion of Counsel to the Issuer, the
Receivables Trust, the Trustee and the Receivables Trust Trustee to the effect that such extension, deferral, amendment, modification,
alteration or adjustment, including a “payment holiday” or “skip-a-pay” extension will not result in or
not cause the Receivables Trust (or any part thereof) to be classified, for U.S. federal income tax purposes, as an association
(or a publicly traded partnership) taxable as a corporation or as other than a fixed investment trust described in Treasury Regulation
section 301.7701-4(c) that is treated as a grantor trust under subpart E, Part I of subchapter J of the Code.



 


“Post
Office Box” means post office box 815867, in Dallas, Texas, 75234, and, upon notice to Trustee, each other post office
box opened and maintained by the Receivables Trust or the Servicer for the receipt of Collections from Obligors and governed by
a Post Office Box Agreement reflecting that such post office box is in the name of the Receivables Trust, as any such post office
boxes may be closed from time to time by the Servicer with prior written notice to the Trustee (provided that (i) there shall
at all times be at least one post office box open to receive Collections, (ii) the Servicer takes customary and prudent procedures
to notify Obligors to make payments to such post office box and (iii) the closing or opening of any post office box is consistent
with the servicing standard set forth in Section 2.02(b)(ii)).


 


“Post
Office Box Agreement” means an agreement by and among the Servicer and the United States Postal Service, which is a
standard post office box agreement, specifying the rights of the parties in the Post Office Box.


 


“Purchase
Amount” shall have the meaning assigned to such term in Section 2.03.


 


“Purchase
Event” has the meaning assigned to that term in Section 2.03.


 


“Purchase
Payment” has the meaning assigned to that term in Section 2.03.


 


“Refinanced
Receivable” has the meaning assigned to that term in Section 2.04.


 






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“Returned/Refinanced
Receivables” has the meaning assigned to that term in Section 2.04.


 


“Returned
Receivable” has the meaning assigned to that term in Section 2.04.


 


“Servicer”
is defined in Section 2.01(a).


 


“Servicer
Default” is defined in Section 2.06.


 


“Servicer
Indemnified Parties” is defined in Section 2.07.


 


“Servicing
Fee” is defined in Section 2.09.


 


“Significant
Modification” means any of the following changes (taking changes that occurred prior to acquisition of the Receivables
by the Receivables Trust into account) to a Receivable:


 


		a.	lowering the principal amount of a Receivable if the reduction lowers the yield of the Receivable
by more than the greater of (x) 25 basis points or (y) 5 percent of the annual yield of the unmodified Receivable;



 


		b.	making any change in interest rate of a Receivable or other payments which results in the change
in the annual yield of more than the greater of (x) 25 basis points or (y) 5 percent of the annual yield of the unmodified Receivable;
and



 


		c.	deferral of any payment on the Receivable beyond the due date for that payment that would result
in a deferral of payments for a period of more than the lesser of 5 years or 50% of the original term of the Receivable taking
into account, in the aggregate, all deferments and deferrals.



 


“Specified
Servicer Default” means any Servicer Default of the type specified in paragraph (d) of Section 2.06.


 


“SST”
means Systems & Services Technologies, Inc.


 


“Successor
Servicer” is defined in Section 2.01(b)(i).


 


“Trustee”
is defined in the preamble.


 


Section 1.02         
Definitions. Capitalized terms used but not defined herein shall have the respective meanings given to such terms
in the Indenture and, to the extent applicable, the Series Supplement.


 






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Section 1.03          
Other Definitional Provisions.


 


(a)           
All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made
or delivered pursuant hereto unless otherwise defined therein.


 


(b)          
Where the character or amount of any asset or liability or item of income or expense is required to be determined, or any
accounting computation is required to be made, for the purpose of this Agreement, such determination or calculation shall be made
in accordance with GAAP. When used herein, the term “financial statement” shall include the notes and schedules thereto.
All accounting determinations and computations hereunder or under any other Transaction Documents shall be made without duplication.


 


(c)           
[Reserved.]


 


(d)          
The words “hereof,” “herein” and “hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; and Section, subsection,
Schedule and Exhibit references contained in this Agreement are references to Sections, subsections, Schedules and Exhibits in
or to this Agreement unless otherwise specified.


 


ARTICLE
II



ADMINISTRATION AND SERVICING

OF RECEIVABLES AND RELATED SECURITY


 


Section 2.01          
Appointment of Servicer.


 


(a)          
The servicing, administering and collection of the Receivables shall be conducted by such Person (the “Servicer”)
so designated from time to time in accordance with this Section 2.01. Until the Trustee gives notice to Conn Appliances
of the designation of a new Servicer pursuant to this Section 2.01, Conn Appliances is hereby designated as, and hereby
agrees to perform the duties and obligations of, the Servicer pursuant to the terms hereof. The Servicer may not delegate any of
its rights, duties or obligations hereunder, or designate a substitute Servicer, without the prior written consent of the Trustee
and the Receivables Trust; provided, however, that the Servicer shall be permitted to delegate its duties hereunder
to any of its Affiliates and may use subservicers, contractors or agents but will remain obligated and liable for the performance
of any such delegated duties as if it were performing such duties itself.


 


(b)          
(i) After the occurrence of a Servicer Default, the Trustee may, and upon the direction of the Required Noteholders or in
the case of a Specified Servicer Default shall, in accordance with the provisions set forth in clause (ii) below, appoint
the Back-Up Servicer pursuant to the Back-Up Servicing Agreement dated as of the date hereof (as amended, supplemented or otherwise
modified from time to time, the “Back-Up Servicing Agreement”), among the Back-Up Servicer and the various other
parties thereto or any other successor servicer (SST, or any other successor servicer so appointed in accordance with the terms
of Section 2.01(b)(ii) below, in such capacity, the “Successor Servicer”) to succeed to Conn Appliances as Servicer
hereunder.


 






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(ii)             
If (x) the Back-Up Servicer, on the date of its appointment as Successor Servicer or at any time following such appointment,
fails or is unable to perform the duties of the Servicer hereunder or has previously resigned or otherwise been terminated as Back-Up
Servicer, or (y) any other Person designated Successor Servicer in accordance with this Section 2.01 resigns, fails or
is unable to perform the duties of the Servicer hereunder following its appointment as Successor Servicer, the Trustee may
with the consent of the Required Noteholders, and upon the direction of the Required Noteholders shall, appoint as Servicer any
Person to succeed the then-current Servicer on the condition in each case that any such Person so appointed shall agree to perform
the duties and obligations of the Servicer pursuant to the terms hereof. Until such time as the Person so appointed becomes obligated
to begin acting as Servicer hereunder, the then current Servicer will continue to perform all servicing functions under this Agreement
and the other Servicer Transaction Documents. If the Trustee is not able to appoint a new Servicer to succeed Conn Appliances,
the Back-Up Servicer or any other Person then acting as Servicer, within a reasonable time following the date upon which it is
required to so appoint a successor to the Servicer pursuant to this Section 2.01 (but in any event not later than 30
days following such date), the Trustee shall at the expense of the Issuer (as Certificateholder of the Receivables Trust) petition
a court of competent jurisdiction to appoint as the Servicer hereunder any established financial institution having, a net worth
of not less than $25,000,000 and whose regular business includes the servicing of receivables comparable to the Receivables which
are the subject of this Agreement. Following any appointment of a Successor Servicer pursuant to this Section 2.01,
the Trustee will provide notice thereof to the Issuer, the Receivables Trust, the Depository, the Depositor and the Noteholders.


 


(c)          
The Trustee shall not be responsible for any differential between the Servicing Fee and any compensation paid to a Successor
Servicer hereunder.


 






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Section 2.02          
Duties of Servicer.


 


(a)           
(i) The Servicer shall take or cause to be taken all such action as may be reasonably necessary or advisable to collect
each Receivable from time to time, all in accordance with applicable Laws, with reasonable care and diligence, and in accordance
with the Credit and Collection Policies and otherwise in accordance with the Servicer Transaction Documents. Each of the Receivables
Trust, Issuer (as Certificateholder of the Receivables Trust), each Noteholder by its acceptance of the related Notes and each
of the other Secured Parties, hereby appoints as its agent the Servicer, from time to time designated pursuant to Section 2.01
hereof, to enforce its respective rights and interests in and under the Contracts, Receivables and Related Security, Collections
and proceeds with respect thereto. To the extent permitted by applicable law, each of the Receivables Trust and Conn Appliances
(to the extent not then acting as Servicer hereunder) hereby grants to any Servicer appointed hereunder all rights and powers of
the Receivables Trust and/or Conn Appliances, as the case may be, under the Contracts and with respect to the Related Security,
and hereby grants an irrevocable power of attorney to take in the Receivables Trust’s and/or Conn Appliances’ name
and on behalf of the Receivables Trust or Conn Appliances any and all steps necessary or desirable, in the reasonable determination
of the Servicer, to collect all amounts due under any and all Receivables, including, without limitation, to cancel any policy
of insurance, make demands for unearned premiums, commence enforcement proceedings, exercise other powers under a Contract, execute
and deliver instruments of satisfaction or cancellation, or full or partial discharge, with respect to Receivables, endorse the
Receivables Trust’s, the Issuer’s and/or Conn Appliances’ name on checks and other instruments representing Collections
and enforce such Receivables and the related Contracts. The Servicer shall, as soon as practicable following receipt thereof, turn
over to Conn Appliances any collections of any Indebtedness of any Person which is not on account of a Receivable. The Servicer
shall not voluntarily make the Receivables Trust, the Receivables Trust Trustee, the Issuer, the Trustee, any Noteholder or any
of their respective agents a party to any litigation without the prior written consent of such Person other than any litigation
adverse to such person. Without limiting the generality of the foregoing and subject to Section 2.04, the Servicer is hereby
authorized and empowered unless such power and authority is revoked in writing by the Trustee (as designee of the Receivables Trust)
pursuant to the terms of the Servicer Transaction Documents (A) to make deposits into the Collection Account as set forth in this
Agreement and the Indenture; provided, however, that with respect to any Successor Servicer, nothing contained in any Servicer
Transaction Document shall impose an obligation on such Successor Servicer to make any withdrawals or payments from the Collection
Account or any other Trust Account, (B) to instruct the Trustee in writing, substantially in the form of the Monthly Servicer Report,
to make deposits or withdrawals and payments from the Collection Account, the Payment Account and any Series Account, in accordance
with such instructions as set forth in the Indenture, (C) to instruct or notify the Trustee in writing as set forth in this Agreement
and, the Indenture, (D) to make all calculations, allocations and determinations required of the Servicer under the Indenture and
as required herein or to establish Series Accounts, (E) to execute and deliver, on behalf of the Receivables Trust for the benefit
of the Issuer and the Noteholders, any and all instruments of satisfaction or cancellation, or of partial or full release or discharge,
and all other comparable instruments, with respect to the Receivables and the other Contracts and Related Security and, after any
delinquency in payment relating to any Receivable, to the extent permitted under and in compliance with applicable law and regulations,
to commence enforcement proceedings with respect thereto (including cancellation of the related insurance policy) and (F) in the
case of the initial Servicer only, to make any filings, reports, notices, applications, registrations with, and to seek any consents
or authorizations from, the Securities and Exchange Commission and any state securities authority on behalf of the Issuer as may
be necessary or advisable to comply with any federal or state securities or reporting requirements.


