Multibank Structured Transaction 2009-1 CML-ADC 

Execution Copy 

SERVICING AGREEMENT
 

by and between
 

RL CML 2009-1 INVESTMENTS, LLC
 

and
 

QUANTUM SERVICING CORPORATION
 

Dated as of February 9, 2010 

Multibank Structured Transaction 2009-1 CML-ADC 

Servicing Agreement 

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TABLE OF CONTENTS
 

Page 

Article I DEFINITIONS AND CONSTRUCTION....................................................... 1
 

Section 1.1 Definitions................................................................................................1
 

Section 1.2 Construction ........................................................................................... 15
 

Article II SERVICING OBLIGATIONS OF THE SERVICER ................................... 16
 

Section 2.1 Appointment and Acceptance as Servicer ............................................... 16
 

Section 2.2 Limited Power of Attorney ..................................................................... 16
 

Section 2.3 Servicing Fee.......................................................................................... 16
 

Section 2.4 Servicing Standard ................................................................................. 16
 

Section 2.5 Collection Account. ................................................................................ 17
 

Section 2.6 Working Capital Account. ...................................................................... 18
 

Section 2.7 Escrow Accounts .................................................................................... 18
 

Section 2.8 Other Accounts....................................................................................... 18
 

Section 2.9 Maintenance of Insurance Policies; Errors and Omissions and 

Fidelity Coverage. .................................................................................. 18
 

Section 2.10 Funding of Working Capital Expenses and Funding Draws ....................20
 

Section 2.11 Expenses ................................................................................................ 20
 

Section 2.12 Insured or Guaranteed Loans .................................................................. 21
 

Section 2.13 Registration with MERS ......................................................................... 21
 

Article III LOAN DEFAULTS; ACQUISITION OF COLLATERAL ..........................22
 

Section 3.1 Delinque ncy Control .............................................................................. 22
 

Section 3.2 Discretion of the Servicer in Responding to Defaults of Borrower ..........22
 

Section 3.3 Acquisition of Acquired Property ........................................................... 22
 

Section 3.4 Administration of REO Properties .......................................................... 23
 

Article IV SUBSERVICING......................................................................................... 25
 

Section 4.1 Retention of Subservicer......................................................................... 25
 

Section 4.2 Subservicing Agreement Requirements .................................................. 25
 

Section 4.3 Servicer Liable for Subservicers ............................................................. 27
 

Section 4.4 Manager Approval Required................................................................... 28
 

Section 4.5 Regulation AB Requirements ................................................................. 28
 

Article V REPRESENTATIONS, WARRANTIES AND COVENANTS OF
 

THE SERVICER.......................................................................................... 28
 

Section 5.1 Representations and Warranties .............................................................. 28
 

Section 5.2 Reporting, Books and Records and Compliance Covenants ....................29
 

Section 5.3 Aud its..................................................................................................... 32
 

Section 5.4 No Liens ................................................................................................. 33
 

Section 5.5 Servicer’s Duty to Advise; Delivery of Certain Notices ..........................33
 

Section 5.6 Notice of Breach or Change of Control ................................................... 34
 

Section 5.7 Copies of Documents.............................................................................. 34
 

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Section 5.8 Financial Information ............................................................................. 34
 

Article VI MANAGER CONSENT .............................................................................. 34
 

Section 6.1 Actions Requiring Manager Consent ...................................................... 34
 

Section 6.2 Amendments, Modification and Waivers ................................................ 36
 

Article VII DEFAULTS; TERMINATION; TERMINATION WITHOUT CAUSE .......36
 

Section 7.1 Defaults .................................................................................................. 36
 

Section 7.2 Termination with Cause. ......................................................................... 37
 

Section 7.3 Termination without Cause. .................................................................... 38
 

Section 7.4 Effective Termination Date..................................................................... 39
 

Section 7.5 Accounting ............................................................................................. 39
 

Article VIII INDEPENDENCE OF PARTIES; INDEMNIFICATION ............................39
 

Section 8.1 Independence of Parties .......................................................................... 39
 

Section 8.2 Indemnification ...................................................................................... 39
 

Section 8.3 Procedure for Indemnification ................................................................ 40
 

Section 8.4 Pre-Effective Date Liabilities.................................................................. 40
 

Article IX NOTICES .................................................................................................... 41
 

Article X GOVERNING LAW; JURISDICTION ........................................................ 42
 

Section 10.1 Governing Law....................................................................................... 42
 

Section 10.2 Jurisdiction; Venue and Service .............................................................. 43
 

Section 10.3 Waiver of Jury Trial ............................................................................... 45
 

Article XI MISCELLANEOUS..................................................................................... 45
 

Section 11.1 No Assignment by Servicer; No Transfer of Ownership Interests in
 

Servicing Rights. .................................................................................... 45
 

Section 11.2 Legal Fees .............................................................................................. 45
 

Section 11.3 Entire Agreement ................................................................................... 46
 

Section 11.4 Counterparts; Facsimile Signatures ......................................................... 46
 

Section 11.5 Headings ................................................................................................ 46
 

Section 11.6 Compliance with Law ............................................................................. 46
 

Section 11.7 Severability ............................................................................................ 46
 

Section 11.8 Third Party Beneficiaries ........................................................................ 47
 

Section 11.9 Protection of Confidential Information ................................................... 47
 

Section 11.10 Time of Essence ..................................................................................... 47
 

Section 11.11 No Presumption...................................................................................... 48
 

Section 11.12 No Right of Setoff .................................................................................. 48
 

Section 11.13 Release of Initial Member and Others ..................................................... 48
 

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SCHEDULES AND EXHIBITS
 

Exhibits 

Exhibit A Loan Schedule 

Exhibit B Electronic Tracking Agreement 

Schedules 

Schedule 1 List of Various Failed Financial Institutions 

Schedule 2 Fee Schedule 

Schedule 3 Servicing Obligations 

Schedule 4 Reimbursement of Servicer Advances 

Schedule 5 Form of Electronic Report on the Loans and Underlying Collateral 

Schedule 6 Termination Without Cause 

Schedule 7 Business Plans and Consolidated Business Plans 

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SERVICING AGREEMENT 

THIS SERVICING AGREEMENT (as the same shall be amended or supplemented, this 

“Agreement”) is made and entered into as of the 9th da y of February, 2010 (the “Effective 

Date”), by and between RL CML 2009-1 Investments, LLC, a Delaware limited liability 

company (including its successors and assigns, the “Manager”), and Quantum Servicing 

Corporation, a Delaware corporation (including those of its successors and assigns as are 

expressly permitted pursuant to this Agreement, the “Servicer ”). 

RECITALS 

WHEREAS, Multibank 2009-1 CML-ADC Venture, LLC (the “Company”) owns the 

Loans (as defined below) described on the Loan Schedule attached hereto as Exhibit A (the 

“Loan Schedule ”); 

WHEREAS, the Manager is the “Manager” of the Company with the authority and 

responsibility to service and manage the Loans and related Underlying Collateral (as defined 

below) pursuant to that certain Amended and Restated Limited Liability Company Operating 

Agreement dated as of the Closing Date defined below (the “ LLC Operating Agreement”), by 

and between the Company, the Manager, including in its separate capacity as a member of the 

Company (in such capacity as a member, together with its successors and assigns, the “Private 

Owner”), and the Federal Deposit Insurance Corporation (in any capacity, the “FDIC”), as 

receiver for the Failed Banks defined herein (the FDIC, in its separate capacities as receiver with 

respect to each such receivership, the “Receiver”, and the Receiver as the Initial Member under 

such LLC Operating Agreement, including its successors and assigns, the “Initial Member ”); 

and 

WHEREAS, the Manager and the Servicer desire that the Servicer service and administer 

the Loans and Underlying Collateral on behalf of the Company and the Manager in a manner that 

is, at all times, consistent with the requirements of this Agreement. 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises and 

agreements contained herein, and for other good and valuable consideration the receipt and 

sufficiency of which are hereby acknowledged, the Manager and the Servicer hereby agree as 

follows: 

ARTICL E I
 

DEFI NIT IO NS AND C O NSTR UCTIO N
 

Section 1.1 Definitions . For purposes of this Agreement, the following terms shall 

have the meanings and definitions hereinafter respectively set forth. 

“Acceptable Rating” shall mean (i) a rating of “Average (Select Servicer List)” for 

construction loan servicers by Standard and Poor’s Ratings Service, a division of The McGrawHill Companies, Inc., (ii) a rating of “Acceptable” for construction loan servicers by Fitch, Inc., 

or (iii) a rating of “Approved” for construction loan servicers by Moody’s Investors Service. 

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“Acquired Property ” shall mean (i) Underlying Collateral to which title is acquired by 

or on behalf of the Company or any Ownership Entity, any Failed Bank or the Receiver by 

foreclosure, by deed in lieu of foreclosure, by power of sale or by sale pursuant to the Uniform 

Commercial Code; (ii) the equity interests in the Ownership Entities and (iii) the assets held 

directly or indirectly by the Ownership Entities. 

“Affiliate” shall mean, with respect to any specified Person, (i) any other Person directly 

or indirectly Controlling or Controlled by or under common Control with such specified Person, 

(ii) any Person owning or Controlling ten percent (10%) or more of the outstanding voting 

secur ities, voting equity interests, or beneficial interests of the Person specified, (iii) any officer, 

director, general partner, managing member, trustee, employee or promoter of the Person 

specified or any Immediate Family Member of such officer, director, general partner, managing 

member, trustee, employee or promoter, (iv) any corporation, partnership, limited liability 

company or trust for which any Person referred to in clause (ii) or (iii) acts in that capacity, or 

(v) any Person who is an officer, director, general partner, managing member, trustee or holder 

of ten percent (10%) or more of the outstanding voting securities, voting equity interests or 

beneficial interests of any Person described in clauses (i) through (iv); provided, however , that 

(a) with respect to the Private Owner (in any capacity, including as the Manager hereunder), in 

addition to the foregoing, each Affiliate of Rialto Capital Management, LLC, a Delaware limited 

liability company, shall be deemed to be an “Affiliate” of the Private Owner, and (b) none of the 

Initial Member, the Purchase Money Notes Guarantor, the Collateral Agent or any Affiliate (for 

this purpose determined disregarding clauses (ii), (iii) and (iv) of this definition (including in the 

context of clause (v) of this de finition) and disregarding the Company and any Person Controlled 

by the Company) of any of the foregoing shall be deemed to be an “Affiliate” of the Company or 

of any Person Controlled by the Company. 

“Agreement ” shall have the meaning given in the preamble. 

“Ancillary Documents ” shall mean the Custodial and Paying Agency Agreement and 

each “Ancillary Document” as defined therein (excluding this Agreement). 

“Borrower ” shall mean any borrower with respect to any Loan. 

“Bulk Sale ” shall have the meaning given in the LLC Operating Agreement. 

“Business Day ” shall mean any day except a Saturday, Sunday or other day on which 

commercial banks in Washington DC or United States federal government offices are required or 

authorized by Law to close. 

“Business Plan ” shall have the meaning given in the LLC Operating Agreement. 

“Change of Control” with respect to the Servicer shall mean, (i) the Servicer’s Specified 

Parent for any reason (x) failing or ceasing to Control the Servicer or (y) failing or ceasing to 

own, beneficially and of record, and directly or indirectly (including through one or more 

Subsidiaries), least 50.1% in value of all of the equity interests in the Servicer, or (ii) without 

limitation of clause (i), in the event the Servicer is (or at the time it became the Servicer, was) an 

Affiliate of the Private Owner, any Change of Control of the Private Owner. 

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“Closing Date ” shall mean February 9, 2010. 

“Collateral Agent ” shall mean the FDIC, in its capacity as the Collateral Agent under 

(and as defined in) the Reimbursement, Security and Guaranty Agreement, and any successor 

Collateral Agent thereunder. 

“Collection Account ” shall mean the Collection Account established by the Company 

pursuant to the Custodial and Paying Agency Agreement. 

“Company ” shall have the meaning given in the recitals of this Agreement. 

“Consolidated Business Plan ” shall have the meaning given in the LLC Operating 

Agreement. 

“Contract for Deed ” shall mean an executory contract with a third party to convey real 

property to such third party upon payment of the amounts set forth therein and/or the 

performance of any other obligations described therein, including any installment land contract. 

“Contribution Agreement ” shall mean the Loan Contribut ion and Sale Agreement dated 

as of the Closing Date between the Initial Member and the Company. 

“Control” (including the phrases “Controlled by” and “under common Control with ”) 

when used with respect to any specified Person shall mean the possession, direct or indirect, of 

the power to direct or cause the direction of the management and policies of such Person, 

whether through the ownership of voting securities or interests, by contract or otherwise. 

“Controlled Affiliate ” with respect to the Servicer or any Subservicer, shall mean any 

Affiliate thereof that is Controlled by the Servicer or such Subservicer, as applicable, or by its 

Specified Parent (in the case of the Servicer). 

“Custodial and Paying Agency Agreement ” shall mean, initially, the Custodial and 

Paying Agency Agreement dated as of February 9, 2010, by and between the Company, the 

Purchase Money Notes Guarantor and the initial Custodian and Paying Agent, and thereafter any 

replacement Custodial and Paying Agency Agreement entered into from time to time pursuant to 

the LLC Operating Agreement. 

“Custodian ” shall mean Wells Fargo Bank, N. A., or any successor thereto as the 

“Custodian” under the Custodian and Paying Agency Agreement. 

“Cut-Off Date ” shall mean December 18, 2009. 

“Debtor Relief Laws ” shall mean Title 11 of the United States Code (11 U.S.C. §§101, 

et seq.), and all other liquidation, conservatorship, bankrupt cy, assignment for the benefit of 

creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor 

relief Laws of the United States or other applicable jurisdictions from time to time in effect and 

affecting the rights of creditors generally. 

“Default” shall have the meaning given in Section 7.1. 

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“Discretionary Funding Advance ” shall mean an advance by the Manager to the 

Company designated as a “Discretionary Funding Advance” pursuant to the LLC Operating 

Agreement for the making of applicable Funding Draws with respect to specific Loans or related 

Acquired Property. 

“Effective Date ” shall have the meaning given in the preamble of this Agreement. 

“Eligible Account ” shall mean one or more segregated trust or custodial account or 

accounts established and maintained with an Eligible Institution, each of which shall be entitled 

for the benefit of the Company and the Collateral Agent as required by Article II . 

“Eligible Institution ” shall mean a Person that is not an Affiliate of the Private Owner 

(or the Manager) and that is a federally insured depository institution that is well capitalized; 

provided that an Affiliate of the Private Owner (or the Manager) may be deemed to be an 

Eligible Institution if the Initial Member and the Purchase Money Notes Guarantor provide a 

written consent (which may be withheld in each such person’s sole and absolute discretion), 

which consent may be withdrawn upo n written notification to the Manager, in which case such 

Affiliate of the Private Owner (or of the Manager) shall no longer constitute an Eligible 

Institution as of the receipt of such notice and any accounts maintained pursuant to this 

Agreement at such institution shall be moved to an Eligible Institution within three (3) Business 

Days after the receipt of such notice. 

“Electronic Report” shall have the meaning given in Section 5.2(e). 

“Electronic Tracking Agreement” shall mean an agreement substantially in the form of 

Exhibit B . 

“Environ mental Hazard ” shall have the meaning given to such term in the LLC 

Operating Agreement. 

“Escrow Account” shall have the meaning given in Section 2.7. 

“Escrow Advance ” shall mean any advance made to pay taxes or insurance premiums or 

any other cost or expense that, but for a shortfall in the Borrower’s Escrow Account, is payable 

using funds in the Borrower’s Escrow Account. 

“Excess Working Capital Advance ” shall mean an advance by the Manager to the 

Company designated as an “Excess Working Capital Advance” pursuant to the LLC Operating 

Agreement. 

“Excluded Expenses ” shall mean fees, costs, expenses or indemnified amounts that: 

(a) are not incurred in accordance with the Servicing Standard or, to the 

extent applicable, the Fannie Mae Guidelines; 

(b) constitute or are incurred to pay any expenses or costs of any Affiliate of 

the Manager or the Company, or any Affiliate of the Servicer or any Subservicer; provided, 

Excluded Expenses under this clause (b) do not include costs or expenses expr essly payable to 

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the Servicer pursuant to this Agreement or to any Subservicer pursuant to any Subservicing 

Agreement that would be deemed Excluded Expenses under this clause (b) solely as a result of 

Servicer or such Subservicer being an Affiliate of the Manager or the Company, so long as such 

amounts would otherwise constitute Servicing Expenses but for application of this clause (b) ; 

(c) are incurred to pay fees or other compensation to or expenses of financial 

advisers, except to the extent the same are incurred as brokerage fees or sales commissions 

incurred (x) to market or sell the Loans or any Acquired Property in a Bulk Sale the terms of 

which Bulk Sale (including the financial adviser’s or broker’s fees or sales commissions) are 

approved in advance by the Initial Member and the Purchase Money Notes Guarantor or (y) in 

connection with the marketing or sale of any Acquired Property (including any REO Property) or 

any portion thereof on an individual basis; 

(d) are incurred to pay any fine, tax or other penalty, late fee, service charge, 

interest or similar charge, costs to release Liens or any other costs or expenses (including legal 

fees and expenses) incurred by or on behalf of the Servicer or any Subservicer as a result of the 

Servicer’s or any Subservicer’s failure to service any Loan or Underlying Collateral properly in 

accordance with the applicable Loan Documents, this Agreement, any Subservicing Agreement 

or otherwise, or failure to make a payment in a timely manner, or failure otherwise to act in a 

timely manner; 

(e) are incurred to pay any interest on any amounts paid by any Person with 

respect to any Servicing Expenses or Pre-Approved Charges (as such term is defined in the 

Contribut ion Agreement); 

(f) constitute or are incurred to pay any overhead or administrative costs 

(whether or not attributable to the servicing or management of any Loan) incurred by the 

Servicer, any Subservicer or any other Person (including any travel expenses and any expenses 

incurred to comply with Section 5.2 ), in each case other than Reimbursable Company 

Administrative Expenses; 

(g) are incurred to pay any servicing, management or similar fees paid to any 

Subservicer or any other Person; 

(h) are incurred (other than Reimbursable Company Administrative Expenses 

with respect to the Company or the Ownership Entities) by the Servicer or any other Person to 

become a MERS member or to maintain the Servicer or such Person as a MERS member in good 

standing; or 

(i) constitute or are incurred to pay amounts subject to the indemnity 

obligations of the Private Owner under Section 4.6 of the LLC Operating Agreement or of the 

Servicer under Section 8.2 of this Agreement. 

“Failed Banks” shall mean the various financial institutions listed on Schedule 1 . 

“Fannie Mae” shall mean the Federal National Mortgage Association of the United 

States or any successor thereto. 

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“Fannie Mae Guidelines ” shall mean the guidelines governing the reimbursement of 

costs and expenses by Fannie Mae with respect to loans owned or securitized by Fannie Mae, as 

in effect on the date on which an expense or cost is incurred. 

“Fee Schedule” shall mean Schedule 2 , as the same may be amended from time to time 

by the Manager and the Servicer without the consent of the Purchase Money Notes Guarantor or 

the Initial Member. 

“FDIC ” shall mean the Federal Deposit Insurance Corporation, in any capacity. 

