Exhibit 10.1


 





MASTER SPREAD ACQUISITION AND MSR
SERVICING AGREEMENT


This Master Spread
Acquisition and MSR Servicing Agreement (the “Agreement”) is entered into as of December 19, 2014 by and between
PennyMac Loan Services, LLC, a Delaware limited liability company (the “Seller”), PennyMac Operating Partnership,
L.P., a Delaware limited partnership (“POP”), and PennyMac Holdings, LLC (“PMH”). POP and
PMH are each referred to herein as the “Purchaser.”


RECITALS


WHEREAS, the Seller
may from time to time acquire mortgage servicing rights from third parties;


WHEREAS, the Purchaser
may from time to time desire to acquire the right to excess servicing spread arising from such mortgage servicing rights;


WHEREAS, the Seller
and the Purchaser desire that the Seller service or subservice the mortgage loans to which such servicing rights relate and provide
additional administrative services; and


WHEREAS, the Seller
desires to retain the right to refinance the residential mortgage loans in the pool and the Seller will obtain a competitive benefit
from serving as the servicer or subservicer of such mortgage loans and the Seller and the Purchaser are willing to grant such right,
as long as the excess servicing spread with respect to such mortgage loans is assigned by the Seller to the Purchaser as described
herein;


NOW, THEREFORE, in
consideration of the mutual premises and agreements set forth herein and for other good and valuable consideration, the receipt
and the sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:


ARTICLE
1



DEFINITIONS


Section 1.01       
Definitions. For purposes of this Agreement (which, for the avoidance of doubt, shall include the Preamble and Recitals
hereto), the following capitalized terms, unless the context otherwise requires, shall have the respective meanings set forth below:


“Accepted
Servicing Practices” means, with respect to each Mortgage Loan (including all real estate acquired in respect of such
Mortgage upon a foreclosure or acceptance of a deed in lieu of foreclosure), each of those mortgage servicing practices (including
collection procedures) of prudent mortgage lending institutions which service mortgage loans of the same type as such Mortgage
Loan in the jurisdiction where the related Mortgaged Property is located, which servicing practices (i) are in compliance with
all federal, state and local laws and regulations, (ii) shall be in accordance with the Seller’s policies and procedures
as amended from time to time for mortgage loans of the same type, (iii) are in accordance with the terms of the related mortgage,
deed of trust or similar security instrument and the related promissory note and (iv) are at a minimum based on the requirements
set forth from time to time by Freddie Mac.



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“Affiliate”
means, with respect to any specified Person, any other Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power
to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities,
by management contract or otherwise and the terms “controlling” and “controlled” have meanings correlative
to the foregoing; provided, however, that Affiliates of the Purchaser shall include only PennyMac Mortgage Investment Trust and
its wholly-owned subsidiaries, and Affiliates of the Seller shall include only PennyMac Financial Services, Inc., Private National
Mortgage Acceptance Company, LLC and their wholly-owned subsidiaries.


“Allowed
Retention Percentage” has the meaning set forth in Section 4.01(a).


“Alternative
Mortgage Loan” has the meaning set forth in Section 4.01(b).


“Assignment”
means an assignment substantially in the form of Exhibit B.


“Assignment
Date” means, with respect to any Mortgage Loan Identification Date, the date that is five (5) Business Days following
such Mortgage Loan Identification Date or such other date as may be set forth in the applicable Confirmation.


“Base Servicing
Fee” means, with respect to each Primary Portfolio or its related Secondary Portfolio and each Collection Period, an
amount equal to the product of (A) the aggregate outstanding principal balance of the Primary Portfolio Mortgage Loans or the Secondary
Portfolio Mortgage Loans, as the case may be, as of the first day of such Collection Period and (B) one-twelfth of the Transaction
Base Servicing Fee Rate; provided, however, that (1) with respect to all Primary Portfolio Mortgage Loans in such Primary
Portfolio or all Secondary Portfolio Mortgage Loans in such Secondary Portfolio, if the initial Collection Period is less than
a full month, such fee for each such Primary Portfolio Mortgage Loan or each such Secondary Portfolio Mortgage Loan shall be an
amount equal to the product of the fee otherwise described above and a fraction, the numerator of which is the number of days in
such initial Collection Period and the denominator of which is 360; (2) if any Primary Portfolio Mortgage Loan or Secondary Portfolio
Mortgage Loan ceases to be part of the Primary Portfolio or the Secondary Portfolio, as the case may be, during such Collection
Period as a result of a termination of the Seller’s duties as servicer or subservicer under the Servicing Agreement and Freddie
Mac Guide, the portion of such amount that is attributable to such Primary Portfolio Mortgage Loan or Secondary Portfolio Mortgage
Loan shall be adjusted to an amount equal to the product of such portion and a fraction, the numerator of which is the number of
days in such Collection Period during which such Primary Portfolio Mortgage Loan or Secondary Portfolio Mortgage Loan was included
in the Primary Portfolio or in the Secondary Portfolio, as the case may be, and denominator of which is 360; and (3) if the Primary
Portfolio Collections for such Primary Portfolio and such Collection Period or the Secondary Portfolio Collections for such Secondary
Portfolio and such Collection Period were used to cover prepayment interest shortfalls on the Primary Portfolio Mortgage Loans
or the Secondary Portfolio Mortgage Loans, as the case may be, the fee otherwise described above shall be reduced by the amount
of such reduction multiplied by the ratio (expressed as a percentage) equal to the Transaction Base Servicing Fee Rate divided
by the rate per annum at which the Primary Portfolio Collections or Secondary Portfolio Collections, as the case may be, accrued
in the aggregate during such Collection Period.



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“Code”
means the Internal Revenue Code of 1986, as amended from time to time.


“Collection
Period” means, with respect to each Transaction Remittance Date, the calendar month preceding the month in which such
Transaction Remittance Date occurs.


“Confirmation”
means a letter agreement between the Seller and the Purchaser identified therein and substantially in the form attached hereto
as Exhibit A that includes a mortgage loan schedule and sets forth each of a “transaction settlement date”,
a “transaction base servicing fee rate”, a “transaction asset purchase agreement”, a “transaction
purchase price percentage” and a “transaction excess spread percentage”.


“Confirmation
Date” means the date of a Confirmation.


“Cut-off
Date” means, with respect to each Primary Portfolio, the date set forth in the related Confirmation.


“Eligible
Account” means any of (i) an account maintained with a federal or state chartered depository institution or trust company,
the long-term deposit or long-term unsecured debt obligations of which are rated no less than investment grade by at least two
Rating Agencies, if the deposits are to be held in the account for more than thirty (30) days, or the short-term deposit or short-term
unsecured debt obligations of which are rated investment grade by at least two Rating Agencies, (ii) a segregated trust account
maintained with the trust department of a federal or state chartered depository institution or trust company acting in its fiduciary
capacity, and which, in either case, has a combined capital and surplus of at least $50,000,000 and is subject to supervision or
examination by federal or state authority and to regulations regarding fiduciary funds on deposit similar to Title 12 of the Code
of Federal Regulations Section 9.10(b), or (iii) an account approved by the Seller and the Purchaser.


“Excess
Refinancing Percentage” has the meaning set forth in Section 4.01(a).


“Expense
Amount” has the meaning set forth in Section 9.16.


“Expense
Amount Accountant’s Letter” has the meaning set forth in Section 9.16.


“Expense
Amount Tax Opinion” has the meaning set forth in Section 9.16.


“Expense
Escrow Account” has the meaning set forth in Section 9.16.


“Freddie Mac”
means the Federal Home Loan Mortgage Corporation, or any successor thereto.


“Freddie
Mac Guide” means the Freddie Mac Single-Family Seller/Servicer Guide, as such guide may be amended from time to time
hereafter, including the “Purchase Documents” (as such term is defined therein).



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“Freddie
Mac Mortgage Loan” A Mortgage Loan underwritten in accordance with the guidelines of Freddie Mac described in the Freddie
Mac Guide.


“Lien”
means any mortgage, deed of trust, pledge, hypothecation, collateral assignment, charge, deposit, arrangement, encumbrance, lien
(statutory or other), security interest or preference, priority or other security agreement or preferential arrangement of any
kind or nature whatsoever intended to assure payment of any indebtedness or the performance of any other obligation, including
any conditional sale or other title retention agreement.


“Mortgage
Loan”“ means a one-to-four family residential loan that is secured by a mortgage, deed of trust or other similar
security instrument. A Mortgage Loan includes the Mortgage Loan Documents, the Mortgage File, the monthly payments, any principal
payments or prepayments, any related escrow accounts, the mortgage servicing rights and all other rights, benefits, proceeds and
obligations arising from or in connection with such Mortgage Loan.


“Mortgage
Loan Documents” means the mortgages, notes, assignments and an electronic record or copy of a mortgage loan application.


“Mortgage
Loan Identification Date” means, with respect to a calendar month, the 25th day of the immediately succeeding calendar
month.


“Mortgaged
Property” means the real property that secures a Mortgage Loan.


“New Mortgage
Loan” has the meaning set forth in Section 4.01(a).


“Nonqualifying
Income” means any amount that is treated as gross income for purposes of Section 856 of the Code and which is not Qualifying
Income.