 






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(ii)             
Subject to the terms and conditions of this Section 2.02(a)(ii), the Servicer shall maintain custody and possession
of the Receivable Files on behalf of, and as bailee for, the Receivables Trust (for the benefit of the Trustee, the Issuer, the
Noteholders and the other Secured Parties) (in such capacity, together with its successors and assigns, the “Custodian”).


 


(iii)       
      To the extent the Servicer has any duty or obligation to title or re-title the Receivables,
the Servicer shall ensure that title is properly reflected in the name of the Receivables Trust Trustee on behalf of
Conn’s Receivables 2019-B Trust, and shall be recorded in the name of “Wilmington Trust, National Association,
not in its individual capacity but solely in its capacity as Receivables Trust Trustee of Conn’s Receivables 2019-B
Trust”.


 


(A)          
Custodian agrees to maintain possession of the related Receivable Files at its offices where they are presently maintained,
at the offices of the related subcustodians or at such other offices of Custodian as shall from time to time be identified to Trustee
by written notice. Custodian shall segregate physical Receivable Files from other files maintained by Custodian and shall, to the
extent a Receivable File is stored in electronic format, maintain an authoritative electronic copy of each Receivable File on a
data tape or other electronic media in a fire-resistant safe or room. The Receivables Trust hereby appoints Conn Appliances, and
Conn Appliances hereby agrees to act, as initial Custodian hereunder. Custodian may, at the Servicer’s request, temporarily
deliver individual Receivable Files or any portion thereof to Servicer without notice as necessary to conduct collection and other
servicing activities in accordance with the Credit and Collection Policies.


 


(B)          
As custodian and bailee, Custodian shall hold the Receivable Files (by itself and/or through subcustodians) on behalf of
the Receivables Trust (for the benefit of the Trustee, the Issuer, the Noteholders and the other Secured Parties) and, by agreeing
to act as Custodian, is deemed to have received notice of the security interests of the Secured Parties in the Contracts and related
Receivables. As custodian and bailee, Custodian shall maintain accurate records pertaining to each Receivable to enable it to comply
with the terms and conditions of this Agreement, maintain a current inventory thereof and conduct periodic physical inspections
of Receivable Files held by it under this Agreement and attend to all other details in connection with maintaining custody of the
Receivable Files.


 






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(C)          
In performing its duties under this Section 2.02(a)(ii), Custodian agrees to act with reasonable care, using
that degree of skill and care that it exercises with respect to similar contracts owned and/or serviced by it. Custodian shall
promptly report to the Receivables Trust and the Trustee any material failure by it to hold the Receivable Files as herein provided
and shall promptly take appropriate action to remedy such failure. In acting as custodian of the Receivable Files, Custodian agrees
further not to assert, and shall cause each related subcustodian not to assert any beneficial ownership interests in the Receivables.
Custodian agrees to indemnify the Receivables Trust, Trustee, the Secured Parties and Issuer, and their respective officers, directors,
employees, partners and agents for any and all liabilities, obligations, losses, damages, payments, costs, or expenses of any kind
whatsoever which may be imposed on or incurred by any such Person arising from the negligence or willful misconduct of Custodian
in maintaining custody of the Receivable Files pursuant to this Section 2.02(a)(ii); provided, however, that
Custodian will not be liable to the extent that any such amount resulted from the negligence or willful misconduct of such Person.


 


(D)   
       The appointment of Custodian shall terminate upon acceptance of the appointment of a
Successor Servicer in accordance with this Agreement. The Successor Servicer, by acceptance of its appointment, shall become
the successor Custodian. Promptly following the appointment of a successor Custodian, and in any event within five days of
such appointment, the then-existing Custodian shall (at such Custodian’s sole cost and expense if a Servicer Default
shall have occurred or if such Custodian shall have been removed for cause) deliver all of the Receivable Files in its
possession, and all records maintained by it with respect thereto, to such successor Custodian.


 


(b)          
(i) Servicer shall service and administer the Receivables on behalf of the Receivables Trust (for the benefit of the Issuer,
the Trustee and the other Secured Parties) and shall have full power and authority, acting alone and/or through subservicers, contractors
or agents as provided in Section 2.02(b)(iii), to do any and all things which it may deem reasonably necessary or desirable
in connection with such servicing and administration and which are consistent with this Agreement and the other Servicer Transaction
Documents. Consistent with the terms of this Agreement and the other Servicer Transaction Documents, Servicer (or any agent on
Servicer’s behalf) may waive, modify or vary any term of any Receivable or consent to the postponement of strict compliance
with any such term or in any manner, grant indulgence to any Obligor if, in Servicer’s sole discretion, such waiver, modification,
postponement or indulgence will maximize collections on such Receivable; provided, however, that Servicer (or any
agent on Servicer’s behalf) may not permit any modification with respect to any Receivable unless such modification is a
Permitted Modification, is in accordance with the Credit and Collection Policies and, in the case of any extension of the final
maturity date of a Receivable, such extension does not extend beyond the Legal Final Payment Date and the total amount of extensions
of such Receivables is not in excess of twenty-four months unless such extension is as a result of or required by applicable law
or judicial order. Without limiting the generality of the foregoing, Servicer in its own name or in the name of the Receivables
Trust is hereby authorized and empowered by the Receivables Trust when Servicer believes it appropriate in its reasonable judgment
to execute and deliver, on behalf of the Receivables Trust, any and all instruments of satisfaction or cancellation, or of partial
or full release or discharge and all other comparable instruments, with respect to the Receivable.


 






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(ii)             
Servicer shall service and administer the Receivables by employing such procedures (including collection procedures) and
degree of care, in each case consistent with industry standards, as are customarily employed by Servicer in servicing and administering
contracts and notes owned or serviced by Servicer comparable to the Receivables.


 


(iii)    
         Servicer may perform any of its duties pursuant to this Agreement,
including those delegated to it pursuant to this Agreement, through subservicers, contractors or agents appointed by
Servicer. Such subservicers may include Affiliates of Servicer. Notwithstanding any such delegation of a duty, Servicer shall
remain obligated and liable for the performance of such duty as if Servicer were performing such duty.


 


(iv)            
Servicer may take such actions as are necessary to discharge its duties as Servicer in accordance with this Agreement, including
the power to execute and deliver on behalf of Issuer such instruments and documents as may be customary, necessary or desirable
in connection with the performance of Servicer’s duties under this Agreement (including consents, waivers and discharges
relating to the Receivable).


 


(v)              
Servicer shall keep separate records covering the transactions contemplated by this Agreement including the identity and
collection status of each Receivable.


 


(c)          
Collections. (i) On or prior to the Closing Date, initial Servicer shall have established and shall maintain thereafter
the following system of collecting and processing Collections of Receivables.  Servicer shall direct the Obligors to make
payments of Receivables only (A) by check mailed to the Post Office Box (such payments, upon receipt in such Post Office Box being
referred to herein as “Mail Payments”), (B) by cash, credit card or check delivered in person or by phone at
retail stores or other business locations of initial Servicer (such payments, upon receipt by such stores, being referred to herein
as “In-Store Payments”), (C) by third party money wire transfer, ACH or other bill pay service that provides
for the electronic deposit of funds into an account of the Servicer on behalf of Obligors, (D) by utilizing the Servicer’s
Webpay portal; or (E) by cash, credit card or check delivered in person or by phone or by an agent of Conn Appliances at a service
center of Conn Appliances or, in the case of certain delinquent accounts, to employees of Conn Appliances operating out of a service
center of Conn Appliances or Servicer (such payments, upon receipt by the service center, being referred to herein as “Field
Collections”).  Notwithstanding anything to the contrary in this Section 2.02(c), any Successor Servicer
shall collect and process Collections of Receivables in any manner that is in accordance with the servicing standard set forth
herein.


 






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(ii)             
Servicer’s right of access to the Post Office Box and the Collection Account shall be revocable at the option of Trustee
as designee of the Receivables Trust (acting in its own discretion or at the direction of the Required Noteholders) upon the occurrence
of any Default, Event of Default or Servicer Default. In addition, after the occurrence of any Default, Event of Default or Servicer
Default, Servicer agrees that it shall, upon the written request of Trustee, notify all Obligors under Receivables to make payment
thereof to (i) one or more bank accounts and/or post-office boxes designated by Trustee and specified in such notice or (ii) any
Successor Servicer appointed hereunder. The Trustee may, and shall at the request of the Required Noteholders, if any Default,
Event of Default or Servicer Default has occurred, require the Servicer to establish a lockbox account pursuant to a lockbox agreement
acceptable to the Trustee, and with notice to the Notice Person, to direct all Obligors under Receivables to make payments to such
lockbox account.


 


(iii)     
        Servicer shall remove or cause all Mail Payments to be removed from the Post
Office Box by the close of business on each Business Day. Servicer shall process all such Mail Payments and all Field
Collections on the date received by recording the amount of the payment received from the Obligor and the applicable account
number. Subject to Section 5.4(a) of the Indenture, no later than the close of business on the second Business Day
following the date on which Mail Payments are received in the Post Office Box or Field Collections are received by Servicer,
Servicer shall deposit or cause such Mail Payments and such Field Collections to be deposited in the Collection Account.
Subject to Section 5.4(a) of the Indenture, the Retailer and Servicer shall cause all In-Store Payments to be (A) processed
as soon as possible after such payments are received by the Retailer or Servicer but in no event later than the Business Day
after such receipt, and (B) deposited in the Collection Account no later than two Business Days following the date of such
receipt. Subject to Section 5.4(a) of the Indenture, Servicer shall deposit all Recoveries into the Collection Account within
two Business Days after the date of its receipt of such Recoveries.


 


(iv)            
[Reserved.]


 






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(v)              
All Collections received by Servicer in respect of Receivables will, pending remittance to the Collection Account as provided
herein, be held by Servicer in trust for the exclusive benefit of Trustee (on behalf of the Receivables Trust) and shall not, unless
otherwise permitted by the Servicer Transaction Documents, be commingled with any other funds or property of any Originator, Depositor
or Servicer except as otherwise permitted in accordance with Section 5.4 of the Indenture. Only Collections shall be deposited
in the Collection Account. The Servicer may cause to be withdrawn from the Collection Account such amounts that have been deposited
into the Collection Account in error not representing Collections or other proceeds of the Trust Estate and any amounts that are
deposited by Servicer that relate to checks rejected by the Obligor’s bank for insufficient funds.