“Funding Draw” shall mean (i) any principal advance with respect to a Loan pursuant to 

the funding provisions of the applicable Loan Documents and in accordance with the Servicing 

Standard, in each case so long as (a) if required by applicable Law or if otherwise deemed 

necessary by the Manager or required hereunder, an endorsement to each applicable title policy 

insuring the Loan, which endorsement shall be in form and content acceptable to the Manager, is 

obtained that (1) brings down the effective date of the title policy to the date on which the 

applicable Funding Draw it covers is made, (2) increases the liability limit of the title policy by 

an amount equal to the principal amount of such Funding Draw, and (3) contains no new 

exceptions to title; (b) notwithstanding anything to the contrary contained in this Agreement, if 

the then outstanding unpaid pr incipal balance of the Loan exceeds (or would, after taking into 

account the applicable Funding Draw, so exceed) the value of the Underlying Collateral, the 

Servicer shall make or permit any such Funding Draw only if the Servicer determines, in its 

reasonable judgment and subject to any applicable Servicing Obligations, that the Borrower is 

reasonably likely to be able to repay the Loan, or that the making of the Funding Draw is in the 

best interests (in terms of maximizing the value of the Loan) of the Company and the Initial 

Member, or that the Company is otherwise legally obligated to make such Funding Draw under 

the applicable Loan Documents; and (c) such advance is made in accordance with the terms of 

the Loan and the Loan Documents, provided, however, that if such advance would result in the 

pr incipal amount of such Loan being in excess of the related unfunded commitment with respect 

thereto (as set forth under the Loan Documents) or if any term with respect to the Loan or the 

Loan Documents precludes such advance in the event of a Borrower default, the applicable 

unfunded commitment may be increased (and such advance may be made) and/or such term may 

be waived, in each case only if the Servicer determines, in its reasonable judg ment and in 

accordance with the Servicing Standard and subject to any applicable Servicing Obligations, that 

such increase to the unfunded commitment (and related advance) or waiver is in the best interests 

of the Company and the Initial Member in terms of maximizing the value of the Loan and, in the 

case of any such increase to the unfunded commitment (or other advance not contemplated in the 

existing Loan Documents), (x) such increased commitment and the related advance are 

evidenced by an applicable Note (or Notes) and amendments to the Loan Documents (including 

Underlying Collateral Documents) pursuant to which such increased commitment and advance 

shall be secured by all of the Underlying Collateral for such Loan on terms and conditions 

consistent with the Loan Documents as in effect prior to such amendment (without otherwise 

amending the terms and conditions in any such Loan Document except as reasonably required to 

permit such advance to be made in accordance herewith and with the Servicing Standard), and 

(y) the Servicer complies with the requirements in item (i)(a) above; and (ii) payments of costs 

and expenses associated with the continued construction of REO Property (including the 

payment of so-called “soft costs” payable during construction (such as real estate taxes, ground 

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rents and insurance premiums)) as would typically have been paid out of funding of the 

applicable Loan relating to such REO Property (as reasonably determined by the Manager), in 

each case (x) only to the extent the Servicer determines, in its reasonable judgment and subject to 

any applicable Servicing Obligations, that the payment of such costs and expenses is in the best 

interests (in terms of maximizing the value of the Loan and REO Property) of the Company and 

the Initial Member, and (y) in accordance with the Servicing Standard and the Loan Documents 

that were applicable to the REO Property before it became an REO Property (not including 

payment of debt service under the applicable Loan Documents, and without limiting the amounts 

to be funded to the applicable unfunded commitment, if any, existing under the Loan 

Documents); provided, that, in no event shall any such costs and expenses payable pursuant to 

any such Funding Draw include any Excluded Expenses; and provided, further , that the making 

of Funding Draws by the Servicer shall be subject to such additional requirements or consents as 

may be set forth in the Servicing Obligations. 

“GAAP ” shall mean United States generally accepted accounting principles as in effect 

from time to time. 

“Governmental Authority ” shall mean (i) any United States or non-United States 

national, federal, state, local, municipal, provincial or international government or any political 

subdivision of any thereof or (ii) any governmental, regulatory or administrative authority, 

agency or commission, or judicial or arbitral body, of any of the foregoing described in clause 

(i). 

“Group of Loans ” shall have the meaning given in the Contribut ion Agreement. 

“Immediate Family Member ” shall mean, with respect to any individua l, his or her 

spouse, parents, parents-in-law, grandparents, descendants, nephews, nieces, brothers, sisters, 

brothers-in-law, sisters-in-law, children (whether natural or adopted), children-in-law, 

stepchildren, grandchildren and grandchildren-in-law. 

“Indemnified Parties” shall have the meaning given in Section 8.2. 

“Initial Member ” shall have the meaning given in the recitals of this Agreement. 

“Insolvency Event ” shall mean, with respect to any specified Person, the occurrence of 

any of the following events: 

(i) the specified Person makes an assignment for the benefit of creditors; 

Proceeding; 

(ii) the specified Person files a voluntary petition for relief in any Insolvency 

(iii) the specified Person is adjudged bankrupt or insolvent or there is entered 

against the specified Person an order for relief in any Insolvency Proceeding; 

(iv) the specified Person files a petition or answer seeking for the specified 

Person any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or 

similar relief under any Law; 

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(v) the specified Person seeks, consents to, or acquiesces in the appointment 

of a trustee, receiver or liquidator of the specified Person or of all or any substantial part of the 

specified Person’s properties; 

(vi) the specified Person files an answer or other pleading admitting or failing 

to contest the material allegations of a petition filed against the specified Person in any 

proceeding described in clauses (1) through (5); 

(vii) the specified Person becomes unable to pay its obligations as they become 

due, or the sum of such specified Person’s debts is greater than all of such Person’s property, at a 

fair valuation; or 

(viii) (i) at least sixty (60) days have passed following the commencement of 

any proceeding against the specified Person seeking reorganization, arrangement, composition, 

readjustment, liquidation, dissolution or similar relief under any Law and such proceeding has 

not been dismissed, or (ii) (x) at least sixty (60) days have passed following the appointment of a 

trustee, receiver or liquidator for the specified Person or all or any substantial part of the 

specified Person’s properties without the specified Person’s agreement or acquiescence, and such 

appointment is not vacated or stayed, or (y) if such appointment is stayed, at least sixty (60) 

days have passed following the expiration of the stay and such appo intment has not been 

vacated. 

“Insolvency Proceeding ” shall mean any proceeding under Title 11 of the United States 

Code (11 U.S.C. §§101, et seq.) or any proceeding under any other Debtor Relief Law. 

“LLC Operating Agreement ” shall have the meaning given in the recitals of this 

Agreement. 

“Law” shall mean any applicable statute, law, ordinance, regulation, rule, code, 

injunction, judgment, decree or order (including any executive order) of any Governmental 

Authority. 

“Lien ” shall mean any mortgage, deed of trust, pledge, deed to secure debt, trust deed, 

security interest, charge, restriction on or condition to transfer, voting or exercise or enjoyment 

of any right or beneficial interest, option, right of first refusal, easement, covenant, restriction 

and any other lien, claim or encumbrance of any nature whatsoever. 

“Loan” shall mean any loan, Loan Participation, Ownership Entity (including any cash 

and cash equivalents held directly or indirectly by such Ownership Entities) or Acquired 

Property listed on the Loan Schedule, and any loan into which any listed loan or Loan 

Participation is refinanced or modified, and includes with respect to each such loan, Loan 

Participation, Ownership Entity, Acquired Property or other related asset or Related Agreements: 

(i) any obligation evidenced by a Note; (ii) all rights, powers or Liens of the Company or any 

Ownership Entity in or under the Underlying Collateral and Underlying Collateral Documents 

and in and to Acquired Property (including all Ownership Entities and REO Property held by any 

Ownership Entity); (iii) all rights of the Company or any Ownership Entity pursuant to any 

Contract for Deed and in or to the real property that is subject to any such Contract for Deed; (iv) 

all rights of the Company or any Ownership Entity pursuant to any lease and in or to the related 

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leased property; (v) all rights to causes of action, lawsuits, judg ments, claims and demands of 

any nature available to or being pursued by or for the benefit of the Company or any Ownership 

Entity with respect to the Loans, the Underlying Collateral or the ownership, use, function, value 

of or other rights pertaining thereto, whether arising by way of counterclaim or otherwise, other 

than any claims retained by the Initial Member pursuant to Section 2.7 of the Contribut ion 

Agreement; (vi) all guaranties, warranties, indemnities and similar rights in favor of the 

Company or any Ownership Entity with respect to any of the Loans; (vii) all rights of the 

Company or any Ownership Entity under the Related Agreements; and (viii) all rights of the 

Initial Member or any Failed Bank to any Deficiency Balances (as defined in the Contribution 

Agreement). 

“Loan Documents ” shall mean all documents, agreements, certificates, instruments and 

other writings (including all Underlying Collateral Documents) now or hereafter executed by or 

delivered or caused to be delivered by any Borrower or any Obligor evidencing, creating, 

guaranteeing or securing, or otherwise executed or delivered in respect of, all or any part of a 

Loan or any Acquired Property or evidencing any transaction contemplated thereby, and all 

Modifications thereto. 

“Loan Participation ” shall mean any loan listed on the Loan Schedule subject to a 

shared credit, participation, co lending or similar inter-creditor agreement under which the Initial 

Member, any Failed Bank, or the Receiver was, or the Company is, the lead or agent financial 

depository institution or otherwise managed or held the credit or sold participations, or under 

which the Initial Member, Failed Banks or the Receiver was, or the Company is, a participating 

financial depository institution or purchased participations in a credit managed by another 

Person. 

“Loan Participation Agreement ” shall mean an agreement under which the Initial 

Member, any Failed Bank or the Receiver was, or the Company is, the lead or agent financial 

depository institution or otherwise managed or held a shared credit or sold participations, or 

under which the Initial Member, any Failed Bank or the Receiver was, or the Company is, a 

participating financial depository institution or purchased participations in a credit managed by 

another Person. 

“Loan Proceeds” shall mean all of the following: (i) any and all proceeds with respect to 

any or all of the Loans and any or all of the Underlying Collateral, including principal, interest, 

default interest, prepayment fees, premiums and charges, extension and exit fees, late fees, 

assumption fees, other fees and charges, insurance proceeds and condemnation payments (or any 

portion thereof) that are not used and disbursed to repair, replace or restore the related 

Underlying Collateral in accordance with the terms of the Loan Documents and the Ancillary 

Documents, and, with respect to any Acquired Property, operating cash flow realized from such 

Acquired Property net of Servicing Expenses, whether paid directly to the Company or payable 

to or distributed by an Ownership Entity; (ii) any and all proceeds from sales or other 

dispositions or refinancings of any or all of the Loans (including Acquired Property) net of 

Servicing Expenses incurred in connection with such sale or other disposition or refinancing; (iii) 

any proceeds from making a draw under any letter of credit or certificate of deposit held with 

respect to any Loan, provided that such draw is permitted by the terms of the Loan Documents; 

(iv) any recoveries from Borrowers or Obligors of any kind or nature with respect to the Loans; 

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(v) any deposits or down payments forfeited by prospective purchasers or lessees of apartments 

or other units for space at any Underlying Collateral; and (vi) any interest or other earnings 

accrued and paid on any of the amounts described in the foregoing clauses (i) through (v) while 

held in the Collection Account or any Other Account; provided, however, that, with respect to 

proceeds of any Loan Participation (including as a result of any sale or other disposition of such 

Loan Participation or of Underlying Collateral relating thereto), the Loan Proceeds shall exclude 

any amounts payable to others under the applicable Loan Participation Agreement. 

“Loan Schedule ” shall have the meaning given in the recitals of this Agreement. 

“Manager ” shall have the meaning given in the preamble. 

“MERS ” shall mean Mortgage Electronic Registration Systems, Incorporated. 

“MERS® System ” shall mean the MERSCORP, Inc. mortgage electronic registry 

system, as more particularly described in the MERS Procedures Manual (a copy of which is 

attached as an exhibit to the Electronic Tracking Agreement). 

“Modification ” shall mean any extension, renewal, substitution, replacement, 

supp lement, amendment or modification of any agreement, certificate, document, instrument or 

other writing, whether or not contemplated in the or iginal agreement, document or instrument. 

“Note ” shall mean each note or promissory note, lost instrument affidavit, loan 

agreement, Loan Participation Agreement, intercreditor agreement, reimbursement agreement, 

any other evidence of indebtedness of any kind, or any other agreement, document or instrument 

evidencing a Loan, and all Modifications to the foregoing. 

“Obligor ” shall mean (i) any guarantor of all or any portion of any Loan or all or any of 

any Borrower’s obligations set forth and described in the Loan Documents or (ii) any other 

Person (other than the Borrower, the lender(s) and any administrative or other agent) that is 

obligated pursuant to the Loan Documents with respect to a Loan, and shall include the guarantor 

under any completion guaranty or similar document. 

“Other Accounts” shall have the meaning given in Section 2. 7. 

“Ownership Entity ” shall mean any direct wholly-owned subsidiary of the Company 

satisfying the requirements of an “Ownership Entity” as such term is defined in the LLC 

Operating Agreement, whether contributed or sold by the Initial Member to the Company on the 

Closing Date or formed or acquired by the Company thereafter. 

“Paying Agent ” shall mean the Paying Agent under the Custodial and Paying Agency 

Agreement. 

“Person” shall mean any individua l, corporation, partnership (general or limited), limited 

liability compa ny, limited liability partnership, firm, joint venture, association, joint-stock 

company, trust, estate, unincorporated organization, governmental or regulatory body or other 

entity. 

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“Prior Servicer” shall have the meaning given in Section 4.2. 

“Private Owner ” shall have the meaning given in the recitals of this Agreement. 

“Purchase Money Notes Guarantor ” shall mean the FDIC, in its corporate capacity, as 

Purchase Money Purchase Money Notes Guarantor under the Purchase Money Notes Guaranty 

(as such terms are defined in the Custodial and Paying Agency Agreement). 

“Qualified Servicer ” shall mean any Person that (i) is properly licensed and qualified to 

conduct business in each jur isdiction in which such licenses and qualifications to conduct 

business are necessary for the servicing of the Loans and management of the Underlying 

Collateral and the Acquired Property, (ii) has the management capacity and experience to service 

Loans of the type held by the Company, especially performing and non-performing construction 

loans secured by multi-family residential properties or commercial properties, as applicable, 

including the number and types of loans serviced, and the ability to track, process and post 

payments, to furnish tax reports to Borrowers, to monitor construction, and to approve and 

disburse construction draws, (iii) either (x) has an Acceptable Rating or (y) is approved by and 

continues to be acceptable to the Manager in its sole discretion (it being understood that the 

Manager will not be permitted to grant such approval unless the Initial Member also consents, 

and may be required to withdraw such acceptance if the Initial Member so requests that the same 

be withdrawn), and (iv) in the event any of the serviced Loans are (or are required pursuant to 

the terms hereof to be) registered on the MERS® System, is a member of MERS. 

“Receiver ” shall have the meaning given in the recitals of this Agreement. 

“Regulation AB ” shall mean the regulations at 17 C.F.R. §§229.1100, et seq., as the 

same may be amended from time to time. 

“Reimbursable Company Administrative Expenses ” shall have the meaning given in 

the LLC Operating Agreement. 

“Reimbursement, Security and Guaranty Agreement ” shall mean the Reimbursement, 

Security and Guaranty Agreement dated as of the Closing Date among the FDIC, acting in its 

corporate capacity and as Receiver and as Collateral Agent, the Company, and the guarantors 

party thereto. 

“Related Agreement” shall mean (i) any agreement, document or instrument (other than 

the Note and Underlying Collateral Documents) relating to or evidencing any obligation to pay 

or securing any Loan (including any equipment lease, letter of credit, bankers’ acceptance, draft, 

system confirmation of transaction, loan history, affidavit, general collection information, and 

correspondence and comments relating to any obligation), (ii) any agreement relating to real 

property or rights in or to any real property (including leases, tenancies, concessions, licenses or 

other rights of occupancy or use and security deposits related thereto), (iii) any collection, 

contingency fee, and tax and other service agreements (including those referred to in Section 4.2 

of the Contribution Agreement) that are specific to the Loans (or any of them) and that are 

assignable, (iv) any letter of assurance, letter of credit or similar instrument evidencing an 

obligation of any Failed Bank, the Initial Member, the Company or any Ownership Entity that 

was issued for the benefit of any Person and relates in any way to a Loan or the acquisition, 

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development or construction of any project with respect to which the proceeds of such Loan 

were used or were intended to be used, and (v) any interest rate swap arrangement between the 

Borrower and any of the Failed Banks, the Initial Member or the Company (in each case as the 

applicable lender, agent or other creditor under the Loan) that relates to any Loan. 

“Related Party ” shall mean with respect to any Person, any party related to such Person 

in the manner delineated in 26 U.S.C.A § 267(b) and the regulations promulgated thereunder, as 

such law and regulations may be amended from time to time. 

“REO Property ” shall mean any real property (and related personal property) included 

in the Acquired Property. 

“Restricted Servicer Change of Control ” shall mean any Change of Control with 

respect to the Servicer that has not been appr oved in writing by Initial Member and the Manager 

(which appr oval shall not be unreasonably withheld). 

“Servicer ” shall have the meaning given in the preamble. 

“Servicer Advances ” shall mean advances made by or on behalf of the Servicer to fund 

Servicing Expenses. 

“Servicing Expenses” shall mean all customary and reasonable out-of-pocket fees, costs, 

expenses and indemnified amounts incurred in connection with servicing the Loans and the 

Acquired Property, including (i) any and all out-of-pocket fees, costs, expenses and indemnified 

amounts which a Borrower is obligated to pay to any Person or to reimburse to the lender, in 

each case, pursuant to the applicable Note or any other Loan Documents, including Escrow 

Advances, (ii) any and all reasonable out-of-pocket expenses necessary to protect or preserve the 

value of the Underlying Collateral or the priority of the Liens and security interests created by 

the Loan Documents relating thereto, including taxes, insurance premiums (including forced 

place insurance premiums), payment of ground rent, the costs of prevention of waste, repairs and 

maintenance, foreclosure expenses and legal fees and expenses relating to foreclosure or other 

litigation with respect to the Loans, (iii) any and all direct expenses related to the preservation, 

operation, management, leasing and sale of the Acquired Property (including real estate 

brokerage fees), (iv) Reimbursable Company Administrative Expenses, (v) subject to Section 4.6 

of the LLC Operating Agreement (and excluding any amounts or claims the Private Owner is 

required to bear or indemnify pursuant to such Section 4.6), to the extent not covered by any of 

clauses (i) through (iv), legal fees and expenses (including judgments, settlements and reasonable 

attorneys fees) incurred by the Company, the Manager or the Servicer (including to reimburse 

any Subservicer) in its (or any Subservicer’s) defense of claims asserted against the Company (or 

the Manager, the Servicer or any Subservicer) that relate to one or more Loans or the conduct of 

the Business, and allege, as the basis for such claims, any act or omission of the Company (or the 

Manager, the Servicer or any Subservicer) but only if (1) such claims are not attributable to any 

act or omission of the Company, the Manager, the Servicer or any Subservicer in a manner 

inconsistent with, or in violation of, the Servicing Standard or any of the provisions of this 

Agreement, the LLC Operating Agreement or any other Ancillary Document, and, (2) (x) such 

claims are decided and there are final non appealable orders or judgments (unless the Initial 

Member has agreed in writing that no appeal needs to be taken) in favor of the Company (or the 

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Manager or the Servicer) or if decided against the Company (or the Manager or the Servicer) 

without any finding of bad faith, gross negligence or willful misconduct on the part of any of the 

foregoing, or (y) there is entered into a final settlement of any such claim with the prior written 

consent of the Initial Member, (vi) subject to Section 4.6 of the LLC Operating Agreement, 

(x) expenses incurred in accordance with Section 4.5(c) of the Contribut ion Agreement and 

(y) expenses incurred in connection with any litigation (including any bankruptcy action) 

included in the Obligations (as defined in the Contribution Agreement) and assumed pursuant to 

Section 4.5(a) or (b) or Section 4.6 of the Contribution Agreement, (vii) any and all fees, costs 

and expenses in connection with the registration of the Purchase Money Notes as described in 

Article 2 of the Custodial and Paying Agency Agreement, including the fees for the registration 

of the Purchase Money Notes with the Depository Trust Company, and (viii) the costs of 

preparing, negotiating and recording any REO Mortgage (as defined in the Reimbursement, 

Security and Guaranty Agreement, including mortgage recording taxes) and the costs associated 

with the additional documentation required pursuant to Section 8.11 of the Reimbursement, 

Security and Guaranty Agreement, in each case pursuant to Section 8.11 of the Reimbursement, 

Security and Guaranty Agreement; provided, however , that Servicing Expenses shall not include 

any (A) Excluded Expenses or (B) costs or expenses to be funded (or which, assuming relevant 

conditions are satisfied, could be funded) using Funding Draws. For purposes of clarification, in 

connection with any reimbursement rights of the Initial Member (or any Prior Servicer) with 

respect to the period prior to the Closing Date, Servicing Expenses shall not include any 

Corporate Advances (as defined in the Contribution Agreement) made prior to the Closing Date. 