“Payoff”
means, with respect to a Mortgage Loan, any payment in full of the unpaid principal balance of such Mortgage Loan that is received
in advance of the last scheduled due date for such Mortgage Loan and accompanied by the accrued and unpaid interest to the date
of such payment in full.


“Person”
means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision thereof.


“Primary
Portfolio” means the residential mortgage loans identified and listed on a schedule to a Confirmation.


“Primary
Portfolio Collections” means, with respect to each Primary Portfolio, the funds collected on the related Primary Portfolio
Mortgage Loans and allocated as the servicing compensation payable to the Seller as servicer or subservicer of such Primary Portfolio
Mortgage Loans pursuant to the Servicing Agreement and the Freddie Mac Guide, other than Ancillary Income and, for the avoidance
of doubt, other than reimbursements received by the Seller from a loan owner for advances and other out-of-pocket expenditures
pursuant to the Servicing Agreement and the Freddie Mac Guide.



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“Primary Portfolio
Excess Spread” means, with respect to each Primary Portfolio, the rights of the Seller, severable from any and all other
rights under the Servicing Agreement and the Freddie Mac Guide, to the Transaction Excess Spread Percentage of the Primary Portfolio
Total Spread on such Primary Portfolio. For the avoidance of doubt, the funds represented by this term are derived from the Servicing
Rights, but do not include the right to all or any portion of the Servicing Rights themselves.


 


“Primary
Portfolio Mortgage Loan” means a Mortgage Loan that is included in the Primary Portfolio.


“Primary
Portfolio Retained Spread” means, with respect to each Primary Portfolio, the rights of the Seller, severable from any
and all other rights under the Servicing Agreement and the Freddie Mac Guide, to the Transaction Retained Spread Percentage of
the Primary Portfolio Total Spread on such Primary Portfolio.


“Primary
Portfolio Spread Custodial Account” means, with respect to each Primary Portfolio, the account established under Section
5.01, which shall be entitled “PennyMac Loan Services, LLC, as Seller, on behalf of [PennyMac Operating Partnership,
L.P.][PennyMac Holdings, LLC], Primary Portfolio Collection Account”, and into which account all Primary Portfolio Collections
and Primary Portfolio Termination Payments in respect of such Primary Portfolio shall be deposited.


“Primary
Portfolio Termination Payment” means, with respect to each Primary Portfolio, any payment made by a loan owner or master
servicer in connection with an exercise of any right that such Person may have to terminate the Seller as the servicer or subservicer
of any Primary Portfolio Mortgage Loan; provided, however, that, if such a payment is made with respect to a group
of mortgage loans and fewer than all such mortgage loans are Primary Portfolio Mortgage Loans, then the “Primary Portfolio
Termination Payment” shall mean the portion of such termination payment that is reasonably attributable to the Primary Portfolio
Mortgage Loans in such group based upon the methodology set forth in the Servicing Agreement and the Freddie Mac Guide for the
calculation of termination payments thereunder.


“Primary
Portfolio Total Spread” means, with respect to each Primary Portfolio, for each Collection Period on or after the related
Transaction Settlement Date, the sum of the following: (a) the Primary Portfolio Collections received during such Collection Period,
net of the Base Servicing Fee; and (b) all other amounts payable by a loan owner or master servicer to the Seller with respect
to the Servicing Rights for the Primary Portfolio Mortgage Loans, including any Primary Portfolio Termination Payments, but for
the avoidance of doubt, excluding all Ancillary Income and reimbursements for advances and other out-of-pocket expenditures received
by the Seller from a loan owner in accordance with the Servicing Agreement and the Freddie Mac Guide.


“Protected
REIT” means any entity that (i) has elected to be taxed as a real estate investment trust pursuant to Section 856 et
seq. of the Code, (ii) owns a direct or indirect equity interest in Purchaser, and (iii) is treated for purposes of Section 856
of the Code as owning all or a portion of the assets of the Purchaser or as receiving all or a portion of the Purchaser’s
income.



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“Qualifying
Income” means gross income that is described in Section 856(c)(2) or 856(c)(3) of the Code.


“REIT Requirements”
means the requirements imposed on real estate investment trusts pursuant to Sections 856 through and including 860 of the Code.


“Replacement
Mortgage Loan” has the meaning set forth in Section 4.01(a).


“Replacement
Portfolio” has the meaning set forth in Section 4.01(a).


“Retained
Portfolio” has the meaning set forth in Section 4.01(a).


“Secondary
Portfolio” has the meaning set forth in Section 4.01(f).


“Secondary
Portfolio Collections” means, with respect to each Secondary Portfolio, the funds collected on the related Secondary
Portfolio Mortgage Loans and allocated as the servicing compensation payable to the Seller as servicer or subservicer of such Secondary
Portfolio Mortgage Loans pursuant to the Servicing Agreement and the Freddie Mac Guide, other than Ancillary Income and, for the
avoidance of doubt, other than reimbursements received by the Seller from a loan owner for advances and other out-of-pocket expenditures
pursuant to the Servicing Agreement and the Freddie Mac Guide.


“Secondary
Portfolio Excess Spread” means, with respect to the Secondary Portfolio related to each Primary Portfolio, the rights
of the Seller, severable from any and all other rights under the Servicing Agreement and the Freddie Mac Guide, to the Transaction
Excess Spread Percentage of the Secondary Portfolio Total Spread on such Secondary Portfolio. For the avoidance of doubt, the funds
represented by this term are derived from the Servicing Rights, but do not include the right to all or any portion of the Servicing
Rights themselves.


“Secondary
Portfolio Mortgage Loan” means a Mortgage Loan that is included in the Secondary Portfolio.


“Secondary
Portfolio Retained Spread” means, with respect to each Secondary Portfolio, the rights of the Seller, severable from
any and all other rights under the Servicing Agreement and the Freddie Mac Guide, to the Transaction Retained Spread Percentage
of the Secondary Portfolio Total Spread on such Secondary Portfolio.


“Secondary
Portfolio Spread Custodial Account” means, with respect to each Secondary Portfolio, the account established under Section
6.01, which shall be entitled “PennyMac Loan Services, LLC, as Seller, on behalf of [PennyMac Operating Partnership,
L.P.][PennyMac Holdings, LLC], Secondary Portfolio Collection Account”, and into which account all Secondary Portfolio Collections
and Secondary Portfolio Termination Payments in respect of such Secondary Portfolio shall be deposited.


“Secondary
Portfolio Termination Payment” means, with respect to each Secondary Portfolio, any payment made by a loan owner or master
servicer in connection with an exercise of any right that such Person may have to terminate the Seller as the servicer or subservicer
of any Secondary Portfolio Mortgage Loan; provided, however, that, if such a payment is made with respect to a group
of mortgage loans and fewer than all such mortgage loans are Secondary Portfolio Mortgage Loans, then the “Secondary Portfolio
Termination Payment” shall mean the portion of such termination payment that is reasonably attributable to the Secondary
Portfolio Mortgage Loans in such group based upon the methodology set forth in the Servicing Agreement and the Freddie Mac Guide
for the calculation of termination payments thereunder.



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“Secondary
Portfolio Total Spread” means, with respect to each Secondary Portfolio, for each Collection Period on or after the initial
Assignment Date when Secondary Portfolio Mortgage Loans became part of the Secondary Portfolio, the sum of the following: (a) the
Secondary Portfolio Collections received during such Collection Period, net of the Base Servicing Fee; and (b) all other amounts
payable by a loan owner or master servicer to the Seller with respect to the Servicing Rights for Secondary Portfolio Mortgage
Loans, including any Secondary Portfolio Termination Payments, but for the avoidance of doubt, excluding all Ancillary Income and
reimbursements for advances and other out-of-pocket expenditures received by the Seller from a loan owner or master servicer in
accordance with the Servicing Agreement and the Freddie Mac Guide.


“Servicing
Agreement” means the unitary indivisible master servicing contract described in the Freddie Mac Guide and entered into
by and between Freddie Mac and the Seller.


“Servicing
Rights” means, with respect to each Mortgage Loan, the indivisible, conditional, non-delegable contract right and obligation
to do any and all of the following: (a) service and administer such Mortgage Loan; (b) collect any payments or monies payable or
received for servicing such Mortgage Loan; (c) collect any late fees, assumption fees, penalties or similar payments with respect
to such Mortgage Loan; (d) enforce the provisions of all agreements or documents creating, defining or evidencing any such servicing
rights and all rights of the servicer thereunder, including, but not limited to, any clean-up calls and termination options; (e)
collect and apply any escrow payments or other similar payments with respect to such Mortgage Loan; (f) control and maintain all
accounts and other rights to payments related to any of the property described in the other clauses of this definition; (g) possess
and use any and all documents, files, records, servicing files, servicing documents, servicing records, data tapes, computer records,
or other information pertaining to such Mortgage Loan or pertaining to the past, present or prospective servicing of such Mortgage
Loan; and (h) enforce any and all rights, powers and privileges incident to any of the foregoing.


“Transaction”
means the collective transactions scheduled to be consummated or that are consummated (as the context may require) with respect
to a Primary Portfolio and the related prospective Secondary Portfolio on a Transaction Settlement Date.