 


(vi)            
Each of Depositor, the Receivables Trust, Issuer and Servicer hereby irrevocably waive any right to set off against, or
otherwise deduct from, any Collections.


 


(vii)           
The Receivables Trust, Issuer and initial Servicer hereby transfer, assign, pledge, set over and convey to Trustee all of
their right, title and interest in and to the Collection Account and the other Trust Accounts.


 


(viii)       
    All payments or other amounts collected or received by Servicer in respect of a Receivable shall be applied to the Outstanding
Receivables Balance of such Receivable.


 


(d)           
[Reserved.]


 


(e)           
(i) (A) [Reserved.]


 


(B)              If
SST is then acting as Successor Servicer, it shall cause a firm of independent certified public accountants, which may also render
other services to SST or its affiliates, to deliver to the Issuer, the Receivables Trust, and the Trustee, within 120 days after
the end of each fiscal year thereafter, commencing in the year after SST becomes Successor Servicer, (i) an opinion by a firm
of nationally recognized independent certified public accountants on the financial position of SST at the end of the relevant fiscal
year and the results of operations and changes in financial position of SST for such year then ended on the basis of an examination
conducted in accordance with generally accepted auditing standards, and (ii) a report from such independent certified public
accountants to the effect that based on an examination of certain specified documents and records relating to the servicing of
SST’s loan portfolio conducted substantially in compliance with SSAE 16 (the “Applicable Accounting Standards”),
such firm is of the opinion that such servicing has been conducted in compliance with the Applicable Accounting Standards except
for (a) such exceptions as such firm shall believe to be immaterial and (b) such other exceptions as shall be set forth
in such statement.


 






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(ii)               The
Servicer will deliver to the Trustee and each Notice Person on or before the one year anniversary of the Closing Date and on each
anniversary thereof, a certificate in substantially the form of Exhibit B of an authorized officer of the Servicer stating
that (a) a review of the activities of the Servicer during the preceding year and of its performance under this Agreement was made
under the supervision of the officer signing such certificate and (b) to the best of such officer’s knowledge, based on such
review, the Servicer has fully performed in all material respects all of its obligations under this Agreement and each other applicable
Servicer Transaction Document to which it is a party throughout such period, or, if there has been a default in the performance
of any such obligation, specifying such default known to such officer and the nature and status thereof.


 


(f)            
Notwithstanding anything to the contrary contained in this Article II, the Servicer, if not Conn Appliances or any
Affiliate of Conn Appliances, shall have no obligation to collect, enforce or take any other action described in this Article II
with respect to any Indebtedness that is not included in the Trust Estate other than to deliver to the Issuer the collections and
documents with respect to any such Indebtedness as described in Section 2.02(a) hereof.


 


Section 2.03          
Purchase of Ineligible Receivables.


 


(a)           
If the representation and warranty of the initial Servicer contained in Section 2.10(d) was not true and correct
with respect to any Contract and related Receivable as of the Cut-Off Date in any material respect that materially and adversely
impacts such Contract and the related Receivable (any such Receivable, an “Ineligible Receivable”), the initial
Servicer shall, at the request of the Trustee, purchase such Ineligible Receivable within ten (10) Business Days after demand thereof
(a “Purchase Event”) from the Receivables Trust for an amount (the “Purchase Amount”) equal
to the then Outstanding Receivables Balance of such Ineligible Receivable at the time of such purchase (any such payment, a “Purchase
Payment”).


 


(b)          
The initial Servicer and the Receivables Trust agree that after payment of the Purchase Amount for an Ineligible Receivable
as provided in clause (a) above, such Ineligible Receivable shall no longer constitute a Receivable for purposes of the
Transaction Documents.


 


(c)           
Except as expressly set forth herein, the initial Servicer shall not have any right under this Agreement, by implication
or otherwise, to purchase from the Receivables Trust any Receivables.


 






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(d)          
The obligation of the initial Servicer to purchase an Ineligible Receivable pursuant to this Section 2.03 will survive
the termination of this Agreement or the earlier resignation or removal of the initial Servicer.


 


Section 2.04          
Purchase of Returned and Refinanced Receivables


 


(a)          
Notwithstanding anything to the contrary herein, the initial Servicer shall purchase any Receivable from the Receivables
Trust to the extent that (i) the Merchandise related to such Receivable is returned by an Obligor (a “Returned Receivable”),
or (ii) the Receivable is fully refinanced in connection with the purchase after the Cut-Off Date by the related Obligor of additional
Merchandise using the initial Servicer’s in-house credit (a “Refinanced Receivable,” and, together with
Returned Receivables, the “Returned/Refinanced Receivables”).


 


(b)          
The initial Servicer shall purchase any Returned/Refinanced Receivables pursuant to clause (a) for an amount equal
to the Purchase Amount for the applicable Returned/Refinanced Receivable. 


 


(c)           
The initial Servicer and the Receivables Trust agree that after payment of the Purchase Amount for a Returned/Refinanced
Receivables as provided in clause (a) above, such Returned/Refinanced Receivable shall no longer constitute a Receivable
for purposes of the Transaction Documents.


 


(d)           
No more than ten (10) Business Days prior to a Receivable becoming “worthless” under the Code, the initial
Servicer will, in order to facilitate the recovery of state sales tax refunds, purchase such Receivable from the Receivables Trust
in exchange for an obligation on the part of the initial Servicer to remit any recoveries and sales tax refunds actually collected
on such Receivable to the Collection Account.


 


Section 2.05         
Rights After Designation of New Servicer. (a) At any time following the designation of a Successor Servicer (other
than Conn Appliances or an Affiliate thereof) pursuant to Section 2.01 hereof:


 


(i)              
The Trustee may, at its option, or shall, at the direction of the Required Noteholders, direct that payment of all amounts
payable under any Receivable be made directly to the Trustee or its designee.


 


(ii)             
The Receivables Trust shall, at the Trustee’s request, (A) assemble all of the records relating to the Receivables
and other Related Security, and shall make the same available to the Trustee or its designee at a place selected by the Trustee
or its designee, and (B) segregate all cash, checks and other instruments received by it from time to time constituting Collections
of Receivables in a manner acceptable to the Trustee and shall, promptly upon receipt, remit all such cash, checks and instruments,
duly endorsed or with duly executed instruments of transfer, to the Trustee or its designee.


 






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(iii)           
The Receivables Trust hereby authorizes the Trustee and the Issuer (as Certificateholder of the Receivables Trust) to take
any and all steps in the Receivables Trust’s name and on behalf of the Receivables Trust necessary or desirable, in the reasonable
determination of the Trustee, to collect all amounts due under any and all Receivables, including, without limitation, endorsing
the Receivables Trust’s name on checks and other instruments representing Collections and enforcing such Receivables and
the related Contracts.


 


(iv)           
Upon delivery of a Notice of Appointment (as defined in the Back-Up Servicing Agreement) to the Back-Up Servicer, Conn Appliances
shall designate one or more employees acceptable to the Successor Servicer to assist the Successor Servicer with respect to In-Store
Payments so long as Conn Appliances continues to accept, or the Successor Servicer permits, In-Store Payments to be made as described
herein; provided, however, such employee of Conn Appliances shall in no event be deemed an employee, agent, custodian or nominee
of the Successor Servicer and the Successor Servicer shall have no responsibility or liability for any negligence or willful misconduct
of such employee or for such employee’s failure to assist the Successor Servicer (including without limitation any acts or
omissions unrelated to the transactions contemplated hereby). Upon the request of the Successor Servicer to the Trustee, 100% of
the Noteholders may direct the Successor Servicer to designate an employee of Successor Servicer to be assigned to any or all Conn
Appliances stores to oversee the collection of In-Store Payments at such stores. Each such employee shall be placed at such store
at the expense of the Issuer (as Certificateholder of the Receivables Trust) at the monthly rate reflected in the SST Fee Schedule.


 


(b)           The
Successor Servicer may accept and reasonably rely on all accounting and servicing records and other documentation provided to the
Successor Servicer by or at the direction of the predecessor Servicer, including documents prepared or maintained by any Originator,
or previous servicer, or any party providing services related to the Contracts, the Receivables and other Related Security (collectively,
 “third party”). The predecessor Servicer agrees to indemnify and hold harmless the related Successor Servicer, its
respective officers, employees and agents against any and all claims, losses, penalties, fines, forfeitures, legal fees and related
costs, judgments, and any other costs, fees and expenses that the Successor Servicer may sustain in any way related to the negligence
or willful misconduct of any third party hired by or at the direction of such predecessor Servicer, any Affiliate of such predecessor
Servicer or any of their respective agents with respect to the Contracts, the Receivables and other Related Security. The Successor
Servicer shall have no duty, responsibility, obligation or liability (collectively, “liability”) for the acts or omissions
of any such third party. If any error, inaccuracy or omission (collectively, “error”) exists in any information provided
to the Successor Servicer and such errors cause or materially contribute to the Successor Servicer making or continuing any error
(collectively, “continuing errors”), the Successor Servicer shall have no liability for such continuing errors; provided,
however, that this provision shall not protect the Successor Servicer against any liability which would otherwise be imposed by
reason of willful misconduct or negligence in discovering or correcting any error or in the performance of its duties contemplated
herein.


 






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In the event the Successor
Servicer becomes aware of errors and/or continuing errors that, in the opinion of the Successor Servicer, impair its ability to
perform its obligations hereunder, the Successor Servicer shall promptly notify the other parties hereto of such errors and/or
continuing errors. The Successor Servicer may undertake to reconstruct any data or records appropriate to correct such errors and/or
continuing errors and to prevent future continuing errors. The Successor Servicer shall be entitled to recover its costs thereby
expended from the predecessor Servicer.


 


Neither the Successor
Servicer nor any of the directors or officers or employees or agents of the Successor Servicer shall be under any liability to
the other parties hereto except as provided in this Agreement for any action taken or for refraining from the taking of any action
in good faith pursuant to this Agreement; provided, however, that this provision shall not protect the Successor
Servicer or any such Person against any liability that would otherwise be imposed by reason of willful misconduct, bad faith or
negligence in the performance of duties, by reason of reckless disregard of obligations and duties under this Agreement or any
violation of law by the Successor Servicer or such Person, as the case may be. The Successor Servicer and any director, officer,
employee or agent of the Successor Servicer may rely in good faith on the advice of counsel or on any document of any kind prima
facie properly executed and submitted by any Person respecting any matters arising under this Agreement.