“Servicing Fee” shall have the meaning given in Section 2.3. 

“Servicing Obligations” shall have the meaning given in Section 2.4. 

“Servicing Standard” shall have the meaning given in Section 2.4. 

“Servicing Transfer Date ” shall mean, with respect to any particular Loan or Group of 

Loans, the later of the Effective Date and the applicable “Servicing Transfer Date” for such Loan 

or Group of Loans as defined in, and determined pursuant to, the Contribution Agreement. 

“Site Assessment” shall have the meaning given in Section 3.3. 

“Specified Date” shall mean the 10th day of each month, or such other day as is agreed 

to by the Servicer and the Manager, provided, however , that, in any case, if such day is not a 

Business Day, the Specified Date shall be the immediately preceding Business Day. 

“Specified Parent(s)” with respect to the Servicer shall mean any Person or Persons that 

the Manager and the Initial Member may agree from time to time shall be designated as the 

“Specified Parent” with respect to the Servicer; provided , that, (i) the Servicer’s initial Specified 

Parent is Clayton Holdings LLC, a Delaware limited liability company. 

“Subservicer” shall have the meaning given in Section 4. 1. 

“Subservicing Agreement” shall have the meaning given in Section 4.2. 

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“Termination Notice” shall mean any written notice of termination required pursuant to 

Article VII . 

“Transferred LLC Interest Sale Agreement ” shall mean that certain Limited Liability 

Company Interest Sale and Assignment Agreement dated the Closing Date between the Initial 

Member and the Private Owner. 

“Underlying Collateral ” shall mean any and all real or personal property, whether 

tangible, intangible or mixed, securing or pledged to secure a Loan, including (i) any account, 

equipment, guarantee or contract right, equity, partnership or other interest that is the subject of 

any Underlying Collateral Document and (ii) as the context requires, Acquired Property, whether 

or not expressly specified. 

“Underlying Collateral Document ” shall mean any pledge agreement, security 

agreement, personal, corporate or other guaranty, deed of trust, deed, trust deed, deed to secure 

debt, mortgage, contract for the sale of real property, assignment, collateral agreement, stock 

power or other agreement or document of any kind, whether an original or a copy, whether 

similar to or different from those enumerated, (i) securing in any manner the performance or 

payment by any Borrower or any Obligor of its obligations or the obligations of any Borrower or 

any Obligor pursuant to any of the Loans or Notes evidencing the Loans, or (ii) evidencing 

ownership of any Acquired Property. 

“Uniform Commercial Code ” shall mean the Uniform Commercial Code as in effect in 

any applicable jurisdiction, as amended from time to time. 

“Unpaid Principal Balance” shall mean, at any time, (a) when used in connection with 

multiple Loans, an amount equal to the aggregate then outstanding principal balance of such 

Loans, and (b) when used with respect to a single Loan, an amount equa l to the then outstanding 

principal balance of such Loan; provided, however , that: 

(i) with respect to any Loan Participation (and any related Acquired 

Property), the Unpaid Principal Balance of such Loan Participation shall include only the 

Company’s allocable share thereof in accordance with the applicable Loan Participation 

Agreement; 

(ii) with respect to any Acquired Property that is included among the Loans on 

the Closing Date, the Unpaid Principal Balance of such Acquired Property shall initially be the 

amount set forth on the Loan Schedule, as adjusted to its Adjusted Cut-Off Date Unpaid 

Principal Balance (as defined in, and determined pursuant to, the Contribution Agreement), and 

thereafter determined in the same manner as all other Acquired Property; 

(iii) in the case of a Loan for which some or all of the related Underlying 

Collateral has been converted to Acquired Property (including REO Property), until such time as 

the Acquired Property (or any portion thereof) is liquidated, the unpaid principal balance of such 

Loan shall be deemed to equal the amount of the unpaid principal balance of such Loan (adjusted 

pro rata for debt forgiveness or retained indebtedness) at the time at which such Loan was 

converted to Acquired Property, plus, without duplication, any outstanding balance remaining on 

such Loan which is evidenced by a modification agreement or a replacement or successor 

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promissory note executed by the borrower, less the net proceeds of any sales of any portions of 

the Acquired Property effective after such conversion. 

(iv) the Unpaid Principal Balance with respect to any Acquired Property will 

be increased by the amount of, without duplication, (A) any Funding Draws applied with respect 

thereto in accordance with this Agreement or any Ancillary Document, and (B) any Servicing 

Expenses capitalized thereto in accordance with applicable Law to the extent that capitalizing 

such Servicing Expenses would have been permitted under the applicable Loan Documents prior 

to the conversion of the Loan to the Acquired Property. 

“Working Capital Expenses ” shall mean any Servicing Expenses, Pre-Approved 

Charges (as such term is defined in the Contribut ion Agreement), Funding Draws (or permitted 

uses thereof, as the context may require), Management Fee, Interim Management Fee, Interim 

Servicing Fee (as each term is defined in the LLC Operating Agreement) or fees of the Custodian 

and Paying Agent. 

“Working Capital Reserve” has the meaning given in Section 2.6(a). 

“Working Capital Reserve Account ” shall mean a segregated trust or custodial account 

established and maintained at a branch of the Paying Agent pursuant to the Custodial and Paying 

Agency Agreement (as the “Working Capital Reserve Account” defined therein) for purposes of 

holding and disbursing the Working Capital Reserve. 

Section 1.2 Construction . This Agreement shall be construed and interpreted in 

accordance with the following: 

(a) References to “Affiliates” include, with respect to any specified Person, 

only such other Persons which from time to time constitute “Affiliates” of such specified Person, 

and do not include, at any particular time, other Persons that may have been, but at such time 

have ceased to be, “Affiliates” of such specified Person, except to the extent that any such 

reference specifically provides otherwise. 

(b) The term “or” is not exclusive. 

(c) A reference to a Law includes any amendment, modification or 

replacement to such Law. 

(d) References to any document, instrument or agreement (including this 

Agreement) (a) shall be deemed to include all appendices, exhibits, schedules and other 

attachments thereto and all documents, instruments or agreements issued or executed in 

replacement thereof, and (b) shall mean such document, instrument or agreement, or replacement 

thereto, as amended, modified and supplemented from time to time in accordance with its terms 

and as the same is in effect at any given time. 

(e) Unless otherwise specified, the words “hereof,” “herein” and “hereunder” 

and words of similar import shall refer to this Agreement as a whole and not to any particular 

provision of this Agreement. 

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(f) The words “include” and “including” and words of similar import are not 

limiting, and shall be construed to be followed by the words “without limitation,” whether or not 

they are in fact followed by such words. 

(g) The word “during” when used with respect to a period of time shall be 

construed to mean commencing at the beginning of such period and continuing until the end of 

such period. 

(h) Unless the context otherwise requires, singular nouns and pronouns when 

used herein shall be deemed to include the plural and vice versa and impersonal pronouns shall 

be deemed to include the personal pronoun of the appropriate gender. 

AR TIC L E II
 

SERVICING O BLIG AT IO NS O F TH E SERVI CER
 

Section 2.1 Appointment and Acceptance as Servicer . Effective as of the date hereof 

(and, with respect to each Loan or Group of Loans, as of the applicable Servicing Transfer Date 

with respect thereto), the Manager appo ints the Servicer to service, administer, manage and 

dispose of the Loans and the Underlying Collateral on behalf of and as an agent of the Manager. 

Section 2.2 Limited Power of Attorney. The Manager hereby grants to the Servicer a 

limited power of attorney to execute all documents on its behalf (including as the “Manager” of 

the Company, in turn acting on behalf of the Company) in accordance with the Servicing 

Standard set forth below and as may be necessary to effectuate the Servicer’s obligations under 

this Agreement until such time as the Manager revokes said limited power of attorney. 

Revocation of the limited power of attorney shall take effect upon: (i) the receipt by the Servicer 

of written notice thereof from or on behalf of the Manager, or (ii) termination of this Agreement 

pursuant to Article VII. 

Section 2.3 Servicing Fee. As consideration for servicing the Loans and the 

Underlying Collateral, the Manager shall pay the Servicer a servicing fee in the amount and at 

such times as are set forth on the Fee Schedule (the “Servicing Fee ”). 

Section 2.4 Servicing Standard. The Servicer shall take such actions and perform such 

duties in connection with the servicing, administration, management and disposition of the Loans 

and Underlying Collateral as are set forth on Schedule 3, as the same may be amended from time 

to time by the Manager and the Servicer (the “Servicing Obligations”). The Servicer shall 

perform its Servicing Obligations (i) in the best interests and for the benefit of the Company, (ii) 

in accordance with the terms of the Loans (and related Loan Documents), (iii) in accordance with 

the terms of this Agreement (including this Article II), (iv) in accordance with all applicable 

Law, (v) subject to Section 5.7, in accordance with the requirements of the LLC Operating 

Agreement, the Custodial and Paying Agency Agreement and the other Ancillary Documents, 

and (vi) to the extent consistent with the foregoing terms, in the same manner in which a prudent 

servicer would service and administer similar loans and in which a prudent servicer would 

manage and administer similar properties for its own portfolio or for other Persons, whichever 

standard is higher, but using no less care and diligence than would be customarily employed by a 

prudent servicer following customary and usual standards of practice of prudent mortgage 

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lenders, loan servicers and asset managers servicing, managing and administering similar loans 

and properties on an arms’ length basis, provided that, with respect to each Loan and related 

Underlying Collateral, in the absence of a customary and usual standard of practice, the Servicer 

shall comply with the applicable Fannie Mae Guidelines, if any, with respect to similar loans or 

properties in similar situations (the requirements in clauses (i) through (vii) collectively, the 

“Servicing Standard”). In addition, the Servicer shall perform its Servicing Obligations without 

regard to (a) any relationship that the Servicer, the Company, the Manager or any Subservicer or 

any of their respective Affiliates may have to any Borrower or Obligor or any of their respective 

Affiliates, including any other banking or lending relationship and any other relationship 

described in Section 5.1(h), (b) the Company’s, the Manager’s, the Servicer’s or any 

Subservicer’s obligation to make disbursements and advances with respect to the Loans and the 

Underlying Collateral, (c) any relationship that the Servicer or any Subservicer may have to each 

other or to the Company, the Manager or any of their respective Affiliates, or any relationship 

that any of their respective Affiliates may have to the Company, the Manager or any of their 

respective Affiliates (other than the contractual relationship evidenced by this Agreement or any 

Subservicing Agreement), and (d) the Servicer’s or any Subservicer’s right to receive 

compensation (including the Servicing Fee) for its services under this Agreement or any 

Subservicing Agreement. 

Section 2.5 Collection Account . 

(a) The Servicer shall deposit into the Collection Account all Loan Proceeds 

on a daily basis (without deduction or setoff as provided in Section 11.2 hereof) within two 

Business Days after receipt thereof by the Servicer. The Servicer shall not cause funds from any 

other source (other than interest or earnings on the Loan Proceeds and the proceeds of Excess 

Working Capital Advances and Discretionary Funding Advances and other funds expressly 

permitted to be deposited into the Collection Account pursuant to the Custodial and Paying 

Agency Agreement) to be commingled in the Collection Account. 

(b) Except as otherwise directed by the Manager, any and all amounts on 

deposit in (or that are required to have been deposited into) the Collection Account (including 

interest and earnings thereon) shall be disbursed strictly in accordance with this Agreement 

(including the additional terms and conditions set forth in the Servicing Obligations) for 

purposes of payment of applicable Working Capital Expenses (including the making of 

applicable Funding Draws); provided, however, that if the Servicer or any Subservicer 

erroneously deposits any amounts into the Collection Account, it may withdraw such 

erroneously deposited amount. 

(c) Except as otherwise directed by the Manager, any and all amounts 

required to be remitted by the Servicer to the Collection Account under this Agreement shall be 

remitted by wire transfer, in immediately available funds. 

(d) The Collection Account (and all funds therein) will be subject to an 

account control agreement among the Company, the Collateral Agent and the Paying Agent. 

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Section 2.6 Working Capital Account . 

(a) Pursuant to the LLC Operating Agreement and the Custodial and Paying 

Agency Agreement, the Company has established the Working Capital Reserve Account to be 

maintained with the Paying Agent, and the Initial Member and the Private Owner have funded 

into such Working Capital Reserve Account a reserve (together with such additional amounts as 

may from time to time be in such Working Capital Reserve Account, the “ Working Capital 

Reserve ”) in an initial amount of $30,000,000 for purposes of funding Working Capital 

Expenses of the Company to the extent there are insufficient funds for payment of the same from 

the funds in the Collection Account. Except as otherwise directed by the Manager, the Servicer 

shall not cause funds from any other source (other than interest or earnings on the Working 

Capital Reserve) to be commingled in the Working Capital Reserve Account (it being 

understood that deposits into such Working Capital Reserve Account shall be made only 

pursuant to the Custodial and Paying Agency Agreement). 

(b) Except as otherwise directed by the Manager, any and all amounts on 

deposit in the Working Capital Reserve Account (including interest and earnings thereon) shall 

be disbursed strictly in accordance with this Agreement (including the additional terms and 

conditions set forth in the Servicing Obligations). 

(c) The Working Capital Account (and all funds therein) will be subject to an 

account control agreement among the Company, the Collateral Agent and the Paying Agent. 

Section 2.7 Escrow Accounts. Except as otherwise directed by the Manager, the 

Servicer shall establish and maintain one or more Eligible Accounts, each of which shall be held 

in trust for the benefit of the Company and the Collateral Agent (each, an “Escrow Account ”, 

which term shall include all so-called “lockbox” accounts maintained under the Loan Documents 

and any other accounts maintained by the Company under the Loan Documents for amounts 

deposited or required to be depoisted therein by the applicable Borrower). Except as otherwise 

directed by the Manager, the Servicer shall deposit into the applicable Escrow Account on a 

daily basis all collections from the Borrowers for the payment of taxes, assessments, hazard 

insurance premiums, and comparable items for the account of the Borrowers, and all other 

amounts required to be deposited in such Escrow Account pursuant to the applicable Loan 

Documents. The Servicer shall pay to the Borrowers interest on funds in Escrow Accounts to the 

extent required by Law or the applicable Loan Documents. 

Section 2.8 Other Accounts. At the direction of the Manager, the Servicer shall 

establish and maintain such other Eligible Accounts as may be directed by the Manager, each of 

which shall be held in trust for the benefit of the Company and the Collateral Agent, and shall be 

funded and disbursed only in accordance with such instructions as are provided by the Manager 

(“Other Accounts ”). 

Section 2.9 Maintenance of Insurance Policies; Errors and Omissions and Fidelity 

Coverage . 

(a) The Servicer and each Subservicer shall cause insurance coverage to be 

maintained for the Underlying Collateral (including any Acquired Property) as required under 

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the Reimbursement, Security and Guaranty Agreement and the LLC Operating Agreement, 

including, whether or not so required (but in all events subject to the requirements in LLC 

Operating Agreement and, for so long as the same remain in effect the Reimbursement, Security 

and Guaranty Agreement), insurance from an insurer reasonably acceptable to the Manager for 

each Loan with respect to which the Borrower has failed to maintain required insurance, fire, 

hurricane, flood and hazard insurance with extended coverage as is customary in the area in 

which the Underlying Collateral is located and in such amounts and with such deductibles as, 

from time to time, is directed by the Manager. 

(b) The Servicer and each Subservicer shall maintain each of the following 

types of insurance coverage having such limits as described below: 

(i) Errors & Omissions Liability with limits of not less than 

$10,000,000 per claim and $10,000,000 in the aggregate. The Manager shall be 

notified immediately upon the reduction of or potential reduction of 50% of the 

limits. The Manager may require that the Servicer and each Subservicer purchase 

additional limits to provide back to the required limits as stated above. “Potential 

reduction of 50%” shall mean any knowledge by the Servicer or Subservicer, as 

applicable, that a claim or the sum of all claims, current or initiated after effective 

date of policy which would reduce the limits by 50%. 

(ii) Directors & Officers Liability with limits of not less than 

$10,000,000 each claim and $10,000,000 in the aggregate. 

(iii) Crime Insurance or a Fidelity Bond in an amount of not less than 

$10,000,000 covering employee theft, forgery & alteration, wire/funds transfer, 

computer fraud, client coverage. Such coverage shall insure all employees or any 

other persons authorized by Servicer or Subservicer to handle any funds, money, 

documents and papers relating to any Loan, and shall protect the Servicer or 

Subservicer, as applicable, against losses arising out of theft, embezzlement, 

fraud, misplacement, and other similar causes. The Manager and the Company 

shall each be named as a loss payee with respect to claims arising out of assets 

handled under this Agreement or any applicable Servicing Agreement or 

Subservicing Agreement. 

(iv) General Liability with limits of not less than $1,000,000 each 

occurrence, $2,000,000 in the aggregate, including coverage for 

products/completed operations, advertising and personal injury. The Manager 

and the Company shall each be named as additional insured. Policy shall include 

a Waiver of Subrogation in favor of the Manager and the Company. 

(v) Auto Liability with a combined single limit of not less than 

$1,000,000 to provide coverage for any owned, hired, or non-owned vehicles. 

(vi) Workers Compensation in such amount as required by the states in 

which the Servicer or Subservicer, as applicable, operates, including coverage for 

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Employer’s Liability in an amount not less than, $1, 000, 000. Policy shall include 

a Waiver of Subrogation in favor of the Manager and the Company. 