“Transaction Asset Purchase Agreement”
means, with respect to each Transaction, the agreement pursuant to which the Seller is required to purchase or otherwise acquire
the Servicing Rights relating to the Primary Portfolio Mortgage Loans, as in effect from time to time.


 


“Transaction
Base Servicing Fee Rate” means, with respect to each Primary Portfolio and its related Secondary Portfolio, the rate
per annum denominated as such and set forth in the related Confirmation.



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“Transaction
Excess Spread Percentage” means, with respect to each Primary Portfolio and its related Secondary Portfolio, the percentage
denominated as such and set forth in the related Confirmation.


“Transaction
Purchase Price” means, with respect to each Transaction, the product of (i) the aggregate outstanding principal balance
of the Primary Portfolio Mortgage Loans as of the Cut-off Date, (ii) the Transaction Purchase Price Percentage and (iii) the Transaction
Excess Spread Percentage.


“Transaction
Purchase Price Percentage” means, with respect to each Primary Portfolio, the percentage denominated as such and set
forth in the related Confirmation.


“Transaction
Remittance Date” means with respect to each Primary Portfolio and its related Secondary Portfolio, the date denominated
as such and set forth in the Confirmation, or, if no date is set forth in the Confirmation, the 10th day of each calendar month,
or if such day is not a Business Day, the prior Business Day, beginning in the month following the Transaction Settlement Date,
or such other day as may be agreed upon by the Seller and the Purchaser.


“Transaction
Retained Spread Percentage” means, with respect to each Primary Portfolio and its related Secondary Portfolio, 100% minus
the Transaction Excess Spread Percentage.


“Transaction
Settlement Date” means, with respect to each Primary Portfolio, the date denominated as such and set forth in the related
Confirmation.


“Transaction
Threshold Percentage” means 35%.


Section 1.02       
 General Interpretive Principles. For purposes of this Agreement, except as otherwise expressly provided or unless
the context otherwise requires:


(a)          The terms defined in this Agreement have the meanings assigned to them in this Agreement and include the plural as well
as the singular, and the use of any gender herein shall be deemed to include the other gender;


(b)          Accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles;


(c)         References herein to “Articles,” “Sections,” “Subsections,” “Paragraphs,”
and other subdivisions without reference to a document are to designated Articles, Sections, Subsections, Paragraphs and other
subdivisions of this Agreement;


(d)         A reference to a Subsection without further reference to a Section is a reference to such Subsection as contained in the
same Section in which the reference appears, and this rule shall also apply to Paragraphs and other subdivisions;


(e)         The words “herein,” “hereof,” “hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular provision; and


(f)          The term “include” or “including” shall mean without limitation by reason of enumeration.



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ARTICLE
2



REPRESENTATIONS AND WARRANTIES


Section 2.01       
Representations, Warranties and Agreements of the Seller. The Seller hereby makes to the Purchaser and the Seller,
as of the date hereof and as of each Transaction Settlement Date and each Assignment Date, the representations and warranties set
forth on Exhibit C.


Section 2.02       
Representations, Warranties and Agreements of the Purchaser. The Purchaser hereby makes to the Seller and Seller,
as of the date hereof and as of each Transaction Settlement Date and each Assignment Date, the representations and warranties set
forth on Exhibit D.


ARTICLE
3



PURCHASES


Section 3.01       
Purchases.


(a)         Transaction Agreement. The execution and delivery of each Confirmation between the Seller and the Purchaser shall
be an agreement between such parties to the effect that, with respect to the Primary Portfolio described therein, and subject to
the terms hereof and thereof, (i) the Seller shall sell, and the Purchaser shall purchase, on the Transaction Settlement Date all
of the Seller’s right, title and interest in and to the Primary Portfolio Excess Spread and all proceeds thereof and the
Secondary Portfolio Excess Spread and all proceeds thereof, all in exchange for the payment of the Transaction Purchase Price,
and (ii) each party shall perform its duties under this Agreement as supplemented and amended by such Confirmation.


(b)         Closing Conditions. The duties of the Seller and the Purchaser to consummate each Transaction shall be subject to
the satisfaction of various conditions as set forth below:


(i)                
The duty of each party to consummate such Transaction shall be subject to the satisfaction of the following conditions:


		(A)	the Seller shall have acquired the Servicing Rights with respect to the related Primary Portfolio;



		(B)	the representations and warranties made by the other party in this Agreement and each other Transaction
document to which such party is a party to be made on or prior to the Transaction Settlement Date shall be true and correct in
all material respects; and




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		(C)	the other party shall have performed or caused the performance of each covenant or obligation required
to be performed by such party on or before the Transaction Settlement Date (including the delivery of documents required to be
delivered by such other party under subsection (c));






(ii)              
The duty of the Seller to consummate such Transaction shall be further subject to the satisfaction of the additional condition
that no change in the Purchaser’s financial condition shall have occurred following the Confirmation Date that would be reasonably
likely to materially and adversely affect the Purchaser’s ability to consummate the Transaction on the Transaction Settlement
Date;


(iii)            
The duty of the Purchaser to consummate such Transaction shall be further subject to the satisfaction of the following additional
conditions:


		(A)	no change in the Seller’s financial or operating condition, the Seller’s good standing
with and authority from Freddie Mac, the Servicing Rights, the Primary Portfolio Mortgage Loans or the escrow accounts related
to the Primary Portfolio Mortgage Loans shall have occurred following the Confirmation Date that, individually or in the aggregate,
would be reasonably likely to materially and adversely one or more of (x) the Seller’s ability to consummate such Transaction
on the Transaction Settlement Date, (y) the performance of the Primary Portfolio Excess Spread, or (z) the practical or other ability
of an owner of the Servicing Rights to realize the benefits thereof;



		(B)	the Seller shall have obtained or caused to have been obtained all consents, approvals or other
requirements of third parties required for the consummation of the transactions contemplated by this Agreement, including all requisite
Freddie Mac approvals;



		(D)	the Seller shall have been appointed as the servicer or subservicer for the Primary Portfolio Mortgage
Loans; and



		(E)	the information set forth in the data tape delivered to Purchaser on the Transaction Settlement
Date shall be true and correct in all material respects as of the date specified.



(c)          Closing Documents. The closing documents for each Transaction shall consist of the documents set forth below, which
the Seller shall deliver or cause to be delivered to Purchaser on or before the Transaction Settlement Date:


(i)                
an Assignment executed by the Seller in which the Seller assigns to the Purchaser all of the Seller’s right, title
and interest in, to and under the Primary Portfolio Excess Spread;



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(ii)              
a copy of the Transaction Asset Purchase Agreement;


(iii)            
a copy of the instrument evidencing the Seller’s acquisition of the Servicing Rights with respect to the Primary Portfolio;


(iv)            
all consents, approvals or other requirements of third parties required for the consummation of the transactions contemplated
by this Agreement, including all requisite Freddie Mac approvals; and


(v)              
such officers’ certificates, opinions of counsel, instruments and documents as the Purchaser may reasonably request.


(d)          Closing. On the Transaction Settlement Date for each Primary Portfolio, the Purchaser shall pay the Transaction Purchase
Price to the Seller, the Seller shall convey the Primary Portfolio Excess Spread to the Purchaser and the Seller shall commence
servicing or subservicing the Primary Portfolio Mortgage Loans in accordance with the Servicing Agreement and the Freddie Mac Guide
if such servicing or subservicing has not already commenced. The Transaction Purchase Price shall be paid by wire transfer of immediately
available funds.


(e)          Additional Representations and Warranties. Upon the consummation of the transactions scheduled to occur on the Transaction
Settlement Date for each Primary Portfolio:


(i)         the Seller shall be deemed to have represented and warranted to the Purchaser (and such representations and warranties shall
survive the Transaction Settlement Date) that:


		(A)	with respect to each Primary Portfolio Mortgage Loan, the Seller has been duly and validly appointed
as the servicer or subservicer thereof under the Servicing Agreement and the Freddie Mac Guide and, for the purposes of such capacity,
such Servicing Agreement is in full force and effect;



		(B)	the Seller is not in breach of or in default of its duties under the Servicing Agreement or the
Freddie Mac Guide to the extent that such breach would adversely affect the interests of the Purchaser with respect to one or more
Primary Portfolio Mortgage Loans;



		(C)	no event has occurred that, with or without notice or the passage of time, would entitle any Person
to terminate the Seller as servicer or subservicer of any Primary Portfolio Mortgage Loan under the Servicing Agreement or the
Freddie Mac Guide, and the Seller has no notice or knowledge of the intention of any Person to terminate or cause the termination
of the Seller’s rights and duties as servicer or subservicer under the Servicing Agreement or the Freddie Mac Guide;




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		(D)	the information set forth in the data tape delivered to Purchaser on the Transaction Settlement
Date is true and correct in all material respects as of the date specified; and



		(E)	the Seller is the sole owner of the Servicing Rights related to each Mortgage Loan in such Primary
Portfolio (subject to the terms of the Servicing Agreement and the Freddie Mac Guide and the rights of Freddie Mac in such Servicing
Rights as described therein), free and clear of any Lien, claim, encumbrance or ownership interest in favor or any Person other
than the interests of the Purchaser contemplated hereby;