 


The Successor Servicer
will not be responsible for delays attributable to the predecessor Servicer’s failure to deliver information, defects in
the information supplied by such predecessor Servicer or other circumstances beyond the reasonable control of the Successor Servicer.
In addition, the Successor Servicer (and in the case of clauses (A) and (C) below, if a Servicing Officer of the Successor Servicer
has actual knowledge of errors, which in the reasonable opinion of the Successor Servicer impair its ability to perform its services
hereunder, after reasonable inquiry), shall have no responsibility and shall not be in default hereunder or incur any liability
for any act or omission, failure, error, malfunction or any delay in carrying out any of its duties under this Agreement for: (A) any
such failure or delay that results from the Successor Servicer acting in accordance with information prepared or supplied by a
Person other than any Person hired by the Successor Servicer, the Successor Servicer or the failure of any such other Person (including
without limitation the predecessor Servicer, but excluding any Person hired by the Successor Servicer) to prepare or provide such
information or other circumstances beyond the control of the Successor Servicer; (B) any act or failure to act by any third
party (other than those hired by the Successor Servicer), including without limitation the predecessor Servicer, the Receivables
Trust, the Issuer and the Trustee; (C) any inaccuracy or omission in a notice or communication received by the Successor Servicer
from any third parties (other than those hired by the Successor Servicer); (D) the invalidity or unenforceability of any Contracts,
the Receivables and Related Security under applicable law; (E) the breach or inaccuracy of any representation or warranty
made with respect to the Contracts, the Receivables and Related Security; or (F) the acts or omissions of any predecessor
or successor Servicer.


 


The Servicer, the Issuer
and the Receivables Trust agree to reasonably cooperate with the Successor Servicer in effecting the assumption of its responsibilities
and rights under this Agreement. The Servicer shall provide to the Successor Servicer all necessary servicing files and records
relating to the Contracts, the Receivables and Related Security (as deemed necessary by the Successor Servicer at such time on
a reasonable basis) and the initial Servicer shall use all commercially reasonable efforts to provide to the Successor Servicer
access to and transfer of records and use by the Successor Servicer of all licenses, servicing system, software, hardware, equipment,
telephony, personnel, employees, facilities or other accommodations necessary or desirable to collect the Contracts, in all cases,
subject to the terms of the Intercreditor Agreement, if applicable. The departing Servicer (if SST, only upon termination for cause)
shall be obligated to pay the costs associated with the transfer of servicing files and records to the Successor Servicer. The
Receivables Trust, the Issuer and the Trustee, and the Successor Servicer shall take such action, consistent with this Agreement,
as shall be necessary to effectuate any such succession.


 






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Indemnification by
the Servicer under this Article shall be paid solely by the Servicer and not from the Trust Estate, and shall include, without
limitation, reasonable fees and expenses of counsel and expenses of litigation. If the indemnifying party has made any indemnity
payments pursuant to this Section 2.05(b) and the recipient thereafter collects any of such amounts from others, the recipient
shall promptly repay such amounts collected to the indemnifying party, without interest.


 


Section 2.06         
Servicer Default. The occurrence of any one or more of the following events shall constitute a Servicer default (each,
a “Servicer Default”):


 


(a)           
failure by the Servicer (or, for so long as Conn Appliances is the Servicer, Conn Appliances) to make any payment, transfer
or deposit under this Agreement or any other Servicer Transaction Document or to provide the Monthly Servicer Report to the Trustee
to make such payment, transfer, or deposit or any withdrawal on or before the date occurring five (5) days after the date such
payment, transfer or deposit is required to be made or given, as the case may be, under the terms of this Agreement or any other
Servicer Transaction Document (or in the case of a payment, transfer or deposit to be made or given with respect to any Interest
Period, by the related Payment Date);


 


(b)           
failure on the part of the Servicer (or, for so long as the Servicer is Conn Appliances, Conn Appliances) to duly observe
or perform any other covenants or agreements of the Servicer set forth in this Agreement or any other Servicer Transaction Document,
which failure continues unremedied for a period of thirty (30) days after the earlier of discovery by the Servicer or the date
on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Trustee,
the Receivables Trust, the Receivables Trust Trustee or the Issuer; or the Servicer shall assign its duties under this Agreement,
except as permitted by Article II;


 


(c)          
any representation, warranty or certification made by the Servicer in this Agreement or any other Servicer Transaction Document
or in any certificate delivered pursuant to this Agreement or any other Servicer Transaction Document shall prove to have been
incorrect when made and which continues unremedied for a period of thirty (30) days after the date on which the Servicer has actual
knowledge thereof or on which written notice thereof, requiring the same to be remedied, shall have been given to the Servicer
by the Trustee, the Issuer, the Receivables Trust or the Receivables Trust Trustee;


 






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(d)           
the Servicer shall become the subject of any Event of Bankruptcy or shall voluntarily suspend payment of its obligations;


 


(e)           
for so long as Conn Appliances is the Servicer, the failure of Consolidated Parent to maintain Consolidated Net Worth of
at least the sum of $250,000,000; or


 


(f)           
at any time that Conn Appliances is Servicer, a final judgment or judgments for the payment of money in excess of $7,500,000
in the aggregate shall have been rendered against the Issuer or Conn Appliances and the same shall have remained unsatisfied and
in effect, without stay of execution, for a period of thirty (30) consecutive days after the period for appellate review shall
have elapsed.


 


Section 2.07         
Servicer Indemnification of Indemnified Parties. (A) The Servicer (if other than SST as successor Servicer) will
indemnify, defend and hold harmless the Trustee, the Receivables Trust Trustee, the Issuer, the Receivables Trust, the Back-Up
Servicer, the successor Servicer and the Noteholders, and (B) SST as successor Servicer will indemnify and hold harmless the Trustee,
on behalf of the Noteholders, the Receivables Trust Trustee, on behalf of the holder of the Receivables Trust Certificate, the
Issuer and the Receivables Trust (in each case, together with their respective successors and permitted assigns) and each of their
respective agents, officers, members and employees (each, a “Servicer Indemnified Party” and, collectively, the “Servicer
Indemnified Parties”), from and against any claim, action, suit, loss, liability, expense, damage or injury suffered
or sustained by reason of such Servicer’s negligence in the performance of (or failure to perform) its duties or obligations
under the Servicer Transaction Documents or Servicer’s willful misconduct or breach by the Servicer of any of its representations
or warranties contained in this Agreement, including any judgment, award, settlement, reasonable attorneys’ fees and other
costs or expenses reasonably incurred in connection with the defense of any actual action, proceeding or claim and fees and expenses
incurred in connection with the enforcement of indemnification rights; provided, however, that the Servicer shall
not indemnify any Servicer Indemnified Party for any such acts or omissions attributable to the negligence or willful misconduct
of such Servicer Indemnified Party. Any indemnification pursuant to this Section shall be had only from the assets of the Servicer
and shall not be payable from Collections except to the extent such Collections are released to the Servicer in accordance with
Section 5.15 of the Indenture in respect of the Servicing Fee. The provisions of such indemnity shall run directly to and
be enforceable by such Servicer Indemnified Parties.


 


The Issuer (as Certificateholder
of the Receivables Trust) will indemnify, defend and hold harmless the Servicer and its officers, directors, employees, representatives
and agents (each, an “Issuer Indemnified Party” and, collectively, the “Issuer Indemnified Parties”),
from and against and reimburse the Servicer for any and all claims, expenses, obligations, liabilities, losses, damages, injuries
(to person, property, or natural resources), penalties, stamp or other similar taxes, actions, suits, judgments, reasonable costs
and expenses (including reasonable attorney’s and agent’s fees and expenses) of whatever kind or nature regardless
of their merit, demanded, asserted or claimed against the Servicer directly or indirectly relating to, or arising from, claims
against the Servicer by reason of its participation in the transactions contemplated hereby, including without limitation all reasonable
costs required to be associated with claims for damages to persons or property, and reasonable attorneys’ and consultants’
fees and expenses and court costs and fees and expenses incurred in connection with the enforcement of indemnification rights;
provided, however, that the Issuer shall not indemnify any Issuer Indemnified Party for any such acts or omissions attributable
directly or indirectly to the negligence or willful misconduct of such Issuer Indemnified Party or, other than with respect to
SST as successor Servicer, for any breach by the Servicer of any of the Servicer Transaction Documents. The provisions of this
section shall survive the termination of this Agreement or the earlier resignation or removal of the Servicer.


 






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Section 2.08     
     Grant of License. For the purpose of enabling the Back-Up Servicer or any other Successor
Servicer to perform the functions of servicing and collecting the Receivables upon a Servicer Default, Conn Appliances hereby
(i) assigns, to the extent not prohibited by law or the terms of any agreement to which Conn Appliances is a party or by
which it is deemed bound (by the terms thereof or by acceptance of a license), to the Trustee for the benefit of the Secured
Parties and shall be deemed to assign to the Trustee for the benefit of the Secured Parties, the Back-Up Servicer or any
other Successor Servicer all rights owned or hereinafter acquired by Conn Appliances (by license, sublicense, lease, easement
or otherwise) in and to any equipment used for servicing (or reasonable access thereto) together with a copy of any software
used in connection with the performance of its duties as Servicer and relating to the Servicing and collecting of
Receivables, (ii) agrees to use all reasonable efforts to assist the Trustee for the benefit of the Secured Parties, the
Back-Up Servicer or any other Successor Servicer to arrange licensing agreements with all software vendors and other
applicable persons in a manner and to the extent reasonably appropriate to effectuate the servicing of the Receivables,
(iii) agrees to deliver to the Trustee, the Back-Up Servicer or any Successor Servicer executed copies of any landlord
waivers that may be necessary to grant to the Trustee, the Back–Up Servicer or any other Successor Servicer access to
any leased premises of Conn Appliances for which the Trustee, the Back-Up Servicer or any other Successor Servicer may
require access to perform the collection and administrative functions to be performed by the Trustee, the Back-Up Servicer or
any Successor Servicer under the Servicer Transaction Documents and (iv) agrees that it will terminate its activities as
Servicer hereunder in a manner which the Trustee the Back-Up Servicer or any Successor Servicer reasonably believes will
facilitate the transition of the performance of such activities to the Back-Up Servicer or any other designated
Successor Servicer, as applicable, and shall use commercially reasonable efforts to assist the Trustee, the Back-Up Servicer
or any Successor Servicer in such transition. The terms of this Section 2.08 shall all be subject to the limitations on the
Servicer’s rights as set forth in the Intercreditor Agreement.


 


Section 2.09   
      Servicing Compensation. As compensation for its servicing and custodial activities
hereunder and reimbursement for its expenses (in the case of Conn Appliances only) as set forth in the immediately following
paragraph, the Servicer shall be entitled to receive a servicing fee (the “Servicing Fee”) as set forth in
the Transaction Documents (including, with regards to SST as Successor Servicer, as set forth on the SST Fee Schedule) prior
to the Indenture Termination Date as described in Section 12.1 of the Indenture. The Servicing Fee shall be payable,
with respect to each Series, at the times and subject to the limitations set forth in the Indenture; provided, that, amounts
withdrawn from the Reserve Account may not be used to pay the Servicing Fee for so long as Conn Appliances is the
Servicer.