(vii) Umbrella Liability in an amount of not less than $10,000,000 each 

occurrence and in the aggregate. 

All such policies shall be written with carriers having a minimum insurer rating of A- VIII from 

A.M. Best and A from Standard & Poor’s. All such policies shall have a minimum notice of 

cancellation of thirty (30) days, except for non-payment of premium whereby a ten (10) day 

notice of cancellation is acceptable. Certificates shall show each of the Manager and the 

Company as certificate holder, or as otherwise designated by the language in clauses (i)-(vii) 

above. 

The Servicer shall provide (or shall cause each Subservicer to provide) the Purchase Money 

Notes Guarantor, the Manager and the Initial Member with certificates evidencing all such 

policies on the Effective Date (and, with respect to each Loan, the applicable Servicing Transfer 

Date with respect thereto) and each anniversary of the Closing Date thereafter, and otherwise 

upon request of the Manager, the Purchase Money Notes Guarantor or the Initial Member. 

Copies of fidelity bonds and insurance policies required to be maintained pursuant to this Section 

2.9 shall be made available to the Manager, the Purchase Money Notes Guarantor and the Initial 

Member or their respective representatives on the Effective Date (and, with respect to each Loan, 

on the applicable Servicing Transfer Date with respect thereto), and shall otherwise be made 

available to any of the Manager, the Purchase Money Notes Guarantor and the Initial Member 

and their respective representative upon request. 

Section 2.10 Funding of Working Capital Expenses and Funding Draws. To the extent 

set forth in, and subject to the terms of, this Agreement (including the Servicing Obligations), the 

Servicer shall, on behalf of the Manager, in turn acting on behalf of the Company (and from 

Company funds made available by the Manager), make applicable Funding Draws and pay other 

applicable Working Capital Expenses; provided that the making of the same is consistent with 

the applicable terms and conditions in the Custodial and Paying Agency Agreement and, subject 

to Section 5.7, the applicable terms and conditions in the LLC Operating Agreement and the 

other Ancillary Documents. Servicer acknowledges that (a) subject to the Custodial and Paying 

Agency Agreement (and any permitted transfer or release as funds as provided therein), the 

Working Capital Reserve shall be used exclusively for funding of Working Capital Expenses 

(including the making of applicable Funding Draws with respect to specified Loans or related 

Acquired Property), but only if there are insufficient available funds in the Collection Account; 

(b) proceeds of Discretionary Funding Advances shall be used exclusively for making Funding 

Draws with respect to specified Loans or related Acquired Property (and in no event may 

Discretionary Funding Advances be used for payment of any Working Capital Expenses other 

than Funding Draws); and (c) proceeds of Excess Working Capital Advances shall be used 

exclusively for payment Working Capital Expenses other than Funding Draws (and in no event 

may Excess Working Capital Advances be used for the making of any Funding Draws) and for 

such other purposes as may be expressly permitted pursuant to the LLC Operating Agreement. 

Section 2.11 Expenses. Except as otherwise directed by the Manager, the Servicer shall 

use its reasonable best efforts to recover from Borrowers and Obligors all amounts of Servicing 

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Expenses that are advanced by the Servicer (as permitted or required pursuant to the Servicing 

Obligations) as Servicer Advances to the extent that the Borrowers and Obligors are responsible 

for such Servicing Expenses under the Loan Documents. All such amounts not recovered from 

Borrowers or Obligors and all other Servicer Advances shall be reimbursed only in accordance 

with the terms set forth on Schedule 4 , as the same may be amended from time to time by the 

Manager (without the consent of the Initial Member) and the Servicer. In no event may any 

Servicer Advances be deductible from or netted against any Loan Proceeds. In the event the 

Servicer is reimbursed for any amount that does not qualify as a Servicing Expense, the Servicer 

shall be obligated to refund such amounts to the Manager, or, if so directed by the Manager, 

directly to the Company (to the Collection Account) on the Specified Date immediately 

following the Servicer’s receipt of notice from the Manager requesting the same. No Servicer 

Advances shall bear interest chargeable in any way to the Company or deductible from any Loan 

Proceeds. 

Section 2.12 Insured or Guaranteed Loans . If any Loans being serviced pursuant to this 

Agreement are insured or guaranteed by any Governmental Authority, the Servicer 

acknowledges and agrees that, if the Manager so directs pursuant to the Servicing Obligations 

with respect to such Loans, it shall take any and all actions as may be necessary to insure that 

such insurance or guarantees remain in full force and effect. The Servicer acknowledges and 

agrees that, upon assumption of the Servicing Obligations with respect to the Loans pursuant to 

this Agreement, it agrees to fulfill all of the Company’s obligations under the contracts of 

insurance or guaranty. 

Section 2.13 Registration with MERS. In the event that any of the Loans are (or are 

required by the Servicing Obligations to be) registered on the MERS® System, the Servicer shall 

maintain (or register, as applicable) such Loan on the MERS® System and execute and deliver 

on behalf of the Company any and all instruments of assignment and other comparable 

instruments with respect to such assignment or re-recording of a mortgage securing a Loan in the 

name of MERS®, solely as nominee for the Company and its successors and assigns. The 

Manager shall be designated as the “servicer” and the “investor” with respect to the Loans that 

are registered on the MERS® System, and the Servicer shall be designated as the “subservicer” 

with respect to such Loans. No other Person shall be identified on the MERS® System as 

having any interest in any of the Loans unless otherwise consented to by the Manager. All Loans 

registered on the MERS® System shall remain registered on the MERS® System unless default, 

foreclosure or similar legal or MERS® requirements dictate otherwise. The Servicer shall 

provide the Manager and the Initial Member with such reports from the MERS® System as the 

Manager or the Initial Member, from time to time, may request, including to allow the Manager 

and the Initial Member to verify the Persons identified on the MERS® System as having any 

interest in any of the Loans and to confirm that the Loans required to be registered on the 

MERS® System are so registered. The Servicer shall also execute and deliver to the Company 

and the Initial Member the Electronic Tracking Agreement in the form of Exhibit B. Without 

limiting the foregoing, upon the request of the Manager or the Initial Member, the Servicer shall 

cause MERS® to run a query with respect to any and all specified fields on the MERS® System 

with respect to any or all of the Loans registered on the MERS® System and provide the results 

to the Manager and the Initial Member and, if requested by the Manager or the Initial Member, 

shall cause MERS® to change the information in such fields, to the extent MERS® will do so in 

accordance with its policies and procedures, to reflect its instructions. 

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AR TIC L E II I 

LO AN DEFAUL TS; AC Q UISITIO N O F C O L LATERAL 

Section 3.1 Delinque ncy Control . Except as otherwise directed by the Manager , the 

Servicer shall maintain a collection department that substantially complies with the Servicing 

Standard and protects the Company’s interests in the Loans and the Underlying Collateral in 

accordance with the Servicing Standard. 

Section 3.2 Discretion of the Servicer in Responding to Defaults of Borrower. Upon 

the occurrence of an event of default under any of the Loan Documents, but subject to the other 

terms and conditions of this Agreement, including the Servicing Obligations of the Servicer and 

such direction as the Manager may otherwise provide that is consistent with the Servicer’s 

compliance with the Servicing Standard, the Servicer, with the consent of the Manager, shall 

cause to be determined the response to such default and course of action with respect to such 

default, including (a) the selection of attorneys to be used in connection with any action, whether 

judicial or otherwise, to protect the interests of the Company in the Loan and the Underlying 

Collateral, (b) the declaration and recording of a notice of such default and the acceleration of 

the maturity of the Loan, (c) the institution of proceedings to foreclose the Loan Documents, 

Underlying Collateral or Acquired Property securing the Loan pursuant to the power of sale 

contained therein or through a judicial action, (d) the institution of proceedings against any 

Obligor, (e) the acceptance of a deed in lieu of foreclosure, (f) the purchase of the real property 

Underlying Collateral at a foreclosure sale or trustee’s sale or the purchase of the personal 

property Underlying Collateral at a Uniform Commercial Code sale, and (g) the institution or 

continuation of proceedings to obtain a deficiency judgment against such Borrower or any 

Obligor and the collection of such judgment. Notwithstanding anything to the contrary 

contained herein, but subject to Section 5.7, the Servicer shall not, in connection with any such 

default or otherwise, take (or refrain from taking) any action if the taking (or refraining from 

taking) of such action is inconsistent with the terms of the LLC Operating Agreement or any 

other Ancillary Documents without the prior written consent of the Manager. 

Section 3.3 Acquisition of Acquired Property. Any acquisition of Underlying 

Collateral shall conform with the terms and conditions of this Agreement (including the 

Servicing Obligations of the Servicer). With respect to any Loan as to which the Servicer has 

received actual notice of, or has actual knowledge of, any Environmental Hazard with respect to 

the related Underlying Collateral, the Servicer shall immediately provide written notice of same 

to the Manager. In addition, if the Manager so directs, prior to the acquisition of title to any 

Underlying Collateral, the Servicer shall cause to be commissioned with respect to such 

Underlying Collateral (i) a Transaction Screen Process consistent with ASTM Standard E 1528­

06, by an environmental professional or (ii) such other site inspections and assessments by a 

Person who regularly conducts environmental audits using customary industry standards as 

would customarily be undertaken or obtained by a prudent lender in order to ascertain whether 

there are any actual or threatened Environmental Hazards (a “Site Assessment”), and the cost of 

such Site Assessment shall be deemed to be a Servicing Expense as long as the costs for such 

Site Assessment were not paid to any Affiliate of the Manager or any Affiliate of the Servicer or 

any Subservicer. Except as is otherwise directed by the Manager, the Servicer or any 

Subservicer shall not acquire or otherwise cause the Company or any subsidiary or other entity in 

which the Company owns any interest to acquire all or any portion of any Underlying Collateral 

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having any actual or threatened Environmental Hazard by foreclosure, deed in lieu of 

foreclosure, power of sale or sale pursuant to the Uniform Commercial Code or otherwise. If 

title to any Underlying Collateral that constitutes real property is to be acquired by foreclosure, 

by deed in lieu of foreclosure, by power of sale or by sale pursuant to the Uniform Commercial 

Code, or otherwise, title to such Acquired Property shall be taken by and held in the name of an 

Ownership Entity; provided, however, that for any Underlying Collateral which becomes 

Acquired Property after the Servicing Transfer Date relating thereto and with respect to which 

there exists any Environmental Hazard, the Ownership Entity that holds such Underlying 

Collateral may hold title only to the relevant Underlying Collateral with respect to which the 

Environmental Hazard exists. 

Section 3.4 Administration of REO Properties . In addition to any other terms and 

conditions set forth herein, in connection with any REO Properties, the Servicer shall, in each 

case subject to applicable instructions from the Manager and the Servicing Obligations, comply 

with the following terms and conditions: 

(a) The Servicer shall cause the applicable Ownership Entity to maintain 

insurance in compliance with applicable requirements herein and in the LLC Operating 

Agreement. 

(b) The Servicer shall cause the applicable Ownership Entity to (i) perform 

the obligations that such Ownership Entity is required to perform under the leases to which it is a 

party in all material respects and (ii) enforce, in accordance with commercially reasonable 

practices for properties similar to the applicable REO Property, the material obligations to be 

performed by the tenants under such leases. 

(c) The Servicer shall not permit any Ownership Entity to initiate or consent 

to any zoning reclassification of any portion of the REO Property owned by such Ownership 

Entity, or use or permit the use of any portion of an REO Property in any manner that could 

result in such use (taking into account any applicable variance obtained in accordance with the 

Servicing Standard) becoming a non-conforming use under any zoning ordinance or any other 

applicable land use law, rule or regulation, without the prior consent of the Manager, the 

Collateral Agent and the Initial Member. 

(d) The Servicer shall not permit any Ownership Entity to suffer, permit or 

initiate the joint assessment of REO Property (i) with any other real property constituting a tax 

lot separate from such REO Property, and (ii) with any portion of an REO Property which may 

be deemed to constitute personal property, or any other procedure whereby the lien of any taxes 

which may be levied against such personal property shall be assessed or levied or charged to 

such REO Property. 

(e) From and after the completion of any buildings or other improvements at 

an REO Property, the Servicer shall cause the applicable Ownership Entity to maintain such 

REO Property in a good and safe condition and repair (subject to such alterations as the Manager 

may from time to time determine to be appropriate in accordance with the Servicing Standard 

and applicable requirements herein and in the Ancillary Documents) and in accordance with 

applicable Law. 

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(f) All property managers with respect to any REO Property shall, in their 

respective property management agreements or by separate agreement, subordinate their rights 

under such agreements (including their right to receive management fees) to the rights and 

interest of the Collateral Agent under the applicable REO Mortgage (as defined in the 

Reimbursement, Security and Guaranty Agreement). 

(g) With respect to any REO Property that is leased under a ground or other 

lease (in each case, a “ground lease ”), the Servicer shall cause the applicable Ownership Entity 

to (i) pay all rents and other sums required to be paid by the tenant under and pursuant to the 

provisions of the applicable ground lease as and when such rent or other charge is payable, and 

(ii) diligently and timely perform and observe all of the terms, covenants and conditions binding 

on the tenant under the ground lease. The Servicer shall not permit the applicable Ownership 

Entity to subordinate or consent to the subordination of any ground lease to any mortgage, lease 

or other interest on or in the ground lessor’s interest in the applicable REO Property without the 

prior consent of the Manager and the Collateral Agent unless such subordination is required 

under the provisions of such ground lease. 

(h) In the event the Manager elects to fund the construction of the REO 

Property (pursuant to Funding Draws for such purpose), then the Servicer shall cause each 

Ownership Entity to pursue with diligence the construction of the REO Property owned by such 

Ownership Entity (i) in accordance with the construction, construction management (if any) and 

all other material contracts relating to such construction, and all requirements of Law, all 

restrictions, covenants and easements affecting such REO Property, and all applicable 

governmental approvals, (ii) in substantial compliance with the plans and specifications therefor 

as in existence on the Closing Date and as thereafter modified by the Manager (or the Servicer, 

to the extent permitted in the Servicing Obligations), (iii) in a good and workmanlike manner and 

free of defects, (iv) in a manner such that such REO Property remains free from any Liens, 

claims or assessments (actual or contingent) for any material, labor or other item furnished in 

connection therewith and (v) in conformance with the requirements for Funding Draws. 

(i) Notwithstanding any other provision of this Section 3.4 to the contrary, (i) 

in operating, managing, leasing or disposing of any REO Property, the Servicer shall act in the 

best interests of the Company, and the members and creditors of the Company (including the 

FDIC in its various capacities) and in accordance with the Servicing Standard, and (ii) without 

relieving the Servicer of any obligation elsewhere in this Agreement, and subject to any 

applicable Servicing Obligations, the Servicer shall not be required to act in accordance with a 

specific provision of this Section 3.4 if such action is (A) not in the best interests of Company 

and the members and creditors of the Company (including the FDIC in its various capacities), as 

determined by the Servicer in the exercise of its reasonable discretion, or (B) not in accordance 

with the Servicing Standard. 

(j) The Servicer shall furnish to the Manager, the Collateral Agent and the 

Initial Member such reports regarding the construction, leasing and sales efforts of or relating to 

the REO Property as the Manager, the Collateral Agent or the Initial Member shall reasonably 

request. 

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AR TIC L E IV
 

SUBSER VICING
 

Section 4.1 Retention of Subservicer. The Servicer may engage or retain one or more 

subservicers, including Affiliates of the Manager or of the Servicer (individually and 

collectively, “Subservicer ”), as it may deem necessary and appropriate, provided that any 

Subservicer meets the requirements set forth in the definition of Qualified Servicer. 

Section 4.2 Subservicing Agreement Requirements. Any subservicing agreement with 

any Subservicer (“Subservicing Agreement ”) shall, among other things: 

(a) provide for the servicing of the Loans and management of the Underlying 

Collateral by the Subservicer in accordance with the Servicing Standard and the other terms of 

this Agreement and the LLC Operating Agreement; 

(b) be terminable upon no more than thirty (30) days prior notice in the event 

of any Event of Default (as defined in the LLC Operating Agreement), any Default under this 

Agreement or any default under the Subservicing Agreement as set forth in Section 4. 2(m) 

below; 

(c) provide that the Servicer as well as the Manager and the Initial Member 

shall each be entitled to exercise termination rights thereunder; 

(d) provide that the Subservicer and the Servicer acknowledge that the 

Subservicing Agreement constitutes a personal services agreement between the Servicer and the 

Subservicer; 

(e) provide that each of the Initial Member and the Manager is a third party 

beneficiary under the Subservicing Agreement for all purposes and is entitled to enforce the 

Subservicing Agreement, and that each of the FDIC, the Purchase Money Notes Guarantor and 

the Company is a third party beneficiary thereunder to the extent of any rights expressly granted 

to such Person under the Subservicing Agreement (and such Subservicing Agreement shall 

include rights in favor of the FDIC, the Purchase Money Notes Guarantor and the Company that 

are equivalent to the rights granted to such Persons hereunder) and is entitled to enforce the 

Subservicing Agreement with respect to such rights; and further provide that in no event shall 

any amendment or waiver to any such Subservicing Agreement limit or affect any rights of any 

such third party beneficiary thereunder without the express written consent of such third party 

beneficiary; 

(f) provide that (i) upon removal of the Manager as the “Manager” pursuant 

to the LLC Operating Agreement and/or notice from the Initial Member or the Manager of the 

occurrence of any Event of Default (as defined in the LLC Operating Agreement) under the LLC 

Operating Agreement, the Initial Member (and any successor “Manager” under the LLC 

Operating Agreement) may exercise all of the rights of the Manager under this Agreement and 

further cause the termination or assignment to any other Person of this Agreement (and, in the 

event of any such termination or assignment of this Agreement, the termination or assignment of 

any Subservicing Agreement), without penalty or payment of any fee, and (ii) upon the 

occurrence of any Default under this Agreement, each of the Manager (or applicable successor 

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“Manager” under the LLC Operating Agreement) and the Initial Member may exercise all of the 

rights of (A) the Manager under this Agreement and cause the termination or assignment of this 

Agreement to any other Person, without penalty or payment of any fee, and (B) the Servicer 

under the Subservicing Agreement and cause the termination or assignment of the Subservicing 

Agreement to any other Person, without penalty or payment of any fee; 

(g) provide that the Initial Member, the Manager, the Purchase Money Notes 

Guarantor and the Company (and each of their respective representatives) shall each have access 

to and the right to review, copy and audit the books and records of the Subservicer and that the 

Subservicer shall make available its officers, directors, employees, accountants and attorneys to 

answer the Initial Member’s, the Manager’s, the Purchase Money Notes Guarantor’s and the 

Company’s (and each of their respective representatives’) questions or to discuss any matter 

relating to the Subservicer’s affairs, finances and accounts, as they relate to the Loans, the 

Underlying Collateral, the Servicing Obligations, the Collection Account, the Escrow Accounts 

or any Other Accounts established or maintained pursuant to this Agreement or the Subservicing 

Agreement, accounts created under the Custodial and Paying Agency Agreement or any matters 

relating to this Agreement or the Subservicing Agr eement or the rights or obligations thereunder; 

(h) provide that all Loan Proceeds are to be deposited into the Collection 

Account on a daily basis (without reduction or setoff as provided in Section 11.12 hereof) within 

two Business Days of receipt and that under no circumstances are any funds, other than Loan 