(ii)         the Purchaser shall be deemed to have represented and warranted to the Seller (and such representations and warranties shall
survive the Transaction Settlement Date) that the Purchaser is a sophisticated investor and its decision to enter into such Transaction
is based upon the Purchaser’s independent experience, knowledge and due diligence and evaluation of such Transaction without
reliance on any oral or written information provided by Seller other than the representations and warranties made by Seller pursuant
to the terms hereof; and


(iii)        the Purchaser further agrees and acknowledges as follows:


(A)            
the Seller is entitled to the Base Servicing Fee and the Seller and the Purchaser, as applicable, are entitled to the Primary
Portfolio Excess Spread and Secondary Portfolio Excess Spread only so long as the Seller maintains its status as an approved Freddie
Mac seller/servicer;


(B)             
upon the transfer or termination of the Servicing Rights or the Seller’s loss of its status as an approved Freddie
Mac seller/servicer, the Purchaser’s rights to any Primary Portfolio Excess Spread and Secondary Portfolio Excess Spread
(excluding any applicable Primary Portfolio Termination Payments or Secondary Portfolio Termination Payments) shall terminate and
be extinguished; and


(C)             
the Purchaser’s interests in the Primary Portfolio Excess Spread and Secondary Portfolio Excess Spread do not
include or convey (u) any right to all or any portion of the Servicing Rights, (v) the right to service the Mortgage Loans under
the Servicing Agreement or the Freddie Mac Guide, (w) the right to terminate the Seller as an approved Freddie Mac seller/servicer,
(x) the right to terminate, in whole or in part, the Servicing Agreement, (y) the right to transfer any of the Servicing Rights,
or (z) the right to further transfer the Primary Portfolio Excess Spread and Secondary Portfolio Excess Spread or the security
interest therein without Freddie Mac’s prior written consent.



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Section 3.02       
Intent of Parties.


The Seller and the
Purchaser intend that each Transaction constitute a valid sale of the Primary Portfolio Excess Spread for the related Primary Portfolio
by the Seller to the Purchaser, free and clear of any Lien. If the conveyance of the Primary Portfolio Excess Spread is characterized
by a court or governmental authority as security for a loan rather than an absolute transfer or sale, the Seller will be deemed
to have granted to Purchaser, and Seller hereby grants to Purchaser, a security interest in all of its right, title and interest
in, to and under the Primary Portfolio Excess Spread and all proceeds thereof as security for a loan in an amount equal to the
Transaction Purchase Price.


In connection with
each Transaction, the Seller hereby authorizes the filing of any financing statements or continuation statements, and amendments
to financing statements, in any jurisdictions and with any filing offices as the Purchaser may determine, in its sole discretion,
are necessary or advisable to perfect the sale of the assets conveyed and security interests granted to Purchaser and agrees to
execute financing statements in form reasonably acceptable to the Purchaser and the Seller at the request of the Purchaser in order
to reflect the Purchaser’s interests in the assets conveyed to or subjected to a security interest in favor of the Purchaser
pursuant to such Transaction and in the Primary Spread Custodial Account and Secondary Spread Custodial Account related to such
Transaction.


ARTICLE
4



RECAPTURE


Section 4.01       
Recapture.


(a)          With respect to each Primary Portfolio, if, during any calendar month, the Seller or its Affiliates originate new residential
mortgage loans the proceeds of which are used to refinance a Mortgage Loan in such Primary Portfolio (such a new mortgage loan,
a “New Mortgage Loan”), the Seller shall transfer and convey to the Purchaser on the related Assignment Date
the Secondary Portfolio Excess Spread with respect to one or more of such New Mortgage Loans (subject to subsection (b))
that together have an aggregate unpaid principal balance that is not less than the sum of the following amounts:


(i)          the product of (i) the aggregate amount of Payoffs (whether or not resulting from refinancings) received during such calendar
month on all loans that were Primary Portfolio Mortgage Loans at the beginning of the month and (ii) the Transaction Threshold
Percentage;


(ii)         the product of (i) the dollar amount of New Mortgage Loans that were originated during the calendar month, net of the amount
described in clause (i) above, and (ii) 100% minus the Allowed Retention Percentage; and


(iii)        either:


		(A)	a positive amount (and in no event less than zero) equal to the excess, if any, of (i) the cumulative
unpaid principal balance of loans for which transfers were actually made under this Article 4 in all such prior months,
over (ii) the cumulative unpaid principal balance of loans for which transfers were required to be made under this Article 4
in all prior months (whether or not they were actually made); or







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		(B)	a negative amount (and in no event more than zero) equal to the excess of (i) the cumulative unpaid
principal balance of loans for which transfers were required to be made under this Article 4 in all prior months (whether
or not they were actually made), over (ii) the cumulative unpaid principal balance of loans for which transfers were actually made
under this Article 4 in all such prior months.



For purposes of
this subsection, the “Allowed Retention Percentage” means, with respect to each Primary Portfolio and any month,
the percentage set forth opposite the Excess Refinancing Percentage on the Confirmation; and the “Excess Refinancing Percentage”
means, with respect to each Primary Portfolio and any month, the excess, if any, of (a) a fraction, expressed as a percentage,
the numerator of which is equal to the aggregate principal balance of New Mortgage Loans that were originated during such month,
and the denominator of which is the aggregate amount of Payoffs (whether or not resulting from refinancings) received during such
calendar month on all loans that were Primary Portfolio Mortgage Loans at the beginning of the month, over (b) the Transaction
Threshold Percentage.


The New Mortgage
Loans and Alternative Mortgage Loans where the Servicing Rights are so transferred and conveyed shall constitute “Replacement
Mortgage Loans”; the entire group of such Replacement Mortgage Loans shall constitute the “Replacement Portfolio”;
the New Mortgage Loans where the Servicing Rights are not so transferred and conveyed shall constitute “Retained Mortgage
Loans”; and the entire group of such Retained Mortgage Loans shall constitute the “Retained Portfolio”.
For purposes of these definitions, if any Alternative Mortgage Loan is included in the Replacement Portfolio in lieu of a New Mortgage
Loan, then such New Mortgage Loan shall be neither part of the Replacement Portfolio nor part of the Retained Portfolio (including
for the purposes of the provisions set forth in subsection (c)).


Notwithstanding
anything in this Section 4.01(a) to the contrary, in lieu of transferring and conveying to the Purchaser on the related
Assignment Date the related Secondary Portfolio Excess Spread as described herein, the Seller may, at its option, but only to the
extent that the fair market value of the aggregate Secondary Portfolio Excess Spread to be transferred is less than $200,000, and
shall, if the Secondary Portfolio Excess Spread otherwise required to be transferred is prohibited by Freddie Mac, wire to the
Purchaser cash in an amount equal to the fair market value of the related Secondary Portfolio Excess Spread.


(b)          Each New Mortgage Loan included in the Replacement Portfolio shall satisfy the following criteria: (1) such New Mortgage
Loan shall be the subject of the Servicing Agreement and the Freddie Mac Guide with a loan owner or master servicer and the servicing
fee rate for the New Mortgage Loan shall be not less than 0.25% per annum; and (2) all consents, if any, required by the applicable
loan owner to assign the Servicing Rights with respect to such New Mortgage Loan shall have been obtained. Notwithstanding the
preceding sentence, if insufficient New Mortgage Loans are available that would allow satisfaction of the criteria set forth in
set forth in the preceding sentence with respect to each New Mortgage Loan included in the Replacement Portfolio, then the Seller
shall use its best efforts to include in the Replacement Portfolio another mortgage loan (an “Alternative Mortgage Loan”),
in lieu of each New Mortgage Loan that, but for such conditions in the preceding sentence, would have been included in the Replacement
Portfolio, and that satisfies the following criteria:



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(i)          The servicing fee rate for the Alternative Mortgage Loan is equal to or greater than the servicing fee rate of the New Mortgage
Loan and, in any event, not less than 0.25% per annum;


(ii)         The interest accrual rate per annum on the Alternative Mortgage Loan is within 12.5 basis points per annum of the interest
accrual rate on the New Mortgage Loan;


(iii)        The final maturity date of the Alternative Mortgage Loan is within six months of the final maturity date of the New Mortgage
Loan;


(iv)        The principal balance of the Alternative Mortgage Loan is no less than the principal balance of the Refinanced Mortgage
Loan;


(v)         The remaining credit characteristics of the Alternative Mortgage Loan (other than as specified in clauses (i), (ii), (iii)
and (iv) above) are substantially the same as the credit characteristics of the New Mortgage Loan;


(vi)        The Alternative Mortgage Loan is current as of the applicable Assignment Date; and


(vii)       The Alternative Mortgage Loan is not subject to any foreclosure or similar proceeding as of the applicable Assignment Date;
is not in process of any modification, workout or other loss mitigation process; and is not involved in litigation.