 






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The initial Servicer’s
expenses include expenses incurred by the initial Servicer in connection with its activities hereunder; provided, that the
initial Servicer in its capacity as such shall not be liable for any liabilities, costs or expenses of the Receivables Trust, the
Issuer, the Noteholders or the Note Owners arising under any tax law, including without limitation any federal, state or local
income or franchise taxes or any other tax imposed on or measured by income or gross receipts (or any interest or penalties with
respect thereto or arising from a failure to comply therewith) except to the extent that such liabilities, taxes or expenses arose
as a result of the breach by the initial Servicer of its obligations under Section 6.02 hereof. In such case, the initial
Servicer shall be required to pay such expenses for its own account and shall not be entitled to any payment therefor other than
the Servicing Fee. The payment of the expenses of SST, as Successor Servicer, which with respect to SST are set forth in the SST
Fee Schedule attached to the Back-Up Servicing Agreement, shall be distributed on each Payment Date to the extent of funds available
therefor in accordance with Section 5.15 of the Indenture and the SST Fee Schedule. The provisions of this Section 2.09
shall survive the termination of this Agreement and the earlier resignation or removal of the Servicer.


 


Section 2.10   
      Representations and Warranties of the Servicer. The Servicer hereby represents,
warrants and covenants to and for the benefit of the Receivables Trust, the Issuer, the Trustee, the Back-Up Servicer, the
Successor Servicer and the Noteholders as of the date of this Agreement and, in the case of the initial Servicer, as of the
Closing Date and, in the case of any Successor Servicer, as of the date of its appointment as Servicer:


 


(a)           
Organization and Good Standing, etc. Servicer has been duly organized and is validly existing and in good standing
under the laws of its state of organization, with power and authority to own its properties and to conduct its business as such
properties are presently owned and such business are presently conducted. Servicer is duly licensed or qualified to do business
as a foreign entity in good standing in the jurisdiction where its principal place of business and chief executive office are located
and in each other jurisdiction in which the failure to be so licensed or qualified would be reasonably likely to have a Material
Adverse Effect.


 


(b)          
Power and Authority; Due Authorization. Servicer has (i) all necessary power, authority and legal right to execute,
deliver and perform, as applicable, its obligations under this Agreement and each of the other Servicer Transaction Documents,
and (ii) duly authorized, by all necessary action, the execution, delivery and performance, as applicable, of this Agreement
and the other Servicer Transaction Documents. Servicer has and in the case of the initial Servicer only, had at all relevant times,
and now has, all necessary power, authority and legal right to perform its duties as Servicer.


 






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(c)             
No Violation. The consummation of the transactions contemplated by this Agreement and the other Servicer Transaction
Documents and the fulfillment of the terms hereof will not (i) conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time or both) a default under, (A) the organizational documents
of Servicer, or (B) (in the case of SST as successor Servicer, without investigation or inquiry) any material indenture, loan agreement,
pooling and servicing agreement, receivables purchase and sale agreement, mortgage, deed of trust, or other agreement or instrument
to which Servicer is a party or by which any of them or any of their respective properties is bound, (ii) in the case of the
initial Servicer only, result in or require the creation or imposition of any Adverse Claim upon any of its properties pursuant
to the terms of any such indenture, loan agreement, pooling and servicing agreement, receivables purchase and sale agreement, mortgage,
deed of trust, or other agreement or instrument, other than pursuant to the terms of the Servicer Transaction Documents, or (iii) violate
any law or any order, rule, or regulation applicable to Servicer or of any court or of any federal, state or foreign regulatory
body, administrative agency, or other governmental instrumentality having jurisdiction over Servicer or any of its properties.


 


(d)             
Eligible Receivable. Solely in the case of the initial Servicer, all Receivables in the Trust Estate are Eligible
Receivables as of the Cut-Off Date.


 


(e)             
Validity and Binding Nature. This Agreement is, and the other Servicer Transaction Documents when duly executed and
delivered, as applicable, by Servicer and the other parties thereto will be, the legal, valid and binding obligation of Servicer
enforceable in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors’ rights generally and by general principles of equity.


 


(f)               Government Approvals. No authorization or approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body required for the due execution, delivery or performance by Servicer of any Servicer Transaction Document
to which it is a party remains unobtained or unfiled, except in the case of the initial Servicer for the filing of the financing
statements referred to in Section 7.02(a).


 


(g)              Margin
Regulations. Initial Servicer is not engaged in the business of extending credit for the purpose of purchasing or carrying
margin stock, and no proceeds of any Class A Notes, directly or indirectly, will be used for a purpose that violates, or would
be inconsistent with, Regulations T, U and X promulgated by the Federal Reserve Board from time to time.


 


(h)              Compliance
with Applicable Laws. Servicer is in compliance with the requirements of all applicable laws, rules, regulations, and orders
of all governmental authorities, a breach of any of which, individually or in the aggregate, would be reasonably likely to have
a Material Adverse Effect.


 






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(i)               No
Proceedings. Except as described in Schedule 2.10(i), provided that such schedule shall only apply to the initial Servicer,


 


(i)          there
is no order, judgment, decree, injunction, stipulation or consent order of or with any court or other government authority to
which Servicer is subject, and there is no action, suit, arbitration, regulatory proceeding or investigation pending, or, to the
actual knowledge of Servicer, threatened, before or by any court, regulatory body, administrative agency or other tribunal or
governmental instrumentality, against Servicer that, individually or in the aggregate, is reasonably likely to have a Material
Adverse Effect; and


 


(ii)         there
is no action, suit, proceeding, arbitration, regulatory or governmental investigation, pending or, to the actual knowledge of
Servicer, threatened, before or by any court, regulatory body, administrative agency, or other tribunal or governmental instrumentality
(A) asserting the invalidity of this Agreement or any other Servicer Transaction Document, or (B) seeking to prevent
the consummation of any of the other transactions contemplated by this Agreement or any other Servicer Transaction Document.


 


(j)               Accuracy
of Information. All information heretofore furnished by, or on behalf of, Servicer to the Receivables Trust, the Issuer, the
Trustee or any Noteholder in connection with any Servicer Transaction Document, or any transaction contemplated thereby, is true
and accurate in every material respect.


 


If SST is acting as Successor
Servicer, with respect to the representations set forth in Sections 2.10(a), 2.10(i) and 2.10(j), when determining whether any
Material Adverse Effect has occurred with respect to any matter described in such sections, clauses (ii) and (iii) of the definition
of “Material Adverse Effect” shall apply without reference to the effect of such matter on Depositor or on any Servicer
(other than SST as Successor Servicer).


 


Section 2.11             Reports and Records for the Trustee. In addition to each of the reports required to be prepared and delivered by
the Servicer pursuant to Section 2.02(e) hereof, the Servicer shall prepare and deliver in accordance with this Section
2.11 each of the following reports and notices:


 


(a)             
Periodic Reports. The Servicer shall prepare and forward to the Receivables Trust, the Issuer, the Back-Up Servicer
and the Trustee (i) on or prior to the Series Transfer Date with respect to each calendar month, a Monthly Servicer Report in substantially
the form set forth on Exhibit A-1 attached hereto as of the last day of the immediately preceding calendar month, and
(ii) as soon as reasonably practicable, from time to time, such other information in its possession as the Receivables Trust, the
Trustee or the Back-Up Servicer may reasonably request.


 






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(b)              Monthly
Noteholders’ Statement. Unless otherwise stated in the Series Supplement, on each Determination Date the Servicer shall
forward to the Receivables Trust, the Trustee and the Back-Up Servicer a Monthly Noteholders’ Statement substantially in
the form set forth on Exhibit A-2 attached hereto prepared by the Servicer.


 


(c)              Issuer
Reports. The Servicer shall prepare and deliver the reports applicable to it and comply with all the provisions applicable
to it under Section 4.3 of the Indenture.


 


(d)            
Series Reports. The initial Servicer shall prepare and deliver any reports required to be prepared and delivered
by the Servicer by the terms of any agreements of the Issuer or the Servicer relating to the issuance or purchase of any of the
Notes.


 


Section 2.12            Reports to the Commission. The Issuer, the Receivables Trust and/or Conn Appliances, if the Issuer, the Receivables
Trust and/or Conn Appliances or any Affiliate of either of them is not acting as Servicer, shall, at the expense of the Issuer
or Conn Appliances, as applicable, cooperate in any reasonable request of the Trustee in connection with any filings required to
be filed by the Trustee under the provisions of the Securities Exchange Act of 1934 or pursuant to Section 4.3 of the Indenture.


 


Section 2.13            Affirmative Covenants of the Servicer. At all times from the date hereof to the date on which the outstanding principal
balance of all Notes shall be equal to zero, unless the Required Noteholders shall otherwise consent in writing:


 


(a)             
Credit and Collection Policies. The Servicer will comply in all material respects with the Credit and Collection
Policies in regard to each Receivable and the related Contract.


 


(b)             
Collections Received. Subject to Section 5.4(a) of the Indenture, the Servicer shall set aside and deposit
as soon as reasonably practicable (but in any event no later than two (2) Business Days following its receipt thereof) into the
Collection Account all Collections received from time to time by the Servicer.


 


(c)             
Notice of Defaults, Events of Default, Potential Pay Out Event or Servicer Defaults. Within five (5) Business Days
after the Servicer obtains actual knowledge or receives written notice of the occurrence of each Default, Event of Default or Servicer
Default, the Servicer will furnish to the Trustee and each Rating Agency a statement of a Responsible Officer of the Servicer,
setting forth to the extent actually known by the Servicer, details of such Default, Event of Default or Servicer Default, and
the action which the Servicer, the Issuer or the Depositor proposes to take with respect thereto.


 






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(d)              Conduct
of Business. The Servicer will do all things necessary to remain duly incorporated, validly existing and in good standing
in its jurisdiction of organization and maintain all requisite authority to conduct its business in each jurisdiction in which
its business is conducted to the extent that the failure to maintain such would have a Material Adverse Effect.


 


(e)              
Compliance with Laws. The Servicer will comply in all respects with all laws with respect to the Receivables to the
extent that any non-compliance would have a Material Adverse Effect.


 


(f)              
Further Information. The Servicer shall furnish or cause to be furnished to the Receivables Trust, the Trustee such
other information relating to the Receivables and readily available public information regarding the financial condition of the
Servicer, as soon as reasonably practicable, and in such form and detail, as the Trustee or the Receivables Trust may reasonably
request.


 


(g)             
Furnishing of Information and Inspection of Records. The Servicer will furnish to the Receivables Trust, the Trustee
and the Issuer from time to time such information in its possession with respect to the Receivables as such Person may reasonably
request, including, without limitation, listings identifying the Outstanding Receivables Balance for each Receivable, together
with an aging of Receivables. The Servicer will, at any time and from time to time during regular business hours and, upon reasonable
notice, permit the Trustee, the Issuer, or its agents or representatives, (i) to examine and make copies of and abstracts from
all Records relating to the Receivables and (ii) to visit the offices and properties of the Servicer for the purpose of examining
such Records, and to discuss matters relating to Receivables or the Servicer’s performance hereunder and under the other
Servicer Transaction Documents with any Servicing Officer of the Servicer having knowledge of such matters. Upon a Default, Event
of Default or Servicer Default, the Trustee and the Issuer may have, without notice, reasonable access to all records and the offices
and properties of the Servicer.