Proceeds and interest and earnings thereon and the proceeds of Working Capital Advances and 

Discretionary Funding Advances, to be commingled into the Collection Account; 

(i) provide that the Subservicer shall not sell, transfer or assign its rights 

under the Subservicing Agreement with the Servicer and that any prohibited sale, transfer or 

assignment shall be void ab initio; 

(j) provide that the Subservicer consents to the immediate termination of the 

Subservicer pursuant to Section 7.2 of this Agreement; 

(k) provide that there shall be no right of setoff on the part of the Subservicer 

against the Loan Proceeds (or the Company); 

(l) provide for such other matters as are necessary or appropriate to ensure 

that the Subservicer is obligated to comply with the Servicing Obligations of the Servicer 

hereunder in the conduct of such matters as are delegated to the Subservicer; 

(m) (i) contain default provisions that relate to the actions of the Subservicer 

that correspond to the provisions of Section 7.1(a), (b), (c), (d), (e), (f), and (g) and (h) of this 

Agreement, and (ii) provide that each of the Manager and the Initial Member has the right (x) to 

terminate the Subservicing Agreement by providing written notice upon the occurrence of any 

such default, without any cure period other than as may be provided for in such de fault 

provisions under such Subservicing Agreement (which cure periods shall be no longer than the 

cure provisions in the corresponding provisions of Section 7.1 of this Agreement), and (y) 

otherwise to enforce the rights of the Servicer under the Subservicing Agreement; 

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(n) provide that (i) the Subservicer consents to its immediate termination 

under the Subservicing Agreement upon the occurrence of any of (x) a Default under Section 

7.1(b) of this Agreement, or (y) an Insolvency Event with respect to the Subservicer or any of its 

Related Parties, and (ii) the occurrence of any Insolvency Event with respect to the Subservicer 

or any of its Related Parties constitutes a default under the Subservicing Agreement; 

(o) provide a full release and discharge of the Initial Member, the Company, 

the Existing Servicers (as defined in the Contribut ion Agreement), the FDIC, in relation to any 

particular Loan, the relevant Failed Bank and any predecessor-in-interest thereof, any Ownership 

Entities existing as of the applicable Servicing Transfer Date, and all of their respective officers, 

directors, employees, agents, attorneys, contractors and representatives, and all of their 

respective successors, assigns and Affiliates (but excluding, in all cases, the Manager) (any such 

Person, a “Prior Servicer” and collectively, the “Prior Servi cers ”), from any and all claims 

(including any counterclaim or defensive claim), demands, causes of action, judgments or legal 

proceedings and remedies of whatever kind or nature that the Subservicer had, has or might have 

in the future, whether known or unknown, which are related in any manner whatsoever to the 

servicing of the Loans by the Prior Servicers prior to the applicable Servicing Transfer Date 

(other than due to gross negligence, violation of law or willful misconduct of such Prior 

Servicer); 

(p) provide that all Loans registered on the MERS® System shall remain 

registered unless default, foreclosure or similar legal or MERS requirements dictate otherwise; 

(q) provide that the Subservicer shall immediately notify the Manager and the 

Initial Member upon becoming aware of any Subservicer or any Affiliate thereof at any time, (i) 

being or becoming a partner or joint venturer with any Borrower or Obligor, (ii) being or 

becoming an agent of any Borrower or Obligor, or allowing any Borrower or Obligor to be an 

agent of such Subservicer or of any Affiliate thereof, or (iii) having any interest whatsoever in 

any Borrower or Obligor; and 

(r) not conflict with the Servicing Standard or any other terms or provisions 

of this Agreement, the LLC Operating Agreement, the Custodial and Paying Agency Agreement 

or any of the other Ancillary Documents insofar as such other terms or provisions apply to the 

Subservicer or the Servicing Obligations. Nothing contained in any Subservicing Agreement 

shall alter any obligation of the Servicer under this Agreement or the Manager under the LLC 

Operating Agreement and, in the event of any inconsistency between the Subservicing 

Agreement and the terms of either this Agreement or the LLC Operating Agreement, the terms of 

this Agreement or the LLC Operating Agreement, as applicable, shall apply. 

Section 4.3 Servicer Liable for Subservicers. Notwithstanding anything to the 

contrary contained herein, the use of any Subservicer shall not release the Servicer from any of 

its Servicing Obligations or other obligations under this Agreement, and the Servicer shall 

remain responsible and liable for all acts and omissions of each Subservicer as fully as if such 

acts and omissions were those of the Servicer. All actions of any Subservicer performed 

pursuant to the Subservicing Agreement with the Servicer shall be performed as an agent of the 

Servicer. No Subservicer shall be paid any fees or indemnified out of any Loan Proceeds, it 

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being understood that all fees and related costs and liabilities of retaining any Subservicers shall 

be the sole responsibility of the Servicer. 

Section 4.4 Manager Approval Required. Each Subservicing Agreement and all 

amendments and modifications thereto and the selection of the Subservicer, regardless of 

whether the Subservicer is an Affiliate of the Servicer, shall be subject to the prior written 

approval of the Manager (which approval shall not be unreasonably withheld, delayed or 

conditioned so long as the provisions required under Section 4.2 are not modified or deleted). A 

copy of all Subservicing Agreements, as executed and delivered and all amendments thereto, 

shall be provided to the Manager. 

Section 4.5 Regulation AB Requirements. The Servicer shall use commercially 

reasonable efforts to maintain in place, and to confirm, where applicable, that each Subservicer 

has in place, policies and procedures to comply with the relevant servicing criteria provisions of 

Section 1122(d)(1) of Regulation AB that are applicable and relate to the servicing being 

conducted under this Agreement, including for purposes of preparation and delivery of the 

annual reports (including the independent accountant report) required pursuant to Section 5.2(g) 

below; provided that the following Regulation AB criteria shall not be deemed relevant to the 

servicing being conducted under this Agreement: Section 1122(d)(1)(iii) regarding backup 

servicer requirements; Sections 1122(d)(3)(i-iv) regarding paying agent requirements; and 

Section 1122(d)(4)(xv) regarding external credit enhancement. 

ARTICL E V 

REPRESENTAT IO NS, W ARRANTIES AND CO VENANTS O F TH E SER VIC ER 

Section 5.1 Representations and Warranties . The Servicer hereby makes the following 

representations and warranties as of the date hereof: 

(a) The Servicer (i) is a corporation, duly organized, validly existing and in 

goo d standing under the laws of the State of Delaware, (ii) has qua lified or will qualify to 

transact business as a foreign entity and will remain so qua lified, in the state or states and other 

jurisdictions where the Loans or the nature of the Servicer’s activities under this Agreement 

makes such qua lification necessary; (iii) has all licenses and other governmental approvals 

necessary to carry on its business as now being conducted and to perform its obligations 

hereunder; and (iv) has established and shall maintain its principal place of business in the 

United States. 

(b) The Servicer has all requisite power, authority and legal right to service 

each Loan, and to execute, deliver and perform, and to enter into and consummate the 

transactions contemplated by, this Agreement, and this Agreement has been duly authorized by 

all requ isite corporate action on the part of the Servicer. 

(c) This Agreement and all agreements contemplated hereby to which the 

Servicer is or will be a party constitute the valid, legal, binding and enforceable obligations of 

the Servicer, except as such enforcement may be limited by bankrupt cy, insolvency, 

reorganization or other similar laws affecting the enforcement of creditors’ rights generally, and 

by general principles of equity (regardless of whether such enforcement is considered in a 

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proceeding in equity or at law); and all requisite corporate action has been taken by the Servicer 

to make this Agreement and all agreements contemplated hereby to which the Servicer is or will 

be a party valid and binding upon the Servicer in accordance with their terms and conditions. 

(d) The Persons executing this Agreement on behalf of the Servicer are duly 

authorized to do so. 

(e) The execution and delivery of this Agreement by the Servicer, the 

servicing of the Loans and the Underlying Collateral under this Agreement, the consummation of 

any other of the transactions contemplated by this Agreement, and the fulfillment of or 

compliance with the terms hereof are in the ordinary course of business of the Servicer and will 

not (i) result in a breach of any term or provision of the articles or charter or bylaws or other 

organizational documents of the Servicer; (ii) conflict with, result in a breach, violation or 

acceleration of, or result in a default (or an event which, with notice or lapse of time, or both, 

would constitute a default) under the terms of any agreement or other instrument to which the 

Servicer is a party or by which it may be bound; or (iii) constitute a violation of any Law 

applicable to the Servicer, and the Servicer is not in breach or violation of any agreement or 

instrument, or in violation of any Law of any Governmental Authority having jurisdiction over it 

which breach or violation may impair the Servicer’s ability to perform or meet any of its 

obligations under this Agreement. 

(f) No litigation is pending or, to the Servicer’s knowledge, threatened, 

against the Servicer that would prohibit the Servicer from entering into this Agreement or is 

likely to materially and adversely affect either the ability of the Servicer to perform its 

obligations under this Agreement or the financial condition of the Servicer. 

(g) Any consent, approval, authorization or order of any Governmental 

Authority required for the execution, delivery and performance by the Servicer of or compliance 

by the Servicer with this Agreement or the consummation of the transactions contemplated by 

this Agreement has been obtained and is effective. 

(h) Neither the Servicer nor any Subservicer or their respective Controlled 

Affiliates shall, at any time, (i) be a partner or joint venturer with any Borrower or Obligor, (ii) 

be an agent of any Borrower or Obligor, or allow any Borrower or Obligor to be an agent of the 

Servicer or any Subservicer or any such Controlled Affiliate of either, or (iii) have any interest 

whatsoever in any Borrower or Obligor. 

(i) The Servicer is, and all times so long as this Agreement is in effect shall 

remain, a Qualified Servicer. 

Section 5.2 Reporting, Books and Records and Compliance Covenants . The Servicer 

covenants to the Manager as follows: 

(a) The Servicer shall be responsible for submitting all Internal Revenue 

Service information returns related to each Loan for all applicable periods commencing with the 

Servicing Transfer Date with respect thereto (or, if later, the Effective Date). Information returns 

include reports on Forms 1098 and 1099 and any other reports required by Law. The Servicer 

shall be responsible for submitting all information returns required under applicable Law of any 

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foreign Governmental Authority, to the extent such are required to be filed by the Company 

under such Law, relating to the Loans, for the calendar or tax year in which the Effective Date 

falls and thereafter. 

(b) The Servicer shall cause to be kept and maintained, at all times, at the 

Servicer’s principal place of business, a complete and accurate set of files, books and records 

(including records transferred by the Manager to the Servicer) regarding the Loans and the 

Underlying Collateral, and the Company’s interests in the Loans and the Underlying Collateral, 

including records relating to the Collection Account, the Working Capital Reserve Account, the 

Escrow Accounts and any Other Accounts maintained in connection with the Loans, Servicer 

Advances, Funding Draws and other Working Capital Expense and collection and remittance of 

Loan Proceeds. The books of account shall be maintained in a manner that provides sufficient 

assurance that: (a) transactions are executed in accordance with the general or specific 

authorization of the Manager consistent with the provisions of the LLC Operating Agreement; 

and (b) transactions of the Company are recorded in such form and manner as will: (i) permit 

preparation of federal, state and local income and franchise tax returns and information returns in 

accordance with the LLC Operating Agreement and as required by Law; (ii) permit preparation 

of the Company’s financial statements in accordance with GAAP and the LLC Operating 

Agreement and the provisions of the reports required to be provided thereunder; and 

(iii) maintain accountability for the Company’s assets. 

(c) The Servicer shall cause all such books and records to be maintained and 

retained until the date that is the later of ten (10) years after the Closing Date and three (3) years 

after the date on which the final Loan Proceeds are distributed to the Company, which date shall 

be established by notice to the Servicer from the Manager. All such books and records shall be 

available dur ing such period for inspection by the Manager, the FDIC, the Purchase Money 

Notes Guarantor, and the Initial Member (and their respective representatives, including any 

applicable Governmental Authority) at all reasonable times during business hours on any 

Business Days (or, in the case of any such inspection after the term hereof, at such other location 

as is provided by notice to the Manager, the FDIC, the Purchase Money Notes Guarantor and the 

Initial Member, as applicable), in each instance upon not less than two (2) Business Days’ pr ior 

notice to the Servicer. Upon request by the Manager, the Servicer, at the sole cost and expense 

of the Manager, shall promptly send copies (the number of copies of which shall be reasonable) 

of such books and records to the Manager. The Servicer shall provide the Manager with 

reasonable advance notice of the Servicer’s intention to destroy or dispose of any documents or 

files relating to the Loans and, upo n the request of the Manager, shall allow the Manager, at its 

own expense, to recover the same from the Servicer. The Servicer shall also maintain complete 

and accurate records reflecting the status of taxes, ground rents and other recurring charges 

which could become a Lien on any Underlying Collateral. 

(d) The covenants set forth in Section 5.2(b) and (c) above to maintain a 

complete and accurate set of records shall encompass all files in the Servicer’s custody, 

possession or control pertaining to the Loans and the Underlying Collateral, including (except as 

required to be held by the Custodian pursuant to the Custodial and Paying Agency Agreement) 

all original and other documentation pertaining to the Loans and the Underlying Collateral, all 

documentation relating to items of income and expense pertaining to the Loans and the 

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Underlying Collateral, and all of the Servicer’s (and any Subservicer’s) internal memoranda 

pertaining to the Loans and the Underlying Collateral. 

(e) The Servicer shall cause to be furnished to the Manager, each month on 

the Specified Date, commencing with Apr il 2010 (or such other date as may be set forth in the 

Servicing Obligations), a monthly Electronic Report on the Loans and Underlying Collateral 

containing such information and substantially in the form set forth on Schedule 5 as the same 

may be amended from time to time by the Manager (without the consent of the Initial Member) 

and the Servicer (the “Electronic Report ”). The Electronic Report shall include, but not be 

limited to, the information required for the Manager to prepare, in accordance with the LLC 

Operating Agreement, the “Distribution Date Report” and the “Monthly Report” (each as defined 

in the LLC Operating Agreement), and such other reports and information as the Manager shall 

reasonably require, to the extent such information is reasonably available to the Servicer. 

Notwithstanding the above, with respect to any period prior to the applicable Servicing Transfer 

Date, the applicable Electronic Reports may exclude certain of the information otherwise 

required to be included therein if and to the extent the Initial Member is obligated to provide 

such information (or other information that is a prerequisite to the Servicer being able to provide 

such information) to the Servicer and the Manager pursuant to the interim servicing and asset 

management suppo rt obligation set forth in Section 3.3 of the Contribut ion Agreement and the 

Initial Member fails to timely deliver such information to the Servicer and the Manager. 

(f) The Servicer shall deliver, and shall cause each Subservicer to deliver, to 

the Manager, on or before March 10th of each year, or such other day as the Manager and the 

Servicer may agree, commencing in the year 2011, an annual officer’s certificate stating, as to 

the signer thereof, that (i) a review of such party’s activities during the preceding calendar year 

(or other applicable period as set forth below in this Section 5.2(f)) and of its performance under 

this Agreement (or, as applicable, any Subservicing Agreement) has been made under such 

officer’s supervision, and (ii) to the best of such officer’s knowledge and belief, based on such 

review, such party has fulfilled all of its obligations under this Agreement (or, as applicable, any 

Subservicing Agreement) in all material respects throughout such year or portion thereof or, if 

there has been a failure to fulfill any such obligation in any material respect, specifying each 

such failure and the nature and status thereof. The first such officer’s certificate shall, with 

respect to any Loan, shall cover the period commencing on the Servicing Transfer Date and 

continuing through the end of the 2010 calendar year. In the event any Subservicer was 

terminated, resigned or otherwise performed in such capacity for only part of a year (or other 

applicable period, as the case may be, with respect to the period commencing, with respect to 

any Loan, on the Servicing Transfer Date through the end of the 2010 calendar year), such party 

shall provide an officer’s certificate pursuant to this Section 5.2 with respect to such portion of 

the year (or other applicable period). 

(g) On or before March 10th of each year, or such other day as the Manager 

and the Servicer agree, commencing in the year 2011, the Servicer shall, or shall cause each 

applicable Subservicer to, provide to the Manager (and/or to such other Person as the Manager 

may direct) the annual reports (including the independent accountant report) for the prior year (or 

other applicable period as set forth below) required under Section 1122 of Regulation AB 

(regardless of whether any such requirements apply, by their terms, only to companies registered 

or required to file reports with the Securities and Exchange Commission) with respect to the 

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relevant servicing criteria provisions of Section 1122(d)(1) of Regulation AB that are applicable 

to the servicing being conducted under this Agreement pursuant to Section 4.5 above. The first 

such reports shall cover the period commencing on the Effective Date (and for each Loan, 

covering the period from the applicable Servicing Transfer Date) and continuing through the end 

of the 2010 calendar year. 

(h) In connection with the Manager’s obligations under the LLC Operating 

Agreement to prepare, review and periodically update Business Plans and Consolidated Business 

Plans, the Servicer shall prepare and deliver to the Manager, and thereafter periodically update, 

such Business Plans and Consolidated Business Plans, or relevant portions thereof or information 

to be included therein, in each case to the extent set forth and required pursuant to Schedule 7 

hereto as the same may be amended from time to time by the Manager and the Servicer without 

the consent of the Initial Member (the “Business Plan Schedule”). Upon reasonable notice by 

the Initial Member, the Purchase Money Notes Guarantor or the Manager, the Servicer shall 

make its personnel who are familiar with the Business Plans and Consolidated Business Plans (or 

relevant portions thereof) available during normal business hours for the purposes of discussing 

such Business Plans and Consolidated Business Plans with representatives of the Initial Member, 

the Purchase Money Notes Guarantor and/or the Manager and responding to questions 

therefrom. 

Section 5.3 Aud its. Until the later of the date that is ten (10) years after the Closing 

Date and the date that is three (3) years after the date on which the final Loan Proceeds are 

distributed to the Company, which date shall be established by notice to the Servicer from the 

Manager, the Servicer shall, and shall cause each Subservicer to, (a) provide the Manager, the 

Purchase Money Notes Guarantor and the Initial Member and their respective representatives 

(including any Governmental Authority), dur ing normal business hours and on reasonable notice, 

with access to and the right to review all of the books of account, reports and records relating to 

the Loans or any Underlying Collateral, the Servicing Obligations, the Collection Account, the 

Escrow Accounts, any Other Accounts or any matters relating to this Agreement or the rights or 

obligations hereunder, (b) permit such representatives to make copies of and extracts from the 

same, (c) allow the Manager, the Purchase Money Notes Guarantor and the Initial Member to 

cause such books to be audited by accountants selected by the Manager, the Purchase Money 

Notes Guarantor or the Initial Member, as applicable, and (d) allow the Manager, the Purchase 

Money Notes Guarantor and the Initial Member to discuss the Servicer’s and Subservicer’s 

affairs, finances and accounts, as they relate to the Loans, the Underlying Collateral, the 

Servicing Obligations, the Collection Account, the Escrow Accounts, and any Other Accounts or 

any other matters relating to this Agreement or the rights or obligations hereunder, with its 

officers, directors, employees, accountants (and by this provision the Servicer hereby authorizes 

such accountants to discuss such affairs, finances and accounts with such representatives), 

Subservicers, and attorneys. Any expense incurred by the Manager, the Purchase Money Notes 

Guarantor or the Initial Member and any reasonable out-of-pocket expense incurred by the 

Servicer in connection with the exercise by the Manager, the Purchase Money Notes Guarantor 

or the Initial Member of its rights in this Section 5.3 shall be borne by the Manager, the Purchase 

Money Notes Guarantor or the Initial Member, as applicable (and in all events subject to any 

obligation of the Manager to bear such expenses of the Purchase Money Notes Guarantor or the 

Initial Member pursuant to the LLC Operating Agreement); provided, however, that any expense 

incident to the exercise by Manager, the Purchase Money Notes Guarantor or the Initial Member 

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of their respective rights pursuant to this Section 5.3 as a result of or during the continuance of 

an Default by the Servicer hereunder shall in all cases be borne by the Servicer. 