(c)          The Replacement Portfolio, on the one hand, and the Retained Portfolio, on the other, shall have the following characteristics:


(i)          The weighted average servicing fee rate for the Mortgage Loans in the Retained Portfolio shall be substantially equal to
the weighted average servicing fee rate for the Mortgage Loans in the Replacement Portfolio;


(ii)         The weighted average gross mortgage interest rate per annum of the Mortgage Loans in the Retained Portfolio shall be within
12.5 basis points per annum of the weighted average gross mortgage interest rate of the Mortgage Loans in the Replacement Portfolio;



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(iii)        The weighted average final maturity date of the Mortgage Loans in the Retained Portfolio shall be within six months of the
weighted average final maturity date of the Mortgage Loans in the Replacement Portfolio; and


(iv)        The remaining credit characteristics of the pool of Mortgage Loans in the Retained Portfolio (other than the characteristics
specified in clauses (i) and (ii) above) shall be substantially the same as the credit characteristics of the pool of Mortgage
Loans in the Replacement Portfolio.


(d)          Not later than the Mortgage Loan Identification Date related to each month in which the Seller or an Affiliate thereof has
originated New Mortgage Loans with respect to a Primary Portfolio, the Seller shall (i) notify the Purchaser of the identity of
each such New Mortgage Loan and the Primary Portfolio Mortgage Loan that was refinanced using proceeds of such New Mortgage Loan
and (ii) a schedule setting forth the New Mortgage Loans (or Alternative Mortgage Loans) proposed to compose the Replacement Portfolio,
the New Mortgage Loans proposed to compose the Retained Portfolio and the Seller’s calculations of the weighted average gross
mortgage interest rate and weighted average final maturity date of each of the proposed Replacement Portfolio and the proposed
Retained Portfolio. The Seller and the Purchaser shall cooperate in good faith to resolve any objections made by the Purchaser
to the proposed compositions of the Replacement Portfolio and Retained Portfolio.


(e)          On the Assignment Date related to each month in which the Seller has originated New Mortgage Loans, the Seller shall transfer
and convey to the Purchaser the Secondary Portfolio Excess Spread with respect to the Replacement Portfolio. Such transfer and
conveyance shall be effected by an instrument of assignment substantially in the form attached hereto as Exhibit A. The
Seller shall be entitled to retain the related Secondary Portfolio Retained Excess Spread. The New Mortgage Loans or Alternative
Mortgage Loans for which the Seller transfers and conveys to the Purchaser the related Secondary Portfolio Excess Spread on each
Assignment Date and the New Mortgage Loans or Alternative Mortgage Loans for which the Seller transferred and conveyed to the Purchaser
the related Secondary Portfolio Excess Spread on all prior Assignment Dates shall together constitute the “Secondary Portfolio”.


(f)           If insufficient New Mortgage Loans and Alternative Mortgage Loans are available in circumstances that require a transfer
by the Seller under the foregoing subsections, or if counsel or independent accountants for the Purchaser or any of its Affiliates
determines that there exists a material risk that such transfer would result in a violation of the REIT Requirements by such Person,
then the Seller shall consult with the Purchaser and the parties shall negotiate in good faith for the transfer of one or more
investments in transactions that would not, in the judgment of counsel or independent accountants for the Seller or the Purchaser
or any of their respective Affiliates, present such a risk and that would result in net economic benefits to the Purchaser that
are no less favorable than the economic benefit to the Purchaser that would have resulted from a transfer under foregoing subsections.



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Section 4.02       
Intent of Parties.


The parties intend
that each transfer made by the Seller under Section 4.01 constitute a valid absolute transfer or sale of the related Secondary
Portfolio Excess Spread for the related Replacement Portfolio by the Seller to the Purchaser, free and clear of any Lien. If the
conveyance of such Secondary Portfolio Excess Spread is characterized by a court or governmental authority as security for a loan
rather than an absolute transfer or sale, the Seller will be deemed to have granted to the Purchaser, and the Seller hereby grants
to the Purchaser, a security interest in all of its right, title and interest in, to and under such Secondary Portfolio Excess
Spread and all proceeds thereof as security for a loan in an amount equal to the value of such Secondary Portfolio Excess Spread.


In connection with
each Assignment Date, the Seller hereby authorizes the filing of any financing statements or continuation statements, and amendments
to financing statements, in any jurisdictions and with any filing offices as the Purchaser may determine, in its sole discretion,
are necessary or advisable to perfect the sale of the assets conveyed and security interests granted to Purchaser on such Assignment
Date and agrees to execute financing statements in form reasonably acceptable to the Purchaser and the Seller at the request of
the Purchaser in order to reflect the Purchaser’s interests in the assets conveyed to or subjected to a security interest
in favor of the Purchaser on such Assignment Date and in the related Secondary Spread Custodial Account insofar as the same related
to the related Replacement Portfolio.


Section 4.03       
Additional Representations and Warranties.


On the Assignment
Date with respect to each Replacement Portfolio, the Seller shall be deemed to have represented and warranted to the Purchaser
that: (A) with respect to each Replacement Mortgage Loan, the Seller has been duly and validly appointed as the servicer or subservicer
thereof under the Servicing Agreement and the Freddie Mac Guide and, for the purposes of such capacity, such Servicing Agreement
is in full force and effect; (B) the Seller is not in breach of or in default of its duties under the Servicing Agreement or the
Freddie Mac Guide to the extent that such breach would adversely affect the interests of the Purchaser with respect to one or more
of the related Replacement Mortgage Loans; (C) no event has occurred that, with or without notice or the passage of time, would
entitle any Person to terminate the Seller as servicer or subservicer of any related Replacement Mortgage Loan under the Servicing
Agreement or the Freddie Mac Guide, and the Seller has no notice or knowledge of the intention of any Person to terminate or cause
the termination of the Seller’s rights and duties as servicer or subservicer under the Servicing Agreement or the Freddie
Mac Guide; (D) the information delivered to Purchaser on the Assignment Date with respect to the related Replacement Mortgage Loans
is true and correct in all material respects as of the date specified; and (E) the Seller is the sole owner of the Servicing Rights
related to each Replacement Mortgage Loan (subject to the terms of the Servicing Agreement and the Freddie Mac Guide), free and
clear of any Lien, claim, encumbrance or ownership interest in favor or any Person other than the interests of the Purchaser contemplated
hereby. Such representations and warranties shall survive such Assignment Date.



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ARTICLE
5



PRIMARY PORTFOLIO COLLECTIONS AND REMITTANCES


Section 5.01       
Primary Spread Custodial Account. With respect to each Primary Portfolio, the Seller shall establish a Primary Spread
Custodial Account, which shall be an Eligible Account, not later than the Transaction Settlement Date. The Seller shall deliver
to the Seller and the Purchaser reasonable evidence of the establishment of such account upon request. The Seller shall not pledge,
obtain financing for or otherwise permit any Lien of any creditor of the Seller to exist on, any portion of the Primary Portfolio
Collections or the Seller’s interest in the Primary Spread Custodial Account without the prior written consent of the Purchaser.


Section 5.02       
Deposits. With respect to each Primary Portfolio, the Seller shall deposit into the Primary Spread Custodial Account
from time to time any and all Primary Portfolio Collections received on or after the Transaction Settlement Date, in each case
within three (3) Business Days following receipt thereof. The Seller shall direct each loan owner or master servicer to remit any
Primary Portfolio Termination Payments directly to the Primary Spread Custodial Account.


Section 5.03       
Withdrawals and Remittances.


(a)          On each Business Day, the Seller shall withdraw from the Primary Spread Custodial Account the cash on deposit therein and
pay such cash in the following amounts and order of priority, in each case subject to funds remaining available after giving effect
to each payment having a higher priority:


(i)         first, from amounts in the Primary Spread Custodial Account attributable to Primary Portfolio Termination Payments,
pro rata, (A) the Transaction Excess Spread Percentage of such Primary Portfolio Termination Payments to the Purchaser,
and (B) the Transaction Retained Excess Spread Percentage of such Primary Portfolio Termination Payments to the Seller;


(ii)        second, on any Business Day from and including the first Business Day of a calendar month to but excluding the Transaction
Remittance Date in such calendar month, at the option of the Seller, the Base Servicing Fee payable with respect to a prior Collection
Period for the Primary Portfolio Mortgage Loans to the Seller;


(iii)       third, on each Transaction Remittance Date, to the extent not previously paid to the Seller in accordance with clause
(ii), any accrued and unpaid Base Servicing Fee in respect of the Primary Portfolio Mortgage Loans to the Seller;


(iv)       fourth,
on each Transaction Remittance Date, pro rata, (A) to the Purchaser, any Primary Portfolio Excess Spread for the prior
Collection Period (other than the portion thereof consisting of Primary Portfolio Termination Payments paid pursuant to the foregoing
clauses); and (B) to the Seller, any Primary Portfolio Retained Spread for the prior Collection Period (other than the portion
thereof consisting of Primary Portfolio Termination Payments paid pursuant to the foregoing clauses)); provided, however,
that prior to the distribution to the Seller of any Primary Portfolio Retained Spread pursuant to clause (B), the Primary
Portfolio Retained Spread shall be applied to the payment of any indemnity payments then due and payable by the Seller to the
Purchaser or its related indemnified persons under Section 8.03; and


(v)        fifth, on each Transaction Remittance Date, to the Seller, any other amounts remaining on deposit in the Primary
Spread Custodial Account.


(b)         All payments to the Purchaser shall be made by wire transfer of immediately available funds to an account designated by
the Purchaser.