 


(h)              
Risk Retention. The Servicer, in its capacity as “sponsor” within the meaning of 17 C.F.R. Part 246 (“Regulation
RR”), shall cause the Depositor to retain the “eligible horizontal residual interest” (as defined by Regulation
RR (the “Retained Interest”)) on the Closing Date and the Servicer will cause the Depositor and each Affiliate
of the Servicer not to sell, transfer, finance or hedge the Retained Interest in violation of Regulation RR.  This Section
2.13(h) shall survive the termination of this Agreement, and any resignation by, or termination of, the Servicer.


 


If SST is acting as
Successor Servicer, with respect to the covenants set forth in Sections 2.13(d), 2.13(e) and 2.14(c),
when determining whether any Material Adverse Effect has occurred with respect to any matter described in such sections, clauses
(ii) and (iii) of the definition of “Material Adverse Effect” shall apply without reference to the effect of such matter
on Depositor or on any Servicer (other than SST as Successor Servicer).


 






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Section 2.14             Negative
Covenants of the Servicer. At all times from the date hereof to the date on which the outstanding principal balance of all
Notes shall be equal to zero, unless the Required Noteholders shall otherwise consent in writing:


 


(a)             
Modifications of Receivables or Contracts. The Servicer shall not extend, amend, forgive, discharge, compromise,
waive, cancel or otherwise modify the terms of any Receivable or amend, modify or waive any term or condition of any Contract related
thereto; except in accordance with Section 2.02(b).


 


(b)             
Merger or Consolidation of, or Assumption of the Obligations of, the Servicer. (I) The Servicer shall not consolidate
with or merge into any other corporation or convey or transfer its properties and assets substantially as an entirety to any Person,
unless:


 


(i)          the entity formed by such consolidation or into which the Servicer is merged or the Person which acquires by conveyance
or transfer the properties and assets of the Servicer substantially as an entirety shall be an entity organized and existing under
the laws of the United States of America or any State or the District of Columbia and, if the Servicer is not the surviving entity,
such corporation shall expressly assume, by an agreement supplemental hereto executed and delivered to the Trustee, and with the
satisfaction of the Rating Agency Condition, the performance of every covenant and obligation of the Servicer under the Servicer
Transaction Documents; and


 


(ii)         the Servicer has delivered to the Trustee, each Notice Person and the Receivables Trust (if requested by such Person) an
Opinion of Counsel stating that such consolidation, merger, conveyance or transfer comply with this paragraph (b) and that all
conditions precedent herein provided for relating to such transaction have been complied with (and if an agreement supplemental
hereto has been executed as contemplated by clause (i) above, such opinion of counsel shall state that such supplemental agreement
is a legal, valid and standing obligation of the Servicer enforceable against the Servicer in accordance with its terms, subject
to bankruptcy, insolvency, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’
rights and to general equity principles).


 


(II) If SST
is acting as Servicer, any corporation or other entity into which SST may be merged or converted or with which it may be consolidated,
or any corporation or other entity resulting from any merger, conversion or consolidation to which SST shall be a party, or any
corporation or other entity succeeding to the business of SST must be the successor of SST hereunder without the execution or filing
of any paper with any party hereto or any further act on the part of any of the parties hereto except where an instrument of transfer
or assignment is required by law to effect such succession, anything herein to the contrary notwithstanding, and SST will not merge,
convert or consolidate if the resulting entity would not be the successor of SST hereunder.


 



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(c)              
No Change in Business or the Credit and Collection Policies. The Servicer will not make any change in the character
of its business or in the Credit and Collection Policies, which change would, in either case, impair the collectability of any
Receivable or otherwise have a Material Adverse Effect, except to the extent such change is required as a result of a change in
applicable Requirements of Law.


 


Section 2.15             
Sale of Defaulted Receivables. The initial Servicer may sell, on behalf of the Receivables Trust, Defaulted Receivables
that have been Defaulted Receivables for no less than six months, as to which the initial Servicer shall have determined eventual
payment in full is unlikely, to an unaffiliated third party for the greatest market price available, if in its good faith judgment
it determines that the proceeds ultimately recoverable with respect to such Receivables would be increased by such sale. Notwithstanding
the foregoing, in no event may the aggregate sales of Defaulted Receivables (by Outstanding Receivables Balance of such Defaulted
Receivable as of the Cut-Off Date) pursuant to this Section 2.15 exceed 10% of the Outstanding Receivables Balance on the
Cut-Off Date.


 


Section 2.16            
Deemed Collections. In the event that there is any breach of any of the representations, warranties or covenants
of the initial Servicer contained in Section 2.10(d), Section 2.13(a), Section 2.13(e), and Section
2.14(a) with respect to any Receivable, and such Receivable becomes a Defaulted Receivable or the rights of the Secured Parties
in, to or under such Receivable or its proceeds are impaired or the proceeds of such Receivable are not available to the Trustee
for the benefit of the Secured Parties or the initial Servicer has released any Merchandise securing a Receivable from the lien
created by such Receivable (except as specifically provided in the Servicer Transaction Documents), then the initial Servicer shall
be deemed to have received on such day a collection of such Receivable in full, and the initial Servicer shall, on the Distribution
Date, deposit into the Collection Account, subject to Section 5.4(a) of the Indenture, an amount equal to the Outstanding Receivables
Balance of such Receivable, and such amount shall be allocated and applied by the initial Servicer as a Collection allocable to
the Receivables or Related Security in accordance with Section 5.11 (or the applicable section relating to allocation of Collections)
of the Indenture. In the event that the initial Servicer has paid to or for the benefit of the Noteholders or any other applicable
Secured Party the full Outstanding Receivables Balance of any Receivable pursuant to this paragraph, the Receivables Trust shall
release and convey all of such Person’s right, title and interest in and to the related Receivable to the initial Servicer,
without representation or warranty, but free and clear of all liens created by such Person, as applicable.


 






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ARTICLE
III



RIGHTS OF NOTEHOLDERS AND ALLOCATION

AND APPLICATION OF COLLECTIONS


 


Section 3.01              
Establishment of Accounts.


 


(a)               
The Collection Account. The initial Servicer, for the benefit of the Secured Parties, shall establish and the Servicer
shall maintain the Collection Account in the state of New York or in the city in which the Corporate Trust Office is located, with
a Qualified Institution in the name of the Trustee, on behalf of the Secured Parties as designee of the Receivables Trust, a non-interest
bearing segregated account bearing a designation clearly indicating that the funds deposited therein are held in trust for the
benefit of the Secured Parties. Pursuant to authority granted to it pursuant to subsection 2.02(a), the Servicer shall
have the revocable power to cause to be withdrawn funds from the Collection Account for the purposes of carrying out its duties
hereunder and under the Indenture.


 


(b)              
Series Accounts. If so provided in the Series Supplement, the initial Servicer shall cause to be established and
the Servicer shall maintain in the name of the Trustee for the benefit of the Noteholders and the other Secured Parties as designee
of the Receivables Trust, one or more Series Accounts. Each such Series Account shall bear a designation clearly indicating that
the funds deposited therein are held for the benefit of the Noteholders and the other Secured Parties, to the extent applicable.
Each such Series Account will be a trust account, if so provided in the Series Supplement, and will have the other features and
be applied as set forth in the Series Supplement.


 


Section 3.02              
Collections and Allocations.


 


(a)               
Collections. Subject to subsection 5.4(a) of the Indenture, the Servicer shall deposit all Collections in
the Collection Account as promptly as possible after the date of receipt of such Collections, but in no event later than the second
Business Day following such date of receipt.


 


The Servicer shall allocate
such amounts in accordance with this Article III and Article 5 of the Indenture and the initial Servicer shall cause to be withdrawn
the required amounts from the Collection Account or pay such amounts to the Noteholders or other Persons entitled thereto in accordance
with this Article III and Article 5 of the Indenture, in both cases as modified by the Series Supplement. The initial Servicer
shall make such deposits or payments on the date indicated therein by wire transfer or as otherwise provided in the Series Supplement.


 


ARTICLE
IV



OTHER SERVICER POWERS


 


Section 4.01              Appointment of Paying Agent. Subject to Section 2.7 of the Indenture, the Servicer may, but shall not be obligated
to, revoke the power of the Paying Agent to withdraw funds from any account maintained for the benefit of the Secured Parties
pursuant to the Indenture and remove the Paying Agent, if the Servicer determines in its reasonable discretion that the Paying
Agent shall have failed to perform its obligations under the Indenture in any material respect or for other good cause. The Issuer
shall promptly notify each Rating Agency of the removal of any Paying Agent.


 






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Section 4.02             
[Reserved.]


 


ARTICLE
V



OTHER MATTERS RELATING

TO THE SERVICER


 


Section 5.01              Liability of the Servicer. The Servicer hereby agrees to perform any and all duties and obligations set forth in
the Indenture that are specifically identified therein as duties of the Servicer. Subject to the foregoing, the Servicer shall
be liable in accordance herewith only to the extent of the obligations specifically undertaken by it or required to be taken by
it in such capacity herein and in the other Servicer Transaction Documents.


 


Section 5.02              Limitation on Liability of the Servicer and Others. The directors, officers, employees or agents who are natural
persons of the Servicer shall not be under any liability to the Issuer, the Receivables Trust, the Trustee, the Noteholders or
any other Person hereunder or pursuant to any document delivered hereunder for any action taken or for refraining from the taking
of any action, it being expressly understood that all such liability is expressly waived and released as a condition of, and as
consideration for, the execution of this Agreement and any supplement hereto. Except as provided in this Section 5.02
with respect to the Issuer, the Receivables Trust, and the Trustee, and their respective officers, directors, employees and agents,
the Servicer shall not be under any liability to the Issuer, the Receivables Trust, the Trustee, their respective officers, directors,
employees and agents, the Noteholders or any other Person for any action taken or for refraining from the taking of any action
in its capacity as Servicer pursuant to this Agreement or any supplement hereto; provided, however, that this provision
shall not protect the Servicer against any liability which would otherwise be imposed by reason of (x) willful misconduct, bad
faith or negligence in the performance of duties or by reason of its reckless disregard of its obligations and duties hereunder
or under the Series Supplement or (y) breach of the express terms of any Servicer Transaction Document. The Servicer may rely
in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters
arising hereunder. The Servicer shall not be under any obligation to appear in, prosecute or defend any legal action which is not
incidental to its duties to service the Receivables or the other property in the Trust Estate in accordance with this Agreement,
the Indenture and the Series Supplement that in its reasonable opinion may involve it in any expense or liability.