Section 5.4 No Liens . The Servicer (i) shall not place or voluntarily permit any Lien 

to be placed on any of the Loans, the Underlying Collateral, the Loan Documents or the Loan 

Proceeds, except, in the case of the Underlying Collateral, (x) as permitted under the Loan 

Documents where the applicable Borrower is not in default thereunder and (y) as permitted by 

the terms of the Reimbursement, Security and Guaranty Agreement, and (ii) shall not take any 

action to interfere with the Collateral Agent’s rights as a secured party with respect to the Loans, 

the Underlying Collateral and the Loan Proceeds. 

Section 5.5 Servicer’s Duty to Advise; Delivery of Certain Notices. In addition to 

such other reports and access to records and reports as are required to be provided to the 

Manager, the Purchase Money Notes Guarantor and the Initial Member hereunder, the Servicer 

shall cause to be delivered to the Manager such information relating to the Loans, the Underlying 

Collateral, the Servicer and any Subservicer as the Manager may reasonably request from time to 

time and, in any case, shall ensure that the Manager is promptly advised, in writing, of any 

matter of which the Servicer or Subservicer becomes aware relating to the Loans, any of the 

Underlying Collateral, the Collection Account, the Escrow Accounts, any accounts created under 

the Custodial and Paying Agency Agreement, any Other Accounts or any Borrower or Obligor 

that materially and adversely affects the interests of the Company, the Purchase Money Notes 

Guarantor or the Initial Member. Without limiting the generality of the foregoing, the Servicer 

shall immediately notify the Manager of (i) any claim, threatened claim or litigation against the 

Servicer, the Company, the Manager or the Initial Member arising out of or with respect to any 

Loan, (ii) any material notice from any Governmental Authority relating to any Underlying 

Collateral, (iii) any occurrence which could reasonably be expected to result in cost overruns 

with respect to any Loan or Acquired Property for which Funding Draws have been, or are 

contemplated to be, made, or (iv) any other occurrence which would reasonably be expected to 

materially hamper, prevent or interfere with the effectuation of any then-applicable Business 

Plans or Consolidated Business Plan. In addition, the Servicer shall cause to be delivered to the 

Manager information indicating any possible Environmental Hazard with respect to any 

Underlying Collateral. Further, the Servicer shall cause to be furnished to the Manager, each 

month on the Specified Date, commencing the first month following the Effective Date and 

together with the Electronic Report, a report with respect to each Loan and Underlying Collateral 

(i) containing a summary of the progress made, to the extent applicable, in the construction, 

marketing and leasing of the applicable project since the last such report, (ii) in the case of any 

Loan, describing the remedial efforts or enforcement actions, if any, being undertaken by the 

Servicer with respect to the applicable Loan, (iii) describing the status of the activities 

contemplated by the Business Plans and the Consolidated Business Plan(which, among other 

things, identifies any facts or circumstances which are reasonably likely to hamper, interfere 

with, prevent or postpone effectuation of the applicable Business Plans or Consolidated Business 

Plan), (iv) to the extent applicable, containing an itemized statement of costs and expenses 

remaining to be paid in order to complete construction of the applicable project (including 

capitalized interest, real estate taxes and other soft costs), (v) to the extent requested by the 

Manager, any materials delivered by the Borrower to the Company or the Servicer pursuant to 

the applicable Loan Documents not theretofore delivered to the Manager (including, without 

limitation, copies of all plans and specifications, construction budgets and construction 

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schedules, construction contracts, architect’s agreements, leasing and brokerage agreements, 

management agreements (and modifications to each of the foregoing) and materials delivered by 

the applicable Borrower in connection with each request for an advance under the related Loan 

and (vi) such other information as the Manager reasonably requests. 

Section 5.6 Notice of Breach or Change of Control . The Servicer shall immediately 

notify the Manager of (i) any failure or anticipated failure on its part to observe and perform any 

warranty, representation, covenant or agreement required to be observed and performed by it as 

the Servicer, and (ii) any Change of Control with respect to the Servicer. 

Section 5.7 Copies of Documents . Copies of the LLC Operating Agreement and the 

other Ancillary Documents (or portions thereof) as Manager has determined to be necessary for 

the Servicer to be familiar with in order to perform its obligations hereunder have been delivered 

to the Servicer by the Manager, and the Servicer acknowledges receipt thereof. The Manager 

may from time to time deliver to the Servicer such amendments, modifications or additional 

Ancillary Documents (or portions of any thereof) as Manager may determine to be so necessary 

for the continued performance by Servicer of its obligations hereunder. All references herein to 

the Servicer’s obligations with respect to such LLC Operating Agreement and other Ancillary 

Documents shall, as between the Manager and the Servicer (and without limitation of obligations 

of the Manager, or the rights of the Initial Member or the Purchase Money Notes Guarantor, 

under this Agreement, the LLC Operating Agreement or the other Ancillary Documents), be 

deemed to refer to the LLC Operating Agreement and other Ancillary Documents (or portions 

thereof) as have been, or from time to time are, delivered to Servicer. 

Section 5.8 Financial Information . The Servicer will submit to the Company, with 

copies thereof to be delivered by the Servicer to the Purchase Money Notes Guarantor and the 

Initial Member, (i) within forty-five (45) days after the end of each of its fiscal quarters, 

commencing on the Effective Date, and (ii) within ninety (90) days after the end of each of its 

fiscal years, commencing on the Effective Date, a letter certified by an officer of the Servicer 

that details certain agreed upon financial trends and ratios relating to the Servicer (and/or such 

other financial information as the Manager, the Purchase Money Notes Guarantor or the Initial 

Member may reasonably request from time to time). 

AR TIC L E VI
 

M ANAG ER C O NSENT
 

Section 6.1 Actions Requiring Manager Consent . Notwithstanding anything to the 

contrary contained in this Agreement, the Servicer shall not cause or permit to be taken any of 

the following actions without the prior written consent of the Manager (which may require the 

Manager to obtain the consent of the Initial Member and/or the Purchase Money Notes 

Guarantor), which consent may be withheld or conditioned in the sole and absolute discretion of 

the Manager: 

(a) conducting Bulk Sales except as expressly permitted in the Servicing 

Obligations (and in all events subject to the limitations set forth in the LLC Operating 

Agreement); 

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(b) the payment of fees to, the sale or other transfer (including through 

foreclosure or by deed in lieu thereof) of any Loan or Underlying Collateral or Acquired 

Property (or any portion thereof) to, or any other transaction with (whether or not at usual and 

customary rates), any Affiliate of the Company, the Manager, the Servicer, any Affiliate of the 

Servicer, any Subservicer, or any Affiliate of any Subservicer; 

(c) the financing of the sale or other transfer of any Loans, Underlying 

Collateral or Acquired Property (or any portion thereof); 

(d) the sale of any Loan or Underlying Collateral or Acquired Property (or 

any portion thereof) that provides for any recourse against the Company, the Initial Member or 

the FDIC in any capacity, or against any interest in the Company held by the Initial Member or 

any share of the Loan Proceeds allocable to the Initial Member; 

(e) any disbursement of any funds in the Collection Account (including any 

such funds made available through Discretionary Funding Advances or Excess Working Capital 

Advances), the Working Capital Reserve Account, the accounts created under the Custodial and 

Paying Agency Agreement or any Other Accounts other than in accordance with the provisions 

of this Agreement, the LLC Operating Agreement, the Reimbursement, Security and Guaranty 

Agreement and the Custodial and Paying Agency Agreement; 

(f) advancing additional funds that would increase the Unpaid Principal 

Balance of any Loan other than (i) Funding Draws, or (ii) Servicing Expenses to the extent that 

capitalizing such Servicing Expenses is or would have been, pr ior to the conversion of the Loan 

to Acquired Property, permitted under the applicable Loan Documents; 

(g) in connection with its servicing and administration of any Loan and 

management of the Underlying Collateral or Acquired Property, (i) approving (x) any material 

modification or amendment to, or cancellation or termination of, any Loan Documents, or (y) 

plans and specifications, construction budgets or construction schedules with respect to the 

projects which are the subject of such Loan (or material modifications to any of such items, 

including any change orders); (ii) waiving or forbearing from exercising any of the lender’s 

rights under, or any conditions precedent to the funding of any advances under, such Loan; (iii) 

forgiving or reducing or forbearing from collecting any indebtedness; (iv) releasing any parties 

liable for the payment of the Loan or the performance of any other obligation relating thereto; (v) 

granting any consent under any Loan Documents (including, without limitation, with respect to 

any proposed transfers of any Underlying Collateral or transfers, pledges or changes in 

management of any direct or indirect interests in any Borrower, proposed alterations, proposed 

settlements of insurance claims, condemnation claims or deficiencies or proposed applications of 

insurance proceeds or condemnation awards); (vi) consenting to any agreement in any 

Insolvency Proceeding relating to any Loan, any Borrower or any Obligor with respect to a 

Loan, or any Underlying Collateral, including voting for a plan of reorganization; (vii) 

subordinating the liens of the Loan Document; (viii) amending or waiving any provision of any 

intercreditor agreement or making any decisions with respect to the Loans under any 

intercreditor agreement; or (ix) taking any other action regarding such Loan, Underlying 

Collateral or Acquired Property that is prohibited under the LLC Operating Agreement or the 

other Ancillary Documents or otherwise inconsistent with the Servicing Standard; or 

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(h) reimbursement for any expense or cost incurred (or paid) to any Affiliate 

of the Company, any Affiliate of the Servicer or any Affiliate of any Subservicer. 

Section 6.2 Amendments, Modification and Waivers. No provision of this Agreement 

may be amended, modified or waived except in writing executed by the Manager and the 

Servicer, and each such amendment and modification shall be subject to the prior written consent 

of the Initial Member, except for those provisions that may be amended by the express terms 

hereof without the Initial Member’s consent. In no event shall any such amendment or waiver 

limit or affect the rights of the FDIC (as a third party beneficiary hereunder as specified in 

Section 11.8 ) without the express written consent of the FDIC. 

AR TIC L E VII 

DEFAULTS; TERM INATIO N; TERM INAT I O N W ITH O UT CAUSE 

Section 7.1 Defaults. A de fault (“Default ”) means the occurence of: 

(a) any failure by the Servicer to remit to the Company or deposit in the 

Collection Account, the Escrow Accounts, any accounts created under the Custodial and Paying 

Agency Agreement or any Other Accounts any amount required to be so remitted or deposited 

under the terms of (i) this Agreement or (ii) the Custodial and Paying Agency Agreement or the 

LLC Operating Agreement; or 

(b) any Insolvency Event (without any cure period other than as may be 

provided for in the definition of Insolvency Event) (i) with respect to the Servicer or any of its 

Related Parties, or (ii) with respect to any Subservicer or any of its Related Parties; provided , 

that any such Insolvency Event under this clause (ii) (that is not otherwise an Insolvency Event 

under clause (i) hereof) shall not be an Event of Default hereunder (but shall in all events be a 

default under the applicable Subservicing Agreement) so long as the Servicer shall have fully 

replaced such affected Subservicer within thirty (30) days after the occurrence of such 

Insolvency Event; or 

(c) any failure by the Servicer to duly perform its obligations in (i) Section 

5.2(e), which failure continues unremedied for a period of five (5) days, or such other period as 

the Manager and the Servicer agree, after the date on which written notice of such failure, 

requiring the same to be remedied, shall have been given by the Manager to the Servicer, or (ii) 

Section 5.2(f) or Section 5.2(g), which failure continues unremedied for a period of twenty-five 

(25) days, or such other period as the Manager and the Servicer agree, after the date on which 

written notice of such failure, requiring the same to be remedied, shall have been given by the 

Manager to the Servicer; or 

(d) any failure by the Servicer at any time (i) to be a Qualified Servicer or to 

renew or maintain any permit or license necessary to carry out its responsibilities under this 

Agreement in compliance with Law, or (ii) to cause each Subservicer to meet the applicable 

characteristics of a Qualified Servicer as required under Section 4.1 and to renew or maintain any 

permit or license necessary to carry out its responsibilities under any Subservicing Agreement, 

which, in the case of either (i) or (ii), continues unremedied for a period of thirty (30) days after 

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the date on which written notice of such failure requiring the same to be remedied shall have 

been given by the Manager or the Initial Member to the Servicer; or 

(e) any failure by the Servicer to cause any Subservicer to comply with the 

terms of its Subservicing Agreement with the Servicer, the occurrence of a default or material 

breach by any Subservicer under its Subservicing Agreement or the failure by the Servicer to 

replace any Subservicer upon the occurrence of any such event in accordance with the terms 

governing material breach or default under the applicable Subservicing Agreement; or 

(f) any other failure (other than those specified in any of Section 7.1(a) 

through (e)) by the Servicer to duly observe or perform any other covenants or agreements on the 

part of the Servicer contained in this Agreement or to perform any Servicing Obligation in 

compliance with the Servicing Standard, and such failure continues unremedied for a period of 

thirty (30) days, or such other period as the Manager, with the consent of the Initial Member, and 

the Servicer agree, after the date on which written notice of such failure shall have been given by 

the Manager or the Initial Member to the Servicer; provided, however, that in the case of a 

failure that cannot be cured within thirty (30) days (or such other period as the Manager, with the 

consent of the Initial Member, and the Servicer agree) with the exercise of reasonable diligence, 

the cure period shall be extended for an additional thirty (30) days if the Servicer can 

demonstrate to the reasonable satisfaction of the Manager and the Initial Member that the 

Servicer is diligently pursuing remedial action; and provided, further, that, with respect to any 

such failure failure under this Section 7.1(f) that relates exclusively to obligations included in 

any applicable Schedule hereto that can be amended or otherwise modified without the consent 

of the Initial Member, then no such consent of the Initial Member shall be required with respect 

to an applicable cure period hereunder so long as the such failure hereunder is not, or would not 

result in, a failure by the Manager to comply with its obligations under the LLC Operating 

Agreement and the other Ancillary Documents; or 

(g) the occurrence of any “Event of Default,” as defined in the LLC Operating 

Agreement; or 

(h) receipt by the Manager or the Servicer of notice from the Purchase 

Money Notes Guarantor that an “Event of Default” as defined in the Reimbursement, Security 

and Guaranty Agreement has occurred and is continuing; or 

(i) the occurrence of any Restricted Servicer Change of Control. 

Section 7.2 Termination with Cause . 

(a) Upon the occurrence of a Default pursuant to this Agreement, in each 

case, without any cure period other than as may be provided for in Section 7.1 above, the 

Manager (including, if applicable, any successor “Manager” pursuant to the LLC Operating 

Agreement) or the Initial Member, in addition to any other rights the Manager or the Initial 

Member may have at law (including under the Uniform Commercial Code) or equity, including 

injunctive relief, specific performance or otherwise, may (i) terminate this Agreement by 

providing a Termination Notice to the Servicer, (ii) terminate the Subservicing Agreements by 

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providing a written termination notice to the Servicer and the Subservicers, and (iii) otherwise 

enforce this Agreement, in any case, without penalty or payment of any fee. 

(b) The Servicer hereby consents to its immediate and automatic termination 

under this Agreement upon a Default under Section 7.1(b) of this Agreement. 

(c) Upon a default or failure of the Manager to perform its obligations under 

this Agreement in a material manner, including but not limited to, the failure of the Manager to 

pay to the Servicer the Servicing Fee in a full and timely manner, the Servicer, in addition to any 

other rights it may have pursuant to this Agreement, at law or in equity, may terminate this 

Agreement by providing a Termination Notice to the Manager, with a copy to the Purchase 

Money Notes Guarantor and the Initial Member. The Termination Notice shall set forth with 

specificity the nature of the default or failure to perform of the Manager and provide the 

Manager with no less than thirty (30) days to cure any such default or failure to perform. In the 

event that the default or failure to perform is not cured within thirty (30) days after the date of 

delivery of the Termination Notice, the Servicer shall provide a second Termination Notice to 

the Manager with a copy to the Purchase Money Notes Guarantor and the Initial Member, which 

second Termination Notice shall be prominently labeled as the “Second Termination Notice”. 

Such Second Termination Notice shall confirm to the Manager that the Servicer shall continue to 

perform the Servicing Obligations under this Agreement until the earlier to occur of (i) ninety 

(90) days after the delivery of the Second Termination Notice to the Manager, the Purchase 

Money Notes Guarantor and the Initial Member, and (ii) the transfer of the Servicing Obligations 

to a successor Servicer. The duty of the Servicer to continue to perform the Servicing 

Obligations as provided in the Second Termination Notice is contingent upo n the timely and full 

payment of the Servicing Fee to the Servicer during such period. The Servicer shall cooperate 

fully and completely with the transition of the Servicing Obligations to a successor Servicer in 

order to assure an orderly transfer. 

Section 7.3 Termination without Cause . 

(a) The Manager may, without cause, terminate this Agreement, upon 

providing a Termination Notice to the Servicer, but only as and in accordance with the 

provisions set forth on Schedule 6 as the same may be amended from time to time by the 

Manager (without the Initial Member’s consent) and the Servicer. 

(b) The Servicer may, at any time after the first anniversary of the Effective 

Date and thereafter, without cause, terminate this Agreement. No termination of this Agreement 

by the Servicer shall be effective unless the Servicer delivers to the Manager, with a copy to the 

Purchase Money Notes Guarantor and the Initial Member, a Termination Notice, which for the 

purpose of this Section 7.3(b) shall be a notice of the Servicer’s intent to terminate this 

Agreement. Such Termination Notice shall be provided at least sixty (60) days prior to any date 

specified by the Servicer as the date of termination of the Servicer’s Obligations under this 

Agreement. Notwithstanding the foregoing, such Termination Notice shall not be effective 

unless the Termination Notice contains confirmation of the intent and obligation of the Servicer 

to continue to perform its Servicing Obligations until the earlier of (i) ninety (90) days after the 

Termination Notice is given and (ii) such other date on which the Servicing Obligations are 

transferred to a successor Servicer in an orderly manner. Servicer shall cooperate fully and 

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completely with the transition of the Servicing Obligations to a successor Servicer, to be 

designated by the Manager, in order to assure an orderly transfer. The Servicer issuing the 

Termination Notice shall be liable for all costs associated with the transfer of Servicing 

Obligations to the successor Servicer, including but not limited to the costs of transporting the 

servicing files and the provision of any notices to Borrowers. 