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ARTICLE
6



SECONDARY PORTFOLIO COLLECTIONS AND REMITTANCES


Section 6.01       
Secondary Portfolio Spread Custodial Account. With respect to each Secondary Portfolio, the Seller shall establish
a Secondary Portfolio Spread Custodial Account, which shall be an Eligible Account, not later than the initial Assignment Date
for such Secondary Portfolio. The Seller shall deliver to the Purchaser reasonable evidence of the establishment of such account
upon request. The Seller shall not pledge, obtain financing for or otherwise permit any Lien of any creditor of the Seller to exist
on, any portion of the Secondary Portfolio Collections or the Seller’s interest in the Secondary Portfolio Spread Custodial
Account without the prior written consent of the Purchaser.


Section 6.02       
Deposits. With respect to each Secondary Portfolio, the Seller shall deposit into the Secondary Portfolio Spread
Custodial Account from time to time any and all Secondary Portfolio Collections received on or after the Transaction Settlement
Date, in each case within three (3) Business Days following receipt thereof. The Seller shall direct each loan owner or master
servicer to remit any Secondary Portfolio Termination Payments directly to the Secondary Portfolio Spread Custodial Account.


Section 6.03       
Withdrawals and Remittances.


(a)          On each Business Day, the Seller shall withdraw from the Secondary Portfolio Spread Custodial Account the cash on deposit
therein and pay such cash in the following amounts and order of priority, in each case subject to funds remaining available after
giving effect to each payment having a higher priority:


(i)          first, from amounts in the Secondary Portfolio Spread Custodial Account attributable to Secondary Portfolio Termination
Payments, pro rata, (A) the Secondary Portfolio Excess Spread Percentage of such Secondary Portfolio Termination Payments to the
Purchaser, and (B) the Retained Excess Spread Percentage of such Secondary Portfolio Termination Payments to the Seller;


(ii)         second, on any Business Day from and including the first Business Day of a calendar month to but excluding the Transaction
Remittance Date in such calendar month, at the option of the Seller, the Base Servicing Fee payable with respect to a prior Collection
Period for the Secondary Portfolio Mortgage Loans to the Seller;


(iii)        third, on each Transaction Remittance Date, to the extent not previously paid to the Seller in accordance with clause
(ii), any accrued and unpaid Base Servicing Fee in respect of the Secondary Portfolio Mortgage Loans to the Seller;



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(iv)        fourth, on each Transaction Remittance Date, pro rata, (A) to the Purchaser, any Secondary Portfolio Excess Spread
for the prior Collection Period (other than the portion thereof consisting of Secondary Portfolio Termination Payments paid pursuant
to the foregoing clauses); and (B) to the Seller, any Secondary Portfolio Retained Spread for the prior Collection Period (other
than the portion thereof consisting of Secondary Portfolio Termination Payments paid pursuant to the foregoing clauses)); provided,
however, that prior to the distribution to the Seller of any Primary Portfolio Retained Spread pursuant to clause (B),
the Primary Portfolio Retained Spread shall be applied to the payment of any indemnity payments then due and payable by the Seller
to the Purchaser or its related indemnified persons under Section 8.03;


(v)         fifth, on each Transaction Remittance Date, to the Seller, any other amounts remaining on deposit in the Secondary
Portfolio Spread Custodial Account.


(b)         All payments to the Purchaser shall be made by wire transfer of immediately available funds to an account designated by
the Purchaser.


ARTICLE
7



SERVICING AND OTHER MATTERS


Section 7.01       
Seller’s Duties With Respect to Servicing.


(a)          Effective on the Transaction Settlement Date for each Primary Portfolio, the Seller agrees for the benefit of the Purchaser
to service the related Primary Portfolio Mortgage Loans and any Secondary Portfolio Mortgage Loans at all times substantially in
accordance with the Servicing Agreement and the Freddie Mac Guide. In connection with the Primary Portfolio Mortgage Loans and
Secondary Portfolio Mortgage Loans related to each Transaction, the Seller shall not, without the express written consent of Purchaser
(which consent may be withheld in its absolute discretion), (a) terminate or amend any Servicing Rights, or (b) enter into any
termination, modification, waiver or amendment of the Servicing Agreement or the Freddie Mac Guide insofar such termination, modification,
waiver or amendment would be reasonably likely to adversely affect the interests of the Purchaser.


(b)          Under no circumstances shall the Purchaser be responsible for the servicing acts and omissions of the Seller or any other
servicer or any originator of the Mortgage Loans, or for any servicing related obligations or liabilities of any servicer under
the Servicing Agreement or the Freddie Mac Guide or any Person under the Mortgage Loan Documents, or for any other obligations
or liabilities of the Seller.


(c)          Upon the termination of the Seller as servicer or subservicer under the Servicing Agreement or the Freddie Mac Guide, the
Seller shall remain liable to the Purchaser and the applicable loan owner or master servicer for all liabilities and obligations
incurred by the Seller while the Seller was acting as the servicer or subservicer thereunder.



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Section 7.02       
Base Servicing Fees. The Seller agrees that, notwithstanding the provisions of the Servicing Agreement and the Freddie
Mac Guide, as between the parties hereto, the Seller shall be entitled to servicing fees on the Primary Portfolio and any Secondary
Portfolio only to the extent of the applicable Base Servicing Fee and only to the extent that funds available for the payment of
such Base Servicing Fee are available in the Primary Portfolio Spread Custodial Account (in the case of the Primary Portfolio Mortgage
Loans) or the Secondary Portfolio Spread Custodial Account (in the case of the Secondary Portfolio Mortgage Loans). Under no circumstances
shall the Purchaser be liable to the Seller for the payment of any Base Servicing Fee. If for any reason a sub-servicer or sub-sub-servicer
is appointed with respect to any Primary Portfolio Mortgage Loan or Secondary Portfolio Mortgage Loan, the servicing fees and expenses
of such sub-servicer or sub-sub-servicer shall be paid by the Seller from its own funds without right of reimbursement therefor,
whether from Primary Portfolio Collections, Secondary Portfolio Collections, Primary Portfolio Termination Payments, Secondary
Portfolio Termination Payments, the Primary Portfolio Spread Custodial Account, the Secondary Portfolio Spread Custodial Account,
the Purchaser or otherwise. The portion of the Base Servicing Fee relating to a Secondary Portfolio Mortgage Loan shall begin to
accrue as of the commencement of the Collection Period in which the related Assignment Date occurs but in no event shall such portion
accrue on any day on which the portion of the Base Servicing Fee relating to the Primary Portfolio Mortgage Loan in respect of
which such Secondary Portfolio Mortgage Loan became a Secondary Portfolio Mortgage Loan also accrues.


Section 7.03       
Reporting. In connection with each Transaction, the Seller shall deliver to the Purchaser monthly reports, and afford
the Purchaser access to information, at such times and in such form and substance as are set forth in the related Confirmation
or as may reasonably be agreed between the Seller and the Purchaser.


Section 7.04       
Certain Awards. If an award of damages is received by the Seller or the Purchaser as a result of a judgment, settlement
or arbitration (including payment pursuant to a guaranty of an obligor) pursuant to a breach by the seller under the Transaction
Asset Purchase Agreement for any Transaction, then (i) if such breach had an adverse effect on the value of the Total Servicing
Spread, then the Transaction Excess Spread Percentage of such award shall be distributed to the Purchaser or its designee promptly
and the remainder of such award shall be retained by the Seller and (ii) if such breach did not have an adverse effect on the value
of the Total Servicing Spread, the Seller shall be entitled to the entirety of such award.


ARTICLE
8



LIABILITIES OF THE SELLER


Section 8.01       
Liability of the Seller. The Seller shall be liable in accordance herewith only to the extent of the obligations
specifically and respectively imposed upon and undertaken by the Seller herein.



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Section 8.02       
Merger or Consolidation of the Seller.


(a)          The Seller shall keep in full effect its existence, rights and franchises as an entity and maintain its qualification to
service mortgage loans for each of Freddie Mac and HUD and comply with the laws of each State in which any Mortgaged Property is
located to the extent necessary to protect the validity and enforceability of this Agreement, and to perform its duties under this
Agreement. The Seller shall keep in full effect its existence, rights and franchises as an entity.


(b)          Any Person into which the Seller may be merged, converted, or consolidated, or any Person resulting from any merger, conversion
or consolidation to which the Seller shall be a party, or any Person succeeding to the business of the Seller, shall be the successor
of the Seller hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding; provided, however, that such successor shall have expressly assumed the duties
of the Seller hereunder.


Section 8.03       
Indemnification.


The Seller shall
indemnify the Purchaser and its directors, officers, employees and agents and hold them harmless against any and all claims, losses,
damages, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments, and any other costs, fees and expenses
that any of them may sustain by reason of the Seller’s (i) willful misfeasance, bad faith or negligence in the performance
of its duties under this Agreement or the Servicing Agreement or the Freddie Mac Guide, (ii) reckless disregard of its obligations
or duties under this Agreement or the Servicing Agreement or the Freddie Mac Guide, or (iii) breach of its representations, warranties
or covenants under this Agreement or the Servicing Agreement or the Freddie Mac Guide.