 


Section 5.03              Servicer Not to Resign. The Servicer shall not resign from the obligations and duties hereby imposed on it except
upon determination that (i) the performance of its duties hereunder is no longer permissible under applicable law and (ii) there
is no reasonable action which such Servicer could take to make the performance of its duties hereunder permissible under applicable
law. Any such determination permitting the resignation of any Servicer shall be evidenced as to clause (i) above by an Opinion
of Counsel and as to clause (ii) by a Conn Officer’s Certificate of the Servicer (or, if the Servicer is not Conn Appliances
or an Affiliate thereof, a certificate of a responsible officer of such Servicer), each to such effect delivered, and satisfactory
in form and substance, to the Trustee. No such resignation shall become effective until a Successor Servicer shall have assumed
the responsibilities and obligations of such Servicer in accordance with Section 2.01 hereof and the Rating Agency
Condition shall have been satisfied.


 






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Section 5.04             Waiver of Defaults. Any default by the Servicer in the performance of its obligations hereunder and its consequences
may be waived pursuant to Section 7.01. Upon any such waiver of a default, such default shall cease to exist, and any
default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend
to any subsequent or other default or impair any right consequent thereon except to the extent expressly so waived.


 


ARTICLE
VI



ADDITIONAL OBLIGATION OF THE

SERVICER WITH RESPECT TO THE TRUSTEE


 


Section 6.01             
Successor Trustee.


 


(a)               If
the Trustee resigns or is removed pursuant to the terms of the Indenture or if a vacancy exists in the office of the Trustee for
any reason, the Servicer (or, if Conn Appliances is not the Servicer, the Issuer) shall promptly appoint a successor Trustee meeting
the requirements of Section 11.9 of the Indenture, by written instrument, in duplicate, one copy of which instrument
shall be delivered to the resigning Trustee and one copy to the successor Trustee.


 


(b)              The
Servicer and the Issuer agree to execute and deliver such instruments and do such other things as may reasonably be required
for fully and certainly vesting and confirming in the successor Trustee all rights, powers, duties and obligations under the Indenture
and hereunder.


 


Section 6.02            
Tax Returns. The initial Servicer, on behalf of Issuer, or the Issuer shall prepare or shall cause to be prepared
all tax information required by law to be distributed to Noteholders and shall deliver such information to the Trustee at least
five days prior to the date it is required by law to be distributed to Noteholders. Except to the extent the initial Servicer or
the Issuer breaches its obligations or covenants contained in this Section 6.02, in no event shall the initial Servicer
or the Issuer be liable for any liabilities, costs or expenses of the Noteholders or the Note Owners arising under any tax law,
including without limitation federal, state, local or foreign income or excise taxes or any other tax imposed on or measured by
income or gross receipts (or any interest or penalty with respect thereto or arising from a failure to comply therewith).


 






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Section 6.03              Final Payment with Respect to Any Series. The initial Servicer or the Issuer shall provide any notice of termination
as specified for the Issuer in Section 12.5(a) of the Indenture and in accordance with the procedures set forth therein.


 


Section 6.04             
Optional Purchase of Receivables Trust Estate.


 


(a)               The
initial Servicer will have the option to purchase (the “Optional Purchase”) the Receivables Trust Estate (other
than the Reserve Account) for an amount equal to the Optional Purchase Price from the Issuer on any Business Day if, as of the
last day of the previous Monthly Period, the Outstanding Receivables Balance has declined to 10% or less of the Outstanding Receivables
Balance as of the Cut-Off Date. The Optional Purchase Price will not be less than an amount sufficient to pay accrued and unpaid
interest then due on the Series 2019-B Notes and the aggregate unpaid Note Principal, if any, of all of the outstanding Series
2019-B Notes. The fair market value of the Receivables Trust Estate will be calculated based upon a reasonable valuation or appraisal
of the Receivables Trust Estate delivered at least five (5) Business Days prior to any exercise of the Optional Purchase by the
initial Servicer prepared by a nationally recognized third-party appraisal services firm or independent accounting firm in form
and substance satisfactory to the Trustee, which appraisal or other valuation report states (with supporting data and calculations)
the fair market value of the Receivables Trust Estate. To exercise such option, the initial Servicer shall deposit the Optional
Purchase Price into the Collection Account on the Redemption Date. The initial Servicer shall furnish written notice of its election
to exercise the Optional Purchase to the Trustee not later than twenty (20) days prior to the Optional Purchase date. If the initial
Servicer exercises the Optional Purchase, all Notes shall be due and payable under the Indenture and the Notes shall be redeemed
and in each case in whole but not in part on the Redemption Date for the Redemption Price.


 


(b)               Upon
exercise of the Optional Purchase, the Class R Notes will receive a final distribution equal to any excess of the fair market
value of the Receivables on the date on which the Optional Purchase will occur over the accrued and unpaid interest then due on
the Series 2019-B Notes and the aggregate unpaid principal, if any, of all of the outstanding Series 2019-B Notes plus an amount
sufficient to pay (i) the Servicing Fee (including to any successor servicer) for such Payment Date and all unpaid Servicing Fees
with respect to prior Payment Dates (provided, that, any amounts withdrawn from the Reserve Account may not be used to pay the
Servicing Fee for so long as Conn Appliances is the Servicer) and (ii) the Trustee, Receivables Trust Trustee, Back-Up Servicer
and Issuer Fees and Expenses for such Payment Date and all unpaid Trustee, Receivables Trust Trustee, Back-Up Servicer and Issuer
Fees and Expenses with respect to prior Payment Dates, after giving effect to the Available Funds (other than any amounts on deposit
in the Reserve Account) for such Payment Date. After such Payment Date, the Class R Noteholders will not be entitled to any additional
distributions. Any amount on deposit in the Reserve Account on such Payment Date (after giving effect to the applicable priority
of payments on such Payment Date) will be distributed to the Depositor.


 






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ARTICLE
VII



MISCELLANEOUS PROVISIONS


 


Section 7.01             
Amendment.


 


(a)              
This Agreement may be amended in writing from time to time by the Issuer, the Receivables Trust, the Servicer and the
Trustee, without the consent of any of the Noteholders, to cure any ambiguity, to correct or supplement any provisions herein which
may be inconsistent with any other provisions herein, or in the Offering Memorandum, or to add any other provisions with respect
to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of this Agreement; provided,
that such action, as evidenced to the Trustee by (i) an Opinion of Counsel, (ii) Conn’s Officer Certificate or (iii) satisfaction
of the Rating Agency Condition, shall not adversely affect in any material respect the interests of any Noteholder; provided, further
such action shall not adversely affect in any material respect the interests of the Back-Up Servicer (including as Successor Servicer)
without its prior written consent.


 


(b)             
Any provision of this Agreement may also be amended, supplemented, modified or waived in writing from time to time
by the Issuer, the Receivables Trust, the Servicer and the Trustee with the consent of the Required Noteholders for the purpose
of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or modifying in any
manner the rights of Noteholders of any Series then issued and outstanding; provided, however, that no such amendment,
supplement, modification or waiver shall (i) reduce in any manner the amount of, or delay the timing of, distributions which are
required to be made on any Notes without the consent of each Holder of Notes so affected, (ii) change the definition of or the
manner of calculating the Note Principal without the consent of each Holder of Notes, (iii) reduce the aforesaid percentage required
to consent to any such amendment, without the consent of each Holder of Notes adversely affected, (iv) adversely affect in
any material respect the interests of the Back-Up Servicer (including as Successor Servicer) without its prior written consent.
The Trustee may, but shall not be obligated to, enter into any such amendment which adversely affects the Trustee’s rights,
duties or immunities under this Agreement, the Indenture or otherwise.


 


(c)              
Promptly after the execution of any such amendment, the Issuer shall furnish notification of the substance of such amendment
to each Rating Agency.


 


(d)              
Notwithstanding anything herein to the contrary, no amendment to this Agreement shall be effective that would result in
or cause (i) the Receivables Trust or the Issuer to be classified as an association or publicly traded partnership taxable as a
corporation, or (ii) the Receivables Trust to be classified, for United States federal income tax purposes, as other than a fixed
investment trust described in Treasury Regulation Section 301.7701-4(c) that is treated as a grantor trust under Subpart E, Part
I of subchapter J, Chapter I of Subtitle A of the Code.


 






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(e)              
It shall not be necessary for the consent of Noteholders under this Section 7.01 to approve the particular form
of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining
such consents and of evidencing the authorization of the execution thereof by Noteholders shall be subject to such reasonable requirements
as the Trustee may prescribe.


 


(f)              
In connection with any amendment, the Trustee shall be entitled to receive an Opinion of Counsel (from an external law firm)
from the Issuer to the effect that the amendment complies with all requirements of this Agreement and the Indenture, except that
such counsel shall not be required to opine on factual matters.


 


(g)               Any
amendment which affects the rights, duties, immunities or liabilities of the Receivables Trust Trustee shall require the Receivable
Trust Trustee’s written consent.


 


Section 7.02             
Protection of Right, Title and Interest to Receivables and Related Security.


 


(a)              
Conn Appliances or the Issuer (if Conn Appliances is not the Servicer) shall cause this Agreement, the Indenture and the
Series Supplement, all amendments hereto and/or all financing statements and any other necessary documents covering the Noteholders’
and the Trustee’s right, title and interest to the Trust Estate and the Receivables Trust’s right, title and interest
in the Receivables Trust Estate to be promptly recorded, registered and filed, and at all times to be kept recorded, registered
and filed, all in such manner and in such places as may be required by law fully to preserve and protect the Trustee’s Lien
(granted pursuant to the Indenture for the benefit of the Secured Parties) on the property comprising the Trust Estate and the
Receivables Trust’s interest in the Receivables Trust Estate. Conn Appliances or the Issuer shall deliver to the Trustee
file-stamped copies of, or filing receipts for, any document recorded, registered or filed as provided above, as soon as available
following such recording, registration or filing. The Depositor shall cooperate fully with the Conn Appliances or the Issuer, as
applicable, in connection with the obligations set forth above and will execute any and all documents reasonably required to fulfill
the intent of this subsection 7.02(a).


 






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(b)              The
Servicer will give the Trustee prompt written notice of any relocation of any office from which it services the Receivables and
Related Security or keeps records concerning such items or of its principal executive office and, in the case of the initial Servicer,
prompt written notice of whether, as a result of such relocation, the applicable provisions of the UCC would require the filing
of any amendment of any previously filed financing statement or of any new financing statement and shall file such financing statements
or amendments as may be necessary to continue the Trustee’s security interest in the Trust Estate and the proceeds
thereof for the benefit of the Secured Parties. The Servicer will at all times maintain each office from which it performs custody,
collection and/or customer service obligations with respect to the Receivables, Related Security and other property in its possession
and part of the Trust Estate and its principal executive office within the United States of America.