Section 7.4 Effective Termination Date. Termination as specified in this Article VIII 

shall be effective at such time as is specified in the Termination Notice. In the event of such 

termination, all authority and power of the Servicer under this Agreement, whether with respect 

to the Loans or otherwise, shall pass to and be vested in the Manager or the successor servicer 

designated by the Manager in the case of termination by the Manager or as designated solely by 

the Initial Member (or any successor “Manager” under the LLC Operating Agreement) in the 

case of termination by the Initial Member (or such successor “Manager” under the LLC 

Operating Agreement). The Servicer agrees to cooperate with the Manager, the Initial Member, 

any successor “Manager” under the Operating Agreement and any successor servicer with 

respect to the timely and orderly transition of its obligations under this Agreement. The Servicer 

shall be liable for all obligations of the Servicer that have accrued under this Agreement or at 

Law prior to such termination. 

Section 7.5 Accounting . Upon termination of this Agreement as set forth herein, the 

Servicer shall account for and turn over to the Manager or its designee (or, if applicable, pursuant 

to such instructions as may be provided by the Initial Member or any successor “Manager” 

pursuant to the LLC Operating Agreement) funds collected under the terms of this Agreement. 

The Servicer shall provide written notice in conformance with all applicable Law to the 

Borrowers to indicate that their Loans will henceforth be serviced by the Manager (or applicable 

successor “Manager” under the LLC Operating Agreement) or any applicable successor Servicer 

designated by the Manager (or any successor “Manager” under the LLC Operating Agreement) 

or the Initial Member as the case may be, and transfer its duties as the Servicer to the Manager 

(or successor “Manager” under the LLC Operating Agreement) or such successor Servicer. 

AR TIC L E VII I 

INDE PENDENCE O F PAR T IES; INDEM NIF I CATIO N 

Section 8.1 Independence of Parties . The Servicer shall have the status of, and act as, 

an independent contractor. Nothing herein contained shall be construed to create a partnership or 

joint venture or any similar relationship between the Manager and the Servicer. 

Section 8.2 Indemnification. The Servicer agrees to indemnify, defend and hold 

harmless the Company, the Manager, the Purchase Money Notes Guarantor, the Initial Member 

and each of their respective Affiliates, directors, officers, employees and agents and each of their 

respective successors and assigns (the “Indemnified Parties”) from and against any and all 

claims, demands, suits, actions, proceedings, assessments, losses, costs, expenses (including 

attorneys’ fees), damages and liabilities of any kind or nature whatsoever directly or indirectly 

resulting from or arising out of or related to (i) any inaccuracy in any of the Servicer’s warranties 

or representations contained in this Agreement, (ii) any failure by the Servicer to observe or 

perform any or all of the Servicer’s covenants, agreements or warranties contained in this 

Agreement, (iii) any act taken by the Servicer purportedly pursuant to a power of attorney 

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granted by the Manager which act results in a claim related to the unlawful use of such power of 

attorney, or (iv) any failure by the Servicer or any Subservicer to discharge obligations on any 

Underlying Collateral relating to taxes, ground rents or other such recurring charges generally 

accepted by the mortgage servicing industry, which would become a Lien on the Underlying 

Collateral. The Servicer shall immediately notify the Indemnified Party if a claim is made with 

respect to this Agreement or any Loans or Underlying Collateral, assume (with prior consent of 

the Indemnified Party) the defense of any such claim and pay all expenses in connection 

therewith, including attorneys’ fees, and promptly pay, discharge and satisfy any judgment or 

decree which may be entered against it or any Indemnified Party in respect of such claim. No 

expenses incurred by the Servicer or any Subservicer in connection with its obligations under 

this Section 8.2 shall constitute Servicing Expenses or otherwise be deducted from or reimbursed 

out of Loan Proceeds. The Servicer shall follow any reasonable written instructions received 

from the Indemnified Party in connection with such claims, it being understood that the 

Indemnified Party shall have no duty to monitor or give instructions with respect to such claims. 

Section 8.3 Procedure for Indemnification . Promptly upon receipt of written notice of 

any claim in respect of which indemnity may be sought pursuant to the terms of this Agreement, 

the Indemnified Party will use its best efforts to notify the Servicer in writing thereof in 

sufficient time for the Servicer to respond to such claim. Except to the extent that the Servicer is 

prejudiced thereby, the failure of the Indemnified Party to promptly notify the Servicer of any 

such claim shall not relieve the Servicer from any liability which it may have to the Indemnified 

Party in connection therewith. If any claim shall be asserted or commenced against the 

Indemnified Party, the Servicer will be entitled to participate therein, and to the extent it may 

wish to assume the defense, conduct or settlement thereof, it shall be entitled to do so with 

counsel reasonably satisfactory to the Indemnified Party; provided, however, that in the event the 

Servicer fails, in the reasonable judgment of the Indemnified Party, vigorously to defend or 

pursue or attempt to settle such claim, the Manager shall have the right to assume the conduct, 

defense or settlement thereof, provided that the Manager shall obtain the pr ior written approval 

of the Indemnified Party before ceasing to defend against any claim or entering into any 

settlement, adjustment or compromise of such claim involving injunctive or similar equitable 

relief being imposed upon any Indemnified Party or any of its Affiliates. After notice from the 

Servicer to the Manager of its election to assume the defense, conduct or settlement thereof, the 

Servicer will not be liable to the Manager for any legal or other expenses consequently incurred 

by the Manager in connection with the defense, conduct or settlement thereof. 

Section 8.4 Pre-Effective Date Liabilities. Notwithstanding anything to the contrary 

herein, but without limitation of the release set forth in Section 11.13, it is understood and agreed 

that the Servicer shall not be liable to the Manager for any liabilities or obligations attributable to 

an act, omission or circumstances of the Initial Member, the FDIC, the Failed Banks and the 

Company that occurred or existed prior to the Effective Date or, with respect to any particular 

Loan, the Servicing Transfer Date applicable thereto (the “Pre-Existing Liabilities”). In the 

event there is asserted against the Company, the Manager, the Servicer or any Subservicer any 

claim or action with respect to any such Pre-Existing Liabilities, the Servicer or Subservicer, as 

applicable, shall notify the Manager and the Initial Member of such claim or action in 

accordance with Article IX. Except as provided otherwise in Section 8. 2 and 8.3 above (in the 

event that such claim or action is subject to the indemnification obligations of Servicer pursuant 

to Section 8.1 above), the Manager shall have the right to control and assume the defense of the 

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Company, the Manager, the Servicer and the Subservicer with respect to such claim or action at 

the Manager’s expense. The Servicer shall be reimbursed by the Manager in connection with the 

foregoing only to the extent of and in accordance with the terms set forth on Schedule 4 , as the 

same may be amended from time to time by the Manager (without the consent of the Initial 

Member) and the Servicer. 

AR TIC L E IX 

NO TICES 

All notices, requests, demands and other communications required or permitted to be 

given or delivered under or by reason of the provisions of this Agreement shall be in writing and 

shall be given by certified or registered mail, postage prepaid, by delivery by hand or by 

nationally recognized courier service, or by electronic mail (followed up by a hard copy 

delivered through an alternate manner permitted under this Article IX), in each case mailed or 

delivered to the applicable address or electronic mail address specified in, or in the manner 

provided, in this Article IX below. All such notices, requests, demands and other 

communications shall be deemed to be given or made upon the earlier to occur of (i) actual 

receipt (or refusal thereof) by the relevant party hereto and (ii) (A) if delivered by hand or by 

nationally recognized courier service, when signed for (or refused) by or on behalf of the 

relevant party hereto; (B) if delivered by mail, four (4) Business Days after deposit in the mails, 

postage prepaid; and (C) if delivered by electronic mail (which form of delivery is subject to the 

provisions of this paragraph), when delivered and capable of being accessed from the recipient’s 

office computer, provided that any notice , request, demand or other communication that is 

received other than during regular business hours of the recipient shall be deemed to have been 

given at the opening of business on the next business day of the recipient. In no event shall a 

voice mail message be effective as a notice, communication or confirmation hereunder. From 

time to time, any party may designate a new address for purposes of notice to it hereunder by 

notice to such effect to the other parties hereto in the manner set forth in this Article IX. 

If to the Manager: RL CML 2009-1 Investments, LLC 

700 NW 107th Avenue 

Suite 400 

Miami, FL 33172 

Attention: Thekla Blaser Salzman 

Email: thekla.salzman@rialtocapital.com 

with a copy to: Bilzin Sumberg Baena Price & Axelrod, LLP 

200 South Biscayne Blvd 

Suite 2500 

Miami, FL 33131 

Attention: Alan Axelrod 

Email: aaxelrod@bilzin.com 

If to the Initial Member or the Manager, Capital Markets & Resolutions 

Purchase Money Notes Guarantor: c/o Federal Deposit Insurance Corporation 

550 17th Street, NW (Room F-7014) 

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Washington, D.C. 20429-0002 

Attention: Ralph Malami 

Email: RMalami@FDIC.gov 

with a copy to:	 Senior Counsel 

FDIC Legal Division 

Litigation and Resolutions Branch, Receivership 

Section 

Special Issues Unit 

3501 Fairfax Drive (Room E-7056) 

Arlington, Virginia 22226 

Attention: David Gearin 

Email: DGearin@fdic.gov 

If to the Servicer:	 Quantum Servicing Corporation 

6302 E. Martin Luther King Boulevard 

Suite 300 

Tampa, Florida 33619 

Attention: President 

Email: sconradson@clayton.com 

Fax: (203) 447-8081 

with a copy to:	 Quantum Servicing Corporation
 

2 Corporate Drive
 

Shelton, CT 06484
 

Attention: General Counsel
 

Email: scohen@clayton.com
 

Fax: (203) 926-5757
 

ARTICL E X 

G O VER NING LAW ; J UR ISDIC T IO N 

Section 10.1 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY 

AND CONSTRUED IN ACCORDANCE WITH FEDERAL LAW, BUT IF FEDERAL LAW 

DOES NOT PROVIDE A RULE OF DECISION, IT SHALL BE GOVERNED BY AND 

CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK 

EXCLUDING ANY CONFLICT OF LAWS RULE OR PRINCIPLE THAT MIGHT REFER 

THE GOVERNANCE OR THE CONSTRUCTION OF THIS AGREEMENT TO THE LAW 

OF ANOTHER JURISDICTION. Nothing in this Agreement shall require any unlawful action 

or inaction by any party hereto. 

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Section 10.2 Jurisdiction; Venue and Service . Each of the parties hereto, for itself and 

each of its Affiliates, hereby irrevocably and unconditionally: 

(a) (i) agrees that any suit, action or proceeding instituted against it by any 

other party with respect to this Agreement may be instituted, and that any suit, action or 

proceeding instituted by it against any other party with respect to this Agreement shall be 

instituted, only in the Supreme Court of the State of New York, County of New York, or the U.S. 

District Court for the Southern District of New York, as the party instituting such suit, action or 

proceeding may choose (and appellate courts from any of the foregoing), 

(ii) consents and submits, for itself and its property, to the jurisdiction of such 

courts for the purpose of any such suit, action or proceeding instituted against it by any other 

party and 

(iii) agrees that a final judgment in any such suit, action or proceeding shall be 

conclusive and may be enforced in other jur isdictions by suit on the judg ment or in any other 

manner provided by Law; 

(b) agrees that service of all writs, process and summonses in any suit, action 

or proceeding pursuant to Section 10.2(a) may be effected by the mailing of copies thereof by 

registered or certified mail, postage prepaid, to it at its address for notices pursuant to Article IX 

(with copies to such other Persons as specified therein); provided, however, that nothing 

contained in this Section 10.2(b) shall affect the ability of any party to be served process in any 

other manner permitted by Law; 

(c) (i) waives any objection that it may now or hereafter have to the laying of 

venue of any suit, action or proceeding arising out of or relating to this Agreement brought in 

any court specified in Section 10.2(a), (ii) waives any claim that any such suit, action or 

proceeding brought in any such court has been brought in an inconvenient forum and (iii) agrees 

not to plead or claim either of the foregoing; and 

(d) agrees that nothing contained in this Section 10.2 shall be binding upon or 

construed to constitute consent to jur isdiction by any Failed Bank or the FDIC, in any capacity, 

or constitute a limitation on any removal rights the FDIC, in any capacity, may have. 

Notwithstanding the above, if at any time the Initial Member shall replace the Manager 

hereunder pursuant to the terms of the LLC Operating Agreement, the terms of this Section 10.2 

shall be restated as follows: 

“The Servicer, on behalf of itself and its Affiliates, hereby irrevocably and 

unconditionally: 

(a) (i) consents to the jur isdiction of the United States District Court for 

the Southern District of New York and to the jurisdiction of the United States District Court for 

the District of Columbia for any suit, action or proceeding against it or any of its Affiliates 

commenced by the FDIC, in any capacity, arising out of, relating to, or in connection with this 

Agreement, and waives any right to: 

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(A) remove or transfer such suit, action or proceeding to any 

court or dispute-resolution forum other than the cour t in which the FDIC, in any capacity, files 

the action, suit or proceeding without the consent of the FDIC; 

(B) assert that venue is improper in either the United States 

District Court for the Southern District of New York or the United States District Court for the 

District of Columbia; or 

(C) assert that the United States District Court for the Southern 

District of New York or the United States District Court for the District of Columbia is an 

inconvenient forum; 

(ii) consents to the jur isdiction of the Supreme Court of the State of 

New York, County of New York, for any suit, action or proceeding against it or any of its 

Affiliates commenced by the FDIC, in any capacity, arising out of, relating to, or in connection 

with this Agreement, and waives any right to: 

(A) remove or transfer such suit, action or proceeding to any 

other court or dispute-resolut ion forum without the consent of the FDIC; 

(B) assert that venue is improper in the Supreme Court of the 

State of New York, County of New York; or 

(C) assert that the Supreme Court of the State of New York, 

County of New York is an inconvenient forum; 

(iii) agrees to bring any suit, action or proceeding against the FDIC, in 

any capacity, arising out of, relating to, or in connection with this Agreement, the LLC Operating 

Agreement or any Ancillary Document in only either the United States District Court for the 

Southern District of New York or the United States District Court for the District of Columbia, 

and waives any right to remove or transfer such suit, action or proceeding to any other court or 

dispute-resolution forum without the consent of the FDIC, and agrees to consent thereafter to 

transfer of the suit, action or proceeding to either the United States District Court for the 

Southern District of New York or the United States District Court for the District of Columbia at 

the option of the FDIC; and 

(iv) agrees, if the United States District Court for the Southern District 

of New York and the United States District Court for the District of Columbia both lack 

jurisdiction to hear a suit, action or proceeding falling within Section 10.2(a)(iii), to bring that 

suit, action or proceeding in only the Supreme Court of the State of New York, County of New 

York, and waives any right to remove or transfer such suit, action or proceeding to any other 

court or dispute-resolution forum without the consent of the FDIC. 

(b) The Servicer, on behalf of itself and its Affiliates, hereby irrevocably and 

unconditionally agrees that any final judgment entered against it in any suit, action or proceeding 

falling within Section 10.2(a) may be enforced in any court of competent jurisdiction. 

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(c) Subject to the provisions of Section 10.2(d), the Servicer, on behalf of 

itself and its Affiliates, and the FDIC hereby irrevocably and unconditionally agrees that service 

of all writs, process and summonses in any suit, action or proceeding pursuant to Section 10.2(a) 

or Section 10.2(b) may be effected by the mailing of copies thereof by registered or certified 

mail, postage prepaid, to it at its address for notices pursuant to Article IX (with copies to such 

other Persons as specified therein); provided, however, that nothing contained in this Section 

10.2(c) shall affect the right of any party to serve process in any other manner permitted by law. 

(d) Nothing in this Section 10.2 shall constitute consent to jur isdiction in any 

court by the FDIC, other than as expressly provided in Section 10.2(a)(iii) and Section 

10.2(a)(iv) , or in any way limit the FDIC’s right to remove, transfer, seek to dismiss, or 

otherwise respond to any suit, action, or proceeding against it in any forum. 

Section 10.3 Waiver of Jury Trial . EACH OF THE PARTIES HERETO, FOR ITSELF 

AND EACH OF ITS AFFILIATES, HEREBY IRREVOCABLY AND UNCONDITIONALLY 

WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE 

ARISING OUT OF OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY 

SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY. 

AR TIC L E XI
 

M ISCELLANEO US
 

Section 11.1 No Assignment by Servicer; No Transfer of Ownership Interests in 

Servicing Rights . 

(a) The Servicer hereby acknowledges that this Agreement constitutes a 

personal services agreement between the Manager and the Servicer. Any of the following shall 

constitute an assignment for all purposes of this Agreement: (a) any merger, consolidation or 

dissolution involving the Servicer or (b) any transfer or all or substantially all of the assets of the 

Servicer, notwithstanding whether any of the foregoing transactions occur at one time or in the 

aggregate over a period of time. The Servicer shall not assign any rights or obligations 

hereunder to any other Person other than as is expressly provided in this Agreement. Any 

purported sale, sub-participation or assignment or delegation in violation of this Section 11.1(a) 

shall be void ab initio and of no force or effect whatsoever. 

(b) Under no circumstances shall the Servicer (i) transfer to any Subservicer 

or any other Person any ownership interest in the servicing of the Loans or any right to transfer 

or sell the servicing to the Loans (other than in connection with the sale of any Loan), or (ii) 

assign, pledge or otherwise transfer or purport to assign, pledge or otherwise transfer any interest 

to any Subservicer or other Person in the servicing of the Loans (other than in connection with 

the sale of any Loan). Any purported assignment, pledge, delegation or other transfer in 

violation of this Section 11.1(b) shall be void ab initio and of no force or effect whatsoever. 

Section 11.2 Legal Fees. No party to this Agreement shall be responsible for the 

payment of the legal fees or expenses incurred by the other party hereto in connection with the 

negotiation and execution of this Agreement or any subseque nt modifications or supplements 

hereto. 

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Section 11.3 Entire Agreement . This Agreement contains the entire agreement between 

the Manager and the Servicer and supersedes any and all other prior agreements, whether oral or 

written, with respect to the subject matter hereof. 

Section 11.4 Counterparts; Facsimile Signatures . This Agreement may be executed in 

two (2) or more counterparts, each of which shall be deemed an original but all of which together 

shall constitute but one and the same agreement. This Agreement and any amendments hereto, 

to the extent signed and delivered by facsimile or other electronic means, shall be treated in all 

manner and respects as an original agreement and shall be considered to have the same binding 

legal effect as if it were the original signed version thereof delivered in person. No signatory to 

this Agreement shall raise the use of a facsimile machine or other electronic means to deliver a 

signature or the fact that any signature or agreement was transmitted or communicated through 

the use of a facsimile machine or other electronic means as a defense to the formation or 

enforceability of a contract and each such Person forever waives any such defense. 

Section 11.5 Headings . Paragraph titles or captions contained in this Agreement are 

inserted only as a matter of convenience and for reference and in no way define, limit, extend or 

describe the scope of this Agreement or the intent of any provisions hereof. All Section and 

paragraph references contained herein shall refer to Sections and paragraphs in this Agreement 

unless otherwise specified. 

Section 11.6 Compliance with Law . Except as otherwise specifically provided herein, 

each party to this Agreement shall, at its own cost and expense, obey and comply with all 

applicable Laws, as they may pertain to such party’s performance of its obligations hereunder. 