ARTICLE
9



MISCELLANEOUS


Section 9.01       
Notices. All notices, requests, demands and other communications which are required or permitted to be given under
this Agreement shall be in writing and shall be deemed to have been duly given upon the delivery or mailing thereof, as the case
may be, sent by registered or certified mail, return receipt requested:


(i)           if to the Seller:


PennyMac Loan Services, LLC

Attn: Director, Servicing Operations

6101 Condor Drive

Moorpark, CA 93021



With a copy to:


PennyMac Loan Services, LLC

Attn: General Counsel

6101 Condor Drive

Moorpark, CA 93021


(ii)          if to the Purchaser:


PennyMac Operating Partnership, L.P.

Attn: General Counsel

6101 Condor Drive

Moorpark, CA 93021



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With copies to:


PennyMac Operating Partnership, L.P.

Attn: General Counsel

6101 Condor Drive

Moorpark, CA 93021


and


Latham & Watkins LLP


650 Town Center Drive, 20th Floor


Costa Mesa, California 92626


Attention: Charles Ruck and Scott Shean


or such other address as may hereafter
be furnished to the other parties by like notice.


Section 9.02       
Amendment. Neither this Agreement, nor any terms hereof, may be amended, supplemented or modified except in an instrument
in writing executed by the parties hereto.


Section 9.03       
Entire Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect
to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions,
express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof
control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.


Section 9.04       
Binding Effect; Beneficiaries. The provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective permitted successors and assigns. No provision of this Agreement is intended or shall be
construed to give to any Person, other than the parties hereto, any legal or equitable right, remedy or claim under or in respect
of this Agreement or any provision contained herein.


Section 9.05       
Headings. The section and subsection headings in this Agreement are for convenience of reference only and shall not
be deemed to alter or affect the interpretation of any provisions hereof.


Section 9.06       
Further Assurances. The Seller agrees to execute and deliver such instruments and take such further actions as the
Purchaser may, from time to time, reasonably request in order to effectuate the purposes and to carry out the terms of this Agreement.


Section 9.07       
Governing Law. This Agreement shall be construed in accordance with the substantive laws of the State of New York
applicable to agreements made and to be performed entirely in such State, and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws. The parties hereto intend that the provisions of Section 5-1401 of
the New York General Obligations Law shall apply to this Agreement.



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Section 9.08       
Relationship of Parties. Nothing herein contained shall be deemed or construed to create a partnership or joint venture
between the parties. Without limiting the generality of the preceding statement, the servicing duties and responsibilities of the
Seller shall be rendered by it as an independent contractor and not as an agent of the Purchaser. The Seller shall have full control
of all of its acts, doings, proceedings, relating to or requisite in connection with the discharge of its duties and responsibilities
under this Agreement.


Section 9.09       
Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement
shall be held invalid for any reason whatsoever, 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 9.10       
No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of a party hereto,
any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.


Section 9.11       
Exhibits. The exhibits to this Agreement are hereby incorporated and made a part hereof and form integral parts of
this Agreement.


Section 9.12       
Counterparts. This Agreement may be executed by the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.


Section 9.13       
WAIVER OF TRIAL BY JURY.


EACH PARTY HERETO
ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.


Section 9.14       
LIMITATION OF DAMAGES.


NOTWITHSTANDING ANYTHING
CONTAINED HEREIN TO THE CONTRARY, THE PARTIES AGREE THAT NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL
OR PUNITIVE DAMAGES WHATSOEVER, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), OR ANY OTHER LEGAL OR EQUITABLE
PRINCIPLE, PROVIDED, HOWEVER, THAT SUCH LIMITATION SHALL NOT BE APPLICABLE WITH RESPECT TO ANY THIRD PARTY CLAIM MADE AGAINST A
PARTY.



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Section 9.15       
SUBMISSION TO JURISDICTION; WAIVERS.


EACH PARTY HERETO
HEREBY IRREVOCABLY (I) SUBMITS, FOR ITSELF IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, OR FOR RECOGNITION AND
ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE JURISDICTION OF ANY NEW YORK STATE AND FEDERAL COURTS SITTING IN THE BOROUGH
OF MANHATTAN IN NEW YORK CITY WITH RESPECT TO MATTERS ARISING OUT OF OR RELATING TO THIS AGREEMENT; (II) AGREES THAT ALL CLAIMS
WITH RESPECT TO ANY ACTION OR PROCEEDING REGARDING SUCH MATTERS MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR FEDERAL COURTS;
(III) WAIVES, TO THE FULLEST POSSIBLE EXTENT, WITH RESPECT TO SUCH COURTS, THE DEFENSE OF AN INCONVENIENT FORUM; AND (IV) AGREES
THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON
THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.


Section 9.16       
Expense Reserve.


Notwithstanding anything
in Section 8.03, in the event that counsel or independent accountants for a Protected REIT determine that there exists a
material risk that any amounts due to the Seller or the Purchaser under Section 8.03 hereof would be treated as Nonqualifying
Income for such Protected REIT upon the payment of such amounts to the Seller or the Purchaser, the amount paid to the Seller or
the Purchaser, as the case may be, pursuant to this Agreement in any tax year shall not exceed the maximum amount that can be paid
to the Seller or the Purchaser in such year without causing such Protected REIT to fail to meet the REIT Requirements for such
year, determined as if the payment of such amount were Nonqualifying Income as determined by such counsel or independent accountants
to such Protected REIT. If the amount payable for any tax year under the preceding sentence is less than the amount which the Person
obligated to make payment under Section 8.03 would otherwise be obligated to pay to the Seller or the Purchaser, as the
case may be, pursuant to such Section 8.03 of this Agreement (the “Expense Amount”), then: (1) such obligated
Person shall place the Expense Amount into an escrow account (the “Expense Escrow Account”) using an escrow
agent and agreement reasonably acceptable to the Seller or the Purchaser, as the case may be, and shall not release any portion
thereof to the Seller or the Purchaser, as the case may be, and the Seller or the Purchaser, as the case may be, shall not be entitled
to any such amount, unless and until the Seller or the Purchaser, as the case may be, delivers to such obligated Person, at the
sole option of such Protected REIT, (i) an opinion (an “Expense Amount Tax Opinion”) of such Protected REIT’s
tax counsel to the effect that such amount, if and to the extent paid, would not constitute Nonqualifying Income, (ii) a letter
(an “Expense Amount Accountant’s Letter”) from such Protected REIT’s independent accountants indicating
the maximum amount that can be paid at that time to the Seller or the Purchaser, as the case may be, without causing such Protected
REIT to fail to meet the REIT Requirements for any relevant taxable year, or (iii) a private letter ruling issued by the IRS to
such Protected REIT indicating that the receipt of any Expense Amount hereunder will not cause such Protected REIT to fail to satisfy
the REIT Requirements (a “REIT Qualification Ruling” and, collectively with an Expense Amount Tax Opinion and
an Expense Amount Accountant’s Letter, a “Release Document”); and (2) pending the delivery of a Release
Document by the Seller or the Purchaser, as the case may be, to such obligated Person, the Seller or the Purchaser, as the case
may be, shall have the right, but not the obligation, to borrow the Expense Amount from the Escrow Account pursuant to a loan agreement
(an “Indemnity Loan Agreement”) reasonably acceptable to the Seller or the Purchaser, as the case may be, that
(i) requires such obligated Person to lend the Seller or the Purchaser, as the case may be, immediately available cash proceeds
in an amount equal to the Expense Amount (an “Indemnity Loan”), and (ii) provides for (A) a commercially reasonable
interest rate and commercially reasonable covenants, taking into account the credit standing and profile of the Seller or the Purchaser,
as the case may be, or any guarantor of the Seller or the Purchaser, as the case may be, including such Protected REIT, at the
time of such Indemnity Loan, and (B) a 15 year maturity with no periodic amortization.



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IN WITNESS WHEREOF,
the Seller and the Purchaser have caused their names to be signed hereto by their respective officers thereunto duly authorized
as of the date first above written.


PENNYMAC LOAN SERVICES, LLC

(Seller)







By: /s/ Andrew S. Chang

Name: Andrew S. Chang

Title: Chief Business Development Officer





PennyMac Operating Partnership, L.P.

(Purchaser)



By PennyMac GP OP, Inc., its General Partner








By: /s/ Anne D. McCallion

Name: Anne D. McCallion

Title: Chief Financial Officer


 






    	26



    	 



    

 


EXHIBIT A


 


(Form of Confirmation)


 


 


CONFIRMATION


OF SPREAD ACQUISITION TRANSACTION
UNDER

MASTER SPREAD ACQUISITION AND MSR SERVICING AGREEMENT


 





	PARTIES:	PennyMac Loan Services, LLC (Seller)
	 	 
	 	[PennyMac Operating Partnership, L.P.][PennyMac Holdings, LLC] (Purchaser)
	 	 
	DATE:	_______________, ___
	 	 
	RE:	Spread Acquisition – Pool No. [___]
	 	 
	 	_______________________________







The purpose of this
letter agreement is to confirm the terms and conditions of the Transaction entered into between PennyMac Loan Services, LLC and
[PennyMac Operating Partnership, L.P.][PennyMac Holdings, LLC] on the Transaction Settlement Date specified below. This letter
agreement is a “Confirmation” as described in the Master Spread Acquisition and MSR Servicing Agreement specified in
paragraph 1 below.