 


Section 7.03            
Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE
TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. EACH OF THE PARTIES TO THIS SERVICING AGREEMENT
HEREBY AGREES TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY
APPELLATE COURT HAVING JURISDICTION TO REVIEW THE JUDGMENT THEREOF. EACH OF THE PARTIES HEREBY WAIVES ANY OBJECTION BASED ON FORUM
NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS
TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.


 


Section 7.04            
Notices. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly
given if personally delivered at, sent by facsimile to, sent by courier (overnight or hand-delivered) at or mailed by registered
mail, return receipt requested, to (a) in the case of the Issuer, to 2445 Technology Forest Blvd., Suite 800, The Woodlands, TX,
77381, (b) in the case of the initial Servicer or Conn Appliances, to 2445 Technology Forest Blvd., Suite 800, The Woodlands, TX,
77381, (c) in the case of the Trustee, to the Corporate Trust Office, (d) in the case of the Receivables Trust, to c/o Wilmington
Trust, National Association, as Receivables Trust Trustee, Rodney Square North, 1100 North Market Street, Wilmington, Delaware
19890, Attention: Corporate Trust Administration – Conn’s Receivables 2019-B Trust and (e) in the case of each Rating
Agency, the address specified in the Series Supplement; or, as to each party, at such other address as shall be designated by such
party in a written notice to each other party. Unless otherwise provided in the Series Supplement or otherwise expressly provided
herein, any notice required or permitted to be mailed to a Noteholder shall be given by first class mail, postage prepaid, at the
address of such Noteholder as shown in the Note Register. Any notice so mailed or published, as the case may be, within the time
prescribed in this Agreement shall be conclusively presumed to have been duly given, whether or not the Noteholder receives such
notice.


 






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Section 7.05              Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement
shall for any reason whatsoever be held invalid, then such covenants, agreements, provisions or terms shall be deemed severable
from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability
of the other provisions of this Agreement.


 


Section 7.06              Delegation.
Except as provided in Section 2.01, 2.02 or 2.14(b), the Servicer may not delegate any of its obligations
under this Agreement.


 


Section 7.07              Waiver
of Trial by Jury. To the extent permitted by applicable law, each of the parties hereto irrevocably waives all right of trial
by jury in any action, proceeding or counterclaim arising out of or in connection with this Agreement or the Transaction Documents
or any matter arising hereunder or thereunder.


 


Section 7.08              Further Assurances. The Servicer agrees to do and perform, from time to time, any and all acts and to execute any
and all further instruments required or reasonably requested by the Trustee more fully to effect the purposes of this Agreement.


 


Section 7.09              No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Trustee, the
Issuer, the Receivables Trust, the Servicer, or the Noteholders, any right, remedy, power or privilege hereunder, shall operate
as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges
herein provided are cumulative and not exhaustive of any rights, remedies, powers and privileges provided by law.


 


Section 7.10             Counterparts. This Agreement may be executed in two or more counterparts (and by different parties on separate
counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument.


 


Section 7.11             Third-Party Beneficiaries. This Agreement will inure to the benefit of and be binding upon the parties hereto, the
Secured Parties, the Receivables Trust Trustee and their respective successors and permitted assigns. Except as provided in this
Section 7.11, no other Person will have any right or obligation hereunder; provided that the Issuer shall have the right
to enforce all rights of the Receivables Trust.


 


Section 7.12              
Actions by Noteholders.


 


(a)              
Wherever in this Agreement a provision is made that an action may be taken or a notice, demand or instruction given
by Noteholders, such action, notice or instruction may be taken or given by any Noteholder, unless such provision requires
a specific percentage of Noteholders or unless otherwise provided in the Series Supplement, in each case, as certified by such
Noteholder. Notwithstanding anything in this Agreement to the contrary, neither the Servicer nor any Affiliate thereof shall have
any right to vote with respect to any Note except as specifically provided in the Indenture.


 






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(b)               Any
request, demand, authorization, direction, notice, consent, waiver or other act by a Noteholder shall bind such Noteholder and
every subsequent holder of such Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof
in respect of anything done or omitted to be done by the Trustee or the Servicer in reliance thereon, whether or not notation
of such action is made upon such Note.


 


Section 7.13             
Rule 144A Information. For so long as any of the Notes are “restricted securities” within the meaning
of Rule 144(a)(3) under the Securities Act, the Issuer and the Trustee (if such information is in the Trustee’s possession)
agree to provide to any Noteholders and to any prospective purchaser of Notes designated by such a Noteholder upon the request
of such Noteholder or prospective purchaser, any information required to be provided to such holder or prospective purchaser to
satisfy the condition set forth in Rule 144A(d)(4) under the Securities Act, and the Servicer agrees to reasonably cooperate with
the Issuer and the Trustee in connection with the foregoing.


 


Section 7.14             Merger and Integration. Except as specifically stated otherwise herein, this Agreement sets forth the entire understanding
of the parties relating to the subject matter hereof, and all prior understandings, written or oral, are superseded by this Agreement.


 


Section 7.15             Headings. The headings herein are for purposes of reference only and shall not otherwise affect the meaning or interpretation
of any provision hereof.


 


Section 7.16             Rights of the Trustee. The Trustee shall be entitled to all rights, powers, protection, privileges and immunities
conferred on it by the terms of the Indenture as if specifically set forth herein, and shall not be liable for any loss arising
in connection with the exercise of any such rights, powers, protections, privileges and immunities.


 


Section 7.17              Sales Tax Proceeds. For the avoidance of doubt, (1) the initial Servicer hereby notifies each of the parties hereto
that the Receivables Trust, the R Noteholders, the Depositor, the Seller and the Issuer are each “assignees” of the
right to receive the Texas bad debt deduction for all applicable defaults as per Section 151.426(c) of the Texas Tax Code and (2)
each of the initial Servicer, the Depositor, the Seller, the Receivables Trust, the Class R Noteholders, the Issuer, and the Retailer
of the Merchandise will cooperate to obtain the Texas bad deduction for the assignees.


 


Section 7.18              Limitation of Liability. It is expressly understood and agreed by the parties hereto that (a) this Agreement is executed
and delivered by Wilmington Trust, National Association (“WTNA”), not individually or personally but solely
as Receivables Trust Trustee of the Receivables Trust, in the exercise of the powers and authority conferred and vested in it,
(b) each of the representations, undertakings and agreements herein made on the part of the Receivables Trust is made and intended
not as personal representations, undertakings and agreements by WTNA but is made and intended for the purpose of binding only the
Receivables Trust, (c) nothing herein contained shall be construed as creating any liability on WTNA individually or personally,
to perform any covenant either expressed or implied contained herein of the Receivables Trust, all such liability, if any, being
expressly waived by the parties hereto and by any Person claiming by, through or under the parties herein, (d) WTNA has made no
investigation as to the accuracy or completeness of any representations and warranties made by the Receivables Trust in this Agreement
and (e) under no circumstances shall WTNA be personally liable for the payment of any indebtedness or expenses of the Receivables
Trust or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the
Receivables Trust under this Agreement or any other related documents.


 






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IN WITNESS WHEREOF, the
Issuer, the Servicer and the Trustee have caused this Servicing Agreement to be duly executed by their respective officers as of
the day and year first above written.


 


	 	CONN’S RECEIVABLES FUNDING 2019-B, LLC,
	 	as Issuer
	 	 
	 	 
	 	By:	 /s/ Melissa Allen
	 	Name:	 Melissa Allen
	 	Title:	VP & Treasurer
	 	 
	 	CONN’S RECEIVABLES 2019-B TRUST,
	 	as Receivables Trust
	 	 
	 	By:	Wilmington Trust, National Association, not in its individual capacity but solely as Receivables Trust Trustee
	 	 
	 	 
	 	By:	/s/ Clarice Wright
	 	Name:	 Clarice Wright
	 	Title:	Assistant Vice President
	 	 
	 	CONN APPLIANCES, INC.,
	 	as Servicer
	 	 
	 	 
	 	By:	 /s/ Melissa Allen
	 	Name:	Melissa Allen
	 	Title:	 VP & Treasurer
	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	 	not in its individual capacity, but solely as Trustee
	 	 
	 	 
	 	By:	/s/ Brett Hudson
	 	Name:	Brett Hudson
	 	Title:	Vice President





 


Servicing Agreement


 




    S-1


     


    


 


Exhibit A-1

Form of Monthly Servicer Report



 


 




FORM OF MONTHLY SERVICER REPORT


 


[ATTACHED]


 


 


Servicing Agreement


 




    A-1-1


     


    


 


Exhibit A-2

Form of Monthly Noteholders’ Statement



 


 




FORM OF MONTHLY NOTEHOLDERS’ STATEMENT


 


[ATTACHED]


 


Servicing Agreement


 




    A-2-1


     


    


 


Exhibit B

Form of Annual Servicer’s Certificate



 









FORM OF ANNUAL SERVICER’S CERTIFICATE


 


CONN APPLIANCES, INC.


 


The undersigned, a
duly authorized representative of Conn Appliances, Inc. (“Conn Appliances”), as Servicer pursuant to the Servicing
Agreement, dated as of November 26, 2019 (the “Servicing Agreement”) by and among Conn Appliances, Conn’s
Receivables Funding 2019-B, LLC, as issuer, Conn’s Receivables 2019-B Trust, Wells Fargo Bank, National Association, as trustee
(the “Trustee”), does hereby certify that:


 


1.       Conn
Appliances is a Servicer under the Servicing Agreement.


 


2.       The
undersigned is duly authorized pursuant to the Servicing Agreement to execute and deliver this certificate to the Trustee.


 


3.       This
certificate is delivered pursuant to Section 2.02(e)(ii) of the Servicing Agreement.


 


4.       A
review of the activities of the Servicer during (the period from the Closing Date until) (the twelve month period ended) _______,
20__ and of its performance under the Servicing Agreement was conducted under my supervision.


 


5.       Based
on such review, the Servicer has, to the best of my knowledge, fully performed in all material respects all of its obligations
under the Servicing Agreement and each other applicable Transaction Document to which it is a party throughout such period and
no default in the performance of such obligations has occurred or is continuing except as set forth in paragraph 6 below.


 


6.       The
following is a description of each default in the performance of the Servicer’s obligations under the provisions of the Servicing
Agreement and each other applicable Transaction Document to which it is a party, known to me to have been made during such period
which sets forth in detail (i) the nature of each such default, (ii) the action taken by the Servicer, if any, to remedy each such
default and (iii) the current status of each such default:


 


[If applicable, insert “None.”]


 


7.       Capitalized
terms used but not defined herein shall have the respective meanings given to such terms in the Servicing Agreement.


 


[signature page follows]


 


Servicing Agreement


 




    B-1


     


    


 


IN WITNESS WHEREOF, the
undersigned has duly executed this certificate this ___ day of _______, ____.


 


		CONN APPLIANCES, INC., 
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:




 


Servicing Agreement


 




    B-2


     


    


 


Schedule 2.10(i)

Litigation



 


 


LITIGATION


 


None


 






    Schedule 2.10(i)-1