Section 11.7 Severability. Any provision of this Agreement which is prohibited or 

unenforceable in any jurisdiction shall be ineffective, but such ineffectiveness shall be limited as 

follows: (i) if such provision is prohibited or unenforceable in such jurisdiction only as to a 

particular Person or Persons and/or under any particular circumstance or circumstances, such 

provision shall be ine ffective, but only in such jurisdiction and only with respect to such 

particular Person or Persons and/or under such particular circumstance or circumstances, as the 

case may be; (ii) without limitation of clause (i), such provision shall in any event be ineffective 

only as to such jurisdiction and only to the extent of such prohibition or unenforceability, and 

such prohibition or unenforceability in such jurisdiction shall not invalidate or render 

unenforceable such provision in any other jurisdiction; and (iii) without limitation of claus es (i) 

or (ii), such ineffectiveness shall not invalidate any of the remaining provisions of this 

Agreement. Without limitation of the preceding sentence, it is the intent of the parties to this 

Agreement that in the event that in any court proceeding, such court determines that any 

provision of this Agreement is prohibited or unenforceable in any jurisdiction (because of the 

duration or scope (geographic or otherwise) of such provision, or for any other reason) such 

court shall have the power to, and shall, (x) modify such provision (including without limitation, 

to the extent applicable, by limiting the duration or scope of such provision and/or the Persons 

against whom, and/or the circumstances under which, such provision shall be effective in such 

jurisdiction) for purposes of such proceeding to the minimum extent necessary so that such 

provision, as so modified, may then be enforced in such proceeding and (y) enforce such 

provision, as so modified pursuant to clause (x), in such proceeding. Nothing in this Section 

11.7 is intended to, or shall, limit (1) the ability of any party to this Agreement to appeal any 

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court ruling or the effect of any favorable ruling on appeal or (2) the intended effect of Section 

10.1. 

Section 11.8 Third Party Beneficiaries . The Initial Member shall be and is hereby 

designated as a third party beneficiary under this Agreement, and, as such, the Initial Member is 

entitled to enforce this Agreement as if the Initial Member were a party hereto. The Company, 

the Purchase Money Notes Guarantor, and the FDIC shall be and are hereby designated as third 

party beneficiaries under this Agreement with respect to those provisions of this Agreement 

which expressly grant rights to such Persons, and, as such, each is entitled to enforce such 

provisions of this Agreement as if such Person were a party hereto. Notwithstanding the 

foregoing, none of the Purchase Money Notes Guarantor, the FDIC, the Company and the Initial 

Member shall have any obligation to undertake any of the duties of the Manager hereunder and 

or have any liability whatsoever to the Servicer, any Subservicer or any other party related to this 

Agreement. There shall be no other third party beneficiaries. The rights of the Purchase Money 

Notes Guarantor as a third party beneficiary hereunder shall terminate at such time as the 

Purchase Money Notes Guarantor notifies the Servicer that the reimbursement obligations in 

favor of the Purchase Money Notes Guarantor under the Reimbursement, Security and Guaranty 

Agreement have been paid in full, but shall be reinstated in the event that the Purchase Money 

Notes Guarantor party notifies the Servicer that such obligations have been reinstated in 

accordance with its terms. 

Section 11.9 Protection of Confidential Information. The Servicer shall keep 

confidential and shall not divulge to any party, without the Manager’s prior written consent, any 

information pertaining to the LLC Operating Agreement, the Loans or any Borrower or Obligor 

or the Underlying Collateral thereunder, except as required pursuant to this Agreement and 

except to the extent that it is necessary and appropriate for the Servicer to do so in working with 

legal counsel, auditors, taxing authorities, regulatory authorities or any other Governmental 

Authority or in accordance with the Servicing Standard; provided, that, to the extent that 

disclosure should be required by law, rule, regulation (including any securities listing 

requirements or the requirements of any self-regulatory organization), subpoena, or in 

connection with any legal or regulatory proceeding (including in connection with or pursuant to 

any action, suit, subpoena, arbitration or other dispute resolution process or ot her lega l 

proceedings, whether civil or criminal, and including before any court or administrative or 

legislative body), the Servicer will use all reasonable efforts to maintain confidentiality and will 

(unless otherwise prohibited by law) notify the Manager and the Initial Member and the Purchase 

Money Notes Guarantor within one (1) Business Day after its knowledge of such legally required 

disclosure so that the Manager, the Initial Member and/or the Purchase Money Notes Guarantor 

may seek an appropriate protective order and/or direct the Manager to waiver the Servicer’s 

compliance with this Agreement. Notice shall be by telephone, by email and in writing. In the 

absence of a protective order or waiver, the Servicer may make such required disclosure if, in the 

written opinion of its outside counsel (which opinion shall be provided to the Manager, the Initial 

Member and the Purchase Money Notes Guarantor prior to disclosure pursuant to this Section 

11.9), failure to make such disclosure would subject the Servicer to liability for contempt, 

censure or other legal penalty or liability. 

Section 11.10 Time of Essence. Time is hereby declared to be of the essence of this 

Agreement and of every part hereof. 

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Section 11.11 No Presumption . This Agreement shall be construed fairly as to each 

party hereto and if at any time any such term or condition is desired or required to be interpreted 

or construed, no consideration shall be given to the issue of who actually prepared, drafted or 

requested any term or condition of this Agreement or any agreement or instrument subject 

hereto. 

Section 11.12 No Right of Setoff . The Servicer hereby waives any and all rights it may 

otherwise have (whether by contract or operation of Law or otherwise) to any setoff, offset, 

counterclaim or deduction (or to assert any claim for any setoff, offset counterclaim or 

deduction) against the Loan Proceeds (or the Company). 

Section 11.13 Release of Initial Member and Others . The Servicer hereby releases and 

discharges each Prior Servicer from any and all claims (including any counterclaim or defensive 

claim), demands, causes of action, judgments or legal proceedings and remedies of whatever 

kind or nature that the Servicer had, has or might have in the future, whether known or unknown, 

which are related in any manner whatsoever to the servicing of the Loans or Underlying 

Collateral prior to the applicable Servicing Transfer Date by the Prior Servicers, in each case 

other than for acts or omissions constituting gross negligence, violation of law or willful 

misconduct of such Prior Servicer. 

[Remainder of Page Intentionally Left Blank] 

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Multibank Structured Transaction 2009-1 CML-ADC 

Servicing Agreement 

60866260_8 
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed 

as ofthe day and year first above written. 

MANAGER: 

RL CML 2009-1 INVESTMENTS, LLC 

SERVICER: 

QUANTUM SERVICING CORPORATION 

By:._______________ 


Name: 


Title: 


[Signature Pag~ to Servicing Agr(l!Jment] 

Multibank Structured Transaction 2009-1 CML-ADC 

60866260 
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed 

as of the day and year first above written. 

MANAGER: 

RL CML 2009-1 INVESTMENTS, LLC 

By: _ _ --::- ---~--:--------- Name: Jeffrey P. Krasnoff 

Title: ChiefExecutive Officer 

SERVICER: 

QUANTUM SERVICING CORPORATION 

By:--==---:= 

Name: S e .y-r- t"IIA!f',tl./11"" 

Title: Pa'fl.rtPF.,.,..,.­

[Signature Page to Servicing Agreement] 

Multibank Structured Transaction 2009-1 CML-ADC 

60866260 
EXHIBIT A
 

LOAN SCHEDULE
 

OMITTED

A-1 

Multibank Structured Transaction 2009-1 CML-ADC 

Servicing Agreement 

60866260_8 
EXHIBIT B
 

ELECTRONIC TRACKING AGREEMENT
 

[NOT APPLICABLE]
 

B-1 

Multibank Structured Transaction 2009-1 CML-ADC 

Servicing Agreement 

60866260_8 
 

SCHEDULE 1
 

LIST OF VARIOUS FAILED FINANCIAL INSTITUTIONS
 

COMMERCIAL ADC
 

Bank Name City State Fund Closing Date 

Columbian Bank and Trust Topeka KS 10011 August 22, 2008 

Integrity Bank Alpharetta GA 10012 August 29, 2008 

Silver State Bank Henderson NV 10013 September 5, 2008 

Freedom Bank Bradenton FL 10019 October 31, 2008 

Security Pacific Bank Los Angeles CA 10020 November 7. 2008 

Franklin Bank, SSB Houston TX 10021 November 7, 2008 

The Community Bank Loganville GA 10022 November 21, 2008 

First Georgia Community Bank Jackson GA 10025 December 5, 2008 

Haven Trust Bank Dulut h GA 10027 December 12, 2008 

Bank of Clark County Vancouver WA 10029 January 16, 2009 

1st Centennial Bank Redlands CA 10030 January 23, 2009 

MagnetBank Salt Lake City UT 10031 January 30, 2009 

FirstBank Financial Services McDonough GA 10036 February 6, 2009 

Silver Falls Bank Silverton OR 10041 February 20, 2009 

FirstCity Bank Stockbridge GA 10047 March 20, 2009 

Omni Nationa l Bank Atlanta GA 10048 March 27, 2009 

SCHEDULE 1 

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SCHEDULE 2
 

FEE SCHEDULE
 

SCHEDULE 2
 

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SCHEDULE 3 

SERVICING OBLIGATIONS 

Servicer will perform all duties related to the maintenance of all Loans on Servicer's loan 

servicing systems and will perform the servicing responsibilities specifically set forth below, in 

accordance with the Servicing Standards and subject to a more detailed responsibility matrix to 

be agreed upon in writing by Manager and Servicer: 

•	 Boarding of all Loans on loan servicing systems including all data (subject to 

such data being made available to Servicer) necessary to: 

o	 properly calculate principal and interest payments and all other amounts 

due and payable under the Loan Documents and invoice non-delinquent 

Borrowers for payment on a monthly basis from and after the relevant 

Servicing Transfer Date(s). 

o	 determine the balance of amounts posted to Borrower escrow accounts as 

transferred from the Interim Servicers. 

•	 Record changes in principal and other outstanding balances as necessary to reflect 

additional Funding Advances, capitalization of advances for Borrower expenses, 

as permitted under the Loan Documents, modifications of amounts due pursuant 

to executed legal documents, partial payments or pre-payments and/or other 

changes or corrections as directed from time-to-time by written authorization 

from the Manager. 

•	 Maintain records on loan system(s) of all known Underlying Collateral that is 

security for the Loans being serviced. 

•	 Ensure that, within sixty (60) days of the date on which a Loan is boarded, all 

Uniform Commercial Code (UCC) filings required to maintain perfection in any 

Underlying Collateral are properly maintained. 

•	 Post payments received from Borrowers to their Loan record and apply them to 

outstanding balances according to the pr iority as set forth in the Loan Documents 

and in conjunction with a posting waterfall based on account delinquency as 

mutually agreed by Manager and Servicer. 

•	 Remit by wire transfer all Loan related non-escrow cash collections over to the 

Collection Account maintained by the Custodian within 2 Business Days of 

acceptance. 

•	 Establish escrow accounts for all Loans, the funds of which are to be disbursed, 

with respect to delinquent or non-performing Loans, as directed by Manager. 

•	 For non-delinquent escrowed Loans, maintain Borrower escrow accounts in 

sufficient amounts as deemed necessary for the payment of insurances, taxes and 

other amounts as required for purposes of the escrow accounts as established, 

including making the appropriate disbursements timely and the performance of 

SCHEDULE 3 

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escrow analysis to determine the timing and amount to be paid by Borrowers into 

the escrow accounts for prompt payment of such amounts when due. 

•	 Monitoring the maintenance of required insurances by the Borrower on any 

Underlying Collateral and cause to be put into place any hazard insurance that the 

Borrower does not have in place in sufficient amounts as required by the Loan 

Documents or as deemed necessary based on what is customary for the area in 

which the Underlying Collateral is located. 

•	 Substituting each of the Manager and the Company as a loss-payee on all Loan 

related insurance on the Underlying Collateral. 

•	 Obtain tax contracts on all assets (at Manager’s expense) as instructed by 

Manager 

•	 For Loans with tax contracts, monitor the payment of real estate taxes on all 

Loans and ensure prompt payment of amounts due whether paid from Borrower 

escrow funds or as a property protection advance. 

•	 Make timely payments for any other expense to be paid on behalf of a Borrower 

on any Underlying Collateral deemed a property protection advance, subject to a 

Manager approval process to be established by mutual agreement of the Manager 

and the Servicer. 

•	 Tracking on a Loan level all such expenses and disbursements made for future 

billing or recovery from Borrower. 

•	 Produce tax forms and send to Borrowers as required by the IRS. 

•	 Prepare in connection with Manager and send to Borrower, correspondence for 

the following: 

o	 Goodbye/hello letters regarding transfer of ownership and servicing 

o	 Monthly payment invoicing on non-delinquent accounts 

o	 Escrow analysis on escrowed Loans 

o	 Payoff/estoppel letters 

o	 Other standard correspondence as required to meet the Servicer 

obligations in this Schedule 3, as requested by Manager 

•	 Provide Loan level reporting monthly, annually and at such other times and in 

such form and manner as reasonably requested from time to time by Manager (in 

electronic as well as hard copy to the extent practical) including but not limited to: 

o	 Monthly electronic report on the Loans detailing collections, 

disbursements, funding advances, payoffs, modifications, write-offs and 

transfers of Loans to real estate owned and such other information readily 

available as shall be requested by the Manager. 

o	 Loan trial balance as of the end of each month providing outstanding 

balances for all amounts due from Borrowers including a detail of all cash 

SCHEDULE 3
 

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transactions and other account adjustments that occurred for each 

Borrower dur ing the month. 

•	 Provide inquiry access at all times by Servicer to loan servicing system(s) or 

equivalent for Loan and Underlying Collateral information maintained thereon. 

•	 Maintain and register such Loans on the MERS System as are required to be so 

maintained and registered. 

•	 Provide dedicated inbound toll-free number for Borrower inquiries and contact 

•	 Route inbound calls to the appropriate asset manager of Manager or as otherwise 

instructed by Manager 

•	 Provide Manager access to, and training with respect to, loan servicing, asset 

management and document management system(s) and, to the extent required, 

providing licenses to Manager related thereto. 

•	 Mutually develop process to deliver hard copy or imaged servicing files to asset 

managers of Manager at remote offices, or as otherwise instructed by Manager. 

•	 Manage trailing documents and capture into the imaged or hard copy servicing 

files 

•	 Manage all inbound tax and insurance correspondence 

Servicer will perform the following function as requested by Manager upon mutual 

agreement of fees: 

•	 Recalculate the principal balance, accrued interest, default interest, late fees and 

all other amounts shown as outstanding as of the Cut-Off Date based on the Loan 

Documents and the re-application of historical payments made by the Borrowers 

to date. 

Servicer will perform such other services and/or functions and prepare such other 

documentation as may be requested by Manager and accepted by Servicer and upon 

mutual agreement of fees for such services, which when agreed upon will be added to 

Schedule 2. 

Notwithstanding anything in the Servicing Agreement to the contrary, the Servicer will 

only be performing the services and taking the actions specifically set forth on this 

Schedule 3 and such other services and/or actions as shall be agreed upon in accordance 

with the preceding paragraph and any references in the Servicing Agreement to other 

services or reporting requirements with respect to such services shall not be applicable to 

Servicer. In the event of a conflict between the provisions of this Schedule 3 and the 

Servicing Agreement, the limitations and restrictions set forth in this Schedule 3 shall 

prevail. 

Servicer shall have no obligation to advance any funds to pay for any expenses or 

obligations of any Borrower, the Company or the Manager or to pay for any Servicing 

SCHEDULE 3 

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Expenses, including, without limitation, any Servicer Advances, or Funding Draws. Any 

and all such draws, advances and expenses will only be incurred at such time as Manager 

has provided the funds to incur such expenses and/or to make such advances, or as 

otherwise, and in a manner, mutually agreed to by Manager and Servicer. 

For the purposes of the services set forth on this Schedule 3, the defined term Servicing 

Standards and the standard of care to be used by the Servicer in connection with Loans 

and/or REO Properties shall be as defined in the Servicing Agreement without reference 

to the Ancillary Documents and the LLC Operating Agreement and the servicing 

requirements set forth therein. To the extent that the consent of the Manager is required 

in connection with the services to be performed by Servicer under this Schedule 3, it shall 

be given or withheld in accordance with the Servicing Standard for the Manager as 

defined in the LLC Operating Agreement. 

For purposes of clarification of Section 2.5, the Servicer shall not be deemed to have 

received a loan payment for deposit into the Collection Account until it has accepted such 

payment which Servicer shall do only if it reasonably determines that the loan payment 

was properly made without condition or settlement endorsement and meets all payment 

acceptance conditions mutually agreed upon by Manager and Servicer. 

The Manager agrees to indemnify and hold the Servicer and its Affiliates, principals, 

officers, directors, trustees, representatives, employees, agents and any Subservicers, as 

and to the extent permitted under the Servicing Agreement (each a “Servicer Inde mnitee” 

and collectively the “Servicer Inde mnitees”) harmless from and against any and all 

claims, losses, costs and damages that any Servicer Indemnitee may incur or suffer in 

connection with (i) the Manager’s material breach or failure to act in accordance with the 

terms of the Servicing Agreement, (ii) specific actions or inactions of the Servicer 

Indemnitee at the Manager’s express direction, (iii) the performance by the Servicer of its 

duties to the extent such performance is in compliance with the Servicing Agreement and 

this Schedule 3 and (iv) claims raised after the Termination of the Servicer that do not 

relate to Servicer Indemnitee’s acts or failure to act. 

SCHEDULE 3 

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SCHEDULE 4 

REIMBURSEMENT OF SERVICER ADVANCES 

Servicer shall have no obligation to advance any funds to pay for any expenses or 

obligations of any Borrower, the Company or the Manager or to pay for any Servicing 

Expenses, including, without limitation, any Servicer Advances, or Funding Draws. Any and 

all such draws, advances and expenses will only be incurred at such time as Manager has 

provided the funds to incur such expenses and/or to make such advances, unless otherwise, and 

in a manner, mutually agreed to by Manager and Servicer. 

SCHEDULE 4 

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SCHEDULE 5 

FORM OF ELECTRONIC REPORT ON THE LOANS AND COLLATERAL 

The Form of Electronic Report on the Loans and Collateral shall contain such information fields 

as are maintained by the Servicer and required to be contained in (i) the Distribution Date 

Report, as set forth in the Custodial and Paying Agency Agreement, and (ii) the Monthly Report, 

as set forth in the LLC Operating Agreement. 

SCHEDULE 5 

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SCHEDULE 6 

TERMINATION WITHOUT CAUSE 

Pursuant to Section 7.3(a) of the Servicing Agreement, the Manager may terminate the Servicing 

Agreement, at any time, without cause, by providing Servicer with a Termination Notice at least 

90 days prior to the effective date of such termination. If the Manager elects to terminate the 

Servicing Agreement without cause (and for purposes of this Schedule 6 “without cause” shall 

include a termination caused by a default under Sections 7.1 (g) or (h) of the Servicing 

Agreement, unless arising out of a Default by Servicer under the Servicing Agreement) the 

Manager shall pay to Servicer a termination fee equal to 

SCHEDULE 6 

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SCHEDULE 7
 

BUSINESS PLANS AND CONSOLIDATED BUSINESS PLANS
 

None. It is not contemplated that the Servicer will prepare Business Plans or Consolidated 

Business Plans and Servicer shall have no obligation to prepare or submit Business Plans 

notwithstanding the provisions of Section 5.2(h) of the Servicing Agreement. 

SCHEDULE 7 

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