The definitions and
provisions contained in the Master Agreement are incorporated into this Confirmation. In the event of any inconsistency between
the Master Agreement and this Confirmation, this Confirmation will govern. Capitalized terms used herein and not otherwise defined
have the meanings set forth in the Master Agreement.


1.             This Confirmation supplements, forms part of and is subject to the Master Spread Acquisition
and MSR Servicing Agreement dated as of December 12, 2014, between PennyMac Loan Services, LLC, as seller, and [PennyMac Operating
Partnership, L.P.][PennyMac Holdings, LLC], as purchaser, , as amended and supplemented from time to time (the “Master
Agreement”). All provisions contained in the Master Agreement govern this Confirmation except as expressly modified below.



    	A-1



    	 



    




2.             The terms of the Transaction to which this Confirmation relates are as follows:


	Primary Portfolio:	As set forth in Schedule I hereto.
	Transaction Settlement Date:	___________, 20____.
	Transaction Base Servicing Fee Rate:	[____] basis points (per annum)
	Transaction Remittance Date:	[__]th day of each month
	Transaction Purchase Price Percentage:	_______%
	Transaction Excess Spread Percentage:	_______%
	Transaction Asset Purchase Agreement:	 
	Transaction Threshold Percentage:	[___%]
	Allowed Retention Percentage:	As set forth opposite the applicable Excess Refinancing Percentage in the following table:
	Cut-off Date	___________, 20____.
	Other:	In the event Seller, whether voluntarily or involuntarily, transfers the Servicing Rights related to the Mortgage Loans in any Primary Portfolio or Secondary Portfolio and receives any termination fee or other compensation or proceeds in connection with such transfer (the “Transfer Proceeds”), Seller shall remit to Purchaser an amount equal to the product of (a) such Transfer Proceeds, multiplied by (b) a fraction, the numerator of which is the Transaction Purchase Price allocable to the Primary Portfolio Excess Spread relating to such Servicing Rights and the denominator of which is the actual purchase price paid by the Seller for such Servicing Rights. 


 


	Table of Allowed Retention Percentage
	 
	Range of Excess Refinancing Percentages	Allowed Retention Percentage
	 	 
	 	 
	 	 






    	A-2



    	 



    

Accepted and confirmed
as of the date first written above:


	SELLER:	PennyMac Loan Services, LLC
	 	By:
__________________________
 Name:
 Title:
	 	 
	PURCHASER:	[PennyMac Operating Partnership, L.P.
	 	
        By PennyMac GP OP, Inc.,
        its General Partner]

        [PENNYMAC HOLDINGS, LLC]

        By: __________________________

        Name:

        Title:



 






    	 



    	 



    

 


SCHEDULE I


TO CONFIRMATION DATED __________, 20___


UNDER THE MASTER SPREAD ACQUISITION AND

MSR SERVICING AGREEMENT DATED AS OF DECEMBER 12, 2014


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






    	 



    	 



    

 


EXHIBIT B


 


(Form of Assignment)


 


PennyMac Loan Services,
LLC (the “Transferor”), hereby assigns, conveys and otherwise transfers to [PennyMac Operating Partnership,
L.P.][PennyMac Holdings, LLC] (the “Transferee”) all of the Transferor’s right, title and interest in,
to and under the [Primary][Secondary] Portfolio Excess Spread for the residential mortgage loans set forth in Annex A attached
hereto. Capitalized terms used and not defined in this instrument have the meanings assigned to them in the Master Spread Acquisition
and MSR Servicing Agreement dated as of December 12, 2014, between PennyMac Loan Services, LLC and PennyMac Operating Partnership,
L.P., as supplemented and amended by the Confirmation dated _____, between such parties.


 


If the conveyance of such
[Primary][Secondary] Portfolio Excess Spread is characterized by a court or governmental authority as security for a loan rather
than an absolute transfer or sale, the Transferor will be deemed to have granted to the Transferee, and the Transferor hereby grants
to the Transferee, a security interest in all of its right, title and interest in, to and under such [Primary][Secondary] Portfolio
Excess Spread and all proceeds thereof as security for a loan in an amount equal to the value of such [Primary][Secondary] Excess
Spread.


 


PENNYMAC LOAN SERVICES, LLC

(Transferor)







By: _________________________

Name: _______________________

Title:


 






    	B-1



    	 



    

 


EXHIBIT C


 


(Representations and Warranties of the Seller)


 


(a)               
Due Organization and Good Standing. The Seller is duly organized, validly existing and in good standing as a limited
liability company under the laws of the State of Delaware and has the power and authority to own its assets and to transact the
business in which it is currently engaged.


(b)              
No Violation of Organizational Documents or Agreements. The execution and delivery of this Agreement by the Seller,
and the performance and compliance with the terms of this Agreement by the Seller, will not violate the Seller’s organizational
documents or constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under,
or result in the breach of, any material agreement or other instrument to which the Seller is a party or which is applicable to
it or any of its assets.


(c)               
Full Power and Authority. The Seller has the full power and authority to enter into and consummate all transactions
contemplated by this Agreement, has duly authorized the execution, delivery and performance of this Agreement, and has duly executed
and delivered this Agreement.


(d)              
Binding Obligation. This Agreement, assuming due authorization, execution and delivery by the other parties hereto,
constitutes a valid, legal and binding obligation of the Seller, enforceable against the Seller in accordance with the terms hereof,
subject to (A) applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’
rights generally, and (B) general principles of equity, regardless of whether such enforcement is considered in a proceeding in
equity or at law.


(e)               
No Violation of Law, Regulation or Order. The Seller is not in violation of, and its execution and delivery of this
Agreement and its performance and compliance with the terms of this Agreement will not constitute a violation of, any law, any
order or decree of any court or arbiter, or, to the Seller’s knowledge, any order, regulation or demand of any federal, state
or local governmental or regulatory authority, which violation, in the Seller’s good faith and reasonable judgment, is likely
to affect materially and adversely either the ability of the Seller to perform its obligations under this Agreement or the financial
condition of the Seller.


(f)               
No Material Litigation. No litigation is pending or, to the best of the Seller’s knowledge, threatened against
the Seller that, if determined adversely to the Seller, would prohibit the Seller from entering into this Agreement or that, in
the Seller’s good faith and reasonable judgment, is likely to materially and adversely affect either the ability of the Seller
to perform its obligations under this Agreement or the financial condition of the Seller.


(g)              
No Consent Required. Any consent, approval, authorization or order of any court or governmental agency or body required
under federal or state law for the execution, delivery and performance by the Seller of or compliance by the Seller with this Agreement
or the consummation of the transactions contemplated by this Agreement has been obtained and is effective except where the lack
of consent, approval, authorization or order would not have a material adverse effect on the performance by the Seller under this
Agreement.



    	C-1



    	 



    







EXHIBIT D


 


(Representations and Warranties of the Purchaser)


 


(a)               
Due Organization and Good Standing. The Purchaser is duly organized, validly existing and in good standing under
the laws of the state of its organization and has the power and authority to own its assets and to transact the business in which
it is currently engaged.


(b)              
No Violation of Organizational Documents or Agreements. The execution and delivery of this Agreement by the Purchaser,
and the performance and compliance with the terms of this Agreement by the Purchaser, will not violate the Purchaser’s organizational
documents or constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under,
or result in the breach of, any material agreement or other instrument to which the Purchaser is a party or which is applicable
to it or any of its assets.


(c)               
Full Power and Authority. The Purchaser has the full power and authority to enter into and consummate all transactions
contemplated by this Agreement, has duly authorized the execution, delivery and performance of this Agreement, and has duly executed
and delivered this Agreement.


(d)              
Binding Obligation. This Agreement, assuming due authorization, execution and delivery by the other parties hereto,
constitutes a valid, legal and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with the terms
hereof, subject to (A) applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of
creditors’ rights generally, and (B) general principles of equity, regardless of whether such enforcement is considered in
a proceeding in equity or at law.


(e)               
No Violation of Law, Regulation or Order. The Purchaser is not in violation of, and its execution and delivery of
this Agreement and its performance and compliance with the terms of this Agreement will not constitute a violation of, any law,
any order or decree of any court or arbiter, or, to the Purchaser’s knowledge, any order, regulation or demand of any federal,
state or local governmental or regulatory authority, which violation, in the Purchaser’s good faith and reasonable judgment,
is likely to affect materially and adversely either the ability of the Purchaser to perform its obligations under this Agreement
or the financial condition of the Purchaser.


(f)               
No Material Litigation. No litigation is pending or, to the best of the Purchaser’s knowledge, threatened against
the Purchaser that, if determined adversely to the Purchaser, would prohibit the Purchaser from entering into this Agreement or
that, in the Purchaser’s good faith and reasonable judgment, is likely to materially and adversely affect either the ability
of the Purchaser to perform its obligations under this Agreement or the financial condition of the Purchaser.


(g)              
No Consent Required. Any consent, approval, authorization or order of any court or governmental agency or body required
under federal or state law for the execution, delivery and performance by the Purchaser of or compliance by the Purchaser with
this Agreement or the consummation of the transactions contemplated by this Agreement has been obtained and is effective except
where the lack of consent, approval, authorization or order would not have a material adverse effect on the performance by the
Purchaser under this Agreement.



    	D